I grew up in a cold climate in the northern United States. Winter consisted of months of gray days, freezing temperatures, snow and ice. I learned to drive in snowy and icy conditions. My parents were aware of the importance of teaching me what to do if my vehicle began to slide on ice and how to regain control. They taught me to be cautious when weather conditions were untenable. Therefore, I was well prepared to drive in threatening conditions and always acted carefully to avoid an accident.

Unfortunately, we are not always aware when threatening conditions exist. An example of a hidden threat on roads during the winter season is black ice; a transparent layer of ice that freezes with little to no air bubbles trapped inside, making it virtually invisible. Its undetectableness has caused many accidents because unsuspecting drivers proceeded to drive over it with a “business as usual” approach, often with disastrous results.

Hidden threats like black ice aren’t just for drivers. In the business world, we may unsuspectingly conduct “business as usual” only to be hit when we discover a hidden threat too late. Wouldn’t it be great if we had a way to reveal hidden threats to our businesses so we can avoid sliding into disaster?

Harvey David, author of Customers – The Hidden Threat To Your Business: How to Stop Your Greatest Asset Becoming Your Biggest Liability, says that disrupting the supplier/customer relationship is “an unstoppable force for change.” In his book, he describes a shift in the balance of power from provider to consumer and identifies seven reasons companies are under real threat today. These seven include:

1. The shift from supply to demand economics
2. The commodification of markets and the promiscuity of customers
3. The impact of the web, peer-to-peer computing, and other technological developments
4. Market turmoil and the escalating battle for customer attention
5. The move from push marketing to permission marketing
6. Legislation that sides with the consumer
7. Values ​​and social changes that are shaping new forms of customer behavior

Knowing about the threats out there, especially in light of the economic times we’re living in, can cause more than a little anxiety. This anxiety is not necessarily a bad thing according to psychologist Robert H. Rosen, author of Just Enough Anxiety. Rosen states that anxiety is an inevitable part of life and how we use it is vital to the success of our business. If we let it overwhelm us we will panic; if we run from it or deny it, we will become complacent. However, Rosen says that we can use anxiety in positive ways and it can become a powerful force in unlocking the hidden drivers of business success.

Over the course of his 35-year career as a psychologist, entrepreneur, and CEO consultant, Rosen has met with more than 250 business leaders from around the world. One thing these leaders agree on is that the very nature of business is changing, almost daily. In today’s world, embracing change is essential to business survival. Making changes in response to dynamic customer needs and perceptions is crucial. According to Rosen, leadership practices that ignore the human side of business are out of date.

So we know we need to change, but what changes do we need to make? There is no one answer to this question that fits all businesses. In fact, the only way to know what changes your business needs to make is to learn the needs and perceptions of your own customers, and the only way to gain this insight is through scientifically sound customer surveys. Let’s look at an example of how scientific surveys can reveal hidden threats in a customer base.

Recently, the National Business Research Institute (NBRI) conducted a customer survey for a company that provides wireless mesh networks. The survey, prepared using rigorous scientific standards, revealed that this company had many hidden dangers in its customer base. All survey items underwent a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. These ratings are obtained by comparing the responses of the company’s customers with those of the customers of other companies in the same industry. To be classified as a “strength,” a survey item must have a percentile rank equal to or greater than the 75th percentile. Unfortunately, the analysis did not reveal any of the items ranked as strengths for this company; instead, 34% of the items were classified as weaknesses, scoring between the 25th and 49th percentiles of the benchmarking database. Some of the items scored as weaknesses included:

• I look forward to continuing to purchase products and/or services from this company.
• I would provide a good recommendation for this company if asked.
• Company personnel are motivated to do the right thing.
• The integrity of the company’s personal exposure.
• The company provides me with accurate information.
• The company makes it easy for me to do business with them.
• The company’s staff shows professionalism.
• The company’s staff complies with what was promised.
• Warranty repairs are handled satisfactorily.
• Company shipments are accurate.
• Company staff are courteous.
• The company’s management of complaints is satisfactory.

Below-average scores on the above items are certainly a puzzling result. However, being aware of these threats is the first step towards intervention and change. If the company’s top executives had “buried their heads in the sand” and refused to take the necessary steps to become more aware of their customers’ perceptions, these attitudes could have a significantly negative impact on the business.

The long list of items above is not only bewildering, but can also lead to the perplexing question, “Where do we start?” It’s obvious that change is needed to improve customer perceptions, but with so many things that need improvement, it can seem impossible to determine which things to prioritize. Fortunately, a root cause analysis (RCA) was also performed on these survey items. This statistical procedure identifies the few elements that serve as drivers of overall customer satisfaction and return intention. The RCA identified the following two elements as driving customer satisfaction:

• The company’s products are competitively priced.
• The company’s products are worth it.

Three elements were driving customer intent to return for future business. These items include:

• Company shipments are accurate.
• Company staff are courteous.
• The company makes it easy for me to do business with them.

Now this company has a much more manageable list and the powerful knowledge it takes to drive change that improves customer perceptions and increases profits.

If you revisit the above items categorized as weaknesses, as well as the items that served as key drivers, it’s clear that customers aren’t the only “human side of the business” we need to be concerned about. Perceptions cannot be changed on any of these items unless employee behavior changes and employee behavior is influenced by employee attitudes. Therefore, revealing hidden threats to your business also requires conducting employee surveys. Let’s look at another case study where survey results exposed hidden threats.

NBRI conducted a survey of employees at a company that sells fasteners, as well as provides engineering and logistics services for these products. Like the company discussed above, this company had no items classified in the strengths category. Instead, 57% of all items on their survey fell into the weaknesses category! Some of the items classified in this category included:

• I have the training to do my job.
• I trust management.
• I understand what is expected of me in my job.
• In general, I like my job.
• I have access to the information I need to do my job.
• I have confidence in the leadership of this company.
• Managers listen to employees.
• Employees want to do a good job for the company.
• I plan to be working here in five years.

It’s obvious to see how below-average ratings on the above items could also have a negative impact on customer perceptions. Fortunately, the company knows exactly which employee perceptions need to be improved to achieve maximum change. The RCA identified three drivers of employee perceptions. They were:

• My boss motivates me to be successful at my job.
• My boss treats me fairly.
• My boss tells me when I do my job well.

If employee perceptions improve in just these three areas, the company should see an improvement in 67% of the survey items they handle. Positive changes in employee attitudes should also lead to positive changes in customer attitudes.

For our businesses to be successful, we can’t keep playing the same game when the rules keep changing. The success of a company is directly related to its employees and customers. Since people’s perceptions are dynamic and their attitudes change over time, what worked yesterday to improve perceptions and attitudes will not work tomorrow. Also, game changers that are successful in one industry will not be successful in another. To thrive, it’s essential to regularly survey both your own customers and employees to gain the insight that reveals hidden threats to business success.