When It Comes to Customer Relationship Management, It's The 'Why' That Matters - Learn How to Leverage Online Surveys for Greater CRM
In today's highly competitive marketplace, business owners are continuously forced to act quickly in order to increase profits, create effective customer acquisition programs and reduce customer defection. While much attention has been placed on selection and installation of customer relationship management (CRM) systems in order to bolster their customer acquisition and retention efforts, an equally important question has gone unanswered. Why? Why has a customer chosen to do business with you, or equally as important, why did a prospect not choose to do business with you?
Although CRM solutions are adept at delivering valuable quantitative data that helps an organization characterize a customer and answer questions such as who, what, when, where, and how much, these solutions are incapable of providing insight into the 'why' of the relationship. Without understanding 'why' a customer chooses to do business with your company, it is virtually impossible to know what keeps them loyal to you, and what needs to be done to garner greater profits from them. While CRM systems are great at handling the account and transactional data, organizations are turning to online surveys as a cost effective and immediate way to ensure that the data on 'why' customers have a relationship with them is current and up to date.
For example, in the ultra competitive insurance industry, executives are continually faced with increasing competition and an overarching objective to increase their efficiency/cross-sell opportunities and improve their ability to evaluate risk. To differentiate themselves from their competitors, many companies are working to develop more innovative offerings, in addition to their traditional commercial business and personal insurance products. Web surveys can play a pivotal role in the insurance value chain by capturing actionable information from every link including agents, brokers, adjusters, clients, and partners that can then be translated into key actionable business initiatives and processes. Insurance executives can utilize results from web survey technology to incorporate the voice of the customer into business decisions to optimize marketing decisions, speed product development, drive process improvements and answer the elusive question of 'why'.
Web-based surveys continue to take on a strategic and instrumental role in the customer life-cycle process regardless of industry as it enables companies to gain valuable feedback, and hear the 'voice' of the customer. While traditional research methodologies have provided this 'voice', a new dimension in efficiency is achievable by simply integrating web survey technology into the existing CRM and HR information systems infrastructure. While technology simplifies this process, it does not guarantee success nor does it create a corporate-wide 'feedback culture'.
Best Practices for Online Surveys - A Five Step Process
Creating a survey whose results provide an organization with quality and accurate information to make sound business decisions, is more difficult than most people realize. Typical questions an organization faces when embarking on a survey tend to fall into five areas, with each step being critical to the success of the project:
1. Determine the Business Process
The survey designer is faced with many important questions that need to be addressed about the content and design of the survey and require consensus from all members of the team prior to execution. So, before embarking on the survey design, users need to determine the business objectives and answer questions such as:
These questions are important to the design of any type of survey, whether it be a customer satisfaction survey, a product evaluation survey, an employee attitude survey or a program evaluation survey. Determining who the key stakeholders are if a similar survey has ever been conducted before and how the results will be used are questions that should be asked well in advance of the survey design as they will be key to determining the business purpose.
2. Design the Survey
The most important part of the five step process is designing the survey. Good survey design ensures that you are able to get the results your organization needs. Some of the steps, although simple, are often overlooked which results in significant reductions to response rates. To be successful, users should:
Another factor in designing the survey is to determine a rating scale. Scales are critical to the success of your research. Well designed scales are easy to understand and accurately represent the respondent's true attitude, preference or opinion. However, two or three point scales are traditionally not distinct enough to rate the importance of various attributes. For instance, scales with 4 - 8 points provide far more insight into the subtle distinctions and value of an attribute. Clear and well thought out rating scales, as well as clearly defined instructions are key to minimizing rating errors.
3. Select the Sample
A sufficient sample size is an important requirement for a successful survey. If the sample size is too small, erroneous conclusions are possible. For example, a researcher may make a conclusion that no differences between groups exist when in fact they do exist but were undetectable from the insufficiently large sample size.
4. Implement the Survey
Response rate is the single most important indicator of how much confidence can be placed in the results of a survey. A low response rate can be devastating to the reliability of a study; therefore, testing your survey is essential. What may seem obvious to the survey author may be completely unclear to the typical receiver. Or worse, a difficult question will be misunderstood or skipped and a difficult to understand survey is most certainly destined to be thrown away.
So how does one go about increasing these rates? One of the most powerful tools for increasing response rates is to use follow-ups or reminders. Traditionally, between 10 and 60 percent of those who are sent questionnaires respond without follow-up reminders. However, these rates are too low to yield confident results, so the need to follow up with targets is imperative to the success of the survey.
Other things to consider are cost elements such as incentives, technical and telephone support, analysis and the distribution of the final report. Online surveys are gaining in popularity because they decrease some of the more costly elements such as consulting fees and data entry. They also provide a way to eliminate interviewer bias, often associated with phone or in-person surveys.
5. Analyze and Report the Results
The analyses of the survey responses should address two concerns, (1) the validity of the survey questions and (2) the substantive business issues that were the purpose of the survey. The validity of the questions can be assessed by examining the number of respondents who chose each response option. No single option should have more than 85% of the responses and none less than 5%. The business issues can be assessed by examining responses to individual questions and groups of questions on a single theme that are treated as separate measures. The inclusion of key demographics provides valuable opportunities for insightful subgroup analyses.
Reap the Benefits of Asking Why
While CRM systems can get an organization 90% of the way towards reaching its customer relationship management objectives, the systems do not answer the key question of 'why'. By taking the time to ask yourself the reason you need an online survey and by following the five simple steps mentioned above, you will be well on your way to answering the most crucial question of any CRM initiative - 'why' your customers do business with you and 'why' they choose to be loyal.
To read other articles by Survey Galaxy's guest authors or for more information or to discuss how online surveys can help you please contact email@example.com visit www.surveygalaxy.com - the quick, easy and cost effective way to do online surveys.