I’ve run customer feedback programs for the last 20 or so years. It’s amazing how companies fool themselves into thinking they have it covered. They run a relationship survey and maybe a transaction survey, usually covering Support. PowerPoint presentations are made to executives and managers. But the program is not consistently implemented on a timely basis across all customer touchpoints, there is no commonly-held understanding of customers, and the data generated is not detailed enough to paint an in-depth picture of all customers in order to satisfy customers’ personal preferences. And, finally, appropriate actions are not taken and there is no formal process of customer feedback follow-up to confirm success.
In our previous blogs we described our Customer-Centricity Audit, which invites participants to rate how well their company is performing in six critical areas. We recently talked about the importance of a strong corporate culture that is truly customer-driven, with senior management committed to it and requiring that it drives all decisions. We turn now to the need for a comprehensive customer listening program.
When we talk about “listening to customers,” what strikes me is that there are two parts to the equation. What does true listening demand and are we certain we know our customers?
Customers
Reaching all Customers—I’ll start with importance of reaching all customers. With what survey vehicles? Are they properly designed? Are we hearing from customers of all products, across all the channels they use for purchase or support, at every touchpoint, from all regions, and at every stage of the customer lifecycle? Are the conversations in their language of choice?
Enterprise Feedback Programs—Whatever survey tools are used in a well-balanced and integrated customer intelligence program, there should be consistency of methodology, terminology, scale, and definitions. This ensures that the data collected will be useful not only at the enterprise level, but can also be disseminated across departmental lines. Clearly, the methodology must be sound and the proper number of responses collected (at the aggregate level and for each customer segment), so that you know you are working with a representative sample from which you can draw valid conclusions.
Customer Feedback Program Objectives—The starting point in designing a customer feedback program is determining what the objectives are, so that appropriate survey vehicles are deployed through various channels that reach respondents in the most appropriate way. Timing and frequency are critical, with relationship surveys deployed regularly (quarterly, semi-annually, annually—depending on number of customers and how fast the industry is moving) to solicit customers’ overall impressions of all their experiences, as well as their general impression of the brand. Transaction surveys seek feedback immediately after a transaction has occurred, such as closing of a support case or completion of an installation. Market research pulse surveys are periodically deployed to answer very specific questions that help companies make product decisions.
Customer Lifecycle—Recently acquired customers, existing customers, and disgruntled customers deciding whether they should choose another vendor will all have different perceptions and experiences. It is important to capture and analyze these in order to acquire more customers, retain existing ones, take the necessary steps to prevent losing them, and even learn what it would take to win them back.
Asking Appropriate Questions—Which customers to ask for what type of feedback? It is critical that survey invitations are delivered to those who are qualified to answer. For example, the individual who called for customer support is the individual who should be asked how it went. The customer who was involved in a new purchase decision is best qualified to talk about the sales process and the performance of the sales person involved. Also, within the questionnaire, respondents should only see questions pertinent to their role and function. For example, they should only be asked to talk about products or channels they are familiar with. This, of course can be accomplished through branching logic that ensures they don’t see questions unrelated to their experiences.
Role of Influencers—Relationship surveys typically seek feedback from the entire customer base, but it is important to know who the influencers are, so that analysis is focused on those important voices separately. Ideally, this information is included in the customer file that is delivered to the survey vendor and uploaded for deployment. Questions in the survey can ask for the respondent’s role and function and also ask for a self-assessment of the degree to which they influence decisions.
Other Feedback Channels—We’ve been talking about inviting customers to take surveys. But there are other ways to hear from customers. Customer-centric companies reach out proactively. Executives, account representatives, and others who interact with customers regularly ask how they are doing. Companies set up customer advisory boards, customer strategy councils, user groups, special interest groups, and the more recent customer communities.
Voice of Social Media—And, finally, we all need to remember that customers are talking about us, if not through these formal outreach venues that companies set up, monitor, and actively participate in, but in those vast spaces known as social media. They are going to do that whether you track their conversations or not. Blogs, social network, microbglogs, message boards, and forums represent a rich source of customer data. Today, you cannot ignore them. See CustomerImpact’s latest offering—Voice of social Media.
Listening
Customers should be asked their opinions on everything, from product to support to ease of doing business with you to value received to how they felt they were treated. What did they like and why, what did they dislike and why, what product enhancements and process improvements do they want. It may be a cliché, but I believe it wholeheartedly—namely, that negative feedback is a gift because it gives you the opportunity to learn and redress wrongs.
Companies are truly listening to customers when they:
- Track and trend customer feedback to pinpoint problem areas and identify growth opportunities
- Identify the key drivers of customer satisfaction and loyalty and are able to link them to needed operational changes and desired business outcomes
- Use the data to drive their annual planning priorities
- Use all customer information—demographic and descriptive information, behavior history, attitudes, wants and needs, use of the web site, and assessment of strategic value—as the basis for segmenting customers and then leveraging the insights gained
If you’ve done all of the above, you can be sure you hear the true voice of the custome.
Next week, we’ll examine another key component of customer-centricity—selecting the right metrics.
