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The heartening aspect was the number of organisations that collect feedback, with 95% of companies taking the time to ask customers what they think of their service. Unfortunately, that is where the positive news ended because the subsequent results of the survey highlighted how few companies took the next step of using that feedback to their best advantage. The study found:
In a world where 93% of people are more likely to be repeat customers at companies with excellent customer service, it beggars belief that so few organisations are taking full advantage of what their customers are telling them. Feedback is nothing without action and the question you should be asking yourself right now is simple – are we closing the loop when we receive feedback?
Closed-looped feedback or customer experience (CX) is a process of continuously improving customer satisfaction by actively responding to survey feedback, addressing concerns and utilising insights to make improvements. The goal is to enhance customer experiences, using feedback to inform long-term strategies.
Today, a positive CX has become the most significant factor in creating brand differentiation, surpassing price and product. Responding to customer feedback, whether positive, neutral or negative, demonstrates the value a company places on customer experiences and is critical to building customer loyalty and brand advocacy.
Creating a closed-loop CX requires a focus on the entire customer journey, not just receiving feedback, and is crucial for businesses looking to succeed in the customer experience age.
Closing the loop on customer feedback is crucial for a variety of reasons including:
Now you know the importance of closing the loop on customer feedback, it is time to explore several steps to ensure you do it well.
A wise man once said: “Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong.” This concept lies at the heart of closed-loop CX management. Closing the feedback loop not only benefits the customer involved but helps facilitate a better experience for future consumers and inspires pride within staff who value being part of an organisation that not only seeks feedback but does something about it.
Closing the feedback loop allows customers to resolve their issues directly with staff who are prepared for the conversation, in turn making them feel more valued. The insights those agents bring back to the company are also pivotal in helping optimize the organisation’s CX design for future customers.
As previously stated, feedback is nothing without action. Closing the loop in real-time needs to be a priority for all companies as it helps create happier customers, grow revenue and enhance reputation. From measuring perceptions at all points of a customer journey and making it as easy as possible for them to provide feedback to automating CX workflows and reporting tangible goals and results to staff, the time to develop, deploy or enhance your own closed-loop customer experience needs to start today.
Given the increasing importance of CX across all sectors, tap into a wealth of data from trusted sources that show why there has never been a more important time to focus on customer experience – and how you can deliver it.
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