Customers must be encouraged to give feedback
Consumers are shying away from providing feedback to companies, just as firms are ramping up their efforts to capture the voice of their customers, a new research study carried out by Verint® Systems Inc. and the Customer Contact Association (CCA) has found.
A recent survey* conducted among nearly 150 senior customer service and contact centre managers at blue chip UK organisations reveals that 95% are investing more in their customers by listening to what they have to say and analysing customer insights.
However, a parallel survey of approximately 1,000 UK consumers carried out by Ipsos MORI** for Verint reveals a neglected nation with only a quarter (24%) believing companies take notice of their views; while just 29% agree they feel valued as a customer. What’s more, it notes that Brits are reluctant to express these feelings. Over half of the consumers surveyed have never made a complaint, and only 16% believe posting about customer service issues on social media helps resolve issues. Despite these perspectives, one in three (33%) believe in the power of social media and how it can make brands more accountable.
Further, the study affirmed that not all consumers fit into one basket. More specifically, it surfaced significant and very different groups of customers. One of which, if properly engaged and incentivised, could act as powerful drivers of loyalty and growth – Brand Champions. In fact, collectively over 33% of customers would, if properly engaged and rewarded, stay loyal for several years and actively endorse the brand to friends, family and social media followers. Today, only 13% of customers in the UK GB could be considered Brand Champions***. Key findings of the study included
95% of UK service providers are investing in listening to the voice of their customers; however they aren’t listening often enough
Just 24% of UK consumers think companies take notice of their views; 52% have never made a complaint in the last 3 years
45% of businesses admit they rarely, if ever, analyse social media posts, but 1 in 3 consumers believe social media makes brands more accountable than ever before
Another group of customers can be defined as “Silent Likers;” 30% of customers fit into this category. Like Brand Champions, they are happy with the service they receive, are brand loyal and don’t complain. However, they are not brand advocates and don’t share their experiences with others.
The study also reveals 24% of consumers are more flippant “Churners,” gravitating towards cheaper deals and typically switching providers within two years. These individuals tend to be least loyal but are among the most likely to receive loyalty-based incentives. The last category of customer is the “Fence Sitter.” Some 16% of customers appear to be ambivalent towards the service they receive. They don’t engage with brands, nor share their experiences.
“Brand Champions” (13%)
“Fence Sitters” (16%)
“Silent Likers” (30%)
UK businesses gradually develop ears
Despite the growing investments in “voice of the customer” (VoC) initiatives, professionals admit their companies have some way to go. Though over 80% agree senior management is taking a closer interest in the VoC, they tend not to practice what they preach. Less than a fifth (17%) of respondents said they actually analyse customer feedback every day.
The study further found companies failing to move with the times, for instance, neglecting to track customer discussions on social media in favour of older methods. Almost half (45%) admit they rarely if ever, analyse social media posts, while over 80% use more dated feedback surveys and complaints analysis. Almost three quarters of service leaders (71%) agree they could do more to thank their best customers, and almost half think that offering more one-off benefits could lead to a 10% increase in how much customers spend.
Nancy Dalton, Global Head of Barclaycard Learning and Quality Assurance, comments, “Our core strategy is anchored in service and creating an emotional connection with our customers. This requires that we listen to and act on all of their channels of feedback. Several aspects of these research findings really resonate as fundamentally it shows that any changes and actions taken need to be communicated back to the customer to ensure they know their voice is heard and see the value in their relationship with us. In addition, we want to not only engage with and reward our Brand Champions, but also expand this group further by understanding and responding to the feedback provided by Silent Likers and Fence-Sitters as well. This can really impact how our customers are talking about us.”
Claire Richardson, VP at Verint notes, “For those who believe social media could be the great leveller between businesses and consumers, our study’s findings may come as a surprise. The research has shown evidence of large swathes of valuable customers being overlooked and a high degree of cynicism about companies’ attitudes towards them.”
She adds, “It’s pleasing though to see companies gradually recognising that talking to customers, and expressing gratitude for their loyalty, can deliver real dividends. Organisations need to unify their initiatives within a single Voice of the Customer Analytics strategy, which encompasses contact centre, social, in-store and surveys. The customer service function can be more effective than any other part of the business in gathering customer insights and making them actionable. And, they should be doing all they can to inform customers that they are acting on what they say.”