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Crib Sheet Is Key To
Straight 'A' Performance

Buying the answers may have been grounds for dismissal in school, but it’s a surefire way to win in business.

by Ann Amati


 

I have a friend who teaches sixth grade Language Arts. One of the disciplines she teaches is spelling. Each Monday she writes ten words on the board, turns to her students and says, “These are the answers to Friday’s test.”

Isn’t school great? You’re told what’s expected of you. It’s either handed to you or you’re told exactly where to find it. If you make a mistake, there is someone there to correct you immediately—someone who really wants to see you score 100% all the time. The best thing is, you always know where you stand and how you were judged. If you want to improve, all you have to do is apply the lessons that are handed to you.

Why can’t business be that clear? It’s hard to know where we stand with our customers and why—especially with our external customers. Why do they buy from us? Just how loyal are they? What factors are we being judged by? What changes could we make to strengthen the relationship? How can we review the answers to the test in advance?

How? Ask. Your customers will tell you, but unlike in school where it was the teacher’s job to hand you information, now you have to ask for it. In college it was an infraction to buy the answers to the test in advance. In business, it’s smart. Whether you buy with the opportunity cost of your internal resources or with dollars paid to an external resource, take the initiative and ask your customers. During the heyday of TQM, lots of businesses conducted some form of customer satisfaction surveying. As the bloom fell off the TQM rose, most companies’ surveying programs ended. But customers grade you whether you studied for the test or not.

Ask whom? Well, who is important to you? The answer will vary based on the kind of business you’re in. A firm with a relatively small number of customers may want to ask each account. A firm with a large number of non consumer accounts may want to ask the accounts that represent 50% to 80% of annual revenue. A firm with a large number of small commercial or consumer accounts may want to ask a cross-section: random, selected by key demographic, or selected by buying pattern.

Ask what? What do you want to know? This is an important point: There are no rules about what to ask. Think about what you want to know and how you would use that information if you had it. Now, ask that. Take care not to ask for feedback about practices you aren’t going to change. For example, if you know your billing system is antiquated but you don’t plan to install a new one in the foreseeable future, don’t ask for feedback about your billing system. The reason is, once someone has given you what they consider to be useful information, they expect you to act on it. This is especially true if you have gone out of your way to ask for it.

Ask when? The timing of your survey can be event-driven, calendar-driven, or spontaneous. Event-driven is best when you have a distinct cycle of events with your customers. An example of an event is the initiation of a project

 

or project milestones. Product delivery and product servicing are other events that can drive the timing of a survey. So can internal strategic planning cycles. Calendar-driven is best when you have an ongoing relationship with your customers or a large quantity of transactions over an extended period. You might choose an annual checkup or a more frequent schedule if you’re imposing a lot of change on your customers. Spot checking with spontaneous surveys is useful when you’re trying to verify the effectiveness of an operational or personnel change.

Ask how? There are many methods of asking for feedback. They include written surveys, telephone surveys or interviews, face-to-face interviews and group meetings, such as focus groups. Each has its strengths and weaknesses. Written surveys can be inexpensive, but the response rate is often low, and the participants are largely self-selected. Those who don’t want to bother with your survey may be the people you could learn the most from. A well-designed telephone survey can give you priceless information from exactly those you want to hear from, but they can be resource intensive whether conducted in-house or contracted out. Similarly, well-designed face-to-face interviews and focus groups can also give you priceless information, but they are even more resource intensive if conducted on a large scale. (Retailers usually overlook telephone and face-to-face interviews. That’s unfortunate. As retail consumers, we can all think of examples of feedback we’d be happy to give if the retailer would make it painless for us.)

Be careful not to make your relationship worse by opening a can of worms you can’t manage. If you’re conducting an interactive survey (telephone, face-to-face or focus group), at the very least be prepared to deliver a noncommittal acknowledgment that you heard something you weren’t expecting to hear. People hate to be ignored. If you take their feedback and fail to address it, you’re in essence saying you don’t care how they feel. You don’t have to promise to fix the problem. The customer might just be saying, “Hear me,” not necessarily, “Obey me.” Of course, if you can fix the problem, do so!

In short, ask what you want to know of those who have the information. Time your inquiry to maximize the value of what you learn. Use a method that delivers the highest return, and be willing to invest what it takes to ask for the answers to the test.

Finally, many companies talk about customer satisfaction surveys, but few actually conduct them. Fewer still conduct them well and use what they learn. You will stand out by merely making the effort, and you stand to deepen customer loyalty by demonstrating that you master each lesson.

This article first appeared in the Spring issue of Tips From the Top.

Ann Amati, Principal, Deliberate Strategies Consulting, helps companies in business-to-
business sales increase revenues.



 

Contact:

 

 

Ann Amati, Principal
Deliberate Strategies Consulting
Joseph Vance Building
1402 Third Avenue, Suite 828, Seattle
(206) 624-6497

 
 


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