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Customer Surveys – What’s The Purpose?



Presented By: Lior Arussy, Strativity Group


What is the real purpose of customer surveys? The answer changes, depending on who you ask. Ask a company, and they will tell you that they are seeking feedback and validation. Pose the same question to a customer, and she will say that she invests time taking customer surveys because she seeks change and action. Welcome to another disparity between customers and vendors.

Understanding the purpose of customer surveys is not just a matter of semantics. This is not an exercise in wordsmith. There is a fundamental difference between companies and customers in understanding the purpose of the dialogue. When approaching customers with customer surveys, companies often are seeking validation for their actions. They are trying to obtain affirmation for the legitimacy of their products and services. As a result, questions are designed with very few strategic intentions. The questions often reflect wishful thinking and hopeful answers. As a result, the survey results reflect the expected answers and provide very little execution guidance. If customer responses surprise the organization, most of the efforts are geared towards challenging the results and providing counteracting data to prove that the survey is inaccurate and does not portray reality. Functions in the organization that find the results challenging and threatening (a.k.a. requiring change and improvement) will furiously fight to disprove the findings and validate their current actions and behaviors. Reality, of course, is not really what was presented by the customers. The problem with the survey was: (have your pick) that the sample size was not representative, the questions were misleading, and the timing completely wrong. These are only a few of the stock arguments threatened executives put forward to dispute the customer surveys.

One of the best litmus tests for the approach described above is a company’s readiness for change when they receive the results of customer surveys. Most companies initiate their surveys without any well defined plan as to what to do with the results. They send the questionnaires out and then figure out, based on the results, if and what to do with the responses. The best customer surveys, according to companies, are the ones that tell them how great their products are, what wonderful services they provide and how competitive their position is in the marketplace. Validation and feedback are the prime purpose of customer surveys, according to companies.

Customers, on the other hand, have a completely different perspective on customer surveys. If they wanted to provide validation, they would have sent a thank you letter – without taking a survey. Their issue is not to say thank you and provide validation. If they see the need for any affirmation of great products or services, they will take the initiative and provide it. When customers take the time to respond to customer surveys, they seek action. They put in the time and effort to respond in order to drive change. They often respond with the hope that the survey represents a greater commitment to change and action by the sender of the survey. Little did they know that there was little readiness for real change.

After years of responding to customer surveys and not seeing any change, many customers started to abandon the practice of participation. One of the most common company complaints when conducting customer surveys is the low response rate and the poor quality of the information gathered. The reason for such a poor response rate is very simple. Customers now realize that the company will not do anything meaningful with their insights. They have been disappointed too many times before and they have lost their trust. The poor response rate is the best indication of how far apart customers’ and companies’ understanding of the purpose of customer surveys is.

The lack of actions has an impact on employees, as well. Seeing their executives leaving the customer survey results to gather dust on their shelves sends a very clear message. “We do not really care about what the customers want and say”, is the real message. There cannot be a more blunt confirmation of the company’s lack of commitment to customers than the pathetic actions taken as a result of a customer survey. Employees see management’s response to customers’ viewpoints as a license for them to ignore customers as well. After all, they are following the path taken by their leadership.

In the absence of full alignment in understanding the purpose of customer surveys (a.k.a., their intentions versus those perceived by customers), companies would be better off not conducting any customer surveys rather than conducting surveys but failing to follow through. By conducting surveys, customer expectations are heightened. If nothing happens, it creates deeper disappointment and greater resentment. Customer surveys, and for that matter any customer dialogue, should always be backed up by true listening and commitment to act. Without the resources and mandate to drive change, no customer surveys should be conducted. It is time to bridge the gap, adopt the customers’ view of the purpose of customer surveys and conduct only surveys that are geared to drive change. Let’s turn customer dialogue into a competitive advantage and true differentiator. Surveys and dialogue, when conducted correctly, strengthen relationships and loyalty. But when abused, they can depreciate those relationships faster than any other action.

Lior Arussy is the President of Strativity Group and the author of several books. His latest book is Passionate & Profitable: Why Customers Strategies Fail and 10 Steps to Do Them Right! (John Wiley & Sons, 2005).