Study looks at marketing benefits, pitfalls of customer-satisfaction surveys

Nov 03, 2010

Though designed to enhance customer experiences, post-service customer surveys might actually harm a business's relationships with consumers, according to new research by Rice University professors. The research team found that customers who participate in firm-sponsored surveys delay doing repeat business with that company.

The study finds companies that use immediate follow-up customer surveys or multiple follow-up surveys may open themselves to because customers who were satisfied with the specific service they received may jump to the conclusion that their service was comprehensive and that consequently they do not need to return in the near future for other services.

"Even when customers express high levels of satisfaction, the inferences they make from answering such questions could have the adverse effect of delaying their next purchase for businesses," said co-author Utpal Dholakia, associate professor of management at Rice's Jones Graduate School of Business.

The study, "Understanding the Effect of Post-service Experience Surveys on Delay and Acceleration of Customer Purchasing Behavior: Evidence from the Automotive Industry," was co-authored by Dholakia, Siddharth Singh and Robert Westbrook and published recently in the Journal of Service Research.

The findings are important to service-oriented businesses, because the industry typically uses a significant amount of their marketing-research budget on customer-satisfaction surveys. These surveys also collect important data on customers, such as types of service used, name, e-mail, phone, address and customer history.

To combat the delay of repeat business that surveys create, Dholakia said, companies should consider offering their customers an attractive coupon redeemable only within a certain period, or free services on the next post-survey visit, to stimulate customers to come back sooner.

"After conducting service-experience surveys, companies should make sure that they have a plan in place to counter any of their negative effects. It is important for the company to better understand what inferences customers make from survey participation," Dholakia said.

While the study found these pitfalls of post-service customer surveys, Dholakia said that in the long run surveys do work for service-oriented businesses.

"In our study, although customers delayed their very next service visit to the company's stores, over the longer term, they came back more frequently and were more likely to redeem the company's coupons," Dholakia said. "In the long run, surveys have net positive effects on behavior."

The study was based on the quick-lube (oil change) industry and used information on purchase history, service information, vehicle data and demographic characteristics from 11,373 customers. The information was obtained from a national quick-lube's data warehouse. The data were obtained for all quick-lube service visits at the firm's outlets both prior to and after the survey over a seven-year period, for a total of 75,423 service visits.

Explore further: Study finds Illinois is most critical hub in food distribution network

More information: To read the complete study, visit www.rice.edu/nationalmedia/mul… a/2010-11-02-surveys

add to favorites email to friend print save as pdf

Related Stories

Research: Facebook fan pages are effective marketing tool

Feb 18, 2010

Companies that use the popular social-media site Facebook and its fan page module to market themselves to customers can increase sales, word-of-mouth marketing and customer loyalty significantly among a subset ...

Offshoring: Where's the value?

Jul 08, 2008

U.S. firms that offshore customer service may save money on labor costs, but they also pay the price in terms of unhappy customers, say University of Michigan researchers.

Poor customer service leads to loss of customers

Mar 26, 2009

Cost reductions are high on the agenda in many firms. Cost reductions often result in manning reductions and fewer employees. Customer service is a labour intensive function, and is therefore very likely to be affected by ...

Companies Beware of Biased Consumers

May 26, 2010

(PhysOrg.com) -- Marketers frequently rely upon surveys to gain insight into consumers' opinions and preferences. These results have important implications, ranging from the decision to add new product features to multi-million ...

Recommended for you

Economist outlines work on managing tasks and time

Dec 17, 2014

"When a man knows he is to be hanged in a fortnight," said Samuel Johnson, "it concentrates his mind wonderfully." Most of us, spared such an imperative, carry on in a less-concentrated state, but it holds ...

Companies do not use online HRM effectively

Dec 15, 2014

Professor Tanya Bondarouk of the University of Twente thinks it's embarrassing : many companies and organizations are still not making effective use of e-HRM systems. These online systems can be used for a wide range of HRM-related ...

Happy-go-lucky CEOs score better returns

Dec 11, 2014

A CEO's natural sunny disposition can have an impact on the way the market reacts to announcements of company earnings, according to research from the University of British Columbia's Sauder School of Business.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.