7 best ways to encourage customer feedback

Written by Super User on 04 September 2017.

7 best ways to encourage customer feedback

Honest customer feedback empowers companies with in-depth knowledge of their customers’ decision-making choices.

Client feedback can be collected via various channels. Feedback boxes, surveys, and social media engagement are some of the many possible feedback methods available. Constant feedback information gathering is vital in maintaining a competitive edge, as it enables businesses to tailor their services and products to shifting customer requirements. This article discusses some of these methods, but the list is not exhaustive. The approaches mentioned here can be used either individually or collectively, depending on the business model and industry.

1. Encouraging clients to give Feedback

Client feedback is gold dust to businesses. Research shows that for every formal complaint made to management, there will be 25 other dissatisfied customers who have not voiced their opinions, who in turn will tell 10 more people each, who will each tell five more, leading to the ‘Customer Complaint Iceberg’ as represented by TARP Research.

Gathering every scrap of customer complaints is therefore absolutely vital. As this article in the Harvard Business Review states, ‘you can’t fix problems you don’t know you have’. The vast majority of customers do not want to deal with the effort of voicing their opinions, positive or negative, and need considerable stimulus to encourage that crucial action to take place. Physical stores may display signage in prominent locations, demonstrating to the consumer the importance the business places on client feedback to the consumer, and providing instant and low-effort opportunities for feedback. E-commerce organizations can utilize banners on their websites to the same effect. Live support teams play pivotal roles in fielding front-line client concerns, and can elicit feedback as they navigate customers through the website. Additionally, end-of-session prompts for experience analysis give valuable opportunities to garner information for user satisfaction.

2. Feedback Boxes

Physical feedback boxes are one of the most basic, effective methods of data response collection. They are one of the most widely used and accessible response-gathering tools to any organization, from a painted cereal box with a slot cut into it on a child’s lemonade stand to a high-security anonymous polling booth in an election. A standard box is cost-effective, and simple to set up and monitor. The feedback box should also be secure in that only authorized personnel can open it to read the notes forwarded by clients. This ensures that all feedback reaches top management, especially in complaint cases where affected employees may be tempted to destroy the information for fear of punishment. It should be noted that feedback boxes are not ‘complaint boxes’. Assessing and recognizing positive client experiences is just as important as acting on negative ones. The management should monitor the feedback received in this way so that issues raised are addressed promptly, and returning clients who give feedback find that it is implemented.

3. Surveys

Surveys should be used as an auxiliary to other methods. They involve asking clients to fill in a feedback form, either by hand or electronically. They should contain short and specific questions. Where applicable, open ended questions should be employed to allow clients to provide creative suggestions that the organization can capitalize on to improve the customer experience.
Types of surveys include:

• Mobile surveys
• Telephone surveys
• Behavioral insight surveys
• Customer Surveys

4. Reaching Out Personally

One of the most effective feedback collection methods is also often the most neglected: personal, direct response. It may be done by phone, email, and face to face sessions. Direct interaction with the client allows then to articulate their issues with greater ease and fluidity. It opens the opportunity for the business to clarify responses in real time, as well as allowing for in-depth discussion on proposals made. In the event that face-to-face interaction is not possible, a phone call offers similar opportunities. The underlying concept is that the client is given the opportunity to express their feelings and opinions. Emails are a tertiary method, though the response rate can be a challenge.

5. Social Media

All companies can potentially benefit from social media feedback tools, but particularly those targeting the youth and the middle-classes. Their clients are online most of the time, and can be engaged on a myriad of issues, including the quality of the services rendered by the company. Feedback received in these fora can form an important exchange platform. Importantly, the communication loop can be two or three way: client to supplier, supplier to client, and client to client. It is the company’s job to monitor and manage this so that as many feedback threads as possible are positively reinforcing. It’s a commonly recognized fact that the most difficult complaint is often the best opportunity to turn a dissatisfied customer into a raving fan, through better-than-expected response and management. These success stories in turn have a positive effect on other clients, often more effective than simple endorsement or advertising.

6. Focus Groups

For organizations with a bigger budget, focus groups can provide useful feedback, especially prior to launching new products or services. They involve facilitator-moderated group discussions to gather clients’ feedback about a service or a product prior to market introduction. Focus groups can be replicated across different geographical locations to gather more representative responses.

7. Usability test

Companies in the IT industry gather end user feedback utilizing Usability tests prior to launching a product or a service. Usability testing allows clients to give indirect feedback on issues they are not aware they are struggling with. For instance, to test the usability of a website, the researcher may monitor and record how a client navigates the website to achieve a given objective. This feedback can then be used to improve the user experience and ensure they achieve the objectives with ease. However, Usability testing is not restricted to IT companies and can be employed successfully in other industries to monitor and give feedback on a users’ interactions with the company’s products or services.

Bottom Line Client Feedback

Client feedback is a valued business asset that should be capitalized on by any organization to ensure it maintains its competitive advantage. However, receiving feedback is only half the story. Acting on feedback received is what keeps most businesses going and enables them to develop products that benefit their clients. While there exist many different methods of collecting feedback, each business should examine the possibilities at its disposal based on the budget involved and the effectiveness of such methods. Finally, clients should be encouraged to give feedback at every available opportunity and without victimization or other negative effects. Companies should also frequently check their reviews on various platforms such as social media, and address all issues raised whether negative or positive. Such feedback should also be documented and tracked for future reference.

Sources

https://whitespark.ca/blog/8-awesome-easy-ways-encourage-customer-feedback/ https://blog.kissmetrics.com/best-ways-to-get-feedback/
https://www.helpscout.net/blog/customer-feedback/
http://blog.clientheartbeat.com/customer-feedback/
https://hbr.org/2009/12/closing-the-customer-feedback-loop
http://www.peoplepulse.com/resources/useful-articles/customer-experience/

How Can Negative Customer Feedback Lead to Better Sales?

Written by Super User on 04 September 2017.

How Can Negative Customer Feedback Lead to Better Sales?

Negative feedback is often dreaded, ignored or handled poorly. In reality it offers some of the best opportunities for creating a loyal customer base and strengthening sales.

Complaints are something we usually dread, and when we get one it usually invokes pessimistic thoughts about the value and quality of our business, along with concerns that the unhappy customer might spread their opinion to others. But is that really all there is to negative customer feedback?

There’s Always Room for Improvement

Every business owner is naturally delighted to receive praise from their customers, but from the business development viewpoint there’s not much else to be gained from positive feedback. Negative feedback, on the other hand, offers a goldmine of opportunity, even though it may not leave us with a smile on our face. The true purpose of customer feedback shouldn’t be to reassure us, but to show us how we can improve and grow. That’s the kind of information only negative feedback can provide.

The truth is, nothing is perfect, so we’re better off knowing which issues need to be addressed. In business, ignorance is most certainly not bliss. Most dissatisfied customers will simply vote with their feet and walk away without comment, which is why many businesses that fail to solicit customer feedback are puzzled by dropping sales. Customer complaints are valuable, tangible data that can be analyzed, and can illuminate important issues in need of fixing. If you don’t get any negative comments, you should be looking harder.

Trust is Earned

Constructive criticism will not only pinpoint your weak spots, but also build trust with customers and show them their opinion is valuable to you. Making the angry customer a partner in validating the solution will not only invest your business with an improved product or protocol, but can turn your worst detractors into brand ambassador. Maintaining an open dialogue is perhaps one of the best ways to inspire loyalty and ensure client retention.

Besides, a 100% success rate is unlikely in any walk of life. Consumers can be wary of a company with a too-glossy review rate: it can raise suspicions of rigging and censorship. No-one expects a product or service to the absolutely flawless in every way, and people feel more reassured prior to purchase if they can measure up the pros and cons of an offering. A healthy dose of negative opinions will help build trust and give you credibility.

Sometimes, Any Feedback Is Good

On a more technical note, it’s worth being aware that not only positive, but also negative reviews could help promote your business online. Because search engines, such as Google, take into account how many times your name is mentioned in customer reviews, you’ll be more likely to rank higher in search results then businesses that are mentioned less often. Several negative comments won’t really damage your reputation, but they’ll help promote your business just as much as the positive ones.

How to Respond?

The worst thing you can do is react defensively, as if the customer’s complaint were a personal attack. Carefully analyze the information with which you are presented and approach the issue in an impartial, objective way. Every once in a while a customer may leave a negative review not based on their experience with your product or business, but for fun or some other irrelevant reason. If you judge a review to be one of those, simply ignore it. But what about genuine customer reviews? When responding to such a complaint it’s best to stay objective, and if your company is indeed at fault, fix the problem and get back to the customer. This way other potential clients will see you in a positive light instead of being put off. A nice touch would be to check in on the customer in a week or two and see if they are still satisfied, or need additional assistance. There’s no better way to show your customers that you value their opinion and are doing everything you can to ensure they have a positive experience.

Being mindful of the fact that negative feedback often leads to positive results is just as important for business as regular working hours - they help keep customers happy and the business going. Nothing raises your awareness more when it comes to knowing what’s wrong, whether it has to do with your product, your employees or the way your company functions internally. Since people who voice their concerns are the tip of the iceberg of the silent majority who simply walk away, embracing any negative feedback is a huge step towards increasing your sales.

Resources:
http://www.practicalecommerce.com/10-ways-to-deal-with-negative-customer-reviews
http://smallbusiness.chron.com/overcome-negative-customer-feedback-2093.html
https://www.americanexpress.com/us/small-business/openforum/articles/angry-customer-asset/