According to a study by Bain & Company, 80% of companies say they’re customer centric, yet only 8% of customers agree.
Think about that for a second.
How many of your customers do you think would agree that you are customer centric? Do you know for sure?
This is important because according to a study by Monetate, 79% of customers will buy from a company again if the experience is good, but 89% of them would switch to a competitor if the experience wasn’t satisfactory. And nearly everyone agreed that the online experience influences their decision to buy.
Going back to the Bain & Company study, I wonder how so many businesses can be so off the mark when it comes to how their customers perceive them.
Reflecting on my own experiences as a customer both on- and offline, I think it’s due to the missed opportunities where they could have asked from my feedback but didn’t.
- Welcome emails
- First purchase emails
- Companies I’ve been buying from for years
- Companies I’ve been subscribed to, but never bought from
Most don’t even seem to acknowledge they’re using a channel where it’s easier for me to reply than it was for them to send.
It’s especially bad for online purchases. You already have my contact info, you know exactly what I bought – why not use that info and ask me for feedback about the product you just sold me?
Wouldn’t this only help you to hone your upsale offers, or collect testimonials, or know what to test next?
Given that the research shows considerable revenue lifts for companies who invest those areas – and the drawbacks seem to be pretty terrible if the customer experience isn’t a good…
…it seems to me the benefits only compound for you if you took a quick break from pushing sales & just asked
“Hey, why did you (or didn’t you) buy from us?”
Perhaps it’s apathy. Or fear of getting real feedback? Or an inflated sense of self-importance that trickles down from the C-Suite that makes you think you know what I want so well that you can’t be bothered to ask me for my feedback.
Or maybe it’s innocuous & you think there just isn’t the time to collect feedback?
If that’s the case, keep reading – because most feedback gathering can be automated & integrated at nearly every point of your customer’s lifecycle.
With the right framework, and a little strategic thinking, you’ll be gathering feedback from all manner of leads & customers. If you actually act upon the feedback you collect, it can be used to influence & transform your business on every level.
Understanding The Feedback Loop
At it’s core, a feedback loop is a system that helps companies to gather external information about their services/products, add to that their own internal hunches and insights and in the end improve the service/product they were offering in the first place.