Employers Association: Customer Surveys: An Investment in Retained Customers

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Human Resources
Dura Supreme, Inc.

Customer Surveys: An Investment in Retained Customers

Lisa Stock, Human Resources Consultant

We've all heard the adage, "You can't manage what you don't measure." Measuring customer satisfaction is important for a variety of reasons, but most importantly satisfied customers tend to purchase more products/services and are more loyal to their brand. Customer surveys are an effective and efficient way to gather useful data about what customers think about your products and services.

In addition, research has found that:

It costs approximately five times as much to obtain new customers as it does to retain existing customers. During tough economic times it is more important than ever to maximize the return on investment of time and effort.
Most unhappy customers don't tell the organization, they tell others. TARP, a customer research firm, found that unhappy customers will tell 10 people about their bad experience. These 10 people, in turn, will tell five more people. This means that at least 60 people will hear about one dissatisfied customer's experience! Not only current customers but also potential customers could be convinced not to use your products or services. When organizations are competing for customers just to survive, the impact of customer dissatisfaction can be devastating. Customer surveys help organizations identify issues that need fixing, thus resulting in happier customers and better retention.
"Totally satisfied" customers have a repurchase rate that is three to 20 times higher than that of "somewhat satisfied" customers. This is documented by research at Xerox and in other industry studies. (All or Nothing: Customers must be "Totally Satisfied", Steve Lewis, Marketing News, Chicago.)

The current economic conditions have led many organizations to cut spending. However customer satisfaction surveys often pay for themselves in revenue from retained customers. This may be the perfect time to get feedback and help you understand what your customers value most and where you can improve to help ensure higher levels of customer satisfaction.

EA has a customer survey service, CustomerScan. We can help you design, develop, administer, and analyze customer satisfaction surveys. For additional information, visit our website at www.employersinc.com or contact Lisa Stock at lisas@employersinc.com or 763-253-9151.

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