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Fear of Feedback

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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?

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Fear of Feedback

  1. 1. “Fear of Feedback”Adam Dorrell, Adam Ramshaw,CEO Directness Director, GenroeAdam.dorrell@directness.net aramshaw@genroe.com.au
  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• Software-as-a-service solutions to help companies add strong metrics to marketing activities – 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 Selected Clients – +1 million end-customers measured in 2011 so far
  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 i ha d t o w a it f o r a n ho u r t o c h e c k - in , b e c a u s e e ve r y o n e in – Legacy - Old memories t h e l i n e i n f r o N T o f m e WAS F O r CE D TO PA Y F O R THE I R $ £ @*& $• Other reasons % HO L D L UGGA GE ! – Technically or logistically difficult – Long surveys turn off customers and employees
  6. 6. Who is embracing feedback?• Many companies survey: – e.g Avis, Europcar, BA, Hilton – Corporate initiative or cultural norm?• Favourite examples of companies using feedback – Lego – Philips – Bavaria Film – Apple Stores: “feedback as a gift.”
  7. 7. 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 http://customergauge.com/2007/05/2-minute-guide-to-the-net-promoter-score/ Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  8. 8. 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
  9. 9. Learning:Fast Response / Empowerment• Learnings from CE Company A: – Fast responses are more impressive than delayed perfect fixes – Pro-active communication within 24 hours (one business day) of customer response The agent that I spoke to at the call centre was friendly, professional – Empowering agents to fix issues is less and helpful and talked me through various options to try to resolve this. expensive than complex escalations Unfortunately the problem could not – Generally, agents “do the right thing” if trusted: be fixed at this time but the agent transferred me to the internet “what can I do to make it right for you right customer service who quickly now?” arranged for a replacement phone and for collection of the faulty one. This was delivered within the agreed time frame and the delivery• Training issues, guidelines driver was kind enough to wait for me to check the contents of the box (as advised by the XXXXXXX agent) which was appreciated….,• Agents all tracked on NPS, goodwill Im happy to say that I have received an excellent customer service experience regarding this issue with the faulty phone.• Relevant to your company: (42095938) – Push responsibility down the chain
  10. 10. 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 Problems! Suggestions Praise Service issues Service Testimonials hours Logistics Improvements Returns etc Logistics FINANCE WEB
  11. 11. 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
  12. 12. 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”
  13. 13. Segmenting Customers by NPSDetractors costmoney Promoters are profitable
  14. 14. 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 – Discounts not needed, but taking them seriously is. • Find ways to delight them, ask opinions On some current XXXXX blackberry • VIP line in call-centre deals, for the same monthly contract that i pay, customers receive 200 • “Thank you for your business” letters minutes, so why cant i receive the same deal. i have been a XXXXXXX customer for 13 years and have never ever changed to another supplier, so – Empower senior agents (reward) come on reward the people that remain loyal year after year.... 2766437 – SWAT team for VIP issues (rescue)
  15. 15. 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
  16. 16. Publish the good news• Use customer testimonials on external sites• Use internally• Thank customers – gets them involved!
  17. 17. Something to aim for…• USAA insurance/bank• NPS 87• 20 testimonials a month – 300+ on website *Source: http://www.bizjournals.com/sanantonio/news/2011/02/21/usaa-named-a-leader-in-customer.html#ixzz1Fdd7haXR
  18. 18. 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 benchmark5. It’s not extra work – customers will call in anyway – Or worse, they defect. – Automation is key to productivity gains6. Thank customers, and go public – Actually make some improvements then tell them!
  19. 19. Thanks!• Contact Us for More Information – Adam Ramshaw • Director Genroe • +61 2 8821 6844 • aramshaw@genroe.com.au • www.genroe.com – Adam Dorrell • CEO Directness • +31 208 20 21 61 • adam.dorrell@directness.net • www.directness.net

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