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Acquiring a business requires time, effort, and money. An acquisition can transform and grow a business overnight. But purchasing the wrong target company wastes time and resources, and causes distractions. Every acquirer must analyze, investigate, and perform due diligence to ensure that doesn't happen.
The entire process of buying a business can be daunting. However, with the proper research and attention to detail, an acquisition can lead a business to successful growth. To help acquirers, we have included 55 questions to ask when buying a business. We have separated it into categories and phases.
Business Readiness Questions
Before asking questions to the seller or target company, ask the following questions:
1. Why buy the business?
What is the goal of the acquisition? Is the acquisition's purpose to acquire specific technology or enter into a new market? A good deal rationale will set the tone for everything else.
2. Why not build internally?
Why buy the product or service instead of building it from scratch? Is it more expensive to build from scratch? Is it because of time-to-market? A buy-or-build analysis is crucial when deciding to acquire a company, which requires collaboration with the CEO and functional heads.
3. Is the acquisition affordable?
Funding an acquisition can be tricky, depending on the acquirer's financial capability. There are three ways to fund a transaction: equity financing, debt financing, and cash reserves.
4. Can the team's resources handle M&A?
M&A is massive and will require many people to execute the entire process. Not to mention that it could take months and, in some instances, a year to finish. Also, the people involved in the transaction will most likely juggle their day job while participating in the deal. Dedicated and capable people is a requirement for any company to execute M&A.
5. Where to find third-party consultants?
Aside from the internal team, getting outside help has its benefits, and is sometimes necessary. It is important to understand where to find third-party consultants and the costs associated with hiring them.
6. Is there a culture fit?
It's never too early to do a cultural assessment of the target company. Even at a high-level view, massive differences will be noticeable. For instance, a traditional company trying to acquire a millennial-dominated startup might have problems due to a substantial generational gap. Further diligence is required.
7. Is this the best target company available right now?
Are there any other alternative targets? Look around, it doesn't hurt to ask.
Questions about the Business's History
Now it's time to approach the target company and ask a few questions. Before fully committing all efforts and resources, obtain a high-level view of the company and get to know the seller.
8. Why sell the business?
There are several reasons why business owners sell their companies, and some of them can be deal-killers. Knowing why a business is being sold upfront can give buyers confidence or the ability to walk away as soon as possible.
9. When did the business start?
Longevity is a good indicator of business success. The longer the business has existed, the safer it is to purchase. Chances are, they have good customer loyalty, a solid reputation, and overall stability. However, startups are often less expensive and have more potential. Business duration is a good starting indicator of the business's quality.
10. Are there any other investors or owners?
Is the seller the 100% owner of the business? Or do they have capital investors? Are they selling their shares too? How much of the company is for sale?
11. Was there ever a lawsuit against the business or the owner?
In the business world, past or present litigation matters. It's a good indicator of culture, values, and, most importantly, reputation. Also, litigation can open the acquirer up for liabilities. If the target company has legal problems, the buyer will inherit those problems as the new owner.
Future Business Crowth capabilities
What about the future of the business? Has the business maxed out its potential? Or can the company grow with extra help? Those are important questions during an acquisition.
12. Does the business have the potential for hypergrowth?
Often, acquirers make the mistake of ignoring opinions and the owner's vision regarding their business. But the fact is, no one knows the company more than the owner does. If they are one step away from achieving hypergrowth, they might know what to do, but just lack the capabilities or funding to achieve it.
13. Is the business too dependent on the current owner?
A business heavily dependent on the owner could cause problems, especially if they are retiring. That massively cuts the value of the company, even though the owner may not see it that way. Also, putting all hopes on one person that could walk away anytime is not a good idea. If it seems impossible to replicate the owner's role or automate the processes, think twice about buying the business.
14. Is there someone who could run the business?
It's time to find a deal sponsor; Someone who can inherit the business forward. If the business is not dependent on the current owner, find a suitable replacement that can handle the business and its day-to-day operations. The location of the business is also crucial. If the business is overseas, and there is no willing employees to move there, that could be a problem.
Financial Questions & Valuation
Never buy a business without looking at concrete financial data. A business valuation goes beyond understanding the growth path of the target and verifying transactional elements is essential. Typically, there is an NDA in place before the seller would agree giving out sensitive financial information.
15. What is the business revenue?
How much money is generated from regular business operations? If most of the money comes from non-operating income, that means their products are not sellable, and acquiring this company might be a lost cause. This question entails getting all of the financial statements for the past five years.
16. How much profit does the business make a year?
Profit is not the same as revenue, and a business can have high revenue with no profit due to high fixed costs. It's essential to understand how profitable the business is.
17. Does the seller have any outstanding debt?
Look at the debt schedule. As the one inheriting the debt, it is important to understand each and every detail of the debts incurred by the company.
18. What are the company's assets?
Ask for a list of all the long-term assets owned or leased by the business. For the assets owned, they should provide dates of purchase to give an idea of the length and estimated usage of each machinery. It will also help understand the depreciation, condition, and remaining value of the assets. For leased property, ask for the contracts whether it's machinery or real estate.
19. How much is in the business's bank account?
A bank account balance will give a good estimation of the business' operating cost. There is also the matter of business continuity. Since all the salaries, receivables and payables go through that bank account, inheriting it is easier. Just put the account balance on top of the overall purchase price so that the transaction doesn't disrupt the business operation. The treasury team should secure all the necessary signatures and forms to transfer the bank account successfully.
20. Is the business tax compliant?
If the target company is not tax compliant, the acquirer will inherit potential problems with the government. Secure the following:
21. What does the business's quality of earnings look like?
A quality of earnings report is a good indicator of a company's profitability under new ownership. This process removes one-time events from their income statement and focuses on EBITDA. (Earnings before interest taxes depreciation and amortization)
22. What is the projected sales for the next year?
Look at the trajectory of the business. Does the business have something in the works that is geared towards boosting sales? Do they have new opportunities? Do they have incoming new clients? Getting their rough estimate is an important part of evaluating their business.
23. What is the seller's asking price?
How much is the asking price? If it is unreasonable, consider walking away before wasting any more time. It's very common for entrepreneurs to be emotionally attached to their business, which skyrockets their expectations. If it's too low, consider sealing the deal quickly before any buyer swoops in and triggers an auction.
24. How much have similar businesses recently sold for?
Regardless of the number and what the business looks like, it's important to know the fair market value for the specific type of business. Research or ask around how much similar businesses have recently sold to get an idea of how much to pay.
Questions About Day-to-Day Operations
Even if the numbers look good, what about the daily operations? It's time to think about integration and company culture.
25. How many employees does the business have?
Obtain the business's org chart and headcount by function. This will provide insight into the critical players crucial involved in day-to-day operations and the overall size of the business. This question also entails getting employment contracts. Gain access to sensitive information such as compensation, bonuses, and other details regarding every employee.
26. Have there been any layoffs or material changes to the workforce in the last 24 months?
Like it or not, culture matters. If the target company is throwing out employees left and right, that says a lot about their culture and how they treat or retain employees. Try to uncover if there are employees who left out of anger or were mistreated during their tenure, which could lead to possible lawsuits in the near future.
27. What are the products or services of the business?
Get a list of the products sold, or services provided, with a description. Knowing everything about these products will help during integration, especially in creating a go-to-market strategy.
28. Does the business have intellectual property, trademarks, or patents on their products?
Are their products special? If so, are they protected or registered? If they have no protection on a special product, then it is virtually useless because another company can copy it easily. Is it too late to register now? If their product is the deal rationale for acquiring the company, then this could be a deal breaker.
29. How does the business produce products?
This question provides a detailed view of what the day-to-day operations look like. How do they acquire their product? Do they make it from scratch? Do they buy parts and assemble it themselves? Or do they just buy and sell the products? Knowing the workflow will help accurately identify key people to retain, the pieces of equipment and tools needed for daily operations, and cost synergies.
30. Are the facilities, equipment, fixtures, and vehicles in good working condition?
If the sales are great and the products are great, but you cannot produce anything because the equipment is broken, then it's all for nothing. If all the vehicles needed to sell or deliver the product don't work, how will the business operate? Replacing or repairing everything will cost a lot of money and should be deducted from the overall valuation.
31. Who are the suppliers?
While trying to understand the operation, also get the supplier list. Who are the partners in producing the product? Do they have an existing contract? What are the limitations of the contract? If a supplier wishes to stop selling, can the business still operate?
32. How does the business sell?
Arguably, one of the most critical questions to ask before acquiring a company is how does the business sell their product or services? Where do they sell? How do they deliver? How do they collect payment? Achieving revenue synergies is almost impossible without understanding the quote-to-cash process.
33. Who are the customers?
The customer list with a breakdown of revenue by a customer is another important piece of information to obtain. Who are the top clients? Do they have contracts or can they leave anytime? How many customers do they have? And most importantly, who are the typical buyers of the product?
34. How does the business acquire new customers?
What is the go-to-market strategy? How do they acquire new customers? Do they have proactive sales reps? Physical stores? Social media? And what does the customer acquisition cost? Understanding the prospect-to-customer process is also key to integration.
35. Has there been customer churn in the last two years?
How many customers has the business lost? Do they know why? Is it something serious? Or is it because of better competition?
36. Who are the competitors of the business?
Knowing the competitors will help paint the entire landscape of the industry. Understand who they are, what they are doing, and what you can do to outgrow them.
37. Does the business have any existing partnerships with other entities?
Any joint venture or partnership agreement the business has entered into must be identified, especially if they are taking a percentage of the profits.
38. Any other contracts or agreements the business has entered into?
Are there any non-operating contracts the business has entered into? Acquirers inherit contracts and obligations. It could be as simple as a promise to donate money to a certain charity every year.
39. Does the business have the proper licenses and permits to operate?
Secure necessary permits to operate the business, licenses to use special machinery, and any other government-mandated licenses. Does the business have all of the necessary permits and licenses? If they do, are they all transferable to the new owner? If not, is it possible to secure ones? Otherwise, it might not be possible to own the business after all.
40. What kind of technology does the business use?
Today, technology is crucial for any business. It's very safe to say that the target business uses technology tools. What are the tools used? Can the tools be migrated to another system? Is it necessary to upgrade their computer hardware to be at par? This information directly impacts the integration budget.
41. Will the business be the same under different ownership?
Probably the most important question in this list, what will the company look like after the sale? If the plan is to relocate the entire business, can it still continue to run properly? If a huge part of the business relies on the owner's name or personality, then it's going to be impossible to replicate.
42. Is the target company better left alone? Or integrated?
Integration is the most delicate part of the transaction. Properly assess how much integration is possible to achieve synergies without breaking the company's value.
43. Does the seller have better processes?
It is also possible that a target company has a better process. Be open to reverse integration and adapt to their processes instead of the other way around.
44. Is the seller happy about the integration plans?
A big mistake that acquirers make is not listening to what the seller has to say about the integration plan. Remember that the seller is good at what they do. Be open to suggestions and align with their business leaders of what the company should look like after the transaction.
Purchase Contract Questions
It's time to put everything in writing.
45. How many risks are involved?
After gathering all the information, how many risks are involved? Even with the risks, is the deal still viable? Can you mitigate those risks in a contract?
46. What are the things included in the transaction?
Focus on the disclosure schedule in contracts. It contains what is and is not included in the overall transaction.
47. Is the seller willing to help during the transition?
In some instances, like a carve-out, acquirers require help from the seller to transition the business. A transition service agreement must be secured before the deal closes. However, even if it's a stock acquisition, sometimes, the owner needs to stick around for 90 to 100 days. Is the owner willing to stay for a little longer? Put it in writing.
48. Is the seller willing to sign covenants to protect the business?
As the previous owner, the seller knows all the business's trade secrets. Can they promise not to compete against it after the transaction? Will they share the secrets of the business to other companies or competitors? Also, other employees might have a deep loyalty to the owner and follow them wherever they may go. Protect the business and put covenants such as NDAs, non-solicitation, and non-compete clauses in the contract.
49. What are the things that the seller is willing to represent and warranty?
Reps and warranties are crucial for any transaction. These are statements of fact that the seller made to attract buyers. If any of them turn out to be false, reps and warranties allows the acquirer to claim damages. The most common example of this is the legality of the business. If the business turned out to be illegally operating, then reps and warranties can cover the damages. List down all the things the seller is willing to represent and warranty.
50. What are the other items needed to close the transaction?
Signing and closing right away rarely happens, and acquirers must identify other closing requirements to close the deal. The most common ones are regulatory approvals from the government, shareholder approval, and third-party approvals such as landlords' permission to transfer the lease, or the money if doing debt financing.
Miscellaneous
At this point, all that's left is to sign the contract. But before you do, here are some final questions to ask before signing a deal.
51. Was the seller nice during negotiations?
During negotiations, was the seller pleasant to work with? If they are unbearable, it might be an indicator of future culture clashes that will disrupt integration.
52. Is the target company socially responsible?
Not everyone cares about ESG, but it is slowly becoming a new trend globally. If this matters, then look at their ESG initiatives and identify if there is alignment on values and goals.
53. How will the deal be announced?
Announcing the deal can make or break the transaction. A poor announcement can scare all the employees and cause them to leave. The same can be said for newly acquired customers. Plan with the communication team carefully and get support from the target leadership.
54. Is everyone on the deal team happy about the transaction?
M&A is a massive undertaking that requires a huge team to finish. Having worked on the transaction, the deal team's opinion matters. They are the ones that were in the trenches working with the target leadership and discovering the risks first-hand. If they think this is not a good purchase, talk to them about it before proceeding to sign the contract.
55. Are you happy with the company?
Last but not least, are you happy with the transaction? At the end of the day, the buyer has to be confident and satisfied with the purchase.
Mistakes to Avoid When Buying a Business
We have provided 55 questions to ask when buying a business to prevent owners or corporate development from acquiring the wrong business. However, even with the right target, pulling off M&A is an arduous task. Statistics show that over 50% of deals fail due to inefficiencies in the process and framework. Here are mistakes to avoid when buying a business:
Lack of integration planning
Asking the questions above will help identify if the company is a good purchase. However, what happens after is a different story. Most transactions often include integration planning, but not early enough. To make matters worse, some teams start integration planning after signing the purchase agreement. And in some instances, the people that created the integration plan were never involved in the diligence process. These are all recipes for disaster. Integration planning needs to start as early as possible. The earlier, the better.
Working in Silos
M&A requires a considerable amount of people to complete. If those involved in the transaction work independently from one another, it will cause problems that will destroy the value of the business. Try using Agile M&A, a framework focused on collaboration and communication between teams, centered around integration planning with the deal rationale in mind. Learn more about it here:
Lack of commitment from the leadership team
Before conducting M&A, there needs to be a fully committed deal sponsor, someone who will inherit the business after the deal is closed and will take responsibility of running its daily operation. If no one will take ownership, the newly acquired business will be in jeopardy.
Are you interested in learning more about simpool? Contact us today to secure an expert consultation!
Understaffing the Deal Team
Never understaff the deal team just to save a few bucks. An extra one to two people can make all the difference between a burnt-out team and a well-oiled machine.
Recap
Buying a business is life-changing if done correctly. The list of questions to ask when buying a business is a good starting point to identify readiness and the target company's quality. However, don't feel limited by the above set of questions. Feel free to ask more specific questions, depending on the type of business and industry of the target company.
The most important thing to remember is to have a strategy behind the acquisition.
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How well do you understand your users? Who are they, what keeps them awake at night, and what brought them to your business in search of a solution? Nobody knows more about what your users want than your users themselves. So why not ask them?
Surveying people directly on your website gives you the feedback you need to improve the user experience (UX) and increase conversions. Writing 'good' survey questions and knowing when to ask them is paramount to ensuring you get the most out of your survey without wasting your or your users' time.
In this guide chapter, learn about the different types of survey questions, what to ask, where to place surveys on your site, and how Contentsquare's Voice of the Customer product makes drafting survey questions a breeze'it's all not as intimidating as it might seem, we promise.
Use AI-powered surveys to ask your users the right questions and better understand their needs so you can improve the user experience and boost your business.
Posing survey questions to your users is the simplest way to understand their pain points, needs, and motivations. But first, you need to know what questions to ask'and when'to get the answers you need.
Let's dive into our list of survey question examples with a breakdown of the six main categories your questions will fall into:
Open-ended
Closed-ended
Nominal
Likert scale
Rating scale
Yes/No
Open-ended survey questions give your respondents the freedom to answer in-depth and in their own words, instead of limiting their response to a set of pre-selected choices (such as multiple-choice questions, rating scales, or yes and no).
To get answers that hold valuable insights, you need to ask engaging and specific questions that invite your visitors to fill that empty text box with relevant customer feedback.
What other [product/service] would you like to see us offer?
What could we have done better?
What led you to make this purchase?
What other information would you like to see on this page?
Was there anything specific that made you [cancel/downgrade]?
Open-ended questions allow for survey responses with depth and context
Ask open-ended questions when you first start surveying and collecting feedback from your customers. If you don't have a great deal of insight yet, answers to open-ended questions go a long way in determining who your customers are and what they're looking for.
An open-ended question is also a good follow-up to a closed-ended one: asking your users to share more details helps you get an even better understanding of how they feel.
Do you have a general survey goal in mind but are struggling to determine the right questions to ask? Use Contentsquare's Voice of the Customer to start writing survey questions.
Choose from our 40+ survey templates, or watch as our AI assistant generates one for you in seconds with questions tailored to the exact purpose of the survey you want to run.
Easily conduct survey analysis with our AI-generated summary reports that track user sentiment and provide an overview of key insights and suggest next steps for you to take based on your survey responses.
Use Contentsquare's customizable templates or have our AI assistant generate survey questions in seconds
Closed-ended survey questions limit a user's response options to a set of pre-selected multiple-choice answers with checkboxes or rating scale answers. This broad category of questions includes
Nominal
Likert scale
Rating scale
Yes/no
We go over each one in the following sections, but let's linger on the general category for a moment and see some examples.
Writing your survey questions in a closed-ended structure helps you easily quantify feedback when it comes time for data analysis.
What's the main reason for your [downgrade/cancellation]? (List example reasons as answer choices)
Were you able to find the information you were looking for? (Yes/No)
How would you rate our customer support on a scale of 0'10? (0 = terrible, 10 = stellar)
How likely are you to recommend us to a friend or colleague? (NPS® question)
How would you feel if we discontinued this feature? (Emoji rating scale)
Closed-ended questions come in different formats, from checkboxes to rating scales
While they can be used just about anywhere, closed-ended questions work brilliantly in two scenarios:
To draw respondents in with a simple opening question, since they require little time and effort and are therefore easy for people to answer. This is called the foot-in-the-door principle: once someone commits to answering the first question, they might be more likely to answer an open-ended question that follows.
When you need to create graphs and trends based on people's answers. Responses to closed-ended questions are easy to quantify and use as benchmarks. Rating scale questions in particular allow you to gather customer sentiment and compare your progress over time.
A nominal question is a type of closed-ended survey question that presents respondents with multiple answer choices; the response options are non-numerical in nature and don't overlap (unless you include an 'all of the above' option). You can let users choose only one answer, or allow them to select multiple.
What are you using our [product/service] for?
' Business
' Personal use
' Other
Where did you first hear about us?
'Social media
'Word of mouth
'Newspaper article
'Advertisement
'Other
If you could no longer use our [product/service], what would you miss the most?
' (List different features as answer options)
What's the next feature or functionality we should build?
' (List planned updates from your product roadmap as options)
What other content would you like to see us offer?
' (List content formats you haven't used yet as options)
Nominal questions limit respondents to pre-selected (and easily quantifiable) answers
Nominal questions are perfect for market research and make for good demographic survey questions, when you want context about your respondents and target audience so you can segment them later. Nominal data is quantitative and easy to create graphs and trends from, so you can gain a nice overview of the behaviors and attitudes of your different user groups.
Likert scale questions typically use a 5- or 7-point rating scale that measures someone's level of intensity to a statement. Likert scales are also known as ordinal scales because the answers are presented in a specific order.
The scale develops symmetrically: the median number (a 3 on a 5-point scale, for example) indicates a point of neutrality, the lowest number (always 1) indicates an extreme view, and the highest number (a 7 on a 7-point scale, for example) indicates the opposite extreme view.
Asking Likert scale questions is an effective method for turning qualitative data, such as customer sentiment, into quantitative data.
This quick customer satisfaction survey contains a 5-point Likert scale
On a scale of 1 to 7, how satisfied would you feel if we offered this [feature]?
Not satisfied at all
Not satisfied
Somewhat not satisfied
Neutral
Somewhat satisfied
Satisfied
Very satisfied
On a scale of 1 to 5, how much do you agree with this statement: Our [product/service] makes [X job to be done] easier.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
How would you rate the support you received?
Not helpful at all
Not helpful
Neutral
Helpful
Very helpful
'Pro tip: ask different open-ended follow-up questions depending on the responses you get to your Likert scale. Ask those who answered 1'3, 'How could we improve?' and those who answered 4'5, 'What did you love about the experience?'
Likert scale questions come in handy when you already have some sense of what your customers are thinking. For example, if your open-ended questions uncover a complaint about a recent change to your ordering process, you could use a Likert scale question to determine how the average user felt about the change.
Rating scale questions map possible answers on a numeric scale. For example, you can ask shoppers to rate customer support on a scale of 1'5 or the likelihood of them recommending your product on a scale of 0'10 (also known as a Net Promoter Score®).
When you use a rating scale question in a survey, make it clear what the scale means (1= poor and 5 = amazing, for example). Consider adding a follow-up open-ended question to understand why the user gave you that score.
On a scale of 1'10, how appealing do you find our product offering?
On a scale of 1'5, how helpful is the information on this page?
How easy was it to use our service? (Customer effort score)
Use a rating scale question to measure NPS®, then follow up with an open-ended question to gain more context
Whenever you want to assign a numerical value to your survey or visualize and compare trends, a rating scale question is the way to go. This type of question is often used for customer satisfaction surveys, customer effort score surveys, and product reviews.
Use Contentsquare to set up an NPS® survey and trigger it to appear after important events, such as when a user completes a purchase or accesses support.
A low NPS® alerts you to improvements you need to make, while a high NPS® gives you an idea of what to prioritize to boost customer retention. The response format allows you to look at results historically and see if you're improving or getting worse.
Use Contentsquare to ask an NPS® question at different points along the user journey
Binary or dichotomous questions are super straightforward, requiring a simple 'yes' or 'no' reply. Though this question type has the most limiting answer options, it helps you gain a quick sense of user sentiment or the effectiveness of a particular product feature.
To make the question even more engaging, try replacing yes/no with 'and ' or 'and '.
Was this article useful? (Yes/No)
Did you find what you were looking for today? ('/')
Did you have any concerns before buying [product name]? (Yes/No)
Contentsquare's feedback button lets you pose simple yes/no questions to users
Yes/no questions are a good way to quickly segment your respondents. For example, say you're trying to understand what obstacles or objections prevent people from trying your product. You can place a survey on your pricing page asking people if something's stopping them, then follow up with the segment who replied 'yes' by asking them to elaborate further.
A yes/no question also helps you get your user's attention because it requires very little effort to answer. Once they commit to answering that first question, they tend to become more willing to answer questions that follow, or even leave you their contact information.
Speaking of getting your foot in the door to unlock more insights from your survey respondents, why not ask them to do a follow-up interview or usability test with you?
Contentsquare makes it easy, scalable, and cost-efficient to connect with your users:
Run effortless, automated user interviews and unmoderated usability tests in less than 10 minutes
Get instant access to a pool of 200,000+ participants from over 130 countries and 25 industries (or invite your own)
Take notes while Contentsquare records and transcribes your interview, then highlight moments that reveal key customer insights and share them with the team
Identify site errors or validate design concepts, content, and messaging with iterative usability testing to ensure you meet user expectations
Go beyond written questions and get to know your users better with Contentsquare's user interview and usability testing capabilities
If you want your users to answer questions and provide feedback that contains actionable insights, you need to ask your survey questions at the right place and time.
Ask yourself these questions to determine where to place your surveys:
What pages are crucial to your business?
Which over- or under-performing pages could most benefit from additional insight?
Where along the customer journey or conversion funnel have you spotted a leak that needs investigating?
'Pro tip: if you want your users to fill out a somewhat longer questionnaire, you can also send your questions as a link survey via or post it on social media. Be mindful of their time'minimize the number of questions or consider incentivizing participation.
Carefully considering which pages to ask a question on before you start writing one helps improve your chances of getting truly valuable survey data instead of unhelpful answers that won't lead to improvement.
Here are five likely candidates for where to ask your survey questions:
Homepages
Landing pages
Success and post-purchase pages
Pages with high exit or bounce rates
Cancellation, downgrade, or churn pages
Contentsquare has pre-written questions you can place on specific pages, like those with high exit rates
To make the most of your survey, you need to know how to write good questions that give you answers you can act upon.
We've run through a handful of our favorite survey questions'but what is it that makes a good survey question, well, good? The goal here is effectiveness: the best survey questions help you get clear insights and business-critical information about your customers, including
Who your target market is
How to price your products and services
What's stopping people from buying from you
Why visitors leave your website
With this information, you can tailor your website, products, landing pages, and messaging to improve the user experience and, ultimately, maximize conversions.
'Pro tip: the more attention you put into writing your survey questions, the easier it is to analyze the data you collect. Read the dedicated chapter to learn how to conduct survey analysis.
Focus your questions on the customer's perspective to understand their needs, drivers, pain points, and barriers
Tailor the language to your target audience
Be polite and concise'if needed, break things down into separate questions to make for a better survey-taking experience
Consider the foot-in-the-door principle and start your survey with a simple yes/no question, then follow up with an open-ended question to increase the response rate
Don't ask double-barreled questions and stick to one topic per question
Don't rely on closed-ended questions at the beginning of your research process'start with open-ended questions to gain an initial impression of your customers and avoid reinforcing your own assumptions
Avoid asking loaded or leading questions that prompt respondents to answer a certain way'for example, rephrase 'Is our product the best on the market?' to 'How does our product compare to other options on the market?' so respondents can answer more freely
Asking the right questions sets you up to achieve your survey goals'it helps you optimize your customer journey, analyze product-market fit, increase customer satisfaction, and redefine your messaging. Read the dedicated chapter to learn how to create an effective survey with your user and business goals in mind.
That said, online surveys aren't enough in and of themselves to get a comprehensive picture of your customer experience. To gain a richer understanding of your users, combine survey data with insights from tools like session replays, heatmaps, web traffic analytics, or journey mapping.
Here's how to do that with Contentsquare:
Discover issues and understand what's causing them by watching recordings of users who leave negative survey feedback with Session Replay
Reveal the behavioral context behind how users interact with your website or product with Heatmaps
Build user segments from your survey responses and follow their user journeys with Journeys
Contentsquare's experience intelligence platform helps you get context behind your survey data
Use AI-powered surveys to ask your users the right questions and better understand their needs so you can improve the user experience and boost your business.
There are six main survey question types:
Open-ended
Closed-ended
Nominal
Likert scale
Rating scale
Yes/No
Homepages
Landing pages
Success and post-purchase pages
High exit or bounce rate pages
Cancellation, downgrade, or churn pages
Asking effective survey questions helps you achieve various business goals, such as
Mapping your customer journey
Conducting market research and product-market fit analysis
Driving your pricing strategy and understanding why your product isn't selling
Gauging customer satisfaction and finding out why people leave or downgrade
Understanding your customers' fears and concerns
Gathering effective testimonials
Measuring word-of-mouth recommendations
Redefining your messaging
A 'good' question is an effective question: the best ones help you get clear insights and business-critical information about your customers, including
Who your target market is
How to price your products/services
What's stopping people from buying from you
Why visitors leave your website
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