MarketTools Blog

Companies getting started with customer feedback programs find it easy to understand the importance of listening to customers and analyzing their feedback.  But the mantra of enterprise feedback management (EFM) is “Listen, Analyze and Act,” and without that third component – action – I would argue that your Voice of the Customer (VOC) programs are almost wasted.

Action management strategy encompasses the tactical (such as following up to save an at-risk customer who has a complaint) as well as the strategic (making changes to products or business processes based on a global analysis of customer cases opened in response to problems).  Here are four tips to keep in mind when designing your action management strategy:

1) Alerts are only the beginning!  
One of the most basic ways to begin acting on customer feedback is by creating alerts. Alerts provide the ability to trigger an email or text message based on set criteria, such as a low survey score. True action management is a process that involves a combination of business rules, alerts and case management systems to resolve customer issues and close the customer feedback loop. 

A comprehensive case management system creates the framework that enables you to open a case based on a specific customer problem, assign team members to work on resolution, collaborate across teams to ensure that people are responding quickly while not stepping over one another or dropping the ball, and close the case after appropriate action is taken. Without case management:
•    Responses to customer feedback are often uncoordinated
•    Organizations lose precious time figuring out how to respond to customer feedback
•    Critical information is unavailable or not shared with those that can act on it
•    Customers may not be informed (or informed too late to prevent them from leaving) – even when their concerns have been addressed

2) Respond quickly so that customers know they are important.
The quicker you acknowledge the complaint, the less time your customer (or any other stakeholder audience, such as partners or employees, for that matter) will have to contemplate what they need to do next to solve their problem – which may involve switching vendors.  Some companies segment their case management response strategy based on Customer Lifetime Value, flagging the 20% of customers that make up 80% of revenue for more high-touch care such as reaching out by phone vs. email.

3) Understand your customers’ expectations for an effective response.
Customer expectations for speedy resolution to their problem will vary dramatically, depending on your business.  For example, six weeks to settle an insurance claim might be acceptable, but not to fix a network outage on your phone.  Use your customer survey questionnaires to help understand their expectations for speed and efficiency, and then set up business rules for case handling accordingly.

4) Use case analytics to discover the root causes behind problems.
By analyzing the data for cases individually and as a group, you should be able to tell if they can be associated with a particular product, region, or call center rep.  By understanding the causes, you can set the most appropriate follow-up actions.  These can range from simple fixes, such as coaching a service rep or updating a user manual, to strategic change, such as re-casting product lines, adopting new market positions and changing corporate strategy.

The key to effective action management is creating a process that’s designed to close the customer feedback loop, then performing frequent analysis to help drive out inefficiencies. A continual focus on action management will not only help save at-risk customers and help increase satisfaction, it will also drive improved efficiencies across your organization and help prioritize investment based on real customer needs.  And remember, even though it starts with an alert, it doesn’t end there!

• For more on action management, download the executive brief "Closing the Customer Feedback Loop"