As a general rule the most successful man in life is the man who has the best information.

The above is a quote from the very quotable Benjamin Disraeli on the importance of having as much information as possible to guide you through life. Its good advice. We’ll forget about the other more famous quote he said about lies and statistics...

I was reminded of this quote this week by none other than Primal Scream who were complaining about Theresa May walking off stage to one of their songs at The Conservative Party Conference. "Didn't they research the political history of our band?" they shouted incredulously, or as incredulously as you can shout in a written statement. If Theresa May had then surely she would have thought twice about choosing a song about drugs and debauchery by a very left wing band for her grand stage exit

Well it turns out she didn’t. It was a song by someone else. And besides it very unlikely that Theresa May picks her own soundtrack. Which all kind of ruined the story a bit. But the point is if wide ranging public figures as Benjamin Disraeli and Bobby Gillespie are telling you to gather as much information as possible before making your decisions then it’s perhaps wise listening them. Because I doubt they would have agreed on much else.

For more information visit
http://www.murrayconsultancy.co.uk/new-business-start-up-research.html

You may know your business, but how well do you know your market?

A common misconception of Market Research is that if you know all about your industry, then you don't need to conduct any research into your market.

Take Terry for example. Terry sells tyres. He's always sold tyres. He knows everything there is to know about tyres. He slept in a tyre cot as a baby. On holiday he goes to a tyre factory. Terry knows tyres. So what could a Market Research company possibly tell Terry about Tyres that he doesn't know already?

Well the answer is, probably nothing. But does Terry know what his competitors are doing? How much they charge and the ranges of services or products they offer? Terry might know all of his customers by their first name, but does he know anything about his potential customers? Who they are using and what might convince them to change supplier?

This is the difference between understanding your business and understanding your market. And if you have the knowledge your competitors don't, it might be enough for you to get ahead.

JG

For more information visit
http://www.murrayconsultancy.co.uk/

Don't lose sight of your existing customers in the search for new ones

All businesses look to maximise sales and revenue, and to do that they will normally look to grow their market share by as much as they can. So businesses will formulate ‘sales strategies’ and ‘growth strategies’ which will focus on how to win new customers, but less frequently on how to make sure they are satisfying the customers they have.

An often quoted example of a growth strategy gone wrong was the ‘Coca Cola’ re-launch in 1985. To combat falling sales figures and strong competition Coca Cola launched ‘New Coke’, not as an alternative but as a replacement to the existing flavour. It was a sweeter taste, aimed at winning over customers of Pepsi, but it ignored those fiercely loyal to the Coca Cola brand. Many customers protested and boycotted the product and sales dropped, leading to Coca Cola having to embarrassingly go back to re-launching their original formula.   

There are several morals to the story, including understanding your own uniqueness and specialities as a business.  But also it shows the dangers on focusing too much on chasing other people’s customers and not enough on satisfying your own. American research studies have shown that on average businesses lose 50% of their clients in a five year period, often because they take their existing customers for granted.  Having regular dialogue with your own customers and looking for ways to improve their experience is vital to ensuring this doesn’t happen to you.

Keeping customers happy and coming back for more may be less exhilarating than bringing in a brand new account, but it could be the key to stability in challenging economic times.

For more information visit http://www.murrayconsultancy.co.uk/customer-satisfaction-survey.html

Don’t take a punt with the future of your business

The city of Liverpool is beginning to buzz with excitement for the Grand National this week, as dress shops report bumper trade and city centre establishments from beauticians to restaurants announce special offers for the races. Its one of the best weeks of the year to be in the city.

For many of us it’s also our yearly go at trying to beat the bookies. Over half of UK adults will have a bet on the big race on Saturday with over £600m likely to be gambled on that race alone. Those gambling novices will normally abandon complicated form guides and jargon filled racing supplements and just have a punt on a horse we fancy.

There are many methods people use to choose a horse for the race. Some pick a name they like (how many reds like me lost money betting on ‘You’ll Never Walk Alone’ in 2003?), some will choose a jockey wearing their favourite colours, whilst others will have favourite horses from past years, even if it may have seen better days. Many Manchester United fans will no doubt have a bet on Alex Ferguson owned horse ‘What a Friend’ this year whilst presumably many Manchester City fans will be having a bet on just about anything else! Of course, if all that fails, there is also the long standing method of sticking a pin on the page and betting on whoever it lands on.

However those of us choosing such methods to pick a horse never really expect to win. It's only fun after all. However many of us will take a similar punt when starting up our own business. Instead of a tactic of ‘look before you leap’ we will dive in head first and take a gamble on success or failure, without any of the necessary knowledge that could be the difference between profit and loss

A new entrepreneur may have lots of knowledge about a particular product or service, but how well do they know their potential customers or the current state of the market they are entering? For example do they know there is a market out there for the product? And if there is who is their likely target market and what is the best way to reach them? It is also useful to find out ideal pricing levels for a product or service and whether this is a sustainable amount for the business.

As well as ascertaining the demand for the product, research can also help with the ideal location of a business, how you should be promoting your business and an evaluation of your competitors, including what they are doing well, what they are possibly falling back on and how you can differentiate yourself from them. All of this information will make sure you are successfully delivering a product or service that the customer wishes to buy and that you are correctly placed within the market to capitalise on this.

Just like the best gamblers will try and gather as much information as possible about a race as they can before parting with any cash, so too will the most wise businessmen before making any big decisions on the future of the business. My father used to warn me of the fact that there is “no such thing as a poor bookmaker”. But far more worrying is the fact that 85% of new businesses are thought to fail within the first five years. Doing as much research as possible before the launch of a new business, or indeed before taking an existing business in a new direction, will increase your chances of being one of the 15% who thrive and prosper.

Now, where is that Racing Post?

JG

For more information on new business start up research visit

http://www.murrayconsultancy.co.uk/new-business-start-up-research.html

How can you be the best? Your customers know!

Ok, here is a quick game for us all to play! First of all, think of your favourite restaurant that you have been to.  It can be anywhere in the world. Think about how good the food was, the setting and anything else that makes it special.....Done? Good!

Now think about your ideal restaurant. Think about the food it would serve, where in the world it is, the exact location, the decor of the room, the service, even the size of the bill if you like(!), and anything else that might make it extra special.

Now, back in the room. Did anyone think of the same place on both occasions? If so you have a very limited imagination! 99% of us will have thought of a different restaurant the second time. Even though the first restaurant is the best we have ever experienced.

So what was the point of the game? Apart from making everyone hungry? It shows that even the best companies will always have ways it can improve, and that there will always be ways to improve the services we offer to a customer to make our customers even more delighted and even more likely to use us again in the future (and tell all their friends of course). And the best way to find out how to do this?? Ask your customers!!

JG

For more information please visit

http://www.murrayconsultancy.co.uk/

The Census highlights problems with Postal Questionnaires

The nation’s biggest research project is here!! That’s right, the Census! Everyone excited?? No? Come on, the census is great. It’s a piece of history. There was first a census in China over 4000 years ago! We've had one every ten years since 1801! (apart from in 1941 when presumably everyone decided there were more important things going on) , and if it wasn't for a census then the start of the New Testament would be a lot less exciting (boy is born in house, Wise Men find with street map, Herod knocks round but can't get past over eager aunties).

But despite all this lots of people, for a variety of reasons ranging from moralistic to suspicion to inertia, won't bother filling it in this year. And many of those who do will, intentionally or otherwise, make a bit of a mess of it. All these issues are ones which reflect just some of problems with self completion research in general

The first problem with self completion research is that you never get as many responses as you'd like to. Even for the Census which has a £1,000 fine for not completing (which I have looked into bringing in for our research projects, without success as of yet), it was still estimated in 2001 that only 94% of the population filled it in. Inevitable lower response rates than the client envisaged means you normally end up having to employ staff to chase people up, which for the census was a whopping 81,000 people in the UK in 2001, and a marginally lower number for self completion projects we have done in the past. This of course means that the job ends up costing a lot more than it should to finish.

But even if you get a satisfactory return rate you still have the problem that once you hand a questionnaire over to someone to complete (be it on paper or online) you are surrendering control of the document and can't be sure what you get back is what you envisaged.

Firstly questions can be misunderstood and therefore answered incorrectly. On the census questionnaire the ‘number of rooms’ question is certainly up for misinterpretation (and snobbery, I’ll be honest I feel they want me to count my kitchen and living area as one room, but I want future generations to think I had more than 3 rooms in my home!), and will everyone read correctly that they should not include their bathroom? Also the religion question is a minefield. If I am christened but not going to church am I of ‘no religion’? Is this potentially going to count against me at the Pearly Gates? If you are doing a questionnaire with a professional Market Researcher these queries can be explained to you. But with a self completion questionnaire we normally just guess.

A researcher will also ensure all questions are answered properly and not mischievously as can be the case with self completion. Famously 390,000 people in 2001 listed their religion as Jedi Knight. In 1911 one occupant of a household was listed as “Peter Tabby”, nationality “Persian” and occupation “Mouser” (although this respondent may have been getting his own back for being previously asked if he was ‘lunatic, imbecile or feeble minded’....and they say today’s questions are intrusive). Although these are humorous stories they do somewhat reduce the Census’s claims as a reliable historic document.

A researcher will look to keep the respondent interested and engaged and make sure each answer is given reasonable thought. This can’t be done for a self completion questionnaire, although Q17 in the Census “This question is intentionally left blank – Go to 18’ did keep me on my toes. A researcher will also make sure it is the correct person filling it in, and so the correct information is gained. What is to stop someone handing the Census over to their 11 year old child because they’d rather be doing something else? Only trust.

Finally you have to be sure with self completion questionnaires that the database you use to send them is correct and up to date as this will affect your response rate greatly. For the 2001 Census it transpired the Manchester database was two years old (far more up to date that some we have been given) and therefore anyone with a newer property was missed out. In particular it seems to be young males who seem to be missed. On this occasion they have presumably decided it is better to be safe than sorry...and sent a questionnaire to a car parking ticketing machine in Hampshire.

Self completion is still seen as the least intrusive and most anonymous way of being surveyed. And it allows respondents to complete at their own leisure. However because of the problems listed, UK research companies often persuade clients away from using self completion questionnaires as a research method. Which is possibly why the government has employed a US arms manufacturer to collect and process the 2011 Census data...

JG

Why we should all strive for greater than 'satisfaction'

My first two blogs entries have both been regarding Customer Satisfaction Surveys, which businesses will often use to ascertain from their clients how they are performing and how they can improve. But I have never been comfortable with the industry term 'customer satisfaction' if I am honest, or more specifically with the word 'satisfaction' being used in this case.


Satisfaction to me implies contentment. The Oxford English Dictionary defines satisfaction as the 'fulfilment of one's wishes, expectations or needs'. So as a supplier if you have satisfied the client it could be said you have done enough to please the customer, even if it is just enough. You have met the needs laid out; even it is only by a whisker.


In some ways this is all well and good. A satisfied customer will not normally complain, and they will normally pay the invoice. So everything is fine, right? But anyone aiming for a long term relationship with a client should surely aim for more than this. 'Satisfaction' doesn't necessarily equate to brand loyalty. People's favourite products or services reach much higher than this. No-one has ever rushed into a room and said 'everyone, I have to tell you about this satisfactory service I received the other day!'


A 'satisfied' client would happily use your services again, or they may be swayed by a more attractive price, a special offer or a persuasive salesperson. However, a 'delighted' or 'fanatical' client is more loyal and less likely to go with another competitor. Why would they? When you are doing such a fantastic job.


So if you are conducting some Market Research with your clients, or even less formally looking to gauge their opinions, never settle for a satisfied client. Always look for a way of finding out how to improve the service you offer or improve your relationship with the customer. As it is these customers who will be singing your name from the rooftops, and will always come back for more.


JG




for more on market research visit http://www.murrayconsultancy.co.uk/

Do we know our customers are happy?

Is anyone the type to complain in a restaurant? To the people who work there I mean. We all complain to each other. I'll happily moan to the people I'm with if the service is too slow, or if the food isn't as good as usual/somewhere else I've been. But when a member of staff comes over and asks me if everything is ok, I will always say 'yes, great!'. Because I'm terribly British.


But as far as the restaurant is concerned they think they have done a good job. They have provided me with the service I asked for. I have paid them for it. I've probably left a tip too. And besides I told them they had when they asked me (because I'm far too polite to say otherwise). So it's a job well done from their perspective. But next time I'll probably go somewhere else


Often businesses will say that they know they are doing a good job or people would tell them. Or they wouldn't get paid. But the restaurant example proves this is often not the case. If that restaurant has left an anonymous questionnaire for me to fill in I would probably have been more honest. If they'd have emailed me the next day I may have been even more so. Everyone likes to hear about how fantastic they are, but criticism is more valuable to a company in the long run. It means improvements and staying ahead of competitors. Besides, not every company is perfect. Not even us!


JG
http://www.murrayconsultancy.co.uk/

Customer Satisfaction Surveys - Make them work for you

As I walked out of Lime Street Station this morning, a large billboard advertisement by the Financial Institution ING Direct caught my eye. It read;

'97% of our mortgage customers would recommend us to friends. Maybe the others just aren't all that chatty'.

As well as being a very clever advertisement (hats off to whoever came up with it), it also showed how Customer Satisfaction Surveys can be commissioned for a variety of different reasons to the benefit of the client. The traditional reason to conduct Customer Surveys is to ensure all customers are happy with the service they are receiving. It is easier, and often cheaper, to retain existing customers than it is to get new ones. Yet many businesses put much more emphasis into chasing new clients, than they do into making sure the ones they have got are happy, and then complain when they walk away. So Customer Satisfaction Research is a way of ensuring you are fully connected with your customer and you can resolve any issues a customer has before they decide to look elsewhere. It also makes you seem like you truly care what the customer thinks.

However, clients we have had in the past have looked to gain other benefits from Customer Satisfaction Studies. Companies who know their customers will be using their competitors as well, will often look to find out how their competitors compare with them in all aspects of performance. They may offer a better service overall, but a competitor could have the edge in a certain area (for example delivery times), which the commissioning company can then look to improve. Sometimes companies look to get ideas for new services or products they should be offering from their clients, which they can then try and incorporate into their business. Whilst one company we have dealt with used Customer Satisfaction Surveys to assess how key customer facing staff were performing and issued bonuses based on the results. Good idea that.

But sometimes, like ING, you just want to tell everyone how great you are. And, as long as you get the right results, you can do that too. If only they'd have commissioned us to do the research....


John Gibbons - Market Research Manager