A major competitive advantage of successful companies is their ability to form deep, enduring customer bonds through a powerful brand image or a personal relationship. They understand that investing in research to forge a strong connection with customers will unlock the secrets to building a business with superior products and services, a secure revenue base, and enhanced opportunities for growth. They know their relentless focus on customers drives a highly positive return on investment (ROI):
5 Drivers of ROI from Customer Research
1. Better Decision-making
Customer thinking will be infused into your decision making process. This direct, unbiased and balanced feedback from customers will lead to more informed, better quality decision-making.
2. Revenue Growth
Customer research will typically uncover numerous new cross-selling revenue opportunities, ideas for new products and services and enhancements to key business processes.
3. Insulates Customers from Competitors
A customer research program will enable you to anticipate and resolve issues before they get out of control and you lose a customer. In the process, you will enhance overall customer satisfaction, deepen relationships and protect your customer base from competitive threats.
4. Provides a Forward-looking (Predictive) Indicator of your Business
Unlike revenue and other financial measures that are “backward-looking” indicators of business performance, customer feedback provides a “forward-looking” or predictive indicator of your future business stability. Low or declining levels of customer satisfaction provide an early warning signal of a potential decline in business even though current revenue is healthy.
5. Sends a Clear Message to Customers That You Care About What They Think
The simple act of soliciting their feedback lets customers know that their opinions count and that your firm cares enough to invest time and resources in listening to them.
Colin Wahl, Founder & CEO