Quality-minded builders, remodelers, developers and contractors rely on our customer satisfaction surveying to help them provide exceptional service

I just finished examining financial information from 457 recent remodeling projects for which we had survey responses. From the data, it looks like…

Gross Profit Margin = (0.0424 x Satisfaction Index) + 0.4155

Per that equation, if 50 customers were completely unsatisfied (zeros across the board and would not recommend) the remodeler would earn an average GPM of 41.55%. If 50 customers were completely satisfied (fours across the board and would recommend), the remodeler would earn an average GPM of 45.79%.

However, that equation assumes a linear relationship, and isn’t really a reflection of reality. In actuality, the influence is more dramatic on the far left and far right ends of the chart. GPM tweaks up and down in the extremes: when comparing the 50 most satisfied (avg GPM of 49.0%) and the 50 least satisfied (avg of 40.5%), the difference is actually 8.5%.

These customers are all from roughly the same period, so I theorize that the increases in GPM are attributable to a smoother experience. They don’t reflect any increases a member would ultimately realize from continued improvements in reputation. Those gains would certainly come (and some other research suggests they will be significant), but the positive trend I see here is likely a reflection of the direct and immediate benefits of less call backs, less fee disputes, etc.

Bigger gains in profitability come when the stronger reputation begins to earn the company premium pricing. But judging from this data, there are immediate financial benefits from delivering an exception customer experience: Jobs are more profitable when the customer is happy.

On a $10,000 job, the contractor makes $60 more by having a very happy customer (95%) as opposed to a moderately satisfied customer (80%). For a $400,000 job, the same improved satisfaction increases the gross profit by $2,400.

This past week, we moved a few blocks to a new building in Midtown Atlanta. While the move covered only 1.9 miles, we can certainly lend credence to what is said about a welcome change in an environment. We are enjoying ourselves as we continue to settle into our new nest.

An overarching objective we had in mind as we moved was “to simplify”. As the words “we really don’t have that much stuff” began to fall from our lips, our “stuff” seemingly doubled, tripled and finally quadrupled in size. Needless to say, we parted with some of our possessions.

In the end, we were able to manage the move quite comfortably and uneventfully with particular thanks owed to the Herculean efforts of Rob Faraj and Michael Hardy.

For your records, the only thing that has changed is our address:

GuildQuality Incorporated
750 Ponce de Leon Place NE
Suite 3
Atlanta, Georgia 30306

Like most of you, we at GuildQuality make the exploration of lead generation tools a part of our day-to-day effort as a means to grow our business.

Capterra, a web-based tool we use on occasion, earns it’s space by helping businesses “find the right software by presenting them with all of their options so they can compare solutions and make the right decision”. Capterra is a very useful and productive tool for companies not only looking for, but also providing software solutions that help us to keep our eyes on the road.

Recently, Capterra added new functionality which allows software providers, such as GuildQuality, to solicit comments from its customers. You can access our feedback page via the GuildQuality forum here. This is the part where we shamelessly ask you for any feedback you might have about your experience with GuildQuality. We would certainly appreciate any feedback you are able to provide.

As your company continues to grow, you will undoubtedly look to software to help you alleviate and/or make existing processes more efficient. This, of course, is a good problem to have. It’s at these moments, we encourage you to keep Capterra in mind.

Last Thursday on August 28, Geoff Graham addressed the Atlanta Remodelers Council at the headquarters of the Greater Atlanta Home Builders Association. The Atlanta Remodelers Council meet on a regular basis “to improve their business management skills, to network with peers, to perform community service and to work for the betterment of the industry”. This is a really great group of quality-minded remodelers with a collective interest in delivering an exceptional customer experience.

Geoff’s main topics of discussion were the principles behind what he called “Marketing and Anti-Marketing Megaphones”. He explored some of Fred Reichheld’s ideas about NPS and talked about how “detractors” and “promoters” can affect your reputation and ultimately, define the longevity and success of your business. We really appreciated the enthusiasm and participation of the council.

We would like to thank, again, the GAHBA and the Atlanta Remodelers Council for inviting us.

** Geoffrey Graham, President and Founder of GuildQuality, is a regular speaker at conferences, meetings, shows and builder groups across North America. If you would like to make arrangements for him to come speak at your event, simply contact us to provide us with the pertinent details.

On September 20, at this year’s CCN (Certified Contractors Network) Contractor Training Conference, Geoffrey Graham, President and Founder of GuildQuality, will be conducting a workshop entitled “Think like a Customer”. The workshop will focus on what makes the customer experience paramount to the longevity and success of a business.

If you are attending the conference, please stop by to visit us! If you aren’t registered for the conference and would like to attend, click here to get registered. We’ve found this to be a really great group of quality-minded folks and we would love to see you there!

** Geoffrey Graham, President and Founder of GuildQuality, is a regular speaker at conferences, meetings, shows and builder groups across North America. If you would like to make arrangements for him to come speak at your event, simply contact us to provide us with the pertinent details.

Last year at the 2007 Remodeling Show in Las Vegas, GuildQuality and Remodelers Advantage hosted a complimentary breakfast for members, prospects and guests. It was a pleasure to meet many of you and for some of you who have since joined GuildQuality, it has been a pleasure to serve you.

The 2008 Remodeling Show takes place in Baltimore and we have once again decided to team up for a special breakfast event on location at the Baltimore Convention Center. Event details are below:

Date: Wednesday, September 10, 2008
Time: 7 – 8:30 am
Location: The Baltimore Convention Center (Room 337)

Geoffrey Graham, President and Founder of GuildQuality and Victoria Downing, President of Remodelers Advantage will be discussing the following topics:

– Improving your business’s productivity and bottom line
– Learning proven strategies for success from peer group members
– Providing extraordinary client experiences that generate referrals
– Overcoming operational and personnel challenges
– Tapping into the best minds in the business
– Succeeding in today’s economy

If you are interested in attending this special breakfast event, please RSVP as soon as possible – space IS limited and only a few slots remain.

** This event is exclusively for owners of remodeling businesses – preferably those that average an annual sales of $1 million or more (exceptions can be made). Limit of 2 attendees per company.