“Well, that is just customer feedback and this [insert business policy] makes us [insert revenue number].”
Sound familiar? As a S.P.I.C.Y. leader in your organization, you’ve worked hard to use customer feedback to break down barriers within your organization, as described in part 1 of this series. But, it is inevitable that you either have heard or will face a customer vs. shareholder debate when it comes to reporting out on customer feedback and the root causes driving it. Price, product and policy issues that drive sales and negative sentiment are particularly tricky to navigate within the context of large organizations.
What makes these conversations so hard and the barriers between silos so thick is that different measures of success are in play. Customer experience measures, derived from customer feedback, usually come in the form of satisfaction, resolution rates and brand favorability while shareholder measures are, well, all about revenue, expenses and profit. And, the concept of missed revenue as a result of negative sentiment can feel very fuzzy for operations, finance and business unit leaders.
Having an apples-to-apples discussion between the two camps is critical. At Intuit, we heavily used the Net Promoter methodology which asks a simple question – “how likely are you to recommend this [product, service, etc] to someone else”, and it is often used as a side-by-side measure with revenue. Over the last couple of years, Intuit’s research teams did extremely hard work to connect Net Promoter data to revenue.
But, Net Promoter data is what people “say” they are going to do. What about what people actually say and actually do? Listening on the social web is the best way to understand this other side to the loyalty coin. Using tools like Radian 6 or Scout Labs, you can listen to what’s being said about your brand, apply sentiment scoring and use your real customers’ voice to show how they are, or are not recommending your products or services.
In some cases, you have listen yourself in specific channels, like my team at Intuit did within Amazon. My team led the effort to have a 100% reply goal on Amazon reviews on Intuit’s flagship small business product, QuickBooks Pro 2010, and we developed a weekly dashboard, shared at senior staff, that showed key topics, number of reviews, sentiment and change over time.
What that dashboard didn’t show was impact on sales. By adding in simple questions to several surveys that regularly go out to recent purchasers (and not) of QuickBooks, we were able to determine impact on sales.
We found that online reviews had a double digit impact on sales – meaning that our customers said that reviews were the main & only source or the main but not only source of purchasing. Between the Net Promoter value work and the online review-to-sales research, our team had the opportunity to really connect customer and shareholder measures. Efforts like this enabled the team to drive closed-loop changes within the product that dramatically decreased negative sentiment.
Valuing customer feedback is the second key step in breaking down the barriers within an organization. Next up, we’ll tackle responding to customer feedback!