Looking Beyond TripAdvisor and Online Surveys
Why You Should Listen to More Than 3% of Your Customers
By Felix Boos Co-Founder & Director, FeedbackNow | February 12, 2017
This article was co-authored by
Co-authored by Julius Jung, Co-Founder, FeedbackNow USA
Are you approaching customer feedback reactively, trying to patch up holes in order to prevent damage to your reputation? Or, are you using it as a source of information to help you become more profitable? If the latter, then you need to know and understand the different channels for feedback, and select and combine them according to your needs.
The tools to measure customer experience and satisfaction are key success drivers for your business, but in many cases, these tools are not used to their full potential. Service-driven businesses must optimize their way of listening to their customers in order to receive timely and objective feedback. This helps toward improving customer experience and, in turn, your business' profitability.
The Purchasing Decisions of New and Existing Customers
Since the rise of the internet and social media, our businesses--and their reputations--have become more transparent. From services to consumer goods, a multitude of media platforms are available that provide access to crowd-sourced reviews and ratings. Customers can rate your business' quality of service and performance with a few simple clicks, and they can share it with the world. For potential customers, this transparency holds many benefits and has become a major factor in individual purchase decisions.
Studies have shown that 90% of customers new to a business or product will use online reviews to decide which service or product to buy. That still leaves 10% who will base their decision on their attachment to your brand, or on firsthand feedback from friends, family, and colleagues. But what about the other side of the equation, your existing customers? In service-driven businesses, the customer experience is more important than ever before. When deciding to stay at your hotel again or not, a returning hotel guest will rely on their experience from their previous stay rather than on online ratings. It's important to capture the loyalty of existing customers who will repeat business with you and who will also influence new customers who rely on their reviews and firsthand experiences.