Customer feedback is an opportunity to make your business better. Each individual customer complaint potentially represents a much larger sentiment. Therefore, it’s worthwhile to use data analytics to understand your customers’ experience and identify areas for improvement for your business.
Collecting common customer feedback
With social media and public review sites, negative brand sentiment can spread quickly. There are four main channels customers complain:
- In person
- Digital Channels (website, review site, forum, social media, email, etc.)
Regardless of the channel, you need a way to collect customer complaint data accurately. A database of customer feedback is needed before SAP BusinessObjects Cloud can be used for further analysis.
To accurately collect this data, you need to address the following:
Data standardization — Standard fields that encompass a wide range of customer issues ensure you can categorize them for trend analysis. All responses must also be quantifiable to be analyzed. I.e. each response should be translated to a metric to be usable for analysis. If you just collect written summaries of each complaint, then it will be impossible to this analysis.
A culture of accuracy — Your staff should understand why it’s important to collect data accurately. If you are using data from a web form, you may want to randomize it or use an auto-fill to ensure customers are not just selecting the first option from a dropdown menu.
Find the hidden value in customer feedback
Since only 4% of unsatisfied customers complain, a lack of customer feedback doesn’t necessarily mean your customers are completely satisfied with your business.
To find the hidden value of a complaint, you’ll want to start by collecting all of the relevant information, such as:
- Details of incident
- Customer service agent involved
Next, you’ll want to visualize your data to reveal insights such as trends and patterns.
You may want to consider visualizing:
Volume and nature of customer feedback — Once all the customer complaints are tallied and categorized, you will be able to identify which areas of your business are causing the most pain for your customers. This enables you to focus on putting out the largest fires first.
Customer attrition — Are your subscription rates dropping month over month? Identify the leading indicators of churn and address those complaints first.
Support call volume — If your product or service is overly complicated, the design is not intuitive, or it doesn’t work as it should, then you may be losing customers.
Warranty claims — This could be an indicator of poor quality or manufacturing standards. Having a large percentage of warranty claims could lead to reputational damage.
Number of complaints over time — You’ll want to keep track of customer complaints trends. Are there more complaints over time, or less? An increase in customer complaints could mean more customers will become dissatisfied and stop using your product or service.
There are two other metrics that are important for addressing customer concerns and pain points within your company. However, they are after the fact so resolving the issue may be too late to win back these customers.
Number of cancellations — If a large percentage of customers cancel due to high prices, poor customer service, competitor offer, etc., then it will alert you to what some consumers value most.
Product returns — Tracking volume of product returns is less important than the reason why and the product SKU. Perhaps there’s a quality issue with a particular product, poor fit, dissatisfaction with the utility, or the product failed to meet customer expectations based on advertising.
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