Beyond retention: How customer feedback drives your business
How are you using the customer data you collect with your enterprise feedback platform? Are you recirculating that information back into the business to drive improvements? This is a proven way to retain customers and increase revenues. Incorporating the voice of the customer and asking for feedback at the most critical points along your customer journey have a huge impact on your company’s success.
“[The] benefits are quite significant in supporting business case justification for investment. For a telecommunications company with more than 135 million subscribers, just a one-half of one percent (0.005%) increase in customer churn or retention may be worth an estimated $1.3 billion in revenues” (Hypatia Research Group).
If billions of dollars in revenue isn’t compelling enough, consider the fact that retention is only part of the picture. Yes, when you ask customers smart questions about how they perceive you, they understand that you care. They’re more engaged and much less susceptible to a sales pitch from a competitor.
But the other side of this coin is customer acquisition. Every company should be coming up with highly visible ways to publish positive feedback from customers and even better, your responses back to them. This is one of today’s most powerful forms of marketing. It’s actual evidence (which customers are seeking) that you’re great to do business with. Think of the Reviews section of any retail site you purchase from. Feedback makes people much more inclined and certainly more confident to buy from you.
Consider this quotation from a former customer service professional:
“I ran a large customer services department for several years, with stretching targets for revenue and customer satisfaction. The good news is that I found customer feedback was by far the best way to achieve both goals, and we went from leaking revenue to hitting our growth targets” (customersure.com).
Now take that one step further: word of mouth. Your reputation is also a powerful marketing tool. You want your customers to tell their friends about you if they love how you treat them. The flip side of this of course is that if they’ve had a bad experience, word of mouth is your worst enemy. If it was good, however, you should leverage opportunities for these customers to become your mouthpiece. Ask them for referrals. Ask them to join your advisory board. Ask them to post on social or review sites. These customers are among your most valuable assets.
The moral of the story is that customer feedback shouldn’t be an exercise placed at the bottom of the list that you might get to this year. It’s one of the most important elements of any successful business. It gives you valuable insight into what your customers think about your products / services. It directly improves retention, new customer acquisition, and reputation. Plus, at the end of the day, this information enables you to create better products and services that your customers want to buy (and buy again). Leveraging feedback creates an experience that goes above customer expectations and keeps them coming back for more.