Don’t let customers breed rabbits!
I responded to a LinkedIn thread the other day that compelled me to write about the value of negative feedback in the context of customer service. There is some good research in the book ‘The Effortless Experience‘ (by Matthew Dixon, Nick Toman and Rick Delisi) that indicates good service is not as effective in fostering loyalty as poor service is at fostering disloyalty. This is primarily because the majority of word-of-mouth activity is based on poor experiences.
Bain also did some research around NPS with Dell Computers (taken from the book ‘The Ultimate Question’, by Fred Reichheld) that illustrated the disloyalty bred by detractors and went on to demonstrate the strong economic case for turning detractors into passives. To summarize, there is economic proof that turning poor experiences into average ones, yields bigger economic returns than making average or good experiences exceptional.
Understanding the power of negative feedback can be a key to unlocking value from Clicktools. There are situations where the ROI of Clicktools is easy to see (for example, where a manual process has been automated or an expensive incumbent solution is replaced). However, more often than not, failure to achieve ROI is caused by a lack of understanding of how to extract that value, or how to measure it. The reality is this – the economic return of a customer survey project with Clicktools is impacted by two things:
- Turning data into meaningful insight – the extent to which voice of the customer data is integrated into your organisation and joined up with the customer journey (funnily enough, we believe your CRM system is a great place to do this).
- Commitment to doing something – the actions your organisation takes based on the insights it collects.
Clicktools advocates that the main driver for your project should be the action you intend to take, to improve things for your organisation and for your customers – and dealing with negative feedback is a great place to start to impact customer loyalty, or rather, the more powerful disloyalty.
I’m not about to say this stuff is easy, but it isn’t rocket science either. Use the following checklist below to ensure you are organised to act so you don’t miss out on the power of negative feedback:
- An individual in the organisation is responsible for the customer experience.
- Questions in customer surveys are directly linked to action.
- Customer feedback metrics relate to key touchpoints in the customer journey.
- Customer feedback metrics are tracked over time.
- Customer feedback is shared across the organisation.
- Customer feedback is an agenda item for the relevant team and executive meetings.
- Action from customer feedback is a part of the organisation’s operational processes.
- Survey deployment is triggered by key touchpoints in the customer journey and results are made available in real time.
- Survey data is combined with data in CRM to segment results against key operational and demographic information.
- Front line staff are empowered to respond to customer feedback – especially for negative feedback.
- Immediate calls to action are generated based on certain response criteria.
- Action based on customer feedback is tracked via some form of an action management process.
I realize this is quite a long list, but the moral of this story is; don’t let poor service experiences go unnoticed, unmeasured and unattended because your customers will breed disloyalty like rabbits.