| expert advice... | |||
| USING AUTOMATED CUSTOMER FEEDBACK TO KEEP YOUR BUSINESS ON-COURSE by Jim Boyer, Co-Founder and Vice President Sales, Mindshare Technologies About 70 miles to the north of Salt Lake City is a family-run steakhouse with a great reputation. This steakhouse draws clientele from as far away as Salt Lake City, even though there are many fine steakhouses in the Salt Lake area. A few years ago the owners opened a second steakhouse near my home in a Salt Lake suburb. Their second restaurant, known as Grandpa’s Steakhouse, opened to strong market demand that filled their parking lot. In fact, for the first 6 months parking spilled onto the street, nearly every night. Eventually, I never saw a car parked on the street, and the parking lot became increasingly empty. Finally, after about 2 years in business, Grandpa’s closed for good. Failure rates in the restaurant business are high, and most new restaurants go out of business in their first 5 years. But most restaurants take years to develop the customer traffic and trial that Grandpa’s opened with, a leverageable advantage. Grandpa’s should have a filled parking lot today. So what happened?
The answer to both is customer feedback. The owners may be just as wrong about the causes of success at their first restaurant, as they are about the failure of the second. Only the voice of the customer can teach both important lessons. Perhaps service businesses
like Grandpa’s can learn something from aviation. Contrast that with business. Comparable gauges are intermittent and rarely consulted. After a business plan is developed, businesses also encounter storms, turbulence, and contrary winds. While these forces are blowing a business off-course, there is no system in-place to facilitate minor course corrections. By the time a correction is indicated, and a clear course of action is evident, it’s often too late. The business has been off-course for months, and disappointed customers have moved on. So what are the gauges? Market research produces scientific direction, but it may come too late; or the direction implied may become less relevant as time moves on, allowing other forces to work on the direction of the business. Other gauges include comment cards and mystery shops. These are too manual and sporadic, giving no clear indications of a course correction. They are both known for raising more new questions than they answer. Today’s market is more competitive than ever. Customers expect a lot, and they move fast. Dissatisfy one customer, and risk the negative recommendation to 10 or more friends. Wait a few months to change directions, and hundreds of customers may have been negatively affected. The answer is here, and
it’s surprisingly cost-effective.
No matter what type of service business you’re
in, listen to your customers, stay on-course with continual course corrections,
and you will not share the fate of Grandpa’s Steakhouse. By contrast,
you will be like the pilot, constantly listening to external and internal
gauges, making adjustments in direction and altitude, and arriving at
the right place at the right time. |
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