Customer satisfaction

There are a number of ways to show return on investment from improving customer satisfaction. However, just aiming to improve customer satisfaction generally is not a good place to start and can be a waste of time and money.

The start point should be agreeing why you want/need to improve customer satisfaction. I recommend picking a very specific problem as it’s easier to develop an investment case decide on the actions to take and measure. For example if the problem is “losing too many existing customers” success can be measured by a reduction in the number of customers leaving. Multiplying that number by their average revenue and profit and you will see your specific return on investment.

Losing customers?

Most companies know how many customers they lose but don’t know why they lose them. A survey of customers and leavers will help answer that question. As a guide my experience and research shows that about 70% of customer leave due to a range of issues that can be classified as “customer satisfaction”. (Just one small point – don’t ask Sales why customers leave because they will mostly say price. In my experience of asking customers why they leave only around 20% say price.)

Resolving a problem like “losing too many customers” is very likely to improve customer satisfaction in other areas of the business too and will start to instil the habit of thinking from a customer’s point of view. This should also make it easier to get investment approval to solve the next customer satisfaction issue.

 

Blog: home                   Contact: Malcolm.wicks@3sc.co.uk

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