There is a lot of truth to the saying that you have to spend money to make money. Many Americans dream of having their own businesses, but the majority never follow through with that dream. Why? A lack of resources and opportunities? For many, yes, but another predominant reason is…

FEAR.

They fear their investment will not pay off.

The following article is a continuation of a series. If you have not read the previous posts I recommend that you do so.

How to Conduct a Survey - Intro
How to Conduct a Survey - Survey Basics

Step One - Creating the Survey
Should you do this by yourself or hire a professional firm to help? Most should seriously consider working with a survey research firm for something so critical. A relatively small investment to make sure that your research is successful may pay for itself many times over. Only you know the exact objectives and the exact requirements, but some help with the technicalities may be worthwhile.

Each customer is an investment and represents hours of marketing efforts and expenditures. Each customer lost represents an investment that is no longer reaping dividends. Having customers, not merely acquiring customers, is crucial for business success.

In an article in the Journal of Marketing Research titled “Defensive Marketing Strategy by Customer Complaint Management: A Theoretical Analysis” by Claes Fornell and Birger Wernerfelt, numerous successful marketing strategies are identified. According to the authors, one crucial feature of marketing strategy is the company’s ability to identify and influence the flows of customers in and out of its franchise and into and out of the market. Fornell and Wernerfelt identify these flows as consisting of:

1) additional customer entry to the market,

2) brand shifting or change of patronage,

3) customer market exit, and

4) changes in purchase frequency.