The Measure of Our Success
There are many metrics to consider when monitoring business performance, but perhaps none is more vital to the long-term success of a company than customer satisfaction and loyalty. Savvy executives know that the best customer is the one you already have. Those who are most satisfied with your products or services will not only remain loyal, but they will also tell others. Both of which are good leading indicators of future business success.
By measuring customer satisfaction on a continual basis smart businesses gain a real-time visibility into the performance and health of their organization. Measuring satisfaction is often done in highly transactional environments; these are usually business-to-consumer types of businesses. In my experience it is less common for professional services firms to measure their client satisfaction and loyalty levels. This observation is ironic given that professional services companies rely on the strength of their relationships and the results delivered for their continued success.
A major ingredient to the success of M Squared Consulting has been our commitment to client and consultant satisfaction. We have created a company culture that aims for client success and loyalty rather than a singular concentration on sales volume. In addition to actively monitoring and managing our relationships, the best way for us to maintain and improve this focus is to actively measure satisfaction and loyalty at the conclusion of each consulting engagement.
Taking the Pulse
As a consulting firm we are only as good as the results we deliver for each client. These results are delivered by our expert consultants and managed by our staff. We measure our performance for all three of these major constituencies - the clients who trust us to deliver results, consultants who do the actual consulting work, and our staff employees who serve both. To do this we use the following instruments:
- At the end of every engagement we measure client satisfaction via our Client Satisfaction Index (CSI) tool
- At the end of every engagement we measure consultant satisfaction via our Consultant Satisfaction Index (CSI) tool
- Every year we survey our staff via an Employee Engagement survey.
We use a third party research firm to administer this research. As each project is completed we invite clients and consultants to take a short online survey. From this survey (roughly 10 questions scored on a 1-10 basis) we compile scores for each individual question and also calculate three important metrics:
- CSI - which is a quantitative score derived from all the survey questions
- LP² - which measures our commitment to Listen, Partner and deliver on our Promises
- Loyalty Index - which measures the overall loyalty of our clients and consultants. (Note: this is sometimes called the Net Promoter Score.)
Becoming a Learning Organization
These reports have become a vital management dashboard giving our team a much richer view into our consulting engagements and the value we deliver. Each month we not only look at our financial reports but also our satisfaction surveys, which represent the voice of our clients and consultants. Taken together they allow us to see how we’re doing across all the important dimensions of our business.
By adopting this rigorous methodology at M Squared Consulting we have gained not just a scorecard but a very useful diagnostic tool to improve every facet of our business. We use these assessments as guideposts to how we can enhance our service offering and value proposition to both clients and consultants.
Conclusion
It has been said that most problems in business boil down to “people problems” - which means most opportunities are also centered on people. As consultants we are in a people business. Long-term success comes from creating and sustaining strategic, mutually beneficial, relationships and delivering value on each engagement.
Satisfaction surveys are a direct feedback tool between your company and those you serve. They help to create open communication and collaboration between all the vital constituencies. Making the commitment to measuring satisfaction allows you to focus on what your clients want from you and how you deliver against those requirements.
If you would like to learn more about how we measure satisfaction with our CSI program, or explore how direct customer feedback can drive your business to new levels of success, we would welcome the conversation.
