Customer feedback data analysis is equally as crucial for your organisation as sales and marketing KPIs.
Here are the main points to remember when dealing with customer feedback. As company executives, we all seem to be aware of the significance of keeping tabs here on statistics, regardless of if they're KPIs, dashboard indicators, or financial figures. But are you also up to date on customer feedback data?
Among the ten Rockefeller Habits that top-performing organisations practise is ensuring that customer information is reported on and analyzed is as regular and precise as financial data.
I'll cover the important points of gathering, measuring, and evaluating customer feedback as discussed in my books, Mastering the Rockefeller Habits and Scaling Up.
The Value of Consistent Customer Feedback Data
A customer feedback is a cycle that collects information about how your consumers view the product or service you provide. The information you gather will be utilised in weekly meetings and planning sessions to identify subsequent decisions.
I didn't know what simple but effective a mechanism for gathering customer feedback might be until I met Michael Dell. Michael had his staff record monthly inventories while Dell Computer was also still known as PCs Ltd.
It pushed everyone to write down every problem, complaint,, worry, issue, idea, or suggestion that had occurred to them or had been reported by a client that week. These lists were given in here on Thursday afternoons, and Michael took them home to study and seek for patterns and trends that would develop over several weeks and months of gathering staff and consumer problems and ideas.
He'd summon everybody on Friday morning for what became known as "the hour of dread." Workers would congregate and brainstorm answers to some, but not all, of the issues.
Michael Dell is wise to be choosy since he grasped the idea of compound interest. He understood that if you solve only one percent of your issues or enhance business offerings by one % each week, you'll reap bigger and higher returns from the solutions with each passing year.
However, on the other hand, you try to solve too many problems, you'll end up with a headache! Instead of being your primary productivity-boosting tool, it will become another another drain on everyone's time.
Let's look at the many kinds of customer feedback data to collect information to see how they may build a customer feedback loop for your firm.
What is the significance of customer feedback?
Customer feedback is vital since it acts as a guiding resource for your company's success. Don't you want to know what his company is doing well — & wrong — inside the eyes of its customers?
You can uncover diamonds among the excellent and poor that make it simpler to change and adapt the client experience over time. In a nutshell, feedback is the best method to keep your community at the centre of everything you do.
The 4Q Discussion
The Executive team should take equal accountability on customer conversations. This implies that every member should speak with a client at least once a week. The information gathered from these discussions should be fed into your weekly Level 10 Executive sessions. Rockefeller Habit #6 advocates having a '4Q chat' in person or over the phone/zoom. The following are the four questions:
- Q1: How is business at the customer's end (not personal)?
- Q2 What's going on in their field?
- Q3 What do they know about your rivals?
- Q4 How are things going for you as their supplier?
What are you attempting to accomplish here? You want your customer to provide you honest feedback on how you're performing with comparison to your competition and market trends. You're creating a culture that actively seeks feedback in order to continuously grow.
At an Executive meeting, everyone at the table is an equal partner in customer dialogues. If you had a staff with five individuals, that's 52 pieces of feedback per person every year - more than 250 data points! Consider how so much knowledge you'll gain regarding your consumers and their specific challenges. Here, knowledge is power.
Leveraging NPS to Start Customer Conversations
Another strategy may be to leverage your NPS customer feedback data to create calls. This was a task we accomplished at Rackspace and Peer 1. One of the amazing things about NPS is that you can survey a subset of your customer on a weekly basis. Unlike typical customer satisfaction activities, which poll clients every year and are therefore mostly ineffective. You may have a few clients who give you a score of less than a 9 or 10 in a regular week. Textual comments too are possible.
We discovered that arranging a call with an Executive for review the score or text feedback worked wonderfully. This offers you access to discuss any difficulties that have arisen. You can then move on to a 4Q discussion. Customers always see these calls as genuine "wow" moments since an Executive has taken the time to call them. And you'll get some useful information for your meetings.
We discovered that 60% of our customers are interacting that have at least one of our rivals during these interactions. It was always useful to exchange and gain from in this knowledge. Similarly, these discussions would frequently reveal a sales opportunity. We kept a ledger that tracked whose directors had earned the greatest extra money as a result of these talks.
Developing a Personal Network
Perhaps you're encountering opposition from functional heads who haven't typically communicated with customers. Human Resources or Finance Directors, for example. Make it obvious that they must contribute to the success of the team.
When I see it working well, I schedule these calls in everyone's calendars. A PA or someone from the NPS team will book the call for you. Maybe Tuesdays at 10 a.m. are your usual customer hours. There could be some information about customer, what often you've been with them, plus personal details included with the diary reservation to provide some context.
When an HR or Finance Director calls a customer, there really is real value to be obtained. Perhaps they speak with the CEO about offering assistance to the opposite number on the customer’s team. Unless you're the HR Director, you may be discussing their abilities to recruit and retain people. You could hear about their light of the fact activity in Bulgaria throughout that chat. That's brand fresh to you! You would not have realised this if you had not spoken with them.
The 80:20 Principle
Customers weren't all made equal. Spend some time segmenting them. Around 80% of your earnings is likely to originate from merely 20% of your customers. You should be phoning those valuable customers the most. While I was the MD of Peer 1 in Southampton, we had 13,400 customers worldwide. During an investigation, we discovered that wealthiest 5% among our customers, or around 500 customers, contributed approximately 60% all our revenue.
We understood that doubling this small set of customers would treble our sales in three years. So we were dead set on giving them the best care and attention imaginable. The pulse we were taking was correct. Take care of this. Companies have a tendency to treat all customers the same. You must be strategic.
Create a strong network among these greater customers. That will make quitting much more difficult for them. And you're likely to find other business to extend the account.
Choosing the Best Strategy
Strategy is difficult. It necessitates a clear grasp on your key customers identities as well as total clarity on the particular problem you're solving for them. How can your Executive team know this if they don't communicate to customers on a regular basis? If you're the HR Director and you're at company strategic meeting, you've got the moment for verify whatever business believe that approach is and whether or not it's resonating with customer feedback data. Instead of being a bystander, provide your opinion based on what you've heard.
'The solutions for your problems don't exist in the office,' remarked Steve Blank, creator of a Lean Start - up movement. You must go out and discover what is essential to your customers. Clients that make this a priority in their coaching experience this clarity. They understand their customers' problems, how they compare to their competition, and how they position themselves in the market. They are unstoppable! Their ascension to the stratosphere speaks for itself.
Invest Now in Your Customer Service Staff
It is a compelling data-backed case for the beneficial, multi-layered impact that excellent customer service can have on a company. The proof is in the research and the results: putting effort and money into recruiting and developing excellent customer service staff is indeed an essential element of managing an effective organisation.
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