all customer feedback is not created equal
TRANSCRIPT
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7/29/2019 All Customer Feedback is NOT Created Equal
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
All Customer Feedbackis NOT Created Equal:
A Guide for Dealingwith Disgruntled
Customers
by Curtis N. Bingham
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
All Customer Feedback is NOT Created Equal: AGuide for Dealing with Disgruntled Customers
Curtis N. Bingham
Founder and Executive Director
Chief Customer Officer Council
CurtisBinghamistherecognizedauthorityonchiefcustomerofficersandthefirsttopromotethisroleasacatalyst
forcompetitiveadvantage.HeisthecreatoroftheCCORoadmap,agroundbreakingworkcontaining100+critical
strategiesessentialforcustomercentricity.Asaninternationalspeaker,author,andconsultant,Curtisispassionate
aboutcreatingcustomerstrategytosustainablygrowrevenue,profit,andloyalty.
Customer feedback isa gift-especiallyfromdisgruntledcustomers,becausetheyrepresentcustomers
thatcareenoughtotellyouwhatthey reallythinkratherthanbeingfrustratinglyneutralinallofyour
surveys.
So,howdoyoutakeadvantageofit?
ThefirstquestionyoushouldaskiswhetherornotyouSHOULDtakeadvantageofit.Notallcustomer
feedbackiscreatedequal.Oh,no.Someofyourworstcustomersarepricebuyersandnegotiateaway
allyourprofits,aremassivecreditrisks,wastecallcenterresources,andabuseyourcustomerservice
reps. Itmight simply cost too much to satisfy them. Cable TV companies found that even satisfied
customers would switch for a 2% discount whereas big savings wouldnt placate some disgruntled
customers.Toomanycompaniesplaceequalemphasisonallcustomer feedbackandtypicallyendupsee-sawingbackandforthastheymakeachangetosatisfyonevocalsetofcustomersthatdissatisfies
theirbestcustomers.
ToprotectyourbestcustomersANDyourprofits,youmustdothreethings:
1. Prioritizecustomersaccordingvalue2. Tiertheserviceoffering3. Addressdisgruntledcustomersaccordingtotheirpriorityandservicetier
Prioritize Customers According To Value
Most everybody will agree that some customers are more valuable to your company than others.Guidedbyyouroverallcustomerstrategy,useyourCRMsystemtoprioritizeyourcustomersaccording
totheirvaluetoyou.Metricsmight includeprofitability,shareofwallet, lifetimevalue,costto serve,
strategicimpact,orothermetrics.Onceyoudoso,itllbeclearatbothextremeswhichcustomersyou
needtokeepatallcostsvs.thosethatyoumightjustbebetteroffiftheytooktheirmarblesandwent
home.
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
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Tier the Service Offering
Some customers will buy on price alone and purchase the cheapest products possible. World-class
companieswill tier their productofferings to address the low-price segmentaswellas a high-value
segment.
Serviceofferingsmust be tieredaswell. If a customerisntwillingtopay foradditional service, it is
criticalthattheadditionalservicenotbeofferedordelivered!
Thisisincrediblyhardforcustomerserviceprofessionalswhopridethemselvesinprovidingtop-quality
service.Oneverylargefinancialservicesproviderattemptedtochargeapremiumforpremiumservice,
butendedupgivingawaymillionsofdollarsinpremiumservicetoeveryoneastheirpenny-pinching
customersfoundoutthattheservicelevelswerenotactuallydifferentiated.Theirbestcustomerswere
incensedandbegancancellingservicecontracts,causingfurtherrevenueerosion.
Address Disgruntled Customers According To Their Priority And Service Tier
Ifthedisgruntledcustomerisalowpriorityandhaspaidforalower-tierserviceplan,afterofferingto
upgradetheirserviceplandirectthemtolesserexpensiveself-serviceoronlinechannels.Thegoalisto
dojustenoughtopreventatarnishedoverallreputation.Ifhowever,thecustomerishighnetworth
(ie. high-priority and ona high-service plan), you thenmust do everything you can in a high-touch
fashion to resolve the customers complaint and ensure their perception of and loyalty to you is
restored.
Herearefivestepstodoso:
1. Understandthecustomerscomplaint2. Determinehowthecustomerwouldwantitresolvedinanidealworld3. Developandcommunicateanactionplan4. Deliverontheactionplan5. Communicatetheresultsoftheactionplan
Ifyoudontdeliverontheplanafterraisingcustomerhopes,youruinyourfuturechancesofgettingthis
customertocollaboratewithyounottodestroyingloyaltyandremovingbarrierstodefection.
Onestepthatmanycompaniesleaveoutisthatofcommunicatingthefix/resolutiontothecustomer.
Even though you may havemet or exceeded customer expectations, if you dont communicate the
resolutionaspromptly aspossible, youmight aswell have outright ignored the customer from the
outset.
Customer feedback (even the negative kind) is a giftif it comes from valuable customersand it
shouldbewelcomedandaddressedimmediatelytoprotectyourreputation,customertrust,andyour
revenue.Feedbackfromtherestofyourcustomersmightbeinteresting,butquitepossiblyirrelevant.
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35 Snow Drive | Littleton, MA 01460 | (978) [email protected] |www.ccocouncil.org2012 Chief Customer Officer Council, Inc.
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About CURTIS N. BINGHAM
AsExecutiveDirectoroftheChiefCustomerOfficerCouncil,CurtisBinghamis
therecognizedauthorityonchiefcustomerofficersandthefirsttopromotethis
role as a catalyst for competitive advantage. He is the creator of the CCO
Roadmap,agroundbreakingworkcontaining100+criticalstrategiesessentialfor
customercentricity.Asaninternationalspeaker,author,andconsultant,Curtisis
passionateaboutcreatingcustomerstrategytosustainablygrowrevenue,profit,
andloyalty.
About THE CHIEF CUSTOMER OFFICER COUNCIL
TheChiefCustomerOfficerCouncilis thefirstof itskind;amember-led peer-advisory network offering unparalleled insight into the
critical issues facing CCOs. It was created to provide a safe
environmentwhere CCOs canshare ideas, concerns, andbuild best
practices that wellhelp them, their companies, andespecially their
customers succeed. The Council includes CCOs from diverse
industries, purposefully cross-pollinated with the most forward-
thinking companies, large and small. For more information, visit
www.ccocouncil.org,[email protected].
FormoreresourcesfromCurtisBinghamandtheCCOCouncil,includingarticles,videos,and The
BinghamAdvisory,visitwww.ccocouncil.org.
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