04 Nov Addressing Customer Feedback Real Time in a Continuous Improvement Loop
Why capture customer feedback real time?
Technological advances have made it very easy for customers to share their opinions within social circles and even wider audiences at will. Instead of contacting the company directly using traditional channels for resolution, most customers now prefer to share, tweet, retweet or dislike their dissatisfaction in the social media usually in the form of reviews. A recent survey conducted by Dimensional Research, states that 86% of respondents who recalled reading online reviews said that negative reviews influenced their buying decisions in a negative way. As customers are increasingly becoming more demanding and less patient, the sooner companies address negative experiences of their individual customers, the better it is before they are shared with the rest of the world! Capturing customer feedback real time while the customer is still in the interaction (still at the store shopping, still online browsing, still looking at the app, etc) or shortly afterwards has become a core capability in managing customer experiences.
How to address customer feedback in a continuous improvement loop?
Thousands of interactions occur between customers and companies every day. Each interaction has the potential to create a bad experience. But which of these interactions carry the biggest risks? How do we measure and manage thousands of interactions each day continuously and systematically?
A proven approach from the developed markets to capture interaction specific customer feedback, generate insight on improvement needs and take action on them is known as the “continuous improvement loop” in managing customer experiences. Software known as Enterprise Feedback Management (EFM) systems automate the flow in continuous improvement loops and make it easy for companies to run these loops. Here is how a continuous improvement loop might work using an EFM system:
During or shortly after an interaction occurs between a specific customer and the company, EFM system triggers an interaction specific survey to the customer to capture his/her feedback and T-NPS (transactional net promoter score) almost real time using the most appropriate survey channel among a large variety of choices including SMS, email, web, mobile app, CATI, social media, etc. Captured feedback are used to generate insight and report customer experience performance in automated and role-based dashboards. When customers give low scores, alarms are triggered and tasks are assigned to the relevant parties in the organization for improvement action to close the loop. This loop runs automatically 7/24 and 365 days!
Increased customer satisfaction, reduced customer complaints and churn, increased cross and up-sell, streamlined and more efficient operations are some of the benefits of running a continuous improvement loop. Here are some concrete examples on benefits reported across different industries:
- 27% increase in premium payments from promoter customers at an insurance company
- 5% decrease in customer churn at a telecom operator
- 10% increase in net promoter score at a retail company
- 23% increase in customer satisfaction score in a financial services company