4 minute read
Why go to the effort and expense of investing in a customer feedback system? Does it make any difference to the bottom line? The answer should be ‘yes’. In fact, the link between feedback and financial performance should be established up-front, in order for an organisation to truly buy-into the customer feedback process.
We’ve seen instances where commitment to capturing feedback has been short-lived. Invariably, this has been down to a failure to understand the link between feedback, service improvement and financial performance. Too often, the feedback data has become an end in itself rather than a means to an end.
Feedback data can be used to drive better financial performance. Here are 4 reasons why:
Customer feedback solution for customer retention
According to Esteban Kolsky, only 1 out of 26 unhappy customers complain. What do the other 25 do? Some will continue as dissatisfied customers but others will vote with their feet. They will quickly become ex-customers and you won’t know why. We have encountered organisations that invest a lot in marketing; they run successful marketing campaigns to capture new customers but as they usher them through the ‘front door’ existing customers are disappearing out the back. It should be easier, and less expensive, to retain existing customers but this is too often overlooked. The insights gained through customer feedback can enable you to identify sources of dissatisfaction. Using real-time, transactional feedback, you can respond quickly to issues raised demonstrating that you listen and are responsive.
Customer feedback solution for creating advocates
By responding quickly to issues and negative feedback, you can turn a negative into a positive. It’s well established that dissatisfied customers who have had their issue addressed quickly and effectively are subsequently more satisfied than those who didn’t have an issue in the first place! Your would-be detractor then becomes an advocate.
According to a study conducted by Convince and Convert, answering a complaint increases customer advocacy by as much as 25%.
Customer feedback solution can give you credibility
Advocates give you credibility. Testimonials and positive reviews engender trust and people are more likely to do business with organisations that are seen as trustworthy. Negative reviews can actually help in this respect, too! Allowing negative comments on your website or social media accounts shows honesty and a willingness to accept responsibility; responding to negative comments in a constructive and positive way demonstrates responsiveness and care for the customer. This in turn engenders loyalty not only helping to retain customers but potentially creating opportunities to upsell, too.
And remember, 95% of customers share bad experiences
Customer feedback solution can drive innovation
Your customers could be a vast, untapped resource: a source of insight and innovation that can help you refine and improve your product and service offerings. They can help you keep in touch with changing trends and can provide you with reassurance that you’re heading in the right direction.
Moreover, implementing changes suggested by users can directly help word-of-mouth sales.
But first you need to listen to them.