According to a study on customer risk management published by Hepworth & Company Ltd., 11.4% of your company's revenue is at risk because of dissatisfied customers.

Companies are putting a lot of effort into customer satisfaction measures using surveys and comment cards (online, on paper, on the telephone and in person). And they're asking how satisfied their customers are - do they like the products or services? But are companies asking the right question? I don't think so.

I think the question you ask your customers should be "Will they repurchase from you?" Just because a customer is satisfied doesn't guarantee that they intend to repurchase from you and there are serious implications in that.

Are they satisfied?
Being "satisfied" really only means that you've met the customer's expectations. If you ask about satisfaction that's exactly what the results tend to show: satisfaction. The Hepworth report says that asking "How much do you love us today" is a question of little value as a basis for action. It is a "feel-good" survey for the company, useful as an applause meter.

Will they repurchase?
But asking customers if they plan on repurchasing is actually a way to find out if they are dissatisfied. Most customers don't complain to you if they are unhappy or dissatisfied, they simply take their business elsewhere. In fact, Athol Cohen & Associates reported in Small Business Canada in 2002 that as many as 92% of unhappy customers don't complain to you. These same customers generally spread some bad news about you to their circle of friends before going to a competitor. And that is the most harmful form of advertising for you. Asking customers about repurchase lets customers know that you value their business. Of customers who leave, 68% (according to our latest research) do so because they think you don't care about their business. By asking customers if they'll buy from you again you can collect a wealth of useful information especially from customers who are unhappy. And the sooner the sources of dissatisfaction are identified, the sooner you will be able to act on them. The end goal is not just satisfaction. It's loyalty.

The customer relationship
Customers go through several stages in their relationship with you or as we like to say in the loyalty continuum. Long before they become customers, they are suspects, then prospects. After an initial purchase, they are your first-time customers. If they like the product and the service, it is likely they'll be repeat customers. But they've got to be more than satisfied to continue buying from you and to move from "client" to "advocate". The goal of course is to have what Ken Blanchard calls, "raving fans" - customers who wouldn't dream of buying anywhere else. They are loyal to you.

The reality is...
At any point in time, 11.4% of your revenue is at risk, according to extensive research conducted with North American companies over an 8-year period by Hepworth & Company Ltd. During 154 studies with over 130,000 responses, this research revealed some groundbreaking evidence that between 4% and 33% (11.4 % is the average) of a company's revenue could disappear in the blink of an eyelash because of dissatisfied customers. If you are a $10M company, you risk losing $1,140,000 in revenue. What are you going to do about it? More and more companies are realizing that implementing a customer experience program can help them connect emotionally with their customers, create more loyal customers, and reduce the revenue at risk - guaranteed!

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Carolyn Watt is the founder and president of The Customer Experience Company. She is passionate about customer experience and believes that the experience is formed as a result of three things: processes, communications and people. That means that you must make it insanely easy for your customers to do business with you. Your communications must be written clearly. And, your staff must deliver on the brand promises you've made to your customers.