February 1, 2010

It’s Too Expensive Not to Understand Your Customers...If you’re in business, every time customers or potential customers interact with you, they make an assessment of the quality of the service or product you provide. This is true regardless of whether you compete with others or are in an industry with seemingly no competition.

During an economic slump or crisis, customer research is often one of the first items on the chopping block. This, though, is short-sighted. One small element of actionable information can have significant financial implications and can critically impact the success or failure of a business. It’s just too expensive not to know what your customers think.

Customers have an internal set of criteria for judging an enterprise. This criteria may include how quickly a service is rendered, how much a product or service costs, what happens when something unexpected happens (the car accelerates dangerously all by itself, the flight is canceled, the merchandise is “out of stock.”)

Research sets a solid foundation for performance benchmarking, allowing companies, like yours, to track trends in customer satisfaction.

One of the best ways to avoid costly mistakes is to develop a philosophy of “asking your customers.” What do they need? How satisfied are they with the services you provide? What can you do to improve? How quickly do you provide service? Is this fast enough? How do your customers evaluate your company in terms of safety and reliability? How much do they trust your explanation and solution when a problem occurs? How does what you offer measure up to competitive offerings?

Obtaining benchmark customer information is an essential first step. Knowing what customers think and want provides the foundation for developing and prioritizing operational improvement plans. Which items need major retooling? Which just require minor adjustments? What strengths do we have that we can leverage to achieve other desired outcomes?

This data should also become the foundation of your strategic communication plan targeted to reach your key constituencies: customers, community leaders, employees, regulators and the media. What did you learn about the needs and wants of your customers that can be translated into enhanced satisfaction levels. Collecting information is only the first stop on the road to success; putting the information to use and developing loyal customers is the destination.

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