If You Aren't Measuring Customer Service, You Aren't Managing It.
By David Saxby

We've all heard it more times than we care to remember - it's all about customer service!

Companies everywhere talk about the importance of providing excellent customer service. They go on and on about how Internet technology has changed the playing field for the sale of products and services, that it has increased competition between companies vying for the same customer. Often the only thing that separates one business from its competitors is the level of service provided.

So, do you believe the promises made on TV and radio, in magazines and even over the Internet that these businesses "really do care" about their customers? Most people feel that businesses do not really care about their customers and that they certainly are not walking their talk.

Most companies measure success by their sales numbers. If sales continue to increase, then business must be growing. But one small detail is overlooked - the customer. How does your customer feel about doing business with you?

Think of the last time you bought a product or service where, after doing business with that company, you got a call or a survey card to find out what you, the customer, thought about the buying experience.

Here are some very important questions you should be asking if you truly want to understand your customer:

• How do you know your customers are experiencing extraordinary customer service when they purchase from you?
• If they are a new customer, will they be a repeat customer?
• Do your customers tell other people about you?
• Are you meeting or exceeding your customers' expectations?
• Are your customers buying products or services from the competition because you neglected them?

If you can answer these questions, you are way ahead of the rest of the pack!

There are only three ways to increase your business:

1. Acquire new customers
2. Increase the frequency that current customers buy
3. Increase the amount of each purchase

Research has shown that it takes up to six times the investment to acquire a new customer as to keep an existing customer. So wouldn't it make sense to measure what your customers think so you can maximize your investment? If customer service is the only thing separating you from your competition, wouldn't it make sense to measure the level of service you provide?

Here are a few ideas on how to measure customer service at your business.

Mystery shop: Hire a mystery shopping company (a company that hires people to pose as customers) to visit or contact your business and browse through your Web site. These companies have the ability to see your business through the eyes of your customers. It's as if your customers were providing you with a report card on your business.

These results give you the feedback necessary to know what is and is not working from the customer's point of view. Mystery shopping will uncover the areas that need the most improvement. These findings help you identify the skills your staff needs to exceed customers' expectations. Mystery shopping can be the measuring stick to monitor customer service and sales levels through the eyes of your customers.

Survey your customers by direct mail: Send out an easy-to-understand questionnaire immediately after they have purchased either your product or service. They should only have to take one to two minutes to complete the questionnaire and it should come with a postage-paid return envelope. A simple letter explaining how important customer feedback is to your company should accompany the survey. If possible, provide something free as a small thank you for the time they take to answer your questions.

Survey your customers via e-mail: E-mail your customers an online survey to obtain their feedback. There are numerous online surveys available that are inexpensive, easy to use and compile the results for you. Use this feedback from your customers before you change or implement a new product or service. Develop a core group of customers that become your source of feedback for future changes.

Call your customers: When was the last time a company called you after you purchased a product or service? If this has happened to you, did it leave quite an impression? Hire someone to make the calls or hire an outside company to call your customers. This will make it easier for your customers to be totally honest and it will help keep the results objective. Ask your customers what your company can do to improve its service.

Long-term profitability in a changing market is not solely the result of increased sales; it's more about determining the needs of your customers and then meeting those needs. If you can't measure customer service at your business, then you can't manage it!

David Saxby is president of Measure-X, a Phoenix, Ariz.-based measurement, training and recognition company that specializes in customer service skills and employee retention. He can be reached at 888-644-5499 or via e-mail at david@measure-x.com. Visit the Measure-X Web site at www.measure-x.com.