Using Customer Feedback in Business

While analytics and data give entrepreneurs all sorts of insight into what their customers want from their products, sometimes it’s best to get answers straight from your customers themselves.  Customer feedback helps businesses understand why people do what they do; why their customers are using their products or the competition’s.  When you ask the customer what they want, you get a much clearer picture of what’s going on with your business and a much clearer picture of what can lead to success.  Customer feedback allows you to fix problems and head straight towards opportunities; opportunities to learn what your customers want, what they need and how to attack the marketplace for the greatest gain.  So how to use customer feedback in business?

First off, try using surveys.  “Surveys are the bread and butter for getting feedback.  They’re easy to set up, easy to send out, easy to analyze and scale very well.”  That said, make sure your surveys are short and to the point.  No one wants to spend 10-20 minutes filling out a customer satisfaction survey.  When your surveys are too long, customers ignore them or oftentimes give up answering halfway through which leads to poor results.  Additionally, when surveys are too long, customers rush through to answer them and don’t give the most useful feedback.  Getting quality answers is critical and keeping a survey to a few minutes can ensure that quality.  Try to keep your survey to five questions and definitely no more than 10.  Ask only questions that are relevant and that you’ll use.  “Every question should serve a purpose.”  If you ask extraneous, unimportant run-of-the-mill questions, you’re wasting everybody’s time.  Save time and gain valuable information by only asking essential questions.  Try starting with open-ended questions.  If you build a survey with multiple choice questions, you might not receive the feedback that customers are really thinking. By doing so, you limit yourself to answers that only reflect your assumptions.

Secondly, have a structured process for receiving feedback.  Whether you realize it or not, customers are always looking for better ways their needs can be met.  Try coming up with one or two questions to ask at check out.  Not just: “Did you find everything you were looking for today?”  But something more along the lines of: “Did the store layout help you find everything you were looking for today?”  Make sure your questions drill down to create essential answers.  When minor issues pop up too frequently, customers will start shopping around for better solutions to their problems and it’s only a matter of time before they’re gone for good.  Nip it in the bud before it happens with sharp, on-point questions that will lead to real time solutions.

Once feedback comes in, answer it.  If your customers are willing to answer your questions, be willing to answer them back.  Customers want to feel like they’re being heard especially if they took the time to even offer feedback.  They want to know you care about their input so show them you do.  One method I’ve seen before is a customer asking about the early release of an item or feature.  Try offering them early access to it in return for feedback.  For tech issues, connect them right away to your support engineers.  If a customer asks a question, give them step-by-step tips to resolving the problem.  Obviously you can’t always respond to customer questions right away, but try to at least do it in under 24 hours.

Reach out directly.  This option is often undervalued.  “If you want to truly understand somebody, you really need to go talk to them.”  Hearing the passion in a customer’s voice can be a great starting place to finding a way to really meet their needs.  Try running focus groups.  Offer free lunches for people that are willing to give their time and participate.  If you don’t reach out and talk to your customers, you never really learn what’s going on in their minds and how they view the products and services your selling.  You can get major bonus points with customers for asking for feedback in person.  While surveys are great and should be used (as long as you use them the right way), you can get more value from a face-to-face or over the phone conversation then you can from thousands of surveys.

There are many ways to get customer feedback but not all methods really work and often can be a waste of your time.  If you use the examples cited above, you can get the most out of your customers’ opinions.  Ask them pointed questions and show them that you care.  You’ll only get what you give.  While it’s essential to make it easy for customers to give their feedback, make sure you’re getting the right kind of feedback.  Your business can’t grow without loyal customers who want to come back for more.  Treat them right and show them they’re an essential part of your success and your business will surely head in the right direction.

Here are some articles you might want to check out about using customer feedback in business:

“14 Customer Feedback Tools for Small Business”: http://www.practicalecommerce.com/articles/2827-14-Customer-Feedback-Tools-for-Small-Business

“Is Your Brand Using Customer Feedback Efficiently?”: http://smallbusiness.yahoo.com/advisor/brand-using-customer-feedback-efficiently-134903984.html

“How to Make the Most of Customer Feedback”: http://www.inc.com/guides/2010/07/how-to-make-most-of-customer-feedback.html

“How to Use Customer Feedback to Improve Your Business”: http://www.marketingdonut.co.uk/marketing/customer-care/understanding-your-customers/how-to-use-customer-feedback-to-improve-your-business

Until next time…

Overcoming Negativity in Business

Sometimes it’s difficult to keep morale up in business especially in a struggling economy.  Many young entrepreneurs might find it easy to get down on themselves if they don’t start achieving their business goals quickly.  Negativity can spread through the workplace like a virus if you don’t nip it in the bud right away.  This can cause low morale, high tension and lead to lower productivity, confidence and enthusiasm out of employees creating lower job performance.  It can also lead to dissatisfaction amongst employees which can lead to greater turnover.  Even the slightest bit of negativity in the workplace can lead to disruption and make an entrepreneur take his or her eyes of the long-term business goals they are seeking to achieve.  Complaining, bad mouthing and hostility can all be contagious if allowed to spread.  So how to avoid negativity in business?

The best way to avoid negativity in the business environment is to produce a sense of positivity from the top.  Make sure your managers and those in higher level roles set a good example of positive behavior for employees.  Your efforts for stopping negativity in the workplace should begin at the top.

Keep communication with employees positive and set an example from the top.  Try countering negative statements by pointing out positive ones.  Oftentimes, this can spur more positive thinking from others.

Lay down the law early.  Make sure to let your employees know that negativity is unacceptable.  Don’t give them the impression that it is OK to act in a negative manner by allowing them to constantly criticize or display defeat.  Try to spin all their negative reactions into positive ones.  For example, if an employee says: “There’s no way we can get this done on time,” counter with, “Let’s figure out how we can get this done on time.”

Let your employees know that you expect their actions to be positive ones.  Encourage them to resolve conflict with others rather than just being complacent or griping about it.

Consider evaluating your employees on a regular basis.  Let them know they will have monthly or quarterly reviews.  This might foster them to get along with and cooperate with others if they know they are being graded accordingly.  If they know they are being evaluated on how they collaborate with coworkers, they might be less likely to exhibit negative behaviors.

Don’t indulge complaining.  Foster a can-do attitude in the workplace.  Turn problems into problem-solving discussions.  Think about thoroughly listening to employee complaints so you can address them right away and not let them fester.  Get them to take action by asking for their suggestions and give strong consideration to what they say.  If you don’t end up using their input, explain why and show them that you appreciate their efforts to help maximize performance through their feedback.  By doing so, you’ll show them that you take them seriously and it will encourage them to take a more active approach to problem solving instead of just continuing to complain.

Don’t indulge negative employees.  Don’t focus so much energy on trying to turn them around.  If they really can’t produce in a positive way, it might be time to let them go.  You don’t want to reward them by giving them too much attention.  “You don’t want to risk making your more positive employees feel neglected because you’re spending so much time and energy trying to rein in the negativity.”  Show your appreciation to employees that have a positive, can-do attitude.

Give positive recognition and give it often.  Feedback to your employees is critical.  It’s critical to their behaviors and the attitudes they bring with them to the office.  It leads to better job performance and a healthier working environment.  Reward positive thinkers.  Don’t constantly give negative feedback.  While you still want to be honest with employees and point out things they can improve upon, constant criticism breeds negativity.  It’s important that you remind your employees that their contributions are important and make a difference in helping your company grow and succeed and reach its goals.

Consider asking your employees for direct feedback on how to make the workplace more positive, enjoyable and less filled with tension.  Consider using a suggestion box or anonymous survey.  Hold weekly or monthly meetings where you allow employees to voice their opinions and give suggestions on how the team can be more positive and what it will take from management to get them there.  “By utilizing employees’ ideas on what gives them job satisfaction, you may be able to turn their negative feelings about their jobs into positive ones.”

If you’re dealing with a single negative employees, ask questions to determine whether there is something in particular in the workplaces that is troubling or frustrating to them so you can nip it in the bud right away.  It’s always important to hear your employees’ side of the story before proceeding so that you can work towards a solution.  Give them goals with timeliness and consequences if those goals are not met.  Inform your employees that it is in their best interests to change negative behaviors or they may face disciplinary action.  Follow through on what you say.  Show them that consequences for negative behaviors are real.

If you take the advice I’ve given above, you might find that you will foster a more positive workplace environment and increase positivity amongst your employees.  While it’s easy for entrepreneurs to get down on themselves if their goals are not being achieved right away, don’t take it out on your employees or you risk them becoming negative.  Foster a positive environment and positivity from employees will follow.  Always make sure to address negativity directly, quickly and with a strong hand.  Weeding out negativity in business will more effectively help you reach your business goals.

Here are some articles you might want to check out about overcoming negativity in business:

“10 Ways to Overcome Negative Vibes among Your Staff”: http://www.businessmanagementdaily.com/34174/10-ways-to-overcome-negative-vibes-among-your-staff

“No Whining! 5 Ways to Overcome Negativity at Work”: http://www.businessmanagementdaily.com/30767/no-whining-5-ways-to-overcome-negativity-at-work

“How to Overcome Negativity in the Workplace”: http://smallbusiness.chron.com/overcome-negativity-workplace-11532.html

“Feeling Negative? How to Overcome It”: http://www.inc.com/geoffrey-james/how-to-handle-negative-emotions-at-work.html

Until next time…

Keeping Costs Low in Business

Money is always an issue when starting up a new business.  You don’t want to overextend yourself and risk failing due to lack of capital.  More and more businesses are looking for ways to keep costs low while still giving customers high quality goods and services.  This can often be a challenge.  Many might wonder how you can create quality without spending excessive amounts of money.  “Time and money seem to be the two perpetual challenges every entrepreneur and business owner faces.”  So how to keep costs low in business while still achieving your goals of giving customers the extraordinary quality they expect from the product you are selling?

First of all, think about cutting production costs.  There are actually numerous ways a business owner can cut costs just by doing a little research.  Cutting costs doesn’t mean the quality of your product will be diminished.  For example, one might look at the supplies they are using to create their products and start there.  You might be using the wrong suppliers so think about using those that offer the same product at a lower price point.  It’s always good to constantly look at different suppliers prices.  Some might offer the same service you’re using for less money.

Another way a business owner can save money is by thinking about whether they need to purchase equipment to make their product or if it’s viable to rent such equipment.  Depending on the situation, one choice may trump the other.  For example, if your company needs to use a machine to manufacture a product on a daily basis, having your own might be the best idea.  On the other hand, if your business only uses such a machine on a one-off basis, it might be better and more cost effective to rent a machine when it’s needed.

Think about how many employees your company really needs to be successful.  Sometimes new business owners tend to overstaff because they feel overwhelmed and think more personnel equals more production.  Often, you can get the same production and quality of work out of a more limited number of employees.  Keeping quality high doesn’t necessarily mean overstaffing.  Think about how many employees are really needed to get the job done.  While sometimes employees aren’t busy all day due to a slow season, sometimes there’s just not enough work to go around so it might be wise to consider having fewer workers.  Sometime “fewer employees who are skilled and productive may still be able to accomplish everything the needs to be done in order to keep costs low and quality high.”  With all that being said, the number of workers you employ is often a tricky tight rope to walk.  If you have too few employees, they might get overwhelmed and not be able to turn over quality products on time but then again, that’s not always the case.  If you have the right employees that are hardworking, dedicated and motivated, sometimes less is more and this is a great way to keep costs down.

Think about hiring out rather than always hiring in-house.  You don’t always need certain types of employees on hand at all times.  For example if your business needs a lawyer, accountant or computer technician from time to time but not all the time, consider keeping one on a limited retainer or hiring for one-off projects.  There are other businesses out there that outsource their employees to other companies for specific projects.  This is a good way to keep costs down because you don’t need to keep these types of employees on your pay role and pay them every week.  This option is often an innovative way for a business to save money while still getting the work done that they need and offering their customers a superior product.

Think about redefining your office space.  Many new startups often have their employees work remotely from home.  You could also think about virtual offices or shared offices with other companies.  Businesses such as Emerge212 (http://www.emerge212.com/), offer programs exactly like this where companies can work from home but still use conference space in a shared office or utilize a receptionist when need be.  You can also register your business with a mailing address and phone number through virtual office space.  This way you spend the bulk of your time working from home and pay only a fraction of full-time rental costs.

One last thought is to be creative on a budget.  There are always inventive and resourceful ways to save money while still keeping up the production of a high quality product.  For example, think about ordering inexpensive business cards from a low cost printing company or try printing them at home on hard stock paper.  Use technology at its best.  Think about using free conference call services to have group discussions with your employees about the day-to-day tasks they need to be working on.

If you use some of the tips I’ve discussed here today, you’ll see it’s easy to still produce a high-quality product on a low budget.  Keeping your costs down, especially in your first year of business can often be the difference between success and failure.  Don’t overextend yourself because you see a big budget as a way to reach success.  Be smart about your money and the way you use it and you might be able to more rapidly grow your business and keep your customers happy while spending less capital.

Here are some articles you might want to check out about keeping costs low in business:

“Keeping Your Costs Down”: http://www.entrepreneur.com/article/177116

“Keeping Costs Down”: http://www.natwestinternational.com/nw/business-banking/business-guides/g59/managing-finance/keeping-costs-down.ashx

“Keeping Costs Down – 7 Things Every Business Owner Must Do”: http://leadersinheels.com/business/how-to-keep-your-business-costs-down-7-things-every-business-owner-must-do-part-5/

Until next time…