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 waysHappy and unhappy customersOne 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 perspectiveIdentify what could be improved uponAbility to make changes before the customers abandon usBe able to do continuous improvementBenefits 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 groupsExplorer groupsSurveys and Feedback CardsMystery Shoppers
8 Surveys Use objective language in instructions-don’t try to lead Use clear, non-complex language in questionsUse Valid and Reliable questionsValid- 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_______PoorWhat 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 storeMail or brief questionnairesWritten surveys that they can mail back laterTelephoning 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 cardsCustomer doesn’t believe that you really want feedbackCard questions mix marketing with customer service issuesAs an effective manager, can you remedy these concerns?
12 Managers and employees must be committed…. To developing/using quality and appropriate feedback tools and methodsTo evaluate objectively and timelyTo include both external and internal customers in the evaluation resultsTo using the feedback for motivating, improving, and coaching purposesTo 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 coachingOur 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 receivedActive listener: genuinely open to hearing from customers; will respond to customersMetric-conscious: quantifying the data received, tracking it and using it to make regular improvements.
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