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Fighting the Fear of Feedback: CustomerGauge webinar


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Feedback is part our everyday life, from parents, school, sports/fitness, through to 360 degree appraisals at work. Why then do many companies seem to be afraid of receiving feedback from their most valuable resources – customers?
- Reasons behind the “Fear of Feedback”,
- Examples of best practice – world class companies doing it right
- Using Net Promoter Score® as a measurement tool
- Practical ways to deal with positive, negative comments, as well as customer suggestions
- Automated processes to help close the loop: strategic and tactical
- Feedback on the feedback – examples of how to get back to customers.
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Fighting the Fear of Feedback: CustomerGauge webinar

  1. 1. “Fear of Feedback”Webinar 29 June 2011 Adam Dorrell Robert Kerner, CEO Directness Director, Business Development CustomerGauge/Directness July 6, 2011
  2. 2. Agenda•  Reasons behind the “Fear of Feedback”,•  Examples of best practice – world class companies doing it right•  Using Net Promoter Score® as a measurement tool•  Practical ways to deal with positive, negative comments, as well as customer suggestions•  Automated processes to help close the loop: strategic and tactical•  Feedback on the feedback – examples of how to get back to customers•  Questions
  3. 3. What we do: Directness B2b customers•  We provide software-as-a-service solutions to help companies add strong metrics to marketing activities Consumers –  CustomerGauge: Automatically measure, understand and analyse customer sentiment, using Net Promoter Score®. Identify and grow your most loyal customers. –  Recommendi: A free tool to help start your Net Promoter projects•  Trusted by global organisations –  +1 million end-customers measured in 2011 so far•  Company background: hi-tech marketing: Sony, Dell, Compaq, HP, KPN etc –  Privately funded, based Amsterdam, NL Selected Clients
  4. 4. Feedback – what’s it all about?•  Feedback is something we get all through life –  School, parents, sports –  360s at work•  What do we do with it? –  Negative or positive – how to react•  Act on it? Reject it? •  Information •  Choices •  Accept, analyse positively, use for future decision making (Joseph Folkman)•  Feedback is about opportunity•  Sometimes it gets worse as you try to improve…
  5. 5. So why the fear?•  Is there a fear?•  No one likes to hear bad news•  Common reactions: –  “It’s not my fault” / Defensive –  “It takes time to fix issues” / Extra work –  “It’s the way we always do it” / “Business as usual” stance –  “We always get complaints” / Complaints –  “I’d like to help, but I can’t…” / frustration with internal issues –  Legacy - Old memories•  Other reasons i had to wait for an hour to –  Technically or logistically difficult check-in, because everyone in the line in froNT of me WAS –  Long surveys turn off customers FOrCED TO PAY FOR THEIR $£@*&$ % HOLD LUGGAGE! and employees
  6. 6. Simple concept: “How was it for you?”
  7. 7. Who is embracing feedback?•  Many companies survey: –  Examples: Avis, Europcar, BA, Hilton –  Corporate initiative or cultural norm?•  Favourite examples of companies using feedback –  USAA – changing products as a result of feedback –  Lego: closely working with customers, designing product lines –  Philips: packaging, delivery –  Bavaria Film: changing company culture –  Apple Stores: “feedback as a gift.”
  8. 8. A good template for feedback•  Net Promoter® Score: –  Simple 0 – 10 scale: “Would you recommend?” –  Feedback “Why? Or Why not?”•  Open-source standard: Becoming a worldwide standard•  Helps with a “Corporate language” –  Detractors, promoters –  Grows a culture of feedback Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  9. 9. Make the survey short!•  Respect the customer’s time•  Keep it short•  Use your CRM system to help you segment customers beforehand –  Customers hate telling you information you already know.•  Aim for a high response: 25 – 50% of customers
  10. 10. Learning:Fast Response / Empowerment•  Learnings from CE Company A: –  Fast responses are more impressive than delayed perfect fixes The agent that I spoke to at the call centre was friendly, professional –  Pro-active communication within 24 hours and helpful and talked me through (one business day) of customer response various options to try to resolve this. Unfortunately the problem could not –  Empowering agents to fix issues is less be fixed at this time but the agent expensive than complex escalations transferred me to the internet customer service who quickly –  Generally, agents “do the right thing” if trusted: arranged for a replacement phone and for collection of the faulty one. “what can I do to make it right for you right This was delivered within the now?” agreed time frame and the delivery driver was kind enough to wait for•  Training issues, guidelines me to check the contents of the box (as advised by the XXXXXXX•  Agents all tracked on NPS, goodwill agent) which was appreciated…., Im happy to say that I have•  Relevant to your company: received an excellent customer service experience regarding this –  Push responsibility down the chain issue with the faulty phone. (42095938)
  11. 11. Acting on Comments•  Best practices: •  Get regular feedback so you can manage it: Daily/weekly is best! •  Classify comments to help prioritise issues •  GET COMMENts to the right people •  Act on customer feedback – within 24 hours Problems! Suggestions Praise Service issues Service Testimonials Logistics Logistics Improvements Returns etc FINANCE WEB
  12. 12. Learning:Spread the load of “fire-fighting”•  Key learnings from CE Company A: –  Improvement happens when everyone is involved. –  Breakdown the NPS number by department –  Ensure departments deal with relevant issues –  Get comments/issues to right people –  Team effort to clear issues•  Relevant to your company –  Retail: Push comments out to stores, managers to action –  Call-centres: Assign comments to a group: “hopper”. Track progress
  13. 13. Best Practice: Automatically Close the loop•  Make sure you respect the customers time•  Put in place systems to help you close the loop•  Keep your promises to customers “we’ll get back to you”
  14. 14. Segmenting Customers by NPSDetractors costmoney Promoters are profitable
  15. 15. Learning:Segmentation•  Learnings from CE Company B (limited call centre resource) –  Not all customers are the same: 7% customers drive 50% revenue. –  Identify key customers early in process – On some current XXXXX blackberry especially retention customers deals, for the same monthly contract that i pay, customers receive 200 –  Discounts not needed, but taking them minutes, so why cant i receive the seriously is. same deal. i have been a XXXXXXX customer for 13 years and have •  Find ways to delight them, ask opinions never ever changed to another supplier, so come on reward the •  VIP line in call-centre people that remain loyal year after •  “Thank you for your business” letters year.... 2766437 –  Empower senior agents (reward) It took over a week to effect delivery –  SWAT team for VIP issues (rescue) to a retail store and communication was not up to the usual XXXXXX•  Relevant to your company: standard. I feel that XXXXXXX have been cutting corners recently and as a –  Organise internally loyal (10 years) customer, I expect much better. 2799363. –  Tag customers (or use CustomerGauge)
  16. 16. Quantify the feedback•  Organise feedback by “tagging” it•  Understand the weight of issues by value, impact on NPS, number of customers•  Can be done in a spreadsheet•  Or automated with tools like CustomerGauge
  17. 17. Publish the good news•  Use customer testimonials on external sites•  Use internally•  Thank customers – gets them involved!
  18. 18. Something to aim for…•  USAA insurance/bank•  NPS 87•  20 testimonials a month –  300+ on website *Source:
  19. 19. Lessons: Fear of feedback1.  Communicate the program – Opportunities for company to get better –  Learn from customer, motivates staff2.  Fast is better – quick fix, acknowledgements –  Respond in 24 hours3.  Proactive actions impresses customers –  better planning time for you and call centre4.  Segment to prioritise and identify important issues –  Use NPS to benchmark How did we do?5.  It’s not extra work – customers will call in anyway –  Or worse, they defect. http:// –  Automation is key to productivity gains6.  Thank customers, and go public –  Actually make some improvements then tell them!•  Resources: