The 5 Phases of Customer Feedback Failure

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rhombus warning oopsEvery day in companies around the world people sit down in meetings and decide today’s the day that they’re going to get serious about collecting customer feedback. Lots of earnest discussion follows, agreements are reached, actions allocated and heads nod in full agreement. Everyone leaves full of enthusiasm.

Flash forward 18 months (sometimes less sometimes more) and many of the same people are sitting around the same table. This time they are lamenting that “this customer feedback stuff obviously doesn’t work in our industry / country / customer base / organisational structure / [insert suspected third party excuse here].  Zappos, Amazon, Apple and the rest must have some other secret sauce; lets dump this and try that new technology I read about last week. That will solve our customer problems.”

How did it come to this? Where did all of that excitement go?  [Read more...]

How to Overcome Customer Feedback Defensiveness in the Executive Suite

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senior-management-defensivenssAlmost everyone who has presented negative customer feedback to a senior management audience has lived this scenario.

The presentation starts well, everyone’s happy while you go through the numbers, lots of nodding heads, serious looks and agreement. That is until the very specific section by section scores or negative verbatim customer comments are presented; then the wall comes up, and the excuses rain down: [Read more...]

Transactional Customer Feedback: 6 Problems You Will Face and How to Fix Them

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When you start out on your transactional customer feedback or Net Promoter program everything looks rosy but there are six issues that you will run into all too soon.

Here are the problems you will face and the solutions. [Read more...]

Five things to do right now that will drive more value from customer feedback

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Meta-analysis of a new Aberdeen report provides important insights into the most important customer feedback management differences between successful companies and unsuccessful companies. What is really interesting is that the drivers of success are less about collecting customer feedback and more about what you do with it.

The April 2012 Aberdeen report “Customer Feedback Management” investigates the business attributes of successful (Best-In-Class) and unsuccessful (Laggards) companies to identify those that are most important. While their key conclusions include the need for laggards to include customer feedback into business decisions (well of course!) and listening to customer via social media (social media will solve all our problems…).

I disagree with their conclusions but a little meta-analysis of their results gives some very interesting insights. [Read more...]

Is your company too hard to deal with: how do you know?

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It always amazes me the trouble companies go to secure new customers and then just throw them into a bucket labelled “Customer”, never looking at them again.

Well that bucket has a lot of leaks and companies are themselves the ones hammering in the holes. Many times you can improve customer retention by just plugging a few of those holes. Here is a recent case in point. [Read more...]

Customer Loyalty Surveys: Do you include all 3 critical elements?

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The starting point when designing customer loyalty feedback programs should be understanding what your customers care about and how well you are meeting their expectations. Unfortunately, many attempts at customer loyalty surveys fail to include all three critical elements required to collect that understanding and so fail to provide useful information to the business.

By not including all three critical elements the results of many customer loyalty surveys are worthless. Don’t get me wrong, the results are often interesting but ultimately worthless because you get results but have no idea what to do with them. [Read more...]

5 Steps to Effective Customer Feedback Programs

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Increasingly, organizations are becoming dissatisfied with running customer satisfaction surveys and turning instead to designing and implementing customer feedback programs. The reason is simple, after 10 years of running national customer satisfaction surveys the American Customer Satisfaction Index has, basically, not moved at all. This is despite industry reportedly investing USD 800,000,000 each year on improving customer satisfaction.

So what to do?

It has become clear that it’s not just about satisfaction. In order to improve their businesses companies must to listen customer feedback and change what they do to improve customer loyalty. The real goal is to understand and improve the areas of the business that drive customer loyalty.

In my experience, there are five key steps to implementing good customer feedback programs. [Read more...]

Four Bridges to Communicating with Your Customers

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In a world where customers control the relationship, if you want to continue to have a relationship, you need to provide something of value to them and profitable to you. When you communicate with them you need to provide information both relevant to their needs and profitable to you.

To do this you need to cross four bridges: know each customer’s value, identify each customer, understand each customer’s needs and make the communications two way: [Read more...]

Surveys: Should you report based on “sent date” or “received date”

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Recently, a customer asked, “In terms of “best practice”, do you have a view on whether NPS should be calculated based on the date a survey was sent or the date of the response?”

My response was perhaps not as specific as they had hoped : “It depends.”

In many ways, it doesn’t matter which you choose so long as you stay with the same date. The client was concerned about being “most accurate” when calculating the score but this is a fuzzy concept here. “Most consistent” is probably more useful idea in this case. A consistent NPS data collection process is key in obtaining data that you can trust and action. See this blog post for more on this topic: Three Prerequisites to setting Net Promoter targets.

When running a transactional survey approach, another date that could be used is the order date or transaction date. If you use this date, you can potentially tie changes in the customer scores to events in the order or touch-point process. This can be very useful in the root cause analysis process. [Read more...]

People are not thermometers so customer feedback is messy

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When examining any type of customer feedback, one issue that you will come up against is that the feedback people give is not like the feedback you get from a thermometer.

If you want to know what the temperature is, you need only consult a thermometer of the correct type and it will tell you that information to any level of accuracy required. However, the feedback you receive from customers is not quite so neat and tidy. [Read more...]