May 2006

Ask, Analyze & Act

This newsletter offers insights on how organizations can better understand their clients to deepen relationships, grow revenue and enhance loyalty.
 
Poorly conducted client research can be worse than not doing it at all. To help get it right, keep in mind the 3A's:

1. Ask the right questions:

• Positioning/Image: What thought comes to mind when a customer thinks of our firm?
• Awareness: To what degree are customers aware of our complete product line-up?
• Distinctiveness: How do customers perceive our point of difference versus our competitors?
• Value Proposition: Do customers feel we add measurable value to their business? How?
• Customer Empathy: Do customers feel we deeply understand their needs and concerns?
• Revenue at Risk: Which customers are we at risk of losing? Why?
• Cross-sell Opportunities: Which customers want to do more business with our firm?
• Client Satisfaction: Which customers would provide a truly enthusiastic reference?
• Pain Elimination: What problems (pain) do our products and service solve for customers?
• Benefit Quantification: How do customers quantify the value of the benefit(s) we offer?

2. Analyze by Listening:

Listen hard to what the data is saying and customers will reveal the secrets of growing your business. Ask yourself two questions: 1) what is the feedback overtly telling us (what are the pervasive "themes"?) and 2) what is the feedback "not saying" that surprises us? Get underneath the data to understand gaps in your knowledge of customer needs and desires. As shown in the chart below, a simple plot of management vs. customer responses can highlight significant gaps in thinking. 

3. Act Firmwide and Client-by-Client

a. Establish a Client Satisfaction Dashboard
Like the controls on your car's dashboard, this type of Client Satisfaction Dashboard can help galvanize the entire company to take action and improve the client experience, enhancing loyalty, improving retention, and expanding client relationships. 

b. Take action on a client-by-client basis
In our experience, response rates for B-to-B client feedback programs range from 25-75% or higher. This presents a wonderful opportunity for your firm to take immediate action on a client-by-client basis to fix problems and capitalize on new revenue opportunities.