Customer Surveys are vital for helping organizations determine the different types of customers who make up their customer base or customer categories. This information is very important so that the business will improve and expand.
Customer Surveys help improve customer retention rates significantly. Customers are retained by an organization if the customers are satisfied. Data from Bain & Co. consultant Fred Reichheld noted that when customer retention rates improve by at least 5%, this produces a corresponding gain in profits ranging from 25% to 95% – though this may depend on what kind of business is being pursued.
Customer Surveys help customers show what they perceive is wrong with the organization so that the small problems do not escalate into much bigger problems later on. It might be said that Customer Surveys help organizations maintain the close ties with their customers that help guarantee long-term customer contact and patronage. And every business needs the patronage of clients to survive for the long-term.
It is important to know when Customer Surveys are appropriate to have customers fill out and when the organization should hunker down and wait. A weekly survey might make you feel productive to analyze but in reality there really is not much difference between customer behavior in one week and customer behavior the next week. Even supermarkets know this, which is why they launch promos in seasonal format rather than keep changing promos from one week to the next. If you issue Customer Surveys on a weekly basis, that will just cost you money and will not reveal any significant data that will be useful for identifying customer behavior trends that you can use.