Best Practices

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Apr 02, 2020

A Data-Driven Approach to Closing the Customer Feedback Loop

by Jake Burgess

Closing the customer feedback loop is a widely adopted business practice. Some even consider it the holy grail of customer service – by quickly contacting customers after they have provided feedback, businesses aim to reduce churn and increase customer loyalty and engagement in addition to other potential benefits. However, closing the loop doesn’t always make good business sense if it doesn’t have a demonstrably positive impact on finances. You could be squandering valuable resources that would be better directed elsewhere. A personalized follow-up can make 70% of customers more likely to recommend a company, but as few as 14% of firms report seeing positive financial results as a result of engaging in a Voice of Customer (VOC) program. Putting data at the heart of the process is key to making sure that your efforts to gather feedback and close the loop will lead to better financial outcomes. Choose specific and measurable goals The purpose of closing the loop is to improve customer satisfaction, which in turn improves your bottom line. In order to find out if your follow-up efforts are having the desired effect, it’s necessary to set specific goals and measure your progress towards them. Choose relevant goals that are linked to financial outcomes and can be measured tracking specific metrics, such as Customer Retention Rate (CRR). Which metrics you choose to track is less critical than being consistent in collecting and analyzing your data. Compare any improvements in your chosen metrics with relevant financial data to reveal whether […]

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