Measure what really matters in your construction business
There are two major requirements for growth and success of a construction company; profitable customers and happy customers. We all measure profit at least to some degree, but do we measure customer happiness? The next question is, how the heck to you do that?
Not all profit is good profit. If you cut corners to save money, how would this hurt long term customer relations? If you made money, but lost a customer would it be worth it? The basic rule of thumb is a happy customer tells 1 person a bad customer tells 10.
In the book the “The Ultimate Question by Fred Reichheld” he discusses how we need to “Stop measuring things that don’t matter to your customer”
He goes on to state:
- You have to design value propositions that focus on the right customers. That means developing an appropriate segmentation of your customer base, then creating a complete customer experience capable of delighting each targeted segment.
- You will have to deliver those propositions in the end. Every department and every employee in your company will have to pull in the same direction.
- You will have to develop your company's capability to do all this over and over again, renewing and reinventing the customer experience over time.
What he is saying, is that for each construction company, we need to focus on what we do well and how we can delight the customer. We need to ensure that all employees are focused on delivering what we promise the customer, every time.
Therefore, to determine how happy our customers are let’s Ask the ultimate question and very little else. “Would you recommend our company to your friends and associates? Rank from 0-10
Analysis shows that, on average, increasing the net promoter score by a dozen points versus the competitors can double the company's growth rate. We at Asyma Solutions live by this same measurement. If we as a company are really providing value to our customers with our products or services, then our customers would gladly recommend us. This applies to construction companies as well. Therefore, lets measure what really matters, what does the customer really think.