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Increase revenue using feedback whitepaper
 

Increase revenue using feedback whitepaper

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Feedback can have a direct effect on revenue therefore it has to be reliable, personal, actionable and gathered strategically. ...

Feedback can have a direct effect on revenue therefore it has to be reliable, personal, actionable and gathered strategically.
Feedback gathered online must be engaging, relevant, and as professional as the rest of your activity.

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    Increase revenue using feedback whitepaper Increase revenue using feedback whitepaper Document Transcript

    • Instant feedback = immediate advantage Is your company ready for real-time feedback? Authors: laudine Petit (Head of Marketing CEUR, QuestBack) C w w Radu Immenroth (Group Product Director, QuestBack) w . q u e s t b a c k . C O M
    • 2 Real-time Feedback Solutions 1. Welcome to now: Increase revenues by up to 30 % with real-time feedback B ut how can organizations quickly evaluate “real-time” feedback from these multiple touchpoints in a structured way? For which indus- tries is real-time feedback most valuable? W And what must companies do to transform act on them quickly? New communication financial value of real-time feedback manage- channels have produced a real flood of cus- ment. In one case, that meant an increase in tomer data, and considerably reduced the dis- repeat purchases of 44 % for a brand owner, tance between customers and companies in and a simultaneous reduction in the number terms of speed of reaction and content. Many of customers switching to competitors. One customers now use the opportunities the In- QuestBack customer can also provide an ternet provides to make their voices heard. impressive illustration of how real-time feed- And companies have the chance to use this back management delivers ROI: The number feedback, often called “real-time feedback” to of customers generating annual revenue of improve their customer relationships. more than €6000 rather than €500 increased by hat do your customers think themselves from feedback recipients, to gen- about your products and ser- uine managers of real-time feedback? Pro- vices? What do you know about jects that, for example, achieve a significant their opinions and how do you improvement in customer loyalty, prove the D avid Edelman from Harvard Business Manager brings the revolutionary nature of these new channels into sharp focus in his analysis, “The new » rules of marketing”. 30 %. T his white paper offers companies the opportunity to systematically assess their readiness for real-time feedback in multiple dimensions, and answers questions such as:  ven if the fundamentals of the E Customer Decision Journey don’t seem that revolutionary, the impact on marketing is profound. (…) Our analysis of dozens of marketing budgets shows that 70-90 % of the money is spent on ads and retail campaigns that relate to the “consider” and “purchase” phases of the sales process. However, influence on the user is significantly stronger in the “rating”, “enjoy, recommend and loyalty” phases.« *1 A. What fundamental requirements must be fulfilled? B. Which processes must be established? C. What does it mean for personnel and IT infrastructures? D. What are the methodological requirements to be aware of? Real-world examples from companies like Hilti, SWISS, and the user experience consultants USECON, illustrate exactly where the challenges and opportunities for companies lie. After all, business success is to a large extent dependent on successful customer interactions.
    • Real-time Feedback Solutions 3 2. What is real-time? CHECKLIST DIFFERENT KINDS OF REAL-TIME? A. GENERAL REQUIREMENTS Depending on company and customer requirements, Who uses real-time feedback? real-time feedback varies in terms of capture and reaction times. It can mean for example, that feedback The fact that a company receives a lot of feedback from is captured at the point of usage or immediately customers does not, on it’s own, automatically mean afterwards, but that the evaluation comes later, if it’s there is a need for real-time feedback. The question not related to an urgent request. However, if the feed- is rather, to what extent do feedback channels back indicates that a customer request needs to be have an effect on the success of the company? resolved immediately, it’s clear that evaluation and For example, feedback clearly has an effect if a reaction needs to happen more quickly. brand wants to differentiate on customer service, or when customer loyalty and therefore the number of Depending on the form, real-time feedback manage- repeat buyers increases as a result. Here the quantity ment should take in relation to; feedback capture, of feedback or ‘Big Data’ factor comes into play. If evaluation and reaction for a particular company, and there are a large number of touchpoints i.e. interac- it’s important that businesses align their methods, tions between companies and customers, then it’s processes and technologies accordingly. This is likely that real-time feedback management will reveal the only way that the respective requirements can very valuable information. However, a single piece of be mapped. The following checklist provides an feedback can also have an enormous impact when initial opportunity to assess the real-time feedback in comes to a major customer. In both cases then, a management requirements of your business. systematic and personalized approach to customer care is very valuable. This is proven by the experience of SWISS, part of CASE STUDY » the Lufthansa Group:  y implementing an online questionnaire B using the QuestBack System, we can continuously track all our important KPIs – including the particularly significant Arrival Experience«, explains Samuel Rodenhausen, Market Research Manager at SWISS, about the implementation of their system. Through the rapid availability of survey answers, SWISS can react to feedback immediately: if the customer wants to be contacted, it can happen quickly, impacting positively on customer loyalty.
    • 4 Real-time Feedback Solutions Early detection or fire fighting – what can real-time feedback achieve? through the early stages of the buying decision every time, but make repeat purchases on the basis of their existing trust in the company.*3 What can companies do today with the flood of data coming in? It’s possible to fundamentally differentiate between two functions of real-time Identify the trend, react rapidly feedback management – alerts and reporting. The alert function helps address customer problems or Nevertheless, repeat purchases a consistently needs as quickly as possible. excellent buying experience. Used at a management level, the reporting function can reveal interactions If, after using the online shop, an existing customer that may signify wider trends via dashboards (Diag. 2) completes a questionnaire about usage problems, Are complaints about delivery times increasing? the right system can inform the relevant customer Is there a delay in reaction from support at the adviser about it immediately via email. A call the moment? Where are there positive customer next day shows the customer that he is being taken experiences that can improve the situation? The seriously and is valued. If the problem can then be overview a dashboard provides can also trigger solved, you have a customer that is happier and another real-time alert in a second-step, and more loyal than before the problem occurred. activate the appropriate response: Are more personnel required in support? Should customer Taking a long-term view of customer value, advisors intervene to apologize and compensate customer satisfaction and the depth of a customer customers for delivery delays? In this way, relationship become central economic factors real-time feedback management becomes a (Diag. 1* ) that can be maintained and enhanced management instrument for marketing, sales, through feedback management. or support as well as every other business area 2 involved in the customer experience. According to a Harvard Business Review report, increased customer loyalty has another effect that can impact revenues: loyal customers don’t go How much is a customer worth? Industry Timeframe Customer value Loyal café visitor 1 year 1400 € Typical supermarket customer 10 years 50,000 € Regular Pizzeria customer Lifetime 8000 € Loyal credit card customer Lifetime 12000 € Typical car buyer Lifetime 150,000 € Loyal luxury car owner Lifetime 320,000 € Diag. 1: According to Bernd Strauss, Wolfgang Seidel, “Complaint management – unhappy customers as a profitable target group”, 4th edition, 2007, Hanser Publishers, page 27
    • Real-time Feedback Solutions B. PROCESS REQUIREMENTS Tool or philosophy – What are the prerequisites for successful real-time feedback management? Are your business processes already customer-oriented? For real-time feedback management to have an impact, it must develop into something more valuable Real-time feedback can’t be implemented “just than a “tool”. The prerequisite for this is a clear com- like that”. It is rather the logical consequence of mitment from management to integrate feedback making the entire organization customer focused. into corporate strategy. This means that feedback Only when all business units focus on ensuring in all its dimensions needs to be incorporated: in the that a customer has a positive experience at every design of business processes, the implementation touchpoint, can the corresponding automated and of IT infrastructure, as well as in the development of rule-based system processes be aligned to maximize the organizational structure and personnel planning. the impact of the customer-oriented strategy. According to a prediction from Gartner, half the Many companies have already taken the first step Fortune 1000 companies will have developed a in this direction. They are strengthening measures “Voice of the customer” strategy by 2015, but only to make the brand experience tangible for 10 % of them will actually have implemented it * . customers at as many touchpoints as possible, That leaves room for organizations to gain competi- and fostering the dialog between customers and tive advantage. the company through digital media such as apps 4 and onsite touchpads. Do you know your touchpoints? The days when examining the point of sale was all that was needed to get a picture of interaction with customers are long gone. Nevertheless, many companies aren’t aware of all their touchpoints, from comments on Facebook, to conversations with sales people, and interactions with middlemen such as delivery services or sales partners. That’s why, when starting out with real-time feedback management, all touchpoints must first be identified and the most relevant selected. Relevance is a question of definition which, in this case, is described by using Key Performance Indicators (KPIs). A simple example from the cosmetics industry illustrates the innovation potential that is often left untapped here. A McKinsey study found that more than 60 % of face cream users only gather information about the product after they have already bought it – a touchpoint that was completely overlooked until then*5, but which is obviously of central importance to satisfaction during the customer journey, and therefore provides a good opportunity to collect real-time feedback. DIAG 2. Example of trends across different touchpoints at a supermarket chain in the USECON dashboard. (Customer Project QuestBack Central Europe) 5
    • Real-time Feedback Solutions 6 When is interaction and intervention required? Are the responsibilities defined? Even with the highest level of automation, there Information is worthless until it results in action. must be people available that can make decisions Effective feedback management must therefore at any point along the real-time feedback loop. It’s have a certain level of intelligence in order to important that there is a a project manager outside decide when intervention is necessary and when of IT, that is accountable for the issue and ensures not. Threshold levels need to be set for the touch- that, for example, feedback content is delivered point KPIs that trigger an action. This also helps to the right place, whether that means marketing, avoid overreaction. Ideally, real-time feedback management or the relevant support person. works like a personal conversation, in that subsequent questions and reactions should emerge naturally during the course of the discussion. What role does privacy play? These must flow into the relevant processes that, for example, determine escalation levels when a A customer needs to be contacted, highlight where initially asks questions anonymously and must real-time feedback management system existing customer history enhances the current give the customer a choice over whether people feedback, or ensure that the relevant employee can be surveyed individually if required. This can actually has access to this information. To en- happen via a relevant question during the survey sure that happens, the supporting processes and process that allows the customer to agree to be responsibilities must be clearly defined. approached. It also means however, that from this moment on an expectation exists. The customer wants to be taken seriously, and that means he expects an appropriate and immediate reaction. The customer will only give up his privacy if he gets an appropriate service in return.
    • Real-time Feedback Solutions C. IT INFRASTRUCTURE AND SYSTEM REQUIREMENTS CASE STUDY Which channels are available? While touchpoint tracking identifies the relevant This is how USECON, a user experience channels, the IT infrastructure must ensure that as consultancy, with the help of the EFS panel (EFS many channels as possible feed into a consistent, = Enterprise Feedback Suite) from QuestBack comprehensive view of feedback data. But the flow developed an efficient survey platform that among of feedback in the other direction is also critical: Can other things, enables a repeat survey among panel feedback be collected from everywhere, wherever it participants. This can be used to survey users at originates? Real-time feedback also has to account different times and in different situations, whether for the fact that respondents are on the move. That’s that means the early development phases of a why questionnaires must work as well on mobile new product, or across the entire product cycle. devices as they do on desktop computers. For its part, QuestBack customer SWISS is using its newly deployed feedback system to allow customers to provide feedback on every element How fast is your customer journey? of the service they receive. This enables teething problems to be localized immediately when new The more touchpoints that interaction with your products are introduced. Time-related consid- customers involves, the more relevant incidents erations are therefore always oriented towards a accumulate. The right system must be able to define system’s real-world use cases. the level of detail that measured via feedback monitoring. For example, QuestBack currently delivers half-hourly reporting on the relevant KPIs according Which visualizations are required? to need. But it’s important to differentiate between the speed of feedback provision and the reaction It makes sense that a relevant visualization of to it. Does someone have to be contacted imme- target KPIs and drill down dimensions is defined for diately in order to ensure customer satisfaction? management reports. That’s how dashboards This is known as a “transactional survey”. Or is earn their name and simplify the navigation of a it sufficient to ask a customer twice a year about company’s KPI landscape. (See DIAG. 3) his satisfaction within the context of a regular “relational survey”. Other time-critical aspects can also play a role however. It’s especially important during the test and development phases of products, to measure the user experience and make improvements in order to avoid costly development mistakes. DIAG: 3, Example of a QuestBack dashboard for an NPS evaluation 7
    • Real-time Feedback Solutions 8 Is integration into existing systems like SAP possible? The full potential of real-time feedback can only is there a danger that a major customer will switch? be realized in combination with other systems. Was a regular or very good customer affected by (DIAG.4.). The combination of customer feedback a system crash? Who is least affected by delivery and operational data enables prioritization: Where bottlenecks? Data Export E-Mail Alerts Engagement / Action Survey Dashbord Reporting Automatic Invitation Checks Customer CRM Participiant Import Case Data Segmentation Questback Exchange Server Customer Contacts Touchpoints Customer Workflow DIAG. 4: QuestBack workflow for implementation of real-time feedback management Questback Workflow
    • Real-time Feedback Solutions Is the deployed system intelligent enough? There are numerous systems available to evaluate priorities and escalation levels. The longer the data. The main differences lie in their scalability company journey, the more significant these and controllability. The system you select needs a properties are. (DIAG. 5). memory and appropriate rules for exceptions, DIAG.5 Sample customer journey from SWISS airlines 9
    • Real-time Feedback Solutions 10 D. Methodology requirements The combination of all touchpoints is the basis of the customer experience. Through analysis of the interaction at each touchpoint, it’s possible to Which is the right survey concept? define what influence each has on the customer experience or, even better, on revenue. QuestBack During the planning of a real-time feedback can currently measure and evaluate around management system, it’s especially important that 50 touchpoints. A study from McKinsey revealed all parameters are aligned with one another. The that a differentiated experience at touchpoints KPIs identified through touchpoint tracking must is especially important. It showed that to a large be fed into a survey concept that is actually used. extent, the influence of different touchpoints is Otherwise the result is false results and ineffective dependent on whether a customer is still in the interaction and control maneuvers. consideration phase, or already in an evaluation or buying decision phase. In the consideration phase, he is mainly influenced by consumer-led marketing Which are the relevant KPIs? such as test reviews or recommendations, and rarely by interaction with sales people. *5 Within the context of so-called touchpoint tracking, the requirements for an effective real-time feedback management system need to be established. How do you get reliable results? Touchpoint tracking takes place along the entire customer journey, in other words the path that a When it comes to alerts, it’s about asking the customer takes with a company, including the first right questions and helping customers at the right contact via an Internet ad, through to visiting the moment (see survey concept). For reporting, tried website and the purchase of a product, all the way and trusted market research criteria are more impor- up to a call to a support hotline, and participation tant. For segmentation and validation in particular, in an annual customer survey via a smartphone. the results must be selective and reliable. That’s because the conclusions and resulting decisions made on information extracted from the dashboard can have a direct effect on revenue. Reliability is therefore critical at this level of evaluation. PoS iPhone app Event iPad app Twitter Brand Youtube Android app Facebook Campaign Website Hotline Mailing DIAG 6: Every touchpoint has a different effect on the customer experience.
    • Real-time Feedback Solutions 11 3. Customer case study HILTI – the exception is the rule T he following project analysis demonstrates Prerequisites an example from HILTI, that demonstrates what the actual implementation of a • Customer focus: As a premium provider, customer real-time feedback management system service and feedback is particularly important. looks like, what the requirements were, and how the As a result, Hilti has been measuring customer three dimensions of process, IT and methodology satisfaction since 1994, making the company a each played a role in the success of the project. 200,000 daily touchpoints – customer satisfaction has the highest priority at HILTI » pioneer within the construction industry.  he data on overall customer satisfaction T and loyalty are a benchmark of success for us. They also influence the compensation of many employees, right up to management level,« explains Steffen Müller, Head of Corporate Market research at HILTI AG. HILTI AG provides leading technology products, • Goal setting and touchpoint inventory: In systems and services to the construction industry. addition to regular telephone surveys on satisfaction Because two-thirds of its 22,000 strong workforce and loyalty, Hilti wanted to collect feedback are in sales and technology roles and have direct directly after each of the 200,000 daily contacts contact with customers, there are around 200,000 with the company, such as a meeting with an touchpoints per day. Customer satisfaction is account manager, a sales conversation in a Hilti therefore extremely important for HILTI. center, an online order, a complaint to the hotline, or the repair of a drill by an engineer. To measure customer satisfaction at the “moment of truth”, i.e. directly after an individual transaction, Hilti decided in 2010 to extend the telephone survey with an online survey.
    • Real-time Feedback Solutions 12 The technical implementation • Technical solution: The online questionnaire based on the enterprise feedback suite (EFS) from QuestBack is connected through a direct interface to Hilti’s SAP system. This makes the buying history of each customer available for analysis. The software is web-based, and can be used within any standard browser. Completion of the questionnaire is easy from a wide range of digital devices. The methodology • Survey triggers and process: Hilti uses the online questionnaire in 15 market organizations DIAG. 7: RTF workflow process at Hilti with more than 80% share of sales. Each customer who has had some contact with an account manager, a Hilti Center, an online order, the hotline or a repair service is invited to participate via email. The online survey takes just two minutes to complete, and is focused on the current customer situation (DIAG.8). This ensures valid data about a real customer case is produced. How satisfied are you with the recent visit from your Account Manager Please give a rating using a scale from 1 to 10 where 1 means »very dissatisfied« and 10 means »very satisfied« Flexibility for local questions 2 3 4 5 6 7 8 9 Very 1 - Very 10 dissatisfied satisfied Overall Use of your time Understands what you need Open item Quality of advice given Continue DIAG. 8: Example of a real-time feedback questionnaire Don‘t know
    • Real-time Feedback Solutions Resulting processes • Alerts and reporting: If a customer complains in the online survey, the relevant team contacts » him within two working days to solve the problem. Most customers are impressed with a call within 2 days of taking part in the online survey«, says Steffen Müller. Through the evaluation of the online survey, Hilti can strengthen relationships between the customer and the company. The evolution of customer satisfaction is illustrated by weekly cockpit charts for every interaction point. • Overall benefit of the system: The values for overall customer satisfaction and loyalty have increased significantly since the introduction of real-time feedback in comparison with the company’s closest competitors. In addition, a great deal of insight about process improvements has been generated, and Hilti has received feedback from more than 18,000 customers, representing a significantly better response rate of up to 20 %. DIAG. 9: Real-time feedback influences the fundamental structure and quality control of the organization. 13
    • Real-time Feedback Solutions 14 4. Conclusion and Outlook R eal-time feedback management requires and process perspective. The feedback loop is a sophisticated and highly integrated becoming increasingly closed, as every touchpoint technical solution. However, the technical can be covered within a survey, improvements are concept and implementation are just two made following every survey, interactions following of the building blocks for the entire concept. Only those improvements can themselves be evaluated, when all the requirements in terms of processes, and so on. This opens the way to the evolution of a infrastructure, data and methodologies are fulfilled, is feedback economy that treats customer orientation it time to consider the technical integration. The effort as the foundation of the business model. Studies show of fulfilling these requirements will be rewarded with that most companies have recognized the need for a measureable return on investment. Implementing action in this area. In a survey from DMA and neolane, a real-time feedback management system lays the 77% of the companies asked named personalization foundations for a rapid, technology-driven enhance- in real-time, i.e. the individual and feedback-related ment of the business, and the opportunities to use alignment of offers and content, as the most important feedback management as a strategic tool will only challenge facing their organizations. *6. The exciting grow in the future. It can be safely assumed that question is, to what extent these companies will ad- within the next few years, new channels and new dress this challenge, and develop and implement an global touchpoints will evolve that also need to be appropriate feedback strategy. integrated into the feedback system from a technical
    • Real-time Feedback Solutions 15 5. Real-time feedback management The essentials at a glance All implementation scenarios have one thing in common: To collect, analyze and react to customer feedback as quickly as possible. Initial experiences with real-time feedback show that fast reactions can A significantly affect customer loyalty, which in turn journey usually indicates that the customer satisfaction and more repeat purchases. organization has already taken the first step This required a comprehensive integration with along this path by orienting the entire structure existing IT systems like SAP, through which feedback of the company towards customers. data is further enhanced and systematically utilized. In order for real-time feedback to have maximum Because of the wide-ranging impact of real-time impact, the company must identify and analyze feedback, its implementation is a key management the relevant touchpoints, and the challenges and task and requires appropriate personnel and organi- opportunities in interactions with customers. This zational structures. As soon as these structures are analysis can be used as the starting point for the col- in place, future channels can be easily integrated into lection and evaluation of customer feedback, and the IT and process landscape and monetized. company’s willingness to drive a has a direct impact on revenues. With its 200,000 measureable dialog with customers touchpoints, Hilti has impressively demonstrated how along the entire length of the customer a flood of data can be transformed into increased defining appropriate reactions to it. These preliminary tasks determine how a company must organize its processes, methodologies and IT landscape. Particularly important here, is whether a customer uses customer feedback to identify trends, or as the basis for long-term management decisions. *1 SOURCE: “Communication. The new rules of marketing“, DAVID C. EDELMANN, HARVARD BUSNIESS MANAGER, 2. AUGUST 2011 *2 SOURCE: BERND STAUSS, WOLFGANG SEIDEL, „Complaint management unhappy customers as profitable target group- “ , 4. Edition 2007, HANSER Publishers, S. 27 *3 SOURCE: “BRANDING IN THE DIGITAL AGE” FROM DAVID C. EDELMANN, QUOTED FROM THE HARVARD BUSINESS REVIEW *4 SOURCE: “RESEARCH ROUNDUP FOR VOICE OF THE CUSTOMER”, JIM DAVIES, GARTNER RESEARCH, 4. FEBRUARY 2013 *5 SOURCE: “THE CONSUMER DECISION JOURNEY”, MCKINSEY QUARTERLY 2009 NR. 3 *6 SOURCE: “REAL-TIME MARKETING INSIGHTS STUDY“, NEOLANE AND DMA, JULY 2013
    • w w w . q u e s t b a c k . c om Company Profile www.questback.com questback is a global leader in enterprise feedback management, market research solutions, social crm, customer experience management, and hr management. the company‘s software solutions enable organizations to gain actionable insights and build stronger relationships with customers and employees. founded in 2000, questback is headquartered in oslo, norway and privately held with 17 offices worldwide. more than 4,000 global customers rely on questback – including volvo, ernst & young, coca-cola and general mills.