Research or Public Relations?

Research has traditionally been a one-sided endeavour. An organization decides to find out information on a particular product/service. They either perform this function internally or hire a research firm.

But times are changing. Organizations are now realizing that they need to identify what their customers want and how their employees view their role in the organization. This represents a major shift in the way we do business.

The most acceptable method of obtaining this information is to perform a customer survey or, in the case of identity how motivated your staff is, an employee survey.

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At this stage organizations approach their traditional suppliers – internal or external and give them the responsibility of conducting the research. Because time is at a premium and the organizations executives recognize the importance of having a third party perspective and leave the details to the experts.

Again, times are changing. Executives are recognizing the importance of survey – to identify solutions within their organizations. They understand the need to actively participate in the development of these surveys, prior to passing them on to their survey suppliers.

Here are some Issues to consider:

Before doing a full-scale research project, do a test or overview customer survey, to identify the key issues that should be addressed. You can’t fix everything at once, so zero in on what’s most important.

A third party or independent supplier offers your customers and staff a confidential way to voice their real views and opinions. Don’t waste time on what are not real issues.

Training has traditionally been broken down by subject matter – i.e. time

management, motivational seminars’ etc. The current trend is to do a needs analysis by surveying your customers or employees, then build the relevant training programs around the results.

Customers and employees appreciate that senior management has not lost touch

with their needs. So grab this opportunity and make sure that the “Captain of the Ship” authors the survey. By showing that the captain cares about customer and employee relations, credibility and added value will be gained.

Sales presentations have traditionally been one-sided affairs – “Let me tell you what a wonderful product/service we have for you…” Instead, asking your customers about their needs allow your sales staff to focus on ways to better serve them. The results are that you work together, as partners.

Do you want all the details, or just the facts? Busy executives are looking for the overall picture – a concise executive summary - rather than long, detailed reports. Don’t buy what you don’t need. www.opionnaire.ca

Determining the effectiveness of your customer and employee relations programs can be difficult. A survey will identify how programs are performing , and will establish a Benchmark to measure progress.

The bottom line, customer and employee surveys are much more than “just research”. They allow an organization to accurately access customer needs, as well as to discover ways to ensure that their employees are working effectively to meet those needs.

A recent survey by consulting firm Bain & Co., separates the fads in management tools from the systems that really pay off. After surveying 463 companies, Bain found that of 25 commonly used management tools, the two most popular were mission statements, with a whopping 94% usage rate, followed closely by customer surveys at 90%. Total Quality Management, or TQM, came in third with 76%. Bench making and re-engineering was next.

Customer surveys, the second most common tool, provided the most financial benefit . What matters most is applying the right tool to the right job.

Maintaining control of these projects is essential to the success of your enterprise. A properly conducted survey can serve as a springboard to increased sales and customer/employee relations. So are surveys research or public relations? www.opinionnaire.ca

Better Communications Equals Better Service

Motivational speaker Anthony Robbins says the quality of communications is equal to the quality of our life.

This statement also applies to the world of quality customer service when you consider that 94% of internal or external customer service problems are caused by faulty communications, according to a Dunn & Bradstreet report.

Your ability to communicate, which means listening, understanding, and responding to your customers’ needs in a manner that makes them feel that you truly care, will certainly make you stand out from the crowd. It will give your business a competitive edge. This is especially valuable in the 90’s reality of global marketing and multi-national companies operating in a global economy.

In this international marketplace, you may have to serve customers from around the world and also be competing with businesses around the world that are trying to take a share of your local customer base.

Shopping by mail, for example, a customer can flip through a mail-order catalogue and buy a computer from California or Mexico, by using 1-800 numbers, fax machines, or modems communicate with the seller as if they were in the same neighbourhood. Cable TV shopping channels, and free-trade agreements are other ways that the borders to competition are being eliminated.

Here are some tips to help you achieve effective communications with your customers:

• The first step toward open communications is eliminating negative emotions. You need to defuse your customers’ fears and anxiety before meaningful communications can begin, For example, a customer buying a VCR may be intimidated with the technology and therefore embarrassed to explain what they really want. By asking probing questions like “What feature do you want your VCR to have?” you help to build a relationship where the customer eventually will feel that they can trust you and your opinion.
• Listen to your customers and read the emotions between the lines. Do not make assumptions as to what your customer needs. Ask questions and confirm the answers.
• Allow your customers to talk freely. Create an atmosphere that is comfortable.
• Demonstrate your responsiveness by acknowledging your customer’ concerns and offer to solve their problem.
• Work to make the exchange with your customer pleasant and productive.

By employing better communications in your dealings with customers, you build customer loyalty. When you have earned the customers’ loyalty, they will be more inclined to buy from you first and give you referrals.

Communications is like good manners. Be polite and invite your customers to discuss their needs. Customers want respect. They want to tell you what their special situation is. Please don’t assume that you know what the customer wants – avoid jumping to conclusions. www.opinionnaire.ca

The Battle Lines are Drawn

Mr. Bob points out that the main focus of many businesses is to attract new customers. This has become a passion to the extent that a major portion of their budgets is spent doing this activity.

The question Mr. Bob raises is: "Where are those new customers before you go after them? Are they just hiding there?" Typically, they are buying from your competitor.

So in reality, you are trying to lure your competitor's customers to you. The advertising industry is a big supporter of this concept. To them, you need to spend money on programs that will bring you new customers.

Mr. Bob is puzzled. "Why would any reasonable person spend good money to get new customers, ignore his or her own, existing customers, and pay even more money to go after some other business's customers?"

If a business spends money to get a customer, then shouldn't there be a strategy to keep that customer, and get him or her to buy more of what the business offers? This would be a better way to spend limited advertising dollars.

Customers are making their stand, and many companies are not listening. It seems that many companies are stuck in the flat earth syndrome while most customers have moved forward in time to a new reality of a round earth. Customers are silently asking, "Why are Companies focusing on obtaining new customers, and ignoring us?"

Customers are now fighting back in the one way that makes a difference. "On average, companies now lose half their customers in five years" (Frederick F. Reichheld, The Loyalty Effect). But still, companies are stuck in the belief that obtaining new customers is the best way to grow a business.

Sid Ridgley, Customer Satisfaction specialist with Simul Corporation states, "Our Customer Satisfaction and Loyalty Surveys tell us there is good news and bad news about customer loyalty. About 2/3 of every business's Customers are at risk; that is, they are prepared to listen to another company's offer and frankly are not loyal. The good news is, about 2/3's of your competitor's customers are prepared to listen to your offer."

In Fabled Service by Betsy Sanders, there is an overpowering message that strikes home. In her book, she states the response to the question, "Why Do Companies Lose Customers?" as being: 1% died, 3% moved away, 5% were influenced by friends, 14% were dissatisfied with product, and 68% were turned away by an attitude of indifference on the part of a company.

So what is the bottom line? Instead of fighting the battle of exchanging customers, I recommend you spend a little less on new sales and retain more customers by spending more on the 68% you could potentially lose from indifference. At a fraction of the cost of obtaining new customers, you can show your existing ones that they are appreciated. Customers who feel appreciated spend more.

Do you have a system that promotes customer retention and rejuvenation? www.opinionnaire.ca

In summary:

• About 2/3 of every business' Customers are at risk
• On average, companies now lose half their customers in five years
• 68% loss of customers because of indifference
• Customers who feel appreciated spend more