Customer Satisfaction Is a Leading Indicator of a Customer’s Intent to Return for Purchases and Services.
The relationship between customer satisfaction and financial performance is both direct and indirect. Satisfied customers impact profits directly through their willingness to remain customers for a longer period of time, purchase more during that time, and pay slightly higher prices for what they perceive as a premium product. Moreover, satisfied customers are also likely to be lower-maintenance customers, requiring fewer resources to serve, thereby indirectly decreasing the costs associated with service. Finally, satisfied customers may help create a “buzz” about a company’s products or services, which can help build and develop an existing customer base.
Understanding customer satisfaction is important to increasing financial performance in the immediate present and it can help organizations identify potential problems in specific departments or areas, and may provide useful information in strategic development. In this way, understanding the sources of customer satisfaction can increase the longevity of an organization. Information obtained from the customer can also alert an organization to changes in customer preferences, which can then be used to increase the quality of products or services offered. This type of information is often exactly what an organization needs to develop or maintain a competitive advantage.
NBRI’s Customer Satisfaction Surveys explore the relationship between satisfaction and a variety of perceptions, such as: company image, customer service, ethics, communications, value, and product/service offerings. The best data comes from surveys that are aligned with current operating conditions and target specific organizational concerns, yet allow organizations to compare their own performance with that of their competitors. This type of assessment allows an organization to understand what customers want right now, whether those needs are being met, and the areas in which they lag behind their competitors. In this way, a well-designed survey yields rich and actionable data that can substantially bolster organizational performance.
So what does the structure of a well-designed Customer Satisfaction Survey look like? Typically good customer satisfaction surveys are comprised of approximately 15-30 scaled questions. Scaled questions are those items that have a response chosen from a range of values, like 1 to 6. Scaled questions permit quantification of responses, which can ensure precise measurements of customer opinions. As a result, the relationship between these items can be explored. Finally, a well-designed customer satisfaction survey will typically have customized questions relevant to specific conditions or product/service offerings.
By tailoring a survey to meet your organizational needs, NBRI can accurately identify the leading root causes of your customers’ buying behaviors, regardless of product, service, industry or market. NBRI does this through our ClearPath Analytics, which accurately identify what factors are most strongly associated with overall levels of satisfaction. This type of research gives your organization a clear understanding of what it must do to improve customer experiences in the future.
Our ClearPath Action helps your organization begin that change process. This process uses a grassroots approach, soliciting employees to address customer satisfaction levels by focusing on identified root causes. Ultimately, with ClearPath Action, you are primed to address and manage root causes, increase sales and financial performance, and ensure sustained customer relationships in the future.
By working with NBRI to survey customer satisfaction levels, you will see improvements in several areas, such as:
- Customer engagement.
- Definition of performance objectives.
- Customer loyalty.
- Measurement of opinions surrounding new products or services.
- Demonstration of a customer-centric focus.
When you hire NBRI, you’re hiring more than a company to conduct survey research. You’re hiring a business partner with a sincere interest in the health and success of your company.
Give us a call. We’re confident that you’ll find us a valuable partner capable of fulfilling your survey research needs, and exceeding your expectations.
Case Study: Customer Satisfaction Survey
For over a decade, a leading hotel chain engaged NBRI to conduct its employee engagement surveys. After an economic downturn in their business, they anticipated a disastrous short-term financial picture and wanted to take action immediately. For that reason, they contacted NBRI to see if they could also retain our expertise for a customer survey.
By investing a small amount of money to implement customer satisfaction surveys, they were able to gain vital information on the changing mindsets of their customer base. Insights that gave them a competitive edge and the potential to gain millions of dollars of business.
NBRI recommended a standard customer satisfaction survey, which was customized for the client. This survey asked respondents to rank items in order of importance before rating the client’s performance on those same items. The survey was deployed to a small, stratified, random sample of customers to ensure the data gathered was truly representative of the thinking of the entire clientele. Ultimately, the hotel chain was able to obtain a 99% Confidence Level, but at a fraction of the cost of surveying everyone.
The study revealed a very different root cause of customer satisfaction than what was initially anticipated by the client. Somewhat surprisingly—price was not the primary driver of the customers’ intention to return to the hotel. Furthermore, concerns about the expense of air travel had less of an influence on hotel patronage than expected.
In fact, NBRI’s ClearPath Analytics revealed that friendliness of the staff was the primary driver of the customer experience. This was a very important finding for a hotel chain that was considering adopting more cost-cutting measures. Per NBRI’s recommendations, the client proactively leveraged this crucial information to develop measures to increase the quality of the guest-employee relationship. This recommendation was later validated by an increase in revenue-per-guest, a very important gain in any economy.
Once again, NBRI’s ClearPath Analytics demonstrated the ability to yield prudent recommendations that allowed an organization to increase its competitive edge and financial returns.
Customer Service Surveys
Take an in-depth look at your customer service personnel, your sales assistance personnel, your warranties, your website, and all ground-level customer interaction.
Customer Loss Review Surveys
Identify the root causes of why customers leave so that direct action can be taken to stop the devastating effects of customer loss.