What would you say when you’re asked how is your brand handling customer feedback? This raises the question that do you even have a customer feedback program in place. In today’s era, a customer’s power to make or break your business has increased tremendously. Hence, having a customer feedback program is absolutely mandatory.
Thanks to social media, competition has become intense. Your business is now subjected to web-based ratings. Every brand can relate to it. When I was about to sign up for the Internet services from Spectrum deals, I checked customer reviews on all social media channels, including Yelp. I was able to find enough information to make a decision!
The Importance of a Customer Feedback Program
A customer feedback program lets you gather, analyze, and act upon data. It also brings a handsome return on investment. Intelligent Customer Engagement research studied 518 companies and found that 66.7 percent of them gather customer feedback. 50 percent of these businesses make modifications based on the feedback of their program. Even though they have this program in place, unfortunately, 3.1 percent of them refuse to do anything with the information available at their disposal.
Tips to Make Your Customer Feedback Program Work
Looking for advice on how to use your customer feedback program effectively? Here are some tips:
1: Find a Loyalty Indicator
Some organizations rely on customer satisfaction surveys. They are a fine measure of satisfaction but not a very reliable one when it comes to measuring loyalty. Research says that depending on your industry unless your customer scores you 5 out of 5, they have little loyalty to your brand. Then what’s the best loyalty indicator? They say it’s the question “how likely would you recommend our services to a friend or colleague.” It is an important question closely related to customer loyalty as well as business revenue.
2: Identify the Drivers of Customer Loyalty
There is a range of attributes in every business that is likely to impact loyalty. In financial services, it could be something like service fees, product features, queues in branches, etc. on the contrary, if it’s a physical product, the factors include stock holdings, delivery time, the quantity of order and more.
Identify drivers like these based on your business and add questions about them in your marketing survey. 10 to 15 questions would be enough to gather evidence. After this, find someone who will do statistical analysis on your results for determining which drivers are most significant when it comes to customer loyalty. Regression analysis is a common way to do that.
3: Implement Your Customer Programs
By now, you would have all the necessary information defining which business attributes are important to loyalty. In the beginning, focus on the most important ones that you deliver can change and at least kickstart changes in your business. After improving the most important areas, it is next to move to the next ones.
4: Re-Survey Your Customers
Your job isn’t over. The goal of a customer feedback program is to improve customer loyalty. After implementing the changes, give it some time and re-survey your customers. Don’t be the type of organization that puts serious effort into gathering data but never pays attention to implementing the recommendation.
If you want customers to remain loyal to your business and improve return on investment, make sure you implement the changes and gather feedback later on. This will give you a clear picture of what’s working and what’s not and make a plan from there.
Thanks to a customer feedback program, you would be able to resolve most issues raised by customers. But don’t just stop there. It’s equally important to maintain a good customer experience. If the action taken by you worked well, this is a sign that you can take on bigger projects because now you have your customers’ trust. If it didn’t work, this just means you must innovate. The goal is to keep trying!