Measuring Customer Satisfaction

There are some things that sound easy but quickly become really challenging, and one of them is measuring customer satisfaction.

It's easy to become mired in weighted averages, and median responses, and what do they really mean by satisfaction ? The more accurate you try to make the data, the more unreliable it seems to become, especially if you're trying to use it as a trigger, for example to make staff bonus payments.

And let's not talk about how the scope can start creeping into how can we turn them into advocates, or and tap them for case studies or referred leads.

Just One Question

So let's keep it simple. Let's ask just one question. And how much simpler could it be ?...

Ask: On a scale of 1 to 10, how much do you like us ?

The average response to this question over time will tell you if what you're doing is working or not. Dead easy.

Now we don't want to make work for ourselves do we, but could also take the opportunity to ask a second question.

Ask: Why ?

...and this'll save us from having to think too much about what to do next.

Why do things the difficult way ?

The harder you work the luckier you get

Check out this loser...

* 1831 - Lost his job

* 1832 - Defeated in run for Illinois State Legislature

* 1833 - Failed in business

* 1835 - Sweetheart died

* 1836 - Had nervous breakdown

* 1838 - Defeated in run for Illinois House Speaker

* 1843 - Defeated in run for nomination for U.S. Congress

* 1848 - Lost re-nomination

* 1849 - Rejected for land officer position

* 1854 - Defeated in run for U.S. Senate

* 1856 - Defeated in run for nomination for Vice President

* 1858 - Again defeated in run for U.S. Senate

So who failed this often ?

Meet Abraham Lincoln, elected President of the United States of America 1860.

Answering difficult questions

It happens to us all: things are going so well, and then suddenly a question arises we have no idea how to answer - sometimes you genuinely don't know the answer, other times you definitely don't like the direction the question will take the conversation.

One word is all you need to remember: REFRAMING...

Step 1: Repeat the question, check you've understood tight (you know most people like the sound of their own voices, they sometimes let you off the hook by just carrying on talking...:-)

Step 2: If it's still up to you, then reframe the question: go back in time, how did we get into this position ? what are the real issues at stake ? what did we both want out of this situation in the first place ? what's changed since then ? then you can say: so perhaps the real question is.....and ask it in its new shape.

At least then it's a question you'll be happier to answer.

Take Theo's advice

Having just read Theo Paphitis' 10 Rules for Business Success, thought you might find them inspiring and very practical too....

1 Reduce risk (get all the information)

2 Don't fool yourself (don't believe your own bullshit, check the facts)

3 Cash is King (you can live without profit but you can't live without cash)

4 Embrace change (sell on the Internet)

5 Make decisions (don't hesitate, ask for help, just don't stop making decisions)

6 Weigh up the opposition (don't underestimate them) and yourself (don't overestimate...)

7 Start small (DIY so you know everything first)

8 Get your staff on board (most important people in any business ? not owner, not customer, but the staff)

9 Capitalise on others' ideas (active execution is much more important than having the idea)

10 Turn your dreams into reality (go for it, determination is the difference).

You can find the original at http://www.smarta.com/advice/general/theo-paphitis-10-rules-for-business-success

How to handle stressful situations

Life is a continuous challenge, and sometimes we face a big one, and feel unprepared for it. Here's how to approach an unfamiliar, stressful problem: just remember the mnemonic STRAIN....

• Scale: on a scale of 1-10, how big is this problem ? is it a real problem (cancer, death, divorce ?) or an inconvenience (difficult customer, bad debt ?). This helps put the issue into proportion, along with...
• Time: how big an issue will this be in 6 months' time ? how will I feel about it then ?
• Response: now review the suitability and value of your approach so far. Has my response to date been appropriate ? has your approach been effective ?
• Action: ok, something bad's happened: but it's happened, so move on. What action is right from here forwards ? Perhaps we need to accept that that was then and this is now, so move on, and take a different approach.
• Implications: What would you do differently next time ? How can you take action to avoid or even prevent this happening in the future ?
• Nourish: ok, it's over now, and won't happen again. So what have you learned ? Take the positive message that you have survived, a stronger and better person.

Good luck !

How to Prevent the Price Objection (2)

My previous Blog on Objection Prevention talked about positioning: setting the landscape so your price is viewed in perspective.

Here’s a magic question to ask that complements that approach perfectly, that enables you to turn the tables on the buyer, make them feel awkward about price for once.

During the probe, look the prospect in the eyes and ask: “so….er…do you mind sharing your budget with me in round figures ?” You’ll get one of three reactions:

“Yes, it’s £x”. One in a million will be telling you the truth, the rest are lying: undercutting to give you a hard time. Whatever they say, it’s nowhere near enough. Look thoughtful, perhaps even a little shocked: “Mmmmm, that’s not really enough to really achieve what you want…” or “that’s right at the bottom end of what’s needed, you won’t get x, or y, for that amount”

“I don’t have a budget.” Yep, lying again. “OK, wouldn’t expect you have a detailed budget at this stage, but broadly speaking, what would be reasonable given the problem, and it’s likely impact on the business ?”

“I’m not telling you !” “OK, I understand, but I don’t want to waste either of our time….so broadly speaking, what would be a reasonable amount to consider, given the problem, and it’s real impact on the business ?”

You need to be careful not to be too confrontational with this one, keep the tone of voice gentle, but when it works it raises the discussion onto business levels, and away from your price in isolation.

How to Prevent the Price Objection

All buyers do it. In front of the mirror every morning, they practice saying “So….how much ?” and then knotting their brows, saying “How much ?!!!”. And you know when that happens to you, it’s all about price from then on, whatever you’re selling, they’ve got you on the run.

There are hundreds of sales techniques for handling objections, but they all make you sound evasive when it comes to price. It’s far better to prevent the price Objection, and drop in one or both of my all-purpose Price Objection Preventers. Let’s say you’re selling IT Consulting or Support…...

Preventer #1: Set the bar really high

In the middle of describing what your company does, and what the benefits are, just drop in the phrase “…..now to achieve that, you might well have to pay two grand a day with IBM or Accenture….” and don’t stop, just carry on with the benefits. They’ll invariably say “….so what do you charge then ?” and you can honestly say, “….ooooh, a lot less than that, and the benefits are proven in organisations just like yours. Let me give you an example….”

Preventer #2: Ensure they’re comparing your cost with the real cost of doing it themselves.

Again, while you’re describing what you do and the benefits, just drop in “…..now to achieve that using just your people alone would cost hundreds of thousands of pounds…” and carry on fast with the benefits of you doing it. Yes, they’ll break in with “no it won’t my people are free, they’re already employed….” and then you can have an intelligent discussion about the real costs (and the opportunity costs) of them doing it themselves.

Both these preventers show you’re not afraid to talk money….but they give you the chance to talk about it in the way you want to, comparing it with other approaches to the problem, not just an absolute amount.