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The
correlation of maintaining and improving customer satisfaction with
increased profitability is becoming paramount as companies seek to gain
the competitive edge in an increasingly complex environment.
Building a loyal customer base founded on high satisfaction levels
is a key to corporate success for eBusinesses, Click & Mortars, and
traditional businesses alike.
Studies show that the cost to acquire a customer is up to five
times the amount of retaining an existing customer, underscoring the
economic advantage of maintaining a solid customer base upon which you can
build and grow.
Profitability, as shown by Figure 1, increases dramatically as
customers remain loyal over time.
The
initial profit, year one, is usually margined as substantial investments
have been made in sales/marketing to acquire the customer.
As the customer remains loyal to the organization, there is a shift
from acquiring to serving and growing the customer.
Figure 1:
Profitability of Retention Graph
The
Harvard Business School reports that a 5% improvement in customer
retention can result in a 75% increase in profitability. But what makes your customers stay?
Unless you discover their attitudes, preferences and intentions
about your products and services, you can’t know the answer to this
question. Connecting with
customers for ongoing feedback, across interaction points, and over time,
can provide you with the data necessary to understand what drives your
customer loyalty, and what actions can drive customer retention.
Improving
eFeedback Response Rates
Basing
internal process changes on customer feedback assures that you are
investing in solutions that will meet the real needs of your customers.
Maximizing this effort requires a large and representative number of
thoughtful responses. Feedback
forms must be designed to accomplish this.
While there are many common elements between conventional and
online surveys, there are significant differences.
Listed below are ways to create powerful, effective online surveys.
Seven
Ways to Create Online Surveys that Work
- Keep
the Length Reasonable. The more questions you present to the respondent, the
more potential data you will receive, but the higher the perceived
cost –- time –- to the respondent.
Online techniques let you increase the total number of
questions while reducing the number each respondent has to read or
answer.
- Intelligent
Skipping: As
respondents complete the survey, they automatically skip to the appropriate questions or pages relevant to their specific answers, cases
or personal profiles.
- Randomization:
For multiple-choice questions that have too many choices for any
single respondent to read and select, online systems let you present each
respondent with a randomized, reasonable number of choices from the full
set. By randomizing not only
the choices presented but also the order in which they appear, you can
remove order bias that can influence the responses.
These are
just a few techniques you can use to maximize the breadth of feedback
gathered while minimizing the time-impact on the respondent.
Figure 2: Two
examples of Randomization
- Ask
the Right Questions in the Appropriate Format: Use
questions that will provide meaningful data.
Your survey will likely include four types of questions:
overall ratings (e.g., How likely are you to recommend our product or
service?; ratings by attribute (e.g., speed of service delivery, ease
of ordering); respondent demographics (e.g., product or service type;
geographic data); and open-ended suggestions and other comments (e.g.,
How can we improve our service?).
As you compose the survey, consider all possible responses to
each question, and make certain that the responses will let you drive
specific actions.
- Order
Questions in Experience Sequence.
Questions should flow in an order that most closely matches the
experience of the respondent, allowing the customer to mentally
re-live the transaction. For example, if the survey is directed to a hotel
guest after his/her visit, the first questions should focus on the
check-in or reservation process, followed by questions about the room,
with the final questions dealing with check-out procedures. Automatic
skipping can quickly move customers to only the sections that are
relevant to their visit. For
example, if customers did not use room service, they will not see that
corresponding set of questions.
- Personalize
Communications. Personalization
of all customer communications – from the email invitation to the
feedback form to the thank you page – increases the motivation to
participate. CustomerSat
lets you automatically include customer data from CRM systems, Web
sites, or other sources to add a personal touch.
For example, a service-related feedback form could include the
customer’s name, case number and description, service rep’s name,
and date of the call. This
level of personalization not only adds credibility, but lets
respondents provide more complete and accurate feedback in less time
than when relying on their unassisted recall of the event. CustomerSat
allows automatic uploading of data fields streamline this process, so
exact data fields are identified as the feedback form is created. This
data is then available for use in all communications and analysis.
Figure 3:
Sample of Automatic Upload of Data Fields
- Customize
and Add Graphic Interest to the Feedback Form.
Customers
expect Web-based communications to be dynamic, colorful, and exciting.
Don’t overlook the importance of using color, fonts, and other
graphic elements to make your survey appealing.
Customizing the feedback form to reflect your corporate design
will also serve to reinforce your identity system, and increase its
believability for the respondent.
- Use
Actionable Questions. The goal of customer feedback is to uncover
satisfaction issues that can lead to targeted actions that improve the
customer’s experience. With
action-oriented questions, you can tell the difference between a
symptom and a root cause, and identify clear courses of actions
instead of describing an outcome.
- Keep
the Feedback Coming. Customer feedback is not a project, but rather a
process. Maintaining
connections with your customers and website visitors on a regular
basis allows you to keep track of their shifting needs and attitudes.
In this manner, you can predict behavior, and implement
corrective action before the customer is impacted. An automated,
online feedback program can be deployed to capture information across
interaction points, and over time.
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CustomerSat
Announces: CEM Release 4.0
Jason
Whittenberg, Product Manager, CustomerSat
On
February 24, CustomerSat will launch its most significant set of
enhancements for its Customer Experience Management (CEM) System.
With a host of robust reporting and data analysis additions, as
well as new GUI-based form creation tools, Release 4.0 gives users more
power to create complex feedback programs, while speeding deployment time.
Benefit highlights include:
-
Chart
Designer:
This flexible GUI-based reporting tool allows users to easily
generate and store customized charts using up to 20 independent data
points. By specifying
questions or uploaded data fields, applying filters, and using date
intervals for time-based analysis, Chart Designer provides you a fast and
easy way to graphically produce product performance comparisons,
trendlines, regional analysis, and other user-specific charts that were
previously available only through off-line reporting.
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Multi-Page
Surveys with Suspend:
Also GUI-based, this survey design tool has been added to speed the
creation of multiple page surveys, using a point & click process to
define complex skipping for advanced survey design.
Not only does it enforce skip patterns, but because questions
appear in smaller “bursts”, longer surveys are less daunting to the
respondent, and completion rates increase.
Additionally, the new suspend feature lets respondents save their
survey at any time and return to it later, picking up where they left off.
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Import
Responses:
Answering the need to integrate phone and postal mail feedback data with
online results, this key new feature enables organizations to combine all
existing survey results into a single system, making reporting available
across the enterprise for analysis using CustomerSat’s Web-based
analysis system. Merging off-line results with concurrent on-line studies
provides for complete analysis, and eases the transition from paper and
pencil, phone and CATI based surveys, to fully-automated web-based
programs.
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Power
Filters:
This enhancement gives unprecedented power to “slice and dice” data,
providing views from a macro to a highly-targeted micro level.
Users throughout the enterprise – be it different departments,
product groups, regions, levels, etc., can create filters with up to 20
different criteria, allowing them to segment the data according to their
specific needs. Once the
filter is created and saved, it can be applied to any of the online
analysis charts. Power
Filters also add more ways of defining filtered criteria, including a
wildcard search on text-based questions.
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Grid
Question Generator: A
popular method for evaluating performance over multiple criteria is to
create a grid or table question allowing the respondent to simply select
radio buttons relative to their satisfaction level.
Using Grid Question Generator, a user can now easily create sets of
questions, saving the respondent time and improving the overall user
experience.
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Suppress/Hide
Questions in Export Files:
This feature gives you a secure way to maximize accessibility of customer
feedback to employees throughout the enterprise. Users can now define what specific questions or data is
available to different sub-users or groups within your organization.
The data relevant to these defined areas is available for
online-analysis, while sensitive or irrelevant data remains hidden,
accessible only to authorized users.
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