Cutomer Satisfaction Surveys and the Causal Link to Increased Revenue

February 26th, 2008 by Jared Bothwell

In the Marketing Science article“The Impact of Survey Participation on Subsequent Customer Behavior: An Empirical Investigation” a causal link is made between customers satisfaction surveys and an increase in an organisations revenue.

The findings from this research are important because they suggest that survey-based marketing research projects do not simply incur costs for the sake of gaining insights into customer perceptions as is conventionally believed, but they may also bring in additional revenues through such avenues as increased sales, reduced customer defection, and other positive behaviors by the respondents.

The research found that that customers who completed a customer satisfaction survey were more likely to become more engaged customers and more responsive to a firms promotional materials. It would seem then that the traditional marketing view of the marketing research as a cost centre may be misplaced as customer satisfaction surveys appear to have a key role in the generation of revenue.

The authors acknowledge the recent concerns that have been raised over the growing resistance of consumers to participation in commercial surveys yet found that, for the satisfaction surveys studied customers did not appear to be so negatively disposed, at least as reflected by their subsequent behaviors.

It is likely that organisations that conduct regular customer satisfaction surveys may already be aware of these additional benefits and this research presents an opportunity to refine their survey process. For those organisations that do not currently survey their customers the findings provide some sound financial justification. Not only will you retain your customers, they will buy more from you.

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Zen and the Art of Marketing Research – Responce Rates

February 25th, 2008 by Jared Bothwell

After recently re-reading Zen and the Art of Motorcycle Maintenance I thought it might be useful to take a similar approach to marketing research. Marketing research is like a lot of disciplines, part art, part science. It is the practitioners experience and knowledge that combines the two elements into workable solutions.

As a practitioner I am busy working away and rarely have the time to stop and reflect why a particular practice is important and why it really matters. I see the new category Zen and the Art of Marketing Research as an opportunity for myself to revisit some of the theories underlying the research practices. Hopefully they also form a useful resource for other research practitioners and interested parties.

Survey Response Rates

A survey response rate can be broadly defined as the percentage of total attempted interviews that are completed. The general rule of thumb is the bigger the response rate the better. Why? – the main purpose is to reduce non-response bias (which I’ll talk about in my next posting).

It makes perfect sense that the response rate to your survey is critical. i.e. if no one answers your survey you will have no responses to analyse.  What is a good response rate you ask?, Well ideally a 100% response rate to your survey would be preferable although unlikely.  For the sake of surveying we Sheldon’t lose sight of the ideal 100% because it does give us something to aim for. As the environment for each survey it is impossible to determine an optimum response rate.  Variable factors such as the survey content and the survey respondents mean there are far too many possible factors to create a hard and fast rule. The best piece of advice I can offer is the only way to reduce your non-response bias is to increase your response rate.

Posted in Ideas, Zen and the Art of Marketing Research | 2 Comments »