(open public relations) 95 percent of corporate customer experience managers are convinced that the ability to translate customer feedback into action is fundamental to their competitive edge. but one Study by zenloop He shows that only one in four companies see themselves in a very good position for it.
Berlin, May 11, 2022 – Many companies have put customer focus at the top of their strategic agenda. But on closer examination, “customer focus” is often nothing more than talk. Only a few companies derive tangible strategies from the customer feedback they collect in order to improve their products or service offerings. This is not hidden from clients either. They often feel little incentive to express constructive criticism because they do not expect a response to their criticism or because their suggestions actually improve services, products, or processes.
Berlin-based procedure management platform provider zenloop wanted to know why companies find it difficult to translate customer feedback into action. As part of a comprehensive study, 350 participants who are responsible for customer experience management in companies of all sizes – from small and medium businesses to large corporations, were interviewed. More than one in five survey respondents work in e-commerce, followed by the IT, software, commerce, finance, insurance, services, healthcare, pharmaceutical, and medical technology sectors. Geographically, three-quarters of the survey respondents come from Germany, Austria and Switzerland, and the rest from 23 other countries, including other European Union countries, but also from the USA or the Asia-Pacific region.
Problems start with data collection
The results show that there is potential for improvement even when customer feedback is collected: only 12 percent of respondents would rate their strategy as ‘excellent’. On the other hand, more than half (53 percent) consider their company’s approach “satisfactory” to “very poor” in this regard. In many companies, a lot of data is collected, there are problems in compiling data from different repositories in a central location, or data is collected but there are no organized processes to derive action plans from.
There is also the problem of visualizing and presenting customer feedback. About two-thirds of those surveyed (65 percent) see themselves at the lower end of the road. Accordingly, about a third (37 percent) of customer experience managers believe that they can also derive “very good” or “good” insights from the data collected. Only in one in four companies do these ideas actually start innovative projects. Only a third of them have established so-called closed-loop processes to inform affected clients of new initiatives that have been launched.
Criticism of customers requires a reaction, but there is often no reaction
However, deriving innovation projects from criticism is part of the high arts of managing customer feedback. The basics, on the other hand, are at least responding to customer feedback. The zenloop study here shows a three-part image. About a third of customer experience managers surveyed rated their company as “very good” to “good,” another third as “satisfactory” and the remaining third as “bad” to “very poor.” However, according to the results of the study, an empathetic reaction to criticism is not enough to satisfy an angry customer. Every second company reported that they were able to win back dissatisfied customers “badly” or “too poorly”. Almost a third (30 percent) give themselves a “satisfactory” school grade. Conversely, a third of customer experience managers succeed in converting happy customers into brand advocates.
Too much data obscures the basics view
When asked about the obstacles that complicate the process of managing actions, the Customer Experience Manager mentioned every second that information and insights do not spread to all relevant departments of their company. Almost every second (46 percent) lacks data analysts to collect and analyze data. More than four in 10 participants struggle to identify key drivers and priorities. Half of managers attribute the fact that customer feedback rarely leads to innovations or improvement initiatives to their companies’ scarce human resources. In addition, there is also a lack of focus on the most important measures and a separate department responsible for such initiatives.
But what can companies do to close the process management gap? One in two CEMs believe they need outside support in the form of consultants to prioritize and manage cross-functional initiatives. Nearly nine in ten respondents (89 percent) believe customized software can help turn customer insights into actual projects. There is no doubt that the effort is worth it: 95% of survey respondents believe that the best way for companies to remain competitive is the ability to translate customer feedback into action.
“If you ask companies about their Net Promoter Score (NPS), most people know the answer. But our study identifies a clear ‘business gap’ in dealing with this customer feedback,” sums up zenloop co-founder Paul Schwarzholz. “This gap needs to be bridged so that the focus on customers shifts from lip service to everyday practical life.”
Here is the study.
Also visit zenloop Masterclass @OMR:
What makes moments amazing? The Power of Customer Focus (??)
? May 17, 2022 / 10:45 – 11:45 am
when? Sandra Friedrich, Talia and Dina Othman, Zenlop
? Track 23, Hall B4 OG
? Meet us also on A4 holder J03-04
▶ Book an appointment: https://www.zenloop.com/de/events/omr-2022
zenloop is a Berlin-based SaaS company that offers action-oriented customer experience management platform. This platform enables the ability to collect and analyze customer insights and initiate automated customer-oriented actions. In this way, it bridges the gap between customer feedback and actions derived from it and ensures an optimal customer journey.
As a leading process management company, zenloop enables leading global companies such as Deichmann, HelloFresh, Tier Mobility, VW Group, Michelin, Jochen Schweizer and Henkel to increase customer loyalty and therefore customer value through targeted CX control and intelligent automation.
zenloop was founded in 2016 by Paul Schwarzenholz, one of the former creators of Flaconi. Today the company employs about 100 people in various European countries.