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Building a Customer Feedback Program
- 1. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Building a World Class
Customer Feedback Program
Bob E. Hayes, Ph.D.
Loyalty leaders show how to Improve
Customer Loyalty to Drive Business Growth
- 2. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Executive Overview
âą Customer Feedback Program Components
âą Best Practices of Loyalty Leaders
â Strategy/Governance
â Business Process Integration
â Method/Reporting
â Applied Research
âą Build a Customer-Centric Culture
Overview
- 3. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Loyalty leaders build a customer-centric culture with
their Customer Feedback Program by:
1. Using customer feedback to set vision and manage
business
2. Integrating customer feedback into business
processes
3. Communicating process, goals and results of all
customer programs to entire company
4. Conducting in-depth customer research
â Integrate different business data (operational, financial,
customer feedback), to reveal deep customer insights that
drive business growth
Executive Overview
- 4. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Formal collection of customer data
âą Help companies understand their
customersâ attitudes
âą Referred to as:
â âCustomer Satisfaction Programsâ
â âCustomer Advocacy Programsâ
â âCustomer Loyalty Programsâ
â âVoice of the Customerâ
Customer Feedback Programs
- 5. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Customer Feedback Programs
Strategy
Vision, Value, Culture
Governance
Executive Ownership, Decision-Making, Accountability, Compensation
Business Process Integration
Automated, Closed-looped, Customer Relationship Management and Business Intelligence
Integration, Lifecycle Management, Communication
Method
Data collection, Contact
Management, Sampling
Methodology, Survey
Questions
Reporting
Analysis, Benchmarking,
Micro and Macro
Improvements,
Dissemination Practices
Research
Business Impact, Financial,
Operational and
Constituency Linkages, Use
of Customer Information
PeopleandTechnology
- 6. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Best Practices
Customer Feedback Programs
- 7. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Which specific elements of customer feedback
programs are critical to improving customer loyalty
scores?
âą 227 customer feedback program professionals asked
about their companyâs customer feedback program1
â 28 survey questions covered 6 CFP components
âą Companyâs percentile ranking of customer loyalty
Best Practices Study
1 Survey administration was conducted using a Web-based survey tool provided by GMI (Global Market Insite, Inc.).
Source: Hayes, B. E. (2009). Beyond the ultimate question: A systematic approach to improve customer loyalty. Quality Press. Milwaukee, WI.
- 8. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Loyalty Leading Companies Structure their
Programs Differently than Loyalty Laggards
Adoption Rate
Customer Feedback
Program Component
Loyalty
Leaders1
Loyalty
Laggards
â in
Adoption
Rate
Strategy/Governance 89% 71% 18%
Business Process
Integration
86% 59% 27%
Method 72% 60% 12%
Reporting 70% 60% 10%
Applied Research 80% 51% 31%
1 Loyalty Leaders defined as respondents who have customer loyalty percentile ranking of 70% or higher. Loyalty Laggards defined as
respondents who have customer loyalty percentile ranking lower than 70%.
Source: Hayes, B. E. (2009). Beyond the ultimate question: A systematic approach to improve customer loyalty. Quality Press. Milwaukee, WI.
- 9. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Strategy/Governance
40 50 60 70 80
Customer feedback results are as important as
financial measures in making business decisions.
Customer feedback is included in the company's
strategic vision, mission and goals.
Customer feedback results are used in executives'
objectives and incentive compensation.
A top executive (e.g., CEO, VP) is a champion of
the customer feedback program.
Customer feedback results are used in front-line
employees' objectives and incentive
compensation.
Industry percentile ranking
of customer loyalty
Companies who Adopted Practice
Companies who did not Adopt Practice
1. CF is as important as
financial measures in
making business decisions
2. Included in
vision/mission/goals
3. Executive incentive comp.
- 10. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Incorporate customer feedback into vision, mission,
and goals
â Include in employee handbook
â Use in setting company goals
âą Include customer feedback in decision-making
process
â Executive reports customer results at executive meetings
â Present CF data in company meetings, official documents
âą Use customer feedback when setting executiveâs
objectives and incentives
â Use key metrics (business areas, customer loyalty)
Strategy/Governance
- 11. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Business Process Integration
40 50 60 70 80
Customer feedback results are included in the
company/executive dashboards.
Customer feedback program is integrated into
business processes and technology (e.g., CRM
system).
All areas of the customer feedback program (e.g.,
process and goals) are communicated regularly to
the entire company.
The resolution of customer issues that are
identified using the customer feedback program
is integrated into the company's CustomerâŠ
Industry percentile ranking
of customer loyalty
Companies who Adopted Practice
Companies who did not Adopt Practice
1. CF included in
executive dashboards
2. Program integrated
into business process
and technology
3. Program processes/
goals communicated
to entire company
- 12. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Include results of customer feedback in executive
dashboards
â Build reliable metrics/indices
âą Communicate customer feedback program
processes/ goals to entire company
â Develop customer-related employee portal on intranet site
â Summarize survey methodology
â Present research findings
Business Process Integration
- 13. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Integrate customer feedback program into business
process and technology (e.g., CRM)
â Customer feedback and CRM
System provides a comprehensive
picture of customersâ satisfaction
and behaviors throughout the
customer lifecycle
â CRM system necessary to aggregate
all customer data â helps in
operational linkage
Business Process Integration
Customer
Feedback
Program
CRM
Application
Market
- 14. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Method
40 50 60 70 80
Web surveys are used to collect customerâŠ
Paper and Pencil surveys are used to collectâŠ
Customer satisfaction surveys are conducted byâŠ
The survey delivery is an automated process.
Multiple methods of collecting customerâŠ
In-person interviews are used to collectâŠ
Telephone surveys are used to collect customerâŠ
Customer contact management process (e.g.,âŠ
Industry percentile ranking
of customer loyalty
Companies who Adopted Practice
Companies who did not Adopt Practice
1. Web surveys
- 15. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Reporting
40 50 60 70 80
Customer feedback results are shared throughout
the company.
Customer feedback results are benchmarked
against competitors and industry averages.
Web-based reporting tools are used to report
customer feedback results to employees.
Results of customer satisfaction research are
presented externally (e.g., conferences, userâŠ
Results of customer satisfaction research are
presented internally (through employee portal,âŠ
Customer feedback results are shared only at
executive/management level.*
Industry percentile ranking
of customer loyalty
Companies who Adopted Practice
Companies who did not Adopt Practice
1. CF results shared
throughout company
- 16. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Use Web-based surveys to collect customer feedback
â Facilitates communication through automation
â Improves ease of integration with other business systems
(e.g., CRM)
âą Share customer feedback results throughout the
company
â Keeps employees focused on customer-centric goals
â Facilitates customer-centric culture
Method and Reporting
- 17. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Applied Research
40 50 60 70 80
Statistical relationships are established between
customer feedback data and operational metrics
(e.g., turnaround time, hold time).
Applied research using customer feedback data is
regularly conducted.
Statistical relationships are established between
customer feedback data and other constituency
metrics (e.g., employee satisfaction or partnerâŠ
Existing information from customer databases is
used to help segment customer feedback data.
Statistical relationships are established between
customer feedback data and business metrics
(e.g., revenue, margin).
Industry percentile ranking
of customer loyalty
Companies who Adopted Practice
Companies who did not Adopt Practice
1. Operational linkage
established
2. Applied research regularly
conducted
3. Constituency attitude
linkage established
- 18. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Validate customer feedback program
â Ensure results are reliable, valid and useful
â One of first research projects that need to be conducted
âą Develop programmatic research around customer
âą Establish statistical relationships between customer
feedback data and operational metrics (e.g.,
turnaround time, hold time) and other constituency
metrics (e.g., employee satisfaction or partner
satisfaction metrics)
â Manage customer relationships using operational metrics
â Expand customer ecosystem; manage all constituencies
Applied Research
- 19. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Linkage among key organizational variables
â Company profitability/growth
â Customer relationship variables
âą Satisfaction, loyalty, perceived service value
â Employee relationship variables
âą Satisfaction, retention, productivity, internal service quality
â Partner relationship variables
âą Satisfaction, allegiance
âą The quality of the three relationships impacts
company financial success
âą Key to success is managing these three key
relationships
Understanding Business Growth Starts with
Understanding the Ecosystem
- 20. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Must Understand Entire Company
Ecosystem to Drive Business Growth
Employee, Partner, and Customer Loyalty Drive Business Results
Based on the book, The Service Profit Chain: How leading Companies Link Profit and Growth to
Loyalty, Satisfaction and Value (Heskett, Sasser & Schlesinger, 1997)
Employee Survey
Customer Survey
Partner Survey
Company
Business Strategy
and CRM System
Company
PerformanceInternal
System
Employee
Satisfaction
Employee
Productivity
Perceived
Value
Customer
Satisfaction
Revenue
Profits
Employee
Loyalty
Customer
Loyalty
Partner
Advocacy
Purchasing
Retention
Market
Share
- 21. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
âą Customer Satisfaction Survey
â Customer Loyalty Indices
â Identify drivers of customer loyalty
â Improve service value
â Increase customer loyalty and lifetime value of customers
âą Employee Survey
â Employee Loyalty Index
â Identify drivers of employee loyalty
â Improve internal service quality climate
â Retain exceptional employees
âą Alliance Partner Survey
â Partner Allegiance Index
â Identify drivers of partner allegiance
â Offer right partner programs to ensure partners can deliver
100% customer satisfaction
â Retain exceptional partners
Measuring Loyalty Across the Company
Ecosystem
- 22. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
Customer Feedback Programs Success
ï§ Customer alignment
ï§ Top management uses
customer feedback to
set vision, manage
business
ï§ Applied research
reveals insights
ï§ Companywide
communication of
program process, goals
and results
- 23. Copyright © 2010 Business Over BroadwayCopyright © 2010 Business Over Broadway
For More Information
Bob E. Hayes, Ph.D.
Email: bob@businessoverbroadway.com
Web: www.businessoverbroadway.com
Blog: www.businessoverbroadway.blogspot.com
Twitter: www.twitter.com/bobehayes
Business Over Broadway
Business growth through customer insight