Qualified Remodeler Magazine

JUL 2015

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

Issue link: https://qualifiedremodeler.epubxp.com/i/548106

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Page 29 of 59

s business owners, top remodelers use key fnancial, accounting and marketing metrics to monitor the health of their frms. Te accuracy and timeliness of those metrics cor- relate directly to the quality of an owner's decision making. Better data leads to better decisions and ultimately to a bigger bottom line. Over the past decade, the importance placed by leading remodelers on customer satisfaction metrics (generally) and "willingness to recommend" (specif- cally) has grown dramatically. Many argue it is the key remodeling performance measure after revenue and proft. Today, thanks to the eforts of new research, we know more than ever before about its relevance to the health of all businesses, not just remodelers. First, higher customer satisfaction is tied to increased revenue per customer. An InfoQuest study found that "a totally satisfed customer" yields 2.6 times more revenue than a "somewhat satisfed customer" and 14 times more revenue than a "somewhat dissatisfed cus- tomer." A company that consistently satisfes its clients is often getting double the return on its investment to acquire a new customer. Second, high customer satisfaction neutralizes any negative word-of-mouth impact often associated with the inevitable unhappy customers. A McKinsey study found unhappy custom - ers on average tell between nine and 15 people about their negative experience, and 13 percent of unhappy clients tell more than 20 people. Bad news travels faster than good news, especially with the Internet. Customer satisfaction therefore is a good way to play ofense and to help a business grow, and it provides a solid defense against faster-traveling negative word-of-mouth. Te only efective way known to track customer satisfaction is through regular survey work of past clients. Tis is important because other studies have shown that most clients don't tell you they are unhap- py. For every complaint received there are another 26 customers who don't speak up. So surveys are required to get good visibility on this metric. You can do this work on your own, but it tends to be more accurate when conducted through a third party. Since 2003, Atlanta-based GuildQuality has been conducting such surveys for remodelers and builders. In all, they have used their software as a solution application to survey over 1.2 million homeowners. Working with GuildQuality, Qualifed Remodeler was able to identify 60 top remodelers nationwide and have them share their incredibly high recom- mendation rates and tips for what works. In addition, GuildQuality created the frst-of-its-kind heat map that draws upon tens of thousands of remodeling cus- tomer responses to identify and benchmark remodeler behaviors that correlate directly to higher satisfaction. Tese, combined with the 60 profles, ofer insights in a performance metric that can make a huge diference over the life of your company. | How to Win with Customer Satisfaction Profles and tips from 60 leading frms based on GuildQuality ratings ofer insights into remodeling's primary performance indicator. Patrick O'Toole and Laurie Banyay Qualified Remodeler Jerrod Butler, Kathryn Ewing, Alex Overall, Geoff Graham GuildQuality Inc. A About GuildQuality GuildQuality was founded in 2003 by Geof Graham during his time as a real estate developer as a surveying solution for small to mid-sized homebuilders and remodelers. Since then, GuildQuality has grown to become the nation's leader in web-based customer satisfaction surveying for the residential construction industry. With nearly 2,000 companies who are members of the GuildQuality community of quality and having surveyed over one million homeowners, GuildQuality is the trusted partner of homebuilders, remodelers, and home improve- ment contractors who value gathering authentic customer feedback and providing high quality service to their customers. Te best residential construction professionals rely on GuildQuality's customer satisfaction surveying, performance reporting, and marketing tools to help them monitor, improve, and share their commitment to quality and receive the recognition they deserve for doing exceptional work. SPECIAL REPORT: Customer Satisfaction 30 July 2015 QR QualifiedRemodeler.com | ForResidentialPros.com

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