Perhaps the toughest thing about asking for your clients’ opinions is that you will get them. Clients observe and evaluate every aspect of your organization—from procedures you plan in detail to behaviors you don’t even notice. We all recognize that buyers’ opinions affect referrals. Beyond influencing your future sales, your company’s reputation impacts profitability, employee morale, the kind of people you are able to attract and hire, and how the general business community responds to you. Clearly client opinions are not to be taken lightly.
Yet many small-volume companies trust random or anecdotal client feedback rather than gathering comprehensive data, systematically analyzing it, and routinely acting upon that information. Assumptions about client satisfaction levels can be dangerous. One builder told me, “We really don’t need to survey our home buyers. If they were upset about anything they’d be calling.” This belief is naive and shortsighted.
Research shows that one out of four consumer purchases results in a problem. An astonishing 70 percent of those with complaints do not bother telling the company—they simply buy elsewhere next time. Equally alarming is that those who would not buy from you again are unlikely to refer friends to you. Your clients undoubtedly have friends or colleagues with similar lifestyles and financial capabilities. The homeowners you have satisfied—or better still, delighted—are like secret agents planted inside your target market.
“We know several aspects of our service program need improvement,” another builder observed to me. “After we make those corrections, we’ll ask buyers for their input. No point asking buyers to tell us what we already know.” This attitude can waste resources. While the company invests time and energy “fixing” what management believes to be wrong, it may eliminate something clients like and continue offensive behaviors the builder hadn’t unnoticed. Surprises almost always occur when client feedback systems are implemented. Homeowners are the best source of information on what you are doing well and where you can improve. By taking an aggressive approach to learning what clients think, you accomplish many positive things.
- Keep the Good. You’ll learn what you are doing that clients love. Of course you’ll want to perpetuate these aspects of your performance and perhaps even expand them. Factors you take for granted may be of great value to clients. They might supply you with distinctive points to include in marketing materials and to incorporate into your training for new employees.
- Recognize Service Excellence. Share positive comments with staff and publicize favorable comments about specific employees or trades. Through recognition or reward you can encourage employees and trades to achieve even higher levels of performance. Attention to this subject stimulates imaginations, which can result in suggestions for further quality and service innovations.
- Fix the Bad Things. You’ll also discover opportunities to improve. For instance, client feedback might call attention to materials, products, or workmanship that fail to satisfy; procedures that annoy or confuse; in-house personnel or trade employees who require more training or attitude adjustments; or company policies that appear to be unnecessary, self-serving, or arbitrary.
- Add New Ideas. Improvement possibilities go beyond correcting existing procedures. Like employees, clients can suggest steps to add to your current systems that are appealing or helpful.
- Send a Message. By showing clients that you care enough to ask for feedback, you can reinforce their loyalty. By showing employees and trades that you care enough to ask clients for feedback, you send a strong reminder to stay alert to quality and service issues.
There are many survey methods—formal and informal—to tap into client feedback. A combination usually works best. Written surveys generally fall into two types, periodic and transaction. Periodic surveys are sent at predetermined points in time, such as 30 days and 10 to 14 months after move in, and include a stamped, self-addressed return envelope. A brief cover letter goes along with it that mentions the requested return date. Ten days is a good time frame. If the survey gets shuffled around for more than two weeks, it will most likely go into the wastebasket instead of the mail box.
The maximum response rate is to periodic surveys that are brief–one to four pages–and easy to understand and fill out. A small incentive or thank you gift will also improve your rate of return. One builder I know provided a lawn treatment for homeowners who returned surveys. This not only gave the homeowners a gift, but it also made the community look great for prospects. Other gift ideas include coupons for pizza, coffee, or movie tickets.
Transaction surveys are usually shorter—perhaps just a post card or a follow-up phone call—and would be used after an event. For example, you might want feedback following an on-site meeting to review progress on the home, the pre-closing orientation, or a warranty visit. Always include space or an opportunity for the client to volunteer observations in addition to answering specific questions.
Focus groups (perhaps one or two a year) or management interviews (one each month or quarter) gather feedback in greater depth and provide insights into the reasons behind the attitudes or opinions reported by clients.
However you decide to gather feedback, be certain to do something with the results. A summary report to discuss with your team leading to an action list completes this effort.
Customers often see things differently than you do. No matter how committed your staff is and how excellent your programs are, performance and results are rarely flawless. As with floor plans and amenities, over time the things clients value evolve. New needs and wants arise. Discipline yourself to see through your own assumptions. Continuously monitor the success of your people and systems. When you get the facts and effectively address client realities, everyone benefits.
Carol Smith offers customer service assessment, consulting, and training programs for home builders.
