Customer Satisfaction Pays Dividends

customer satisfaction small business

 

 

Converting Your Business to Get Repeat Customers

So how do you start or convert your business into one of these customer-focused organizations that can build its success with more repeat and referral business?

Measuring this change is important, and using some form of customer satisfaction survey is usually the best way, but customer satisfaction surveys cannot stand alone. One method our firm uses is conducting short, simple, five- to seven-question surveys about important customer focused activities that need to happen.

The survey always ends with the Ultimate Question.

customer satisfaction small business

“The Ultimate Question 2.0” by Fred Reichheld is a book that tells the story and builds some science around this business issue of measuring customer satisfaction.

As it has always been, if we learn from a customer response survey and take action based on what the customer wants, we can grow our business without spending more on advertising. This even works for internet giants like Zappos, which made buying shoes online so amazing that people started telling their friends about it.

In “The Ultimate Question 2.0” the science is behind a formula that produces the Net Promoter Score, the net result of people who would promote your business on their own free will based on great experience, minus those who would not do business with you again or complain about their experience. Hence, the Net Promoter Score.

How does this make more money for your business?

Imagine a scenario where you only have 25 percent of your customers referring your business to their friends and family and 25 percent complaining.

The remaining 50 percent are on the fence and have no feelings either way. Your Net Promotion from customers would be zero. It would be a totally different scenario if you could turn 50 percent of your customers into promoters with only 10 percent ranking as detractors and the other 40 percent scoring in the neutral zone.

How much more business could you be doing? How much could you save in advertising dollars? What would this do to net profit on your financial statement?

As a business person this is something you should definitely be paying more attention to.

Related articles:

Rethinking Customer Engagement

Customer Service: Smaller Is Better 

Customer Service Still Matters

Smart Companies Listen and Respond to Customers

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About the author

Jaime "“Jim”" Hernandez

Jaime “Jim” Hernandez, is president of Strategic Business Communications, Inc. which ranked #4122 in INC magazine’s Fastest Growing Companies in America. He contributes a column about marketing for Latin Business Today. A motivational speaker, marketing consultant and trainer, Jim has worked with more than 30 businesses in the U.S. and abroad. He is a member of the National Advisory Board of MYM, and has been a guest lecturer on sales and marketing at the University of San Diego.

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