Customer Needs Assessment

Identifying Customer Needs via

Survey

Types of Customer Survey

•Printed surveys•Phone surveys•In-person surveys•Internet surveys

• What is the average revenue /income of your customers?

• Where your customers geographically based?

• What products or services are these customers currently purchasing to fulfill their needs?

By conducting a customer needs survey, you can find answer to things like:

• What factors drive the decision-making of these customers?• How do these customers make

buying decisions?• How likely are customers to re-

purchase products/services from you?

NOTE: The use of each type of customer survey, depends on what is the best way to reach your customers.

Example Survey Forms

Advantages

• Customer survey is an efficient tool to judge customer loyalty.• Point out the extent of

customer satisfaction.• It is the modern tool of

effective communication.

•Up-to-date feedback•Show that you care

Disadvantages

•Too many surveys, so little time.•Privacy issues•Limited sampling and respondent availability. •No interviewer

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Who Conducts Customer Research?

• In-house Marketing Research Department• External Marketing Research

Firms• Advertising Agencies• Syndicated Data Services• Government

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Ethical Issues in Customer

Research

The Positive Aspects of

Customer Research

• Better Consumption Experiences because customer research helps

marketers become more customers focused, customers can get better designed products, better customer service, clearer usage instructions, more information that helps them make good decisions.

• Potential for Building Customer Relationship

from the marketer perspective, customer research is helpful for identifying ways of establishing and enhancing relationships with customers.

The Negative Aspects of

Customer Research

• Tracking Customer Behaviour in Different Countries

marketers who want to research customer behaviour in other countries face special challenges. For instance, focus groups are not appropriate in all countries or situations.

• Potentially High Marketing Cost - some customers worry

that the process of researching behaviour leads to higher marketing costs, which in turn translates into higher product prices.

• Invasion of Customer Privacy a potentially more serious

and widespread concern is that marketers’ conduct and use of research especially database marketing may invade customers’ privacy.

•Deceptive Research Practice - finally unscrupulous

researchers may engage in deceptive practices. One such practice is lying about the sponsor of the research.

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How to Summarize and

Display Survey Data

Binary ResponsesIf a question has only two possible

response options then it is a binary response option. Both options, when added, equal 100%. When summarizing just the sample of respondents, such as the percent of women who responded, you can use the ubiquitous pie graph.

Single SelectIf participants are asked to pick one

choice out of a number of alternatives, then this is a single-select response option. We summarize the proportion that chose each category. If you just want to summarize the responses in the survey, such as with income, a pie graph again will often suffice.

Multiple Select If participants are allowed to

select "all that apply," the total number of responses will add up to more than 100%. We can still summarize the proportion selecting using the binary confidence intervals used in the single-select method.

Net Promoter Questions

It is a rating scale, but is usually presented as a difference between two paired proportions (the proportion of promoters minus the proportion of detractors).

You can also compare the proportion of promoters, passives and neutrals separately to, say, an earlier year using confidence intervals again.

Overall RatingsThe first part of your survey

will usually have an overall question for each major customer service aspects, and one or two general open-ended questions (text answers, as opposed to multiple choices) at the end.

This is also the place for asking customers to rate the importance of various aspects of customer service, and to ask reference-type questions, such as 'How likely would you be to recommend John Doe Company to a friend or a colleague?', and 'How likely would you be to use or buy [Product Name] again?

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Prepared by: GROUP IV