Video summary
The webinar emphasizes that customer feedback has evolved from a standard business practice into an essential survival tool, particularly during times of uncertainty and rapid change like the current global situation. The discussion highlights that businesses cannot rely on customers to voluntarily complain; instead, organizations must proactively seek feedback because the majority of unhappy consumers simply leave rather than voice their dissatisfaction. By actively gathering insights, companies can navigate uncharted waters where service levels and customer experiences often become the primary differentiators in a market where products and prices are increasingly commoditized. This proactive approach allows businesses to identify weaknesses early, adapt to shifting consumer needs, and prevent negative word-of-mouth damage before it spreads through social media or online review platforms.
To effectively gather this critical data, the session outlines specific strategies regarding survey methodology, timing, and delivery channels. The experts argue that while various scales exist, the Net Promoter Score (NPS) is often preferred for its granularity, allowing businesses to detect small improvements that broader rating systems might miss. Crucially, the focus must be on mobile-first design, as a significant majority of surveys are now completed on smartphones, requiring clean, simple, and device-agnostic interfaces that avoid overwhelming users with excessive branding or complex graphics. Furthermore, timing is paramount; response rates drop dramatically after 24 hours, making it vital to trigger feedback requests immediately after an interaction, such as within an hour of a retail purchase. The conversation also touches on the nuances between transactional feedback, which addresses single events like a specific purchase, and relational feedback, which involves ongoing engagement over longer periods, such as in construction or real estate, to catch issues before they escalate.
Finally, the webinar stresses the importance of "closing the loop" and managing negative feedback to turn potential crises into opportunities for growth. Responding to negative comments is not just a courtesy but a financial necessity, as recovering even a small percentage of unhappy customers can yield significant returns through repeat business and improved online ratings. The discussion also addresses common pitfalls like survey fatigue, suggesting the use of incentives and exclusion periods to keep respondents engaged without overwhelming them. Ultimately, the session concludes that viewing customer feedback programs as an investment rather than a cost is essential for long-term resilience. As businesses face challenges such as supply chain disruptions or shifts to online-only models, maintaining a robust feedback mechanism ensures they remain connected to their customers' evolving expectations and can rebuild trust effectively once conditions stabilize.
Read the full video transcript
great and welcome to this month's
redback business skills show
i'm your host daniel kim and it's great
to have your company once again
now for the first time in many years we
are coming to you
live in a remote format today hence the
headsets
and this is all against the backdrop of
social distancing and restrictions
around travel
isn't it great that we happen to be a
conferencing company as well as a
streaming company because the show
must go on now on the program today we
are exploring the importance of customer
feedback
and joining me live via video link to
help us understand
why customer feedback is critical at a
time like this
is the ceo of jago terry wiley terry
welcome to the show
oh thank you daniel i appreciate you
having me on oh it's great to have you
with us
isn't it weird that we're doing these um
video link ups and everything it's it's
a
sign of the times that we're living in
sure is and as you say good job that
you're in that business
yes absolutely very thankful actually um
it's not the easiest of times for people
now customer feedback has always been a
staple in business
but it's absolutely essential in times
as uncertain as these
yeah absolutely i mean obviously
challenging times at this uh at this
point so
you know customer feedback in in many
ways can play a more important role for
businesses
during this time of change so it's a
timely
for me personally i think it's a very
timely subject to have
yeah now customer feedback is also a bit
of a broad area so can you tell us a bit
about what we're going to focus on today
yeah absolutely uh and you're right i
mean what it may sound a bit obvious in
terms of what customer feedback is
and quite often customer feedback is
part of a
program you know a customer feedback or
customer experience
program and and having
a method in which to gather and collate
customer feedback
is is quite often part of that program
and and a very critical important part
of it so
we're going to focus a bit more on that
today in terms of what we need to look
out for
you know why we need to do it and
obviously give some sort of case studies
on that sort of stuff as well but
you know right now i'm conscious that
there's
different people on the call from
different businesses and
different life cycles in terms of their
customer experience programs
so we're going to keep it fairly generic
but obviously there's an opportunity to
ask me questions later on
but right now as an example you know
people may be
um maybe asking for feedback through a
web-based
form they may have a tool in place
already that they're looking to improve
and in some cases they may not be doing
anything at all or just relying on the
customer contact them with feedback so
we're going to look at other ways uh
better ways in my opinion
in terms of getting that feedback to
make a difference to the business
that's excellent that clearly lost
unpack there and just to put it out
there and
be really transparent with everyone this
is not a sales exercise i mean terry is
the ceo of a customer feedback kind of
company
but the point of today isn't to talk
about how good his company is etc etc
we're talking about how businesses and
organizations need to be able to
incorporate
feedback in an ongoing manner to help
them navigate a time
when nobody knows what's going on really
and things are changing by the minute
almost
so that's just out there for everybody's
clarification clearly lots to unpack
today terry really looking forward to it
and of course don't forget you can join
our conversation today by clicking the
dark blue hand icon at the top of your
screen
and get a question in normally if we
were in the studio i'd have like a
little ipad here where your questions
come through
i'm in a little uh meeting studio room
set up here so you know you've got the
little headset i've got a little laptop
here and a second screen so during q a
you'll see me turn away from the camera
to read your questions coming through
it's not because i'm ignoring you it's
because i'm actually reading through
your questions
so again it's that dark blue hand icon
at the top the library icon of course
is the resources button if you'd like to
download a couple of documents before
you go but terry i reckon we can get
straight into this
let's talk a bit about customer feedback
because you know there are a few
different types
of forms and feedback survey tools out
there and customer feedback can sound a
bit obvious
but you know in your experience is it
obvious and what exactly is feedback
yeah um it probably does sound obvious
and as i
mentioned earlier on you know it's it's
just a process of
of obtaining feedback from our customers
and
like most things there is there's
customer feedback in this customer
feedback
so it's about how we do it and how we
execute
and and then deal with that information
um
so it benefits the business in different
ways and and
and you're right daniel i mean there's
lots of different platforms out there
and different survey methods or
methodologies
um yeah and i'd like to explore those a
little bit just just sort of quickly
because
you know we get asked this question a
lot in in terms of what measures
should we have in place and there's
different
survey types and methods you know
there's
what we call csat so which is short for
customer satisfaction normally a one to
five scale
we have net promoter score or nps as
it's commonly known which is a
an eleven point scale ranging from zero
to ten
um some people use graphics so it's
you know sad faces happy faces
and in some cases it could just be stars
so kind of a review style
mechanism where we've got five stars
the important thing is to not
necessarily get hooked up on
what that scale is that kind of
methodology
the the um the critical thing is having
a measure in place so whether you choose
nps or
or a different rating scale it's just
about ensuring that you can measure your
performance over time
and then benchmark yourself against that
but personally i am a fan of net
promoter score it is a
a global standard i guess you know a lot
of enterprises use that globally around
about 90 95 percent do
um it's huge because it's it's simple uh
i know that sounds a bit
bit probably you know derogatory to nps
it's but
the beauty is in its simplicity um
and and i like the fact that we can
actually have a slightly more granular
scale that we can measure our
performance a little bit better so
for instance what i mean by that is if
we've got a a one to five rating scale
i could be stuck on three for quite a
bit but if i'm using a greater more
granular scale like net promoter score
you know that could be the difference
between moving from five to six
or six to seven so i can actually see
some improvement in that rating scale
where i might be stuck on a a lower
rating as in a
one to five scale so i quite like that
granularity
but don't get too hung up on the actual
scale itself the measure
it's just important that you've got a
measure in place great let's talk about
the delivery methods because a lot of
feedback surveys that i've been on have
been web pages and email invitations but
i've heard recently there have been some
sms invites
yeah lots of different ways to to ask
your customers for feedback
and but part of that depends on your
business
um if you're lucky enough to have email
addresses or phone numbers of your
customers then that's fantastic you've
got an advantage but
some businesses don't you know
hairdressers or
your walk-in trays so retailers etc is a
really good example of where
they don't always have contact
information for their customers
so there's different methods to do that
you know that could be
we've seen that printing on receipts qr
codes and
qr codes is a common one in fast food
restaurants now for instance and it
works pretty well
some organizations have apps uh so we
can have in-app notifications
uh we can have wi-fi intercepts so if
we're in a restaurant or a cafe
or a or a lounge an airport lounge for
instance we can
where we're we've got wi-fi services we
can actually intercept that wi-fi
service with a feedback survey as well
so
lots of different methods the common
ones of course are email and sms
and for good reason you know we get a
good result from those
there's a couple of critical differences
between email and sms
and i'd just like to share those with
you
but benefits and and disadvantages in
some cases to both
the uh the advantage of email is that
it's free um
uh which which is great of course and
that in in many cases
is is a single justification for using
email
sms there is a cost but we actually do
see
an improved response rate when using sms
normally around about a five percent
improvement
when sending emails or sorry sending
feedback requests via sms versus email
the the slight downside with sms is that
we find that responses are a little bit
more brief
than those via email where a lot of
people are using a keyboard
so um you know there is some trade-offs
in terms of the amount of insight you
can get
via email versus sms but an improved
response rate with sms as well
yeah but i would just to add to that
actually an important thing and it comes
back to the previous
question about the the survey methods
and the approach and also design
what is really critical is whether
you're doing it via sms or email
the the critical thing is to ensure that
the actual survey design
is device agnostic it has to be mobile
friendly
we're seeing now that on average across
all the industries all respondent
demographic
types around about 70 percent of surveys
are being completed via a mobile device
and that's for our email as well
so that's not just sms that's that's
email so really critical
that it's divided device agnostic
and also the design of the survey is
really important
make sure it's clean make sure it's
obvious what you're asking them now i
know that sounds ridiculous but
too many people now are trying to get
too fancy
and incorporate too much branding and
imagery
within a survey template or a survey
request
via email etc quite often the message
and the link can get
lost within all that's going on and the
busyness
so keep it simple absolutely get it on
brand incorporate uh
some color and and your logo but keep it
quite plain and simple it's really
important for ensuring you get maximum
response rate so many little nuggets of
tips you've thrown at
um just in that last five minutes
segmentary a couple of things i wanted
to touch on seventy percent
um in terms of emails being opened on
phones or actually
survey responses altogether being been
submitted via mobile device
that's that's indicative of a big shift
in our device usage preferences
and also i'm assuming this is going to
only keep him increasing
now that everybody's working from home
and away from the office
absolutely right yeah this is just a
trend that's going up
uh and it will continue to grow up uh um
and we'll touch a bit later on in in um
in terms of some of the other aspects of
considering mobile and sms as well but
it's uh it's absolutely vital for anyone
to get
a high volume of feedback which then
feeds a lot of the benefits into the
business so it's a really important
consideration yeah and on the note of
sms
um anybody in this thought just popped
up while you're talking about the
different channels
anybody in communications will tell you
different channels serve different
purposes
and you're talking about getting
different results depending on what
channels you are using
so i suppose that would also lend itself
into thinking about what tone is
appropriate for what channel
and the kind of questions you are asking
yeah it's a really good point actually
and and coming back to the kind of
design of the surveys the tone is very
similar
uh stuff to avoid
apart from messy designs and lots of
graphics
lots of copy um and copy using
different language and i don't mean
different language in in the sense of a
different language
just keep it simple keep it every day
language
every day speak um which is terrible
language but you know that's a reality
and also ensure that you ensure that
we're not using
uh templates because we've seen a lot of
tools that are being used um
by companies that come from overseas and
quite often they may have fairly
standard templates in so
you know us spelling for instance
and it's clearly not localized or
personalized enough
so the tone is really important to to
keep people engaged
clearly make sure it's personalized it's
an easy thing to do
yes because all that has an impact on
your likelihood to improve your response
rate and keep your customer engaged
on the stickler for spelling and grammar
and it really really peeps me when i see
a little zed
at like the american spilling on a lot
of official
communication channels now prior to
today terry i haven't actually been
thinking about customer feedback as a
communications exercise but
just in the last 10 minutes you've
changed my thoughts completely it's it's
100 a communications exercise
timing is a big part of getting
communications right
how would you what are your thoughts on
timing in terms of feedback
when you get it how when you respond and
how you respond
yeah um a simple answer to that as soon
as physically possible
so you know that may not be practical
for some
types of businesses in in some sectors
but
where possible we like to to connect
to system sorry not us but you know what
you should be doing
is is connecting to back end systems
that can effectively and automatically
trigger the process of of asking your
customer for feedback
so as an example you know if i
um if i go into a retail store i might
be a maya one member for instance
i make a purchase my card is scanned
and then almost immediately and there's
some delays on this but you know when i
would say immediately
within the hour ideally a
a feedback request it automatically
pinged
and hence this is driving some of that
mobile activity as well in terms of
people's desire to improve the
timeliness of getting feedback is is
also driving some of that mobile
activity
but we see that response rates
drop dramatically every 24 hours
after the transaction or interaction
with the business
so every day we leave it response rates
decline
and again it comes back to the the
higher response rate
the more data the more value in that
information
and we'll talk a little bit about the
importance of customer recovery as well
so the quicker i can find out that a
customer is unhappy
after a transaction or interaction with
my business
the more likely sorry the more
likelihood i've got to be able to deal
with that problem in a timely manner
recover that customer and prevent
social and word of mouth damage so
timeliness is really important when
when thinking about surveying customers
a number of people are batch
sending feedback requests out now that's
okay if it's a daily or or every other
day
but if you're thinking about doing that
in you know weekly fortnightly monthly
it's too late i appreciate in some cases
you may not have a choice in it but
there's plenty of options around
connectivity to crms or databases
accounting systems
that can automate that process and do
that triggering for you
it's a really important part of and an
important consideration in any customer
feedback process
i suppose on top of that once you've
gotten that feedback on time
the worst thing you can do is not act on
it so get that ask for the feedback in
time
as soon as physically possible like you
mentioned once you've got that
don't ignore it that's probably going
beyond the scope of today's conversation
but um just back to the point about the
um as physically
soon as possible a lot of companies i
know have
gotten some automation in there and they
were able to like get these triggered as
soon as possible
you gave the example of going to a
retail store making a purchase and
getting
a feedback request within the hour what
are your thoughts on those automated
systems where they can get it
instantaneously
well that's that's works really well um
and again is that in the moment
capturing the customer in the moment
and there's there's different examples
of that and and
being in a restaurant and having a
feedback card on the table
where you can you can type in a url
or scan a qr code is a great example of
of getting a customer in the moment and
and you're right daniel in terms of is
how you deal with that as well and
being able to deal with a customer
problem almost in the moment too
is is a fantastic way of doing it um
and just you know even on even on cases
where it's a little bit more difficult
retail is a really good example where
completely understand that a
lot of retailers will have a transaction
with a customer and
and have no idea who that customer is
and then potentially no idea whether
that experience was positive or not
it's really easy to do most post systems
allow
the capture of email addresses or phone
numbers
a perfect example is jb hi-fi
and you know the way they do it these
days so
they ask for mobile numbers for every
customer and they sms
a a receipt to every customer now
it's a really simple process um and and
their excuse for doing it
to the customer is quite often that
those printed receipts
you know they actually wear and they
fade
so when you're keeping a receipt as as
proof of purchase and for warranty
purposes
quite often that becomes a bit tricky in
six months when your receipts completely
faded you can't
prove the purchase so their excuse is
we now text that to you and you've got
it for life
brilliant you know really simple but it
builds a customer database
it allows future marketing but also
importantly it allows for the ability to
do things like
get customer feedback in a very timely
manner
so that kind of in the moment thing is
is a great way of doing it
that is good thinking now is there a
risk that people would say oh hang on a
second i've got this instantaneous
request for feedback clearly it's
automated and clearly it's not
for me because we were talking about the
whole personalized questioning before
is there a risk there not really as long
as it's personalized
um you've got someone's name you know
obviously
it's a simple process to personalize the
sms or the email that's going out
um again the language used is really
important
just just to explain why we're doing it
and
you know the actions we're going to take
on it and we talk a little bit more
about closing the loop later on and
because the end of the process is really
important as well
but we we never see a reduction in
response rates or participation rates
based on somebody getting something
instantly
or very soon after an event it has the
opposite impact it goes up
all right okay well this is what you
were saying before right as time goes by
response rates go down
must be i must be the um the only weirdo
out here because for me i think like
well hang on a second this is automated
it wasn't for me
it's probably just me being an idiot um
but we talked about getting the channel
right getting the tone right and getting
it done on time
um what other factors influence response
rates can
is there something businesses can do to
increase those response rates
yeah so it's all those things we've just
mentioned but also incentivize
respondents or customers to to leave
feedback
be surprised how effective that is
or can be i should say not all
incentives work
and and we have to be mindful about that
um
as an example and we had this very
conversation with someone recently
actually it was a
chain of cafes that specialize in coffee
and they wanted to incentivize customers
with free coffee
if they gave feedback great idea of
course you know
makes complete sense uh relating the
incentive to
our product is is a good way of dealing
with that and of course the cost is
lower as well
the challenge with that is that if i had
the coffee
and actually i didn't like it and my
feedback was negative
the last thing i want is a free coffee
so
there's considerations around what
incentives to offer
uh you need to be mindful of that
actually so i know it sounds a bit
ridiculous but
it's actually quite true so monetary
incentives is always a great idea prize
draw type stuff
um you know people love a cash incentive
and certainly the amount makes a bit of
a difference but it really drives
response rates we see
upward of 20 in some cases more
improvement in response rates
if there's an incentive attached to it
and and please don't don't misunderstand
me here
there's a big difference between
offering incentive
for a positive response
versus an incentive responses so you
know the former being elite
um so definitely do not do that but
offer an incentive for
everyone that responds and the prize
draw entry
or something like that works really
really well right so it's probably some
of those things that make
a whole lot of sense in hindsight but
when you're just in the rush of getting
through your business you might not give
a lot of thought to it can i
just say i've got a little pop-up on my
screen that says my laptop battery's
running low and i haven't plugged it in
can i get you to talk about the next bit
which is the translational versus
relational feedback
i'm gonna go and get a little power plug
i probably won't be able to ask you any
medical questions about this particular
topic but i'll leave you with the
audience for about five minutes please
not a problem hopefully it doesn't die
in the meantime but yeah the
transactional versus relational feedback
is is actually quite an interesting one
transactional is probably quite obvious
again and using a retail example
uh where somebody goes into store
um purchases something and and gets
a feedback request after that says very
transactional kind of a one-off contact
with
the company and the customer
what we're seeing more and more of and
and it is quite important in some
industries
and to give examples of industries where
this is relevant
uh home builders real estate mortgage
brokers are three good examples
and to give you a relevant
case study i guess in terms of how we
can deploy
and have a relational feedback
program in places is home builders where
there's a quite a lengthy time between
the moment a customer signs a contract
and you know takes ownership of the
building and in fact the contact doesn't
stop there it goes beyond that
because most builders have what we call
a maintenance period which is two to
three months after build
so there could be six months elapsed
between
the time a customer deals with us versus
the time
they they stop dealing with us the
biggest mistake in that example
is to ask for customer feedback at the
end of that build process
because the reality is is if your
customers had a bad experience and
they're upset
it's sometime during that build process
so it's really important to implement a
relational program
where we're touching base with the
customer on a regular boat
on a regular basis through that build
process
that allows us to identify as a company
where there could be weaknesses and
things falling down in that process that
we can then
obviously change and improve on but
importantly
we can we can understand the customers
sorry when the customer is unhappy and
deal with that in a more
timely manner because the last thing we
want is
is a customer becoming unhappy after a
month
telling the world about their bad
experience
before we as a company or as a brand
get to know that and and have the
ability to deal with it
so having a relational system in place
work really well depending upon the
industry that you're in
and the relationship you have with the
customer right that billing example is
sort of similar to your coffee example
from before right i mean if you get it
wrong
asking for feedback or giving the wrong
incentive can feel like a bit of a slap
in the face of the customer
spot on absolutely right not a risk you
want to be running
um i don't quite understand what you
mean by the last stop point we've got on
the slide here closing the loop
can you explain what that means yeah
closing the loop and you've you kind of
mentioned this earlier on in in that
it's not just about getting feedback but
how we deal with it and that's really
important
and there's a couple of different
options here and and something that's
really easy
and often overlooked is responding to
customers
after they've provided feedback if we
ask
customers to give us some time to
provide us with
ratings and and you know textual
comments around their experience with us
as brands
there's nothing more frustrating for a
customer just to be left on a landing
page
that says thank you very much for your
feedback we have no idea
whether you as a company or us as a
company
are doing anything about it care
especially if my comments and my
experience has been negative
so it's a it's a relatively easy process
and again can be completely automated
but can be made to look very personal
and authentic
a simple automated email that sent out
after that process
doesn't have to be immediately because
clearly that's automated but built-in
delays
where an email is sent to the customer
with a different response depending upon
the rating that they've given
which is a simple thank you very much
you know we really appreciate your
business
and your feedback and you know whatever
message it is you want
down to you know really appreciate your
business thank you for your feedback we
apologize that things didn't go as
as we would expect you know we will
contact you in the next 24 hours to deal
with it
lots of different ways of responding to
the customer and importantly
keeping them engaged and making them
feel that you care it's really really
important and not something to be
overlooked
too many programs customer experience
programs fail
in this point as well as then taking
action
and dealing with a customer complaint
also very important
so that's what we call by closing the
loop closing the loop
so acknowledging the responses you've
been given and then also taking the
appropriate action at the right time
and letting the customers know that this
is being worked on
yeah absolutely because also just to
give you a stat on that
around about 50 of customers or
respondents
do not believe that their feedback goes
to anybody that can actually make a
difference
you know what i actually feel that way
about some of my
service providers like my telco or my
internet company
i just feel like i'm just a figure to
them
i'm just one of the millions of people
they serve and i don't know if my
particular comment means anything to
them
yeah you're right well well i think in
that particular case
so so you're absolutely right so if
you're dealing with a bank or a telco
that has you know millions of customers
in some cases i understand that it can
be quite difficult for them to deal with
individual cases and they're using the
feedback as an aggregated
response to understand you know kind of
get a gauge on
on cosmeric's experience and and
where things are failing but in most
businesses in ninety percent of
businesses
we're not that big and we do have the
ability to deal with individual customer
issues
and if you can you should and we'll get
on to that in a bit as well in terms of
why you should but it really is
important it can have a
major impact on your business both
negatively and
positively depending on how you deal
with it yes you're right well
why don't we talk about that now
normally we'd sort of start with the y
and then zoom into the how but we
flipped
we flipped the program on its head today
we've started with the techniques and
the hows and
what you need to get involved but let's
zoom out for a second and think about
the bigger picture you know why do we
need customer feedback
yeah the reality is we have choices
as as customers whether we're b2b
customers or b2c customers
if we're looking for a you know an i.t
company to fix
our our computing equipment in the
office or accountants or lawyers or
marketing agencies
or if we're a consumer looking to to
get our car fixed or a haircut or or a
plumber to come to our house
we have untold choices about where we
can get our services and our products
from
the reality is most of these people
do pretty much the same thing a plumber
does the same thing
their pricing is pretty much the same
we now make decisions based on
the service levels we receive the
experience we have with companies
it's really important to know
how we service our customers and the
experience they have
and again we'll come on to this in a
moment in terms of you know voice of the
customer
uh the word of mouth importance the
online reviews and social media
the the issue is is that
customers as customers we do not
complain
uh we actually just vote with our fee we
have a bad experience
we go somewhere else next time we don't
bother complaining
on the whole 86 percent of consumers
do not complain they just go elsewhere
so we do have a bit of an attitude here
in
australia especially where you know
she'll be right
or or customers my customers are happy
because they're not complaining
we just don't know they're unhappy so
it's really important to proactively
seek
customer feedback and not rely
on people coming to you so that's why we
need a customer feedback or one of the
key reasons why we need a feedback
program in place
that's a really good point and i think
for the first time today i'm feeling
like part of the majority here because i
definitely identify with that 86 i don't
it's similar to what i was just talking
about a minute ago but
i don't feel like my feedback would
count for much at least for the big
companies that have millions of
customers so again i'll just work with
my feet
um one question i've got relating to the
current coronavirus situation
and how everything is changing and
businesses organizations government
departments individuals we're all moving
into a time where things are uncertain
and there's so much change afoot
normally we talk about the importance of
customer feedback in terms of being able
to provide insights for
business direction or for organizational
decision making
what's your take on this whole situation
in that neither customers nor the
business
really know what's happening and it's
uncharted waters for everybody
yeah it's it's a really good question of
course and and you know we're all kind
of
learning through this process and we
talk a little bit about some case
studies later on
specifically around what these uh
challenges we're facing today can mean
to it to our program
um in fact i can address those now
daniel if you if you'd like me to but i
think the importance with
with customer feedback is that yeah
quite often it's these kind of
relational
transactional things and and our
business is fairly stable in in terms of
we do
the same thing every day day in day out
um
today that's different uh and you know
as businesses we're all having to
change and adapt um and
there's there's some really good case
studies that i can share that that we
know of where the business has had to
adapt his customer feedback program
accordingly and and and why it's so
important and i think there's some
you know even if you think about red
back obviously you know the organization
that you work for and that's putting on
this event today
is a great example of that where
a very good business very happy
customers
uh you know you you proactively seek
feedback from customers but
in the time of covid19 you're one of the
very fortunate companies
that's that's experience unprecedented
growth
now that is a great position to be in
and a lot better position in many
organizations right now but clearly that
comes with
significant challenges and hopefully you
won't mind me
come coming with significant growth
means that
you're not equipped properly in terms of
manpower or
person power you know technology
constraints and really stretching the
business to a limit in a number of
different ways so
ensuring that you're continually getting
customer feedback
is critical at this point in time
because yeah great the financials may be
looking very very positive
but that could be a short-lived uh
experience
if the customers are finding it
difficult because they're not getting
the level of service or there's
technology
you know issues with their confidence
and video calls
so it's really really important for you
to be more proactive
in that process i am conscious of time
but
you know another great example is retail
so a lot of retail stores are closing
now
but a lot of moving their business to
more online focus of course
you know contactless delivery challenges
with that
you know the online experience is
nowhere near as exciting and
interactive for customers but
some of the other challenges are um
now some of that process is out of our
control we're relying on third-party
logistics companies for instance
you know we're using a food delivery
companies for restaurants
and there's issues around who's
responsible for late delivery the food's
arriving cold
you know is it the restaurant is it the
the delivery organization so
so where things start to get a little
bit out of your control
it's even more important to continue
feedback and ask things in a different
way
and maybe adapt your questions somewhat
differently
and the third example that i wanted to
share which is another great example is
gymnasiums
so the fitness industry generally is
struggling of course and
government legislation has meant they've
had to close their doors
but for some gymnasiums they've adapted
very quickly and very cleverly
in that they're doing things a bit
differently so they're now live
streaming classes
they're doing you know online uh
personal training
they're having to communicate with their
members in a very different way
again not ideal for a lot of their
members who are paying a lot of money
for these memberships every month
but it's really important for the
gymnasiums in this case
to ensure that they're continually
checking in with their customers
to make sure this is actually fulfilling
their needs
and that their experience is positive
because again
you know if it's not they'll just end up
canceling their membership and that has
a massive
financial impact on businesses so it's
it's it's not necessarily about uh you
know certainly
in most cases absolutely not stopping
the program at all
but adapting it to the changing times
and making sure you're covering
different parts of the business
which you might not have been doing
before so hopefully that gives some
examples of how
you know feedback is really important in
these challenging times
yeah absolutely so the takeaway there is
to take your customers with you on this
unknown journey
that's the main that's the takeaway that
i'm hearing from you on this one
that's really weird okay so we've got
about five minutes left on the program
so being conscious of time let's go to q
a we've got a couple of questions that
are coming through
and of course a quick reminder for
everybody joining us online
please you can join the conversation ask
a question to terry it's the dark blue
hand icon at the top of your screen
and get it submitted and it'll come
through on this secondary screen i've
got
first question comes from jerry and
jerry's asking how do you deal with
negative customer feedback
um really good question jerry and um
yeah
every company is a little bit different
in this of course and their abilities to
do it
you know from from someone that is in
the industry
it's easy for me to say that you should
be dealing with with negative customer
feedback and
not just sweeping it under the carpet of
course and it does come down to the fact
that
negative feedback isn't just going to
affect that one customer in terms of
their
likelihood to to use the company again
is that we know that
on average one unhappy customer
tells 15 other people
about their negative experience whether
they're telling people in you know
friends and family through word of mouth
or jumping onto online review platforms
and social media platforms
but but dealing with the customer
feedback
uh negative customer feedback to bring
that customer back in line
and the repeat customer again is is
actually really important and
and let me try and put that into some
quantitative figures
on average we see that uh
companies on the whole have around about
20
of unhappy customers that's on average
every industry is different of course
so if if we can recover
and make a quarter of those people
happy again just multiply that and so
to multiply your number of customers
let's say 20
of those unhappy we're going to recover
5 which is a very conservative number by
the way
and you know you should be looking for
more but just
multiply that amount so your average
sale price
by the five percent of customers that
you can recover
and on the whole that normally means
quite a large amount of money
so you know just responding to those and
dealing with those in a timely manner
may absolutely create more work may
absolutely incur some more costs
internally in terms of having the
personnel to do that
but it will on the whole pay for itself
many times over
and that's just in terms of recovery of
customers
not the impact the positive impact it
has on
online reviews and word of mouth
because that customer is more likely to
use you again more likely to pay more
for your service
more likely to leave a positive review
which by the way in terms of monetary
value
a one-star improvement in online
ratings represents between five to ten
percent
revenue improvement so significant
numbers
if we're dealing with customer feedback
properly
makes perfect business sense to me
actually thank you for that question
jerry a really good one your next
question comes from mike
and mike is asking how do you combat
feedback fatigue
really good question as well mike and
and you know it is important to not to
over survey your customers
the incentive helps with that by the way
and we talked a little bit about that
earlier on of course
so incentivizing people to to respond
nothing frustrates me more than and you
know i hate using brands in fact i won't
even mention the brand but
you know i fly a little bit on
queensland based and i fly quite quite a
bit
and there's a particular airline i use
quite often
where i get a survey every time i fly
now that might be twice a day or once
every two days or
whatever it might be but um
there's nothing more frustrating than
getting a 20-minute
feedback survey uh you know twice a day
or every other day it's infuriating so
there are controls
that are in place um that prevent that
happening
so exclusion periods as we call it you
know
only provide people one survey a month
for instance
depending on the industry you're in make
sure you incentivize them
keep it really short and engaging that
prevents
survey fatigue yeah yeah i'm just
thinking i'm getting fatigued thinking
about that
situation that you were in i would not
like that to happen to me at all
thank you for that question mike
probably got time for one last question
this one's from mitchell
we have a customer feedback program but
we've been asked to review costs in this
climate
how can i convince management to keep it
that's a good one
yeah it's a very good question and sort
of touched on this a little bit earlier
on
um completely understand and
all businesses are obviously reviewing
their cost structure right now
rightly so as i mentioned earlier on
a customer feedback program that's
implemented well and working well
will pay for itself many times over
this shouldn't be considered a cost in
the business
it's an investment to the business i
know that sounds very salesy and i do
apologize
but it's the reality there's a reason
that the big companies all have these
programs in place
enormous value to it i've mentioned
you know the roi in terms of customer
recovery the roi in terms of improving
online reputation through reviews etc
um i completely understand if you're a
restaurant and you've closed and you
don't have any customers
you've got to review those costs and
turn the service off maybe
but for a lot of businesses where we
need to carry on and try and keep
business as usual for our customers
it's even more critical that we keep
our customer experience programs going
because when we get through the other
end of this
we're all going to be scrabbling for our
customers and building our business
again
and it's really important that we've got
a foot up through understanding what you
know our customers feel about us
yes thank you very much great question
mitchell thanks for that now that does
bring us to the end of the show today
because we've hit the time limit
thank you very much for your insights
today terry terry terry wiley from
jago thanks for being with us absolute
pleasure i've enjoyed every minute of it
really appreciate it thank you guys
yes i'm sure everybody has gotten heaps
in terms of insights as well
and of course before you go we'll be
redirecting you to a survey page
uh we practice what we preach here of
course so plenty back survey of course
yes fancy that please be so kind as to
give a thought a comment
on your way out we'd love to hear from
you don't be afraid give us your
feedback
and of course thank you once again for
joining us today from across this
beautiful country of
ours please wherever you are stay safe
look after everybody
and we'll catch you on the next episode
of the redback business skills show
and until then it's goodbye from now