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Toolkit for success: Customer feedback

Small Business BasicsIt's a truism for almost any business: You will hear from customers only when something goes wrong.

It might be less true for a fast food restaurant on Interstate 95 that caters to travelers -- its customers come and quickly go, probably forever.

Most businesses, however, covet repeat customers. Another business truism holds that 70 percent of your business comes from 20 percent of your customers. Those numbers may not be exact, but the principle is correct.

Listen to your customers
Customers offer valuable knowledge about the quality of your service or product, your advertising, your staff and whether their needs are being met. It's worthwhile to hear it -- even when the answers you get make you flinch.

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Customer surveys are the time-honored way to gather those answers. These surveys can be plain or fancy, and can cost several thousand dollars if outside specialists are called for help. Here, however, we will consider three simple tactics for measuring success through your customers -- face-to-face contact, postcard surveys and incentive advertising.

Face-to-face contact
Through signs posted on your premises and employee training, encourage customers to speak up if something needs improvement. You may get an earful, but you'll get a handle on the problems customers see, too.

One result may surprise you: There will be a pickup in compliments. Customers encouraged to communicate their problems are also more likely to note the good things, too.

Postcards
Postcard surveys let customers express themselves anonymously, so they'll be freer to say something they might not say to your face.

Naturally, you will need to get the card in their hands. Hotels and restaurants have been doing it for years -- they simply slip one into the room or into your bill.

You can do the same at any point-of-service exchange, however. If you have a walk-in business, for example, hand out postcards when conducting the transaction.

Make sure it is postage-paid. If they have to pay postage to tell you what they think, you won't be picking up very much mail.

On the survey, ask simple questions about the customer's satisfaction with your product or service. Through your questions, examine the different moments of the transaction. How was the shopping experience? How was the buying experience? Did your product continue to work as promised? How was the service? Ask also for suggestions on improving their buying experience and anything else you deem relevant to your type of business.

Don't ask for a name, address or phone number. Many people don't want to be identified if they have something bad to say.

Coupons
While other forms of feedback tell you what customers think, coupons help you figure out where they are.

As part of your advertising campaign, add discount coupons in the community newspaper. For radio campaigns, have the host say, "Tell them Johnny sent you and you'll get a 10 percent discount."

If the newspaper coupon works in the community paper that serves one neighborhood, you know that's where your customers live. And if hear "Johnny sent me" a lot, you know they listen to Johnny.

Knowing what your customers read and listen to will help you more precisely target your future advertising campaigns.

 

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