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Two duck. Representing good and evil in business

How feedback helps you reduce bad business decisions

Tuesday November 05, 2013

You know how customer feedback can help you create business growth and you’ve understand how it can help you generate outsized returns by managing the overall experience for our customers, now let’s look at ..

 

Why feedback is important in helping us reduce risk ….

 

You cannot afford not to listen to your customers because all sustainable income growth in your business is driven by the positive actions of your existing customers. Why it’s so important to listen to them can be understood with the following few facts….

  • Attracting a new customer costs 5 times as much as keeping an existing one
  • Happy customers tell about 5 people about their experience
  • Dissatisfied consumer will tell between 9 and 15 people about their experience. About 13% of dissatisfied customers tell more than 20 people
  • For every customer complaint, there are 26 other customers who remain silent
  • Customer churn is caused 68% of the time by customer feelings of poor treatment. It takes 12 positive service experiences to make up for one negative experience.

You’ll often hear about the difference between Angels & Demons (or Advocates & Detractors) expressed as Net Promoter Score (NPS) or Net Customer Advocacy Score (NCAS). How to use, calculate and interpret NPS/NCAS is a whole (debatable) ‘science’ in its own right. Suffice to say our increasingly connected economy has made the relative effect of angels and demons far more exaggerated than it ever has been and the speed with which the gap develops has made getting and acting on feedback quicker to rectify mistakes massively more important than ever to avoid them becoming costly mistakes.

 

In the last few years mobile customer feedback (survey) apps have changed the game for the better to help you listen to customer feedback and take action faster. What many successful decision-makers have already successfully grasped is the idea of using customer-facing mobile ‘reward for feedback’ apps to interact with their customers. Why are these trailblazers using mobile for getting customer feedback? Well, because like you they need information fast, they want to access it whenever and wherever its most convenient for them, they want it to be reliable and they need it to be cost-effective so they can improve their profits by making better decisions.

 

If you want to try a mobile feedback app for free to capture ‘Point of Experience feedback’then please register for a FREE basic account and follow the simple steps. If you like this blog then why not register to get it mailed to you.

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