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Chapter 8 Customer Feedback.

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Presentation on theme: "Chapter 8 Customer Feedback."— Presentation transcript:

1 Chapter 8 Customer Feedback

2 Importance of Gathering Feedback
25% of your customers are unhappy with some aspect of the interaction--- Only 5% will tell you about it…and then…they abandon you! Word of mouth advertising cuts both ways Happy and unhappy customers One unhappy customer will tell 11 others about his/her bad experience “…She was so rude!”

3 Benefits of Gathering Feedback
Gain insight from the customer’s perspective Identify what could be improved upon Ability to make changes before the customers abandon us Be able to do continuous improvement Benefits apply to both internal and external customers

4 The Complaining Customer can be Helpful
Customers whose complaints are heard and acted upon are more likely to be loyal to you than those who do not have a complaint in the first place!

5 You will get Loyal Customers for the Long-Term when they answer “Very Likely” to this question:
“How likely is it that you would recommend this company to a friend or colleague?” But there is much work in gathering, analyzing and responding to feedback in order to achieve a positive response to this end game question!

6 Informal methods to gather feedback
A complaint log-Capturing and using feedback is critical to success. Managers can benefit from maintaining a complaint log to capture ideas from customers and others. Employees talking in the break room or around the water cooler after overhearing customers

7 Formal methods for gathering feedback
Focus groups Explorer groups Surveys and Feedback Cards Mystery Shoppers

8 Surveys Use objective language in instructions-don’t try to lead
Use clear, non-complex language in questions Use Valid and Reliable questions Valid- the extent to which a survey measures what it claims to measure. Reliable- Reliability refers to the consistency of a measure. A survey is considered reliable if we get the same result repeatedly. Keep the questions simple and short

9 Validity and Reliability
Please rate the quality of our Model XYZ computer: _______Excellent _______Good _______Fair _______Poor What is wrong with this picture!?

10 Surveys (contd) 4 ways to use surveys when customers have recently completed a transaction with you: Face-to-face surveys as they walk out of your office or store Mail or brief questionnaires Written surveys that they can mail back later Telephoning them at home or at work

11 Feedback Cards “Feedback cards are an unproductive way to get feedback…” Really? What’s this all about!? Problems with Feedback Cards: Customer may not know what to do with the cards Customer doesn’t believe that you really want feedback Card questions mix marketing with customer service issues As an effective manager, can you remedy these concerns?

12 Managers and employees must be committed….
To developing/using quality and appropriate feedback tools and methods To evaluate objectively and timely To include both external and internal customers in the evaluation results To using the feedback for motivating, improving, and coaching purposes To ensuring financial and other resources are dedicated to the effort

13 Feedback is a valuable form of coaching
Many people dislike negative feedback, BUT… Feedback is a valuable form of coaching Our toughest critics can become our best friends

14 Where will your Bar n Grill be when it comes to Feedback?
Company’s levels of commitment to feedback (from lowest to highest)- Reluctant-compliant: half-hearted approach; don’t act on information received Active listener: genuinely open to hearing from customers; will respond to customers Metric-conscious: quantifying the data received, tracking it and using it to make regular improvements.

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