Surprise ! A Buyers due diligence may include a "happy customer" survey!

Selling your business? - Do not be surprised if a buyer's due diligence includes a "happy customer" survey!.

What do you know about your customers’ loyalty? Do you remember when you last ran a customer survey? Do you think products and services of your business will be confidently recommended by your customers?

Happy customer!

           These days’ regular surveys called the promoter score are used on companies that are part of the portfolio of private equity firms to get customer feedback.

In using this method, a scale of 1 to 10 is used to ask customers ‘how likely are you to recommend us as a company to others’, with 1 meaning ‘not at all’ while 10 means ‘absolutely’.

             Results from the survey are divided into three parts, with the ‘detractors’ placed at the bottom, the ‘passives’ in the middle, and the ‘promoters’ placed at the top. And in order to arrive at a final score for the company, the detractors would be taken away from the promoters. With this method, the score serves as a prediction for the company’s success in the future.

              Many of the fastest-growing companies today such as Eventbrite, are vigorously using the responses from their surveys to constantly improve and focus on what's important. Private Equity firms regularly review their portfolio of companies to provide insight as to what's going on and whether a business needs tweaking or should be in their investment group.

  Customer feedback is predictable and therefore a true influencer to where you're going as a company.

              You shouldn’t be surprised if a buyer decides if your business is desirable by measuring the impact after conducting a similar questionnaire on your customer base.

"The perceived value of your service or product is dictated by your customer....no customer, no value"  Guy Breading

Guy Breading Business Brokers Academy

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