customer insights – Lumoa https://www.lumoa.me Go from customer feedback to action without the guesswork Fri, 25 Oct 2024 13:02:40 +0000 en hourly 1 https://wordpress.org/?v=6.7.1 Lumoa and GPT: How Lumoa Complements GPT for Actionable Insights https://www.lumoa.me/blog/lumoa-and-gpt-for-actionable-customer-insights/ Mon, 29 Apr 2024 11:18:11 +0000 https://www.lumoa.me/?p=20415 Recently, we did a study at Lumoa on the state of AI in Customer Experience and found out that Artificial Intelligence (AI) has quickly become a core component of improving customer experience (CX), especially in service industries. The uptake of AI in customer experience is very visible in its use across diverse industries, from manufacturing […]

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Recently, we did a study at Lumoa on the state of AI in Customer Experience and found out that Artificial Intelligence (AI) has quickly become a core component of improving customer experience (CX), especially in service industries.

The uptake of AI in customer experience is very visible in its use across diverse industries, from manufacturing to telecommunications. We then concluded that AI is changing the way businesses engage with their customers.

Moreover, with AI-driven personalization expected to significantly impact market growth, it’s clear that AI is not just a supplement but a cornerstone of modern customer experience strategies.

On the downside, relying solely on it, such as a known AI technology which is Generative Pre-trained Transformers GPT presents limitations. Challenges such as loss of the nuanced human touch in customer interactions are notable, with a significant portion of users expressing concerns over the technology making content for example feel less authentic. (Master of Code Global)​.

This article will talk about the comparative effectiveness of using Lumoa and GPT, and a hybrid approach integrating both. By analyzing real feedback across these scenarios, we aim to uncover not only how each performs in isolation but also how they complement each other to deliver superior customer insights and operational excellence.

The Rising Importance of AI in CX

Let’s rewind a bit and check out what’s happening. In our State of AI in CX findings, a notable 70.7% of businesses already utilize AI within their CX strategies, and an overwhelming 86.5% plan to increase their use of AI in the coming years.

This growth is driven by AI’s ability to streamline operations and offer personalized customer interactions, significantly enhancing efficiency and customer satisfaction. For instance, AI-powered chatbots have become crucial in managing customer inquiries, dramatically reducing response times from minutes to mere seconds.

However, integrating AI into business processes presents substantial challenges. Nearly 30% of companies have yet to adopt AI, often due to technical and logistical hurdles or concerns about data security and privacy.

Now let’s talk about GPT. While it plays a role in modern business ecosystems, relying solely on GPT for capturing customer feedback often falls short. GPT’s generalist approach may overlook nuanced insights that are crucial for targeted action. How’s that possible?

Our Approach: Real Feedback, Real Scenarios

Using real customer feedback, we conducted a quick study to uncover the best ways to leverage GPT capabilities with a focus on insights gathering. The study was designed to compare three distinct approaches:

  1. Using GPT Alone: This scenario tested the capabilities of Generative Pre-trained Transformers (GPT) in analyzing and categorizing customer feedback without additional support. The goal was to assess how well GPT could handle the data in terms of understanding and insight generation.

  2. Using Lumoa Alone: In this setup, we utilized Lumoa’s proprietary AI to analyze the same set of customer feedback. Lumoa’s strengths in data precision and its ability to derive actionable insights from customer data were put to the test, showcasing its effectiveness in a standalone capacity.

  3. Integrating Lumoa with GPT: The final scenario combined the data processing power of GPT with the targeted analytical precision of Lumoa. This hybrid approach aimed to demonstrate how the integration of general AI with specialized CX analytics could lead to a richer, more actionable understanding of customer feedback.

Each piece of feedback was processed under these three scenarios to not only evaluate the performance of each tool individually but also to explore how they could complement each other in a real-world application. We carefully selected a diverse range of feedback examples to ensure that our findings would be comprehensive and applicable across various customer interactions.

The 3 Feedback Problem

In our study, we analyzed a dataset of 10,000 public shopping app reviews using the three distinct approaches described earlier. This analysis allowed us to compare the effectiveness of each method in building categories to surface relevant feedback and extract actionable insights that a business could act upon.

To better illustrate our findings, we will focus on three distinct public reviews and observe how they are categorized depending on the method chosen. Below are the public reviews we will use:

  1. “Easiest to use, works the best with zoom feature I use as a severely sight impaired person. Love how easily it works with the Clubcard feature as well. It’s great.”
  2. “Totally rubbish, keep asking for valid phone number although I had put the correct number in three times.”
  3. “Does not give delivery updates as stated.”

The Findings: Clarity, Actionability, and Efficiency

GPT Alone

tl;dr – Almost 65% of our 10,000 app reviews ended up in the category “General”. This is true also for the 3 feedback above, even though they highlight completely different problems.

GPT’s application to topic modeling revealed its limitations in handling nuanced categorization. By testing it against the 3 feedback samples, we discovered that GPT primarily grouped all of it under a ‘General’ category. With  6492 (64.92%) of the total feedback similarly classified, highlighting significant challenges:

  • Clarity: The clarity of GPT’s feedback categorization is notably low. Its approach, which broadly sweeps diverse feedback into a ‘General’ catch-all, lacks the granularity needed to distinguish between different customer issues and concerns effectively.

  • Actionability: The insights derived from GPT’s categorization are critically limited due to its generic grouping. Businesses seeking to address specific issues or enhance particular aspects of the customer data may find this level of generality confusing and adds more manual work, as it provides little concrete direction for targeted actions.

  • Efficiency:  While GPT is capable of processing the data, its approach to topic modeling is often less efficient in terms of outcome relevance and operational utility. GPT tends to group a substantial portion of feedback into a broad category. This tendency highlights an inefficiency in achieving the depth of categorization necessary for targeted business strategies.

5 feedback Problem - GPT alone

As you can see from the visual above, each piece of feedback, representing a range of customer experiences and issues, was indiscriminately lumped together which highlighted these samples within the expansive ‘General’ category. Such merging into a singular, vague category shows a significant drawback of using GPT alone for customer feedback analysis.

Without the capability to finely parse and categorize feedback, GPT falls short in providing the depth of insights necessary for targeted business strategies. This highlights the essential need for more sophisticated tools like Lumoa that can complement GPT’s broad capabilities by providing the necessary detail and precision in feedback analysis.

Lumoa Alone

tl;dr – Only 24% of our 10,000 app reviews ended up in the category “General”. The 3 feedback have been assigned to their proper category.

Lumoa, on the other hand, demonstrated its categorization capabilities by specifically assigning feedback to distinct topics like ‘Usability’. (See visual below)

Unlike the broad ‘General’ category prevalent in GPT’s approach, Lumoa’s AI excelled at drilling down into the details of each feedback piece, accurately assigning them to specific and relevant topics. For instance, issues regarding ease-of-use, which GPT had lumped under ‘General’, were identified and grouped by Lumoa into a dedicated ‘Customer experience’ category along with 3290 similar feedback entries.

Lumoa only - ease of use

  • Clarity:  The clarity with Lumoa is markedly improved, with specific customer issues being categorized correctly, thereby facilitating a more focused approach to understanding and addressing customer concerns.

  • Actionability:  With feedback correctly slotted into specific topics, the potential for businesses to take targeted action skyrockets. For example, the ease-of-use issue feedback can directly inform IT and support teams, enabling them to prioritize and address this specific area of concern.

  • Efficiency: Lumoa enhances operational efficiency by enabling quicker and more effective decision-making. With its more accurate categorization, teams spend less time deciphering feedback and more time implementing solutions that directly address customer needs.

Let’s see what the other two feedback looks like:

Lumoa only Rubbish e1714372007978 - LumoaLumoa only - Deliveryv2

This more accurate categorization by Lumoa offers businesses the clarity and actionability they require for direct and impactful responses to customer feedback. The rest of the feedback samples are also in their own categories. With the ability to classify feedback accurately into distinct topics like ‘Quality’, and ‘Delivery, Option and Clothes’, businesses can now channel their resources more effectively, ensuring that every piece of feedback is utilized to its fullest potential to enhance the customer experience. While this is already impressive enough, we didn’t stop here. Let’s see how well can Lumoa + GPT work together. Let’s check out what they look like when we use both Lumoa plus GPT.

Lumoa and GPT Together

tl;dr – A little less than 24% of our 10,000 app reviews ended up in the category “General”. The 3 feedback are assigned to their own proper category, and the category is easier to understand.

The combined use of GPT and Lumoa AI enriches the customer feedback analysis beyond what is possible when each technology is used separately. While the integration does not significantly reduce the ‘General’ category more than Lumoa alone, it enhances the comprehensibility and relevance of the categorizations. Let’s check out the ‘ease-of-use’ feedback and what it looks like now.

GPT + Lumoa - ease

The combination of GPT and Lumoa AI has elevated customer feedback analysis to a new level of sophistication. The feedback that was once relegated to the ‘General’ category from GPT alone, and the ‘customer experience’ category from using Lumoa alone, now finds its place in a well-defined topic that resonates with genuine cx and concerns; in this case – Process topic.

  • Clarity: The integration of GPT’s natural language processing capabilities with Lumoa’s precise analytics significantly enhances clarity. This synergy allows the system to produce topics that are not only accurately categorized but also phrased in ways that are easily understandable, aligning closely with how humans

  • Actionability: By leveraging both technologies, this approach maximizes the actionability of insights. In addition to similar findings from using Lumoa alone, It also enables businesses to swiftly identify and act on specific areas of customer feedback, aligning interventions closely with customer needs and sentiments.

  • Efficiency: While the combination of Lumoa and GPT may involve more complex processing, which can extend the time taken compared to using Lumoa alone, the quality of the output justifies this approach. The system efficiently processes and refines feedback into well-defined categories that significantly aid decision-making processes.

The nuanced understanding of “human language” and the interconnectivity of themes that GPT brings to the table, combined with the precision of Lumoa’s topic modeling, translate into topics that reflect a natural, human-like grasp of the feedback content. Let’s see what the other two feedback look like with this combination.

Lumoa + GPT - RubbishLumoa + GPT - Delivery

The ‘GPT + Lumoa’ method demonstrates how the fusion of AI and specialized analytics can create a harmonious and potent tool for businesses. This hybrid system doesn’t just process data; it interprets it in a way that aligns closely with human reasoning, setting a new standard for what businesses can expect from AI in customer experience optimization.

This hybrid approach may set a new benchmark for what businesses can expect from AI in optimizing customer experience, making it a compelling choice for those seeking to enhance their analytical capabilities and customer insights.

Addressing Security in AI Feedback Analysis

You can’t ignore the potential risks when implementing AI technologies, especially in sensitive areas like direct customer feedback. Even with its own security measurements and protocols, using GPT directly with customer data presents specific security and privacy challenges that need careful consideration and management.

Potential Risks of Using GPT with Direct Customer Feedback:

  • Data Privacy and Security: GPT processes vast amounts of data, including potentially sensitive customer information. Without proper safeguards, this can lead to data breaches and privacy violations.

  • Bias and Accuracy: GPT models can inadvertently learn and perpetuate biases present in their training data, which could lead to skewed or unfair outcomes when analyzing customer feedback. Perhaps they don’t really train their GPT models with your data, but are you willing to take that risk? Maybe not.

  • Transparency and Control: There is often a lack of transparency in how AI models like GPT generate their conclusions, which can make it difficult for businesses to understand and control how customer feedback is interpreted.

The Advantages of Partnering with a Vendor Like Lumoa: Partnering with a vendor like Lumoa, which is equipped with ISO certifications (ISO 27001) and GDPR compliance, offers substantial benefits in mitigating these risks. Lumoa’s commitment to data protection and ethical AI use provides a robust framework for safely implementing AI in customer feedback analysis.

ISO 27001 certification

  • ISO Certifications and GDPR Compliance: Lumoa adheres to international standards and regulations, ensuring that all customer data is handled securely and in compliance with the strictest data protection laws. This adherence helps prevent data breaches and ensures that the privacy of customer information is always maintained.

  • No Model Training on Customer Data: Lumoa does not use direct customer feedback to train its models, which means the data remains untouched and unmanipulated. This reduces the risk of exposing sensitive customer information and ensures that the integrity of the data is maintained.

  • Anonymization of Sensitive Information: Lumoa offers options to anonymize sensitive data, removing personally identifiable information (PII) from customer feedback before it is processed. This not only protects customer privacy but also helps businesses comply with data protection regulations.

Final thoughts

There you have it! Using both GPT and Lumoa, we showed the impact of integrating a powerful AI into customer feedback processes. It not only improves the efficiency and clarity of data processing, but also makes the insights generated highly relevant to specific business needs.

Superior Balance of Comprehensibility and Business Relevance: The combination of Lumoa and GPT provides a balance of comprehensibility and business relevance. Lumoa’s specialized analytics refine the broad capabilities of GPT, ensuring that the data processed is not only comprehensive but also closely aligned with the strategic objectives of the business. This balance is needed for companies aiming to leverage customer feedback effectively, as it allows for a nuanced understanding that is both deep and wide-ranging.

Security and Privacy Benefits: Using a specialized vendor like Lumoa for sensitive data processing offers significant security and privacy benefits. Lumoa’s adherence to ISO standards and GDPR compliance ensures that all customer data is handled with the highest security measures. Furthermore, Lumoa’s commitment to not training its models on customer data and providing options for anonymizing sensitive information ensures that customer privacy is maintained at all times. These practices are essential in the digital age, where data breaches and privacy violations can severely impact a company’s reputation and customer trust almost on a daily basis.

The Importance of Ethical AI Use: Companies are increasingly integrating AI into their operations, so ethical AI usage becomes increasingly important. The combination of using Lumoa with GPT serves as a model for how AI can be used responsibly in customer experience strategies. Transparency, data integrity, and privacy can help companies avoid the pitfalls associated with AI technologies.

For businesses looking to enhance their customer experience through AI, the insights from this article provide a clear message. The integration of GPT with specialized CX analytics like Lumoa offers a powerful combination for turning raw data into actionable insights. We invite businesses to consider this hybrid approach not just as a technological upgrade but as a strategic necessity for staying competitive in a customer-centric market.

It’s both exciting and challenging to integrate AI into customer feedback analysis. But, with the right tools and approaches, businesses can navigate this path successfully, leading to enhanced customer satisfaction and business growth. Interested in learning more about Lumoa’s capabilities? Book a demo now and we’ll help you achieve your goals and KPIs

Book a Demo

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Creating a Powerful Customer Insight Strategy https://www.lumoa.me/blog/customer-insight-strategy/ https://www.lumoa.me/blog/customer-insight-strategy/#respond Thu, 08 Feb 2024 09:57:34 +0000 https://lumoa.me/how-to-create-a-customer-insight-strategy/ A customer insight strategy help organizations to ensure that customer insights are used in the development of products and services on a continuous basis.

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As a business, you may have repeatedly wondered – How can we give our users what they need? How can we improve our products and services? How can we increase profitability? 

Well, there is a common answer to all these questions- customer insights!

If you have used customer insights data to know what your customers want then you also understand that it holds the key to growth, right? 

But here is the catch- knowing is not enough! The real key lies in the art of leveraging customer data. Effectively using customer insights to grow your business may be not as easy as it sounds but it is not rocket science either.

What is customer insights?

You just need a good strategy to do so. A powerful customer insight strategy or framework helps you map your customer journey, enhance products or services, and provide a better customer experience

Improved customer experience, in turn, strengthens customer loyalty, creates a broader user base, and increases profitability for any business. 

In this article, we will discuss why using a customer insight strategy is valuable and how to create an effective one for your business growth. 

And if you haven’t taken the time to learn what your customers want, then this is high time that you did that.

If you are new to the world of customer insights and the art of leveraging it, let’s start from scratch.

What are customer insights?

Customer insights are not just customer feedback. Customer feedback is direct responses received from customers and are often obtained through surveys or reviews. 

Even though customer feedback data provides detailed and specific information regarding their satisfaction level or complaints, they do not offer a deeper understanding of factors like customer behavior, market trends, personalization needs, etc. 

On the other hand, customer insight goes beyond individual feedback!  

cfci 1 - Lumoa

Technically speaking, customer insights refer to a deeper understanding, analysis, and interpretation of customer data points. Those data points typically include information like buying behavior, needs, wishes, preferences, and motivations. 

Customer insights are crucial for building lasting brand-customer relationships and staying competitive.

And from where these customer insights are derived? They come from various data points such as customer feedback, purchasing patterns, social media interactions, website usage, and other communications with the business

Let’s explore more with some examples-

Understanding Customer Behavior: Wants, needs, and wishes

Here’s a recent trend to give you an insight into what’s going on in various industries. Capgemini conducted research and found that brands and retailers are leveraging technology and generative AI to become more consumer-centric, reduce costs, and improve operational efficiency to adapt to shifts in consumer behavior. Understanding customer behavior is central to these efforts. In addition to exploring new revenue streams through social commerce and influencer partnerships, particularly targeting Gen Z, they are also striving to balance affordability with sustainability efforts, such as reducing food waste and educating consumers about sustainable shopping.

capgemini - Lumoa

Brands that actively listen to customer feedback and enhance their product create stronger customer relationships.

Imagine a big clothing brand like Levi’s. It listens to its customer feedback and discovers that more people are interested in eco-friendly clothes. 

So, the brand now relies on Water Less Technology to reduce water usage in their jeans production, offering customers an option to choose what they care about. 

75723317792417.562bf3b334e1a - Lumoa

Personalizing services and marketing communication

Think about a popular streaming service like HBO Max. It feels like they know your taste so well. It is because they pay attention to what you watch and what you like. 

Then, they send you suggestions based on your interests. It is like they know you so well! 

HBO uses customer insight analytics and machine learning to process its customer data. Afterward, the insights are unified by their data science teams to sync with HBO Max’s different teams and their goals. The end goal of all this is to offer personalized viewing suggestions to the customers. 

hbo - Lumoa

HBO Max’s recommendation service also uses voice-enabled language processing through Amazon Alexa and Google Assistant. If a user says ‘Alexa, play something romantic’. The users are probably going to get romantic movie recommendations when they open HBO Max.

Customer Personalization, as exemplified by streaming services like HBO Max, contributes to higher customer retention and satisfaction. A study by Segment states that 44% of consumers are likely to become repeat buyers when offered a personalized shopping experience.

Allocating resources wisely

Suppose a SaaS-based company notices its customers are increasingly asking questions about a specific feature. So, they decided to make that feature better. 

It means happy customers who got what they asked for. 

Companies that invest resources in enhancing specific features based on customer needs align with changing expectations. 

A report by Salesforce says that 68% of customers say the pandemic has raised their expectations of companies’ digital capabilities. 

salesforce - Lumoa

Assessing Marketing ROIs

Businesses that recognize the impact of social media ads can allocate budgets more effectively. According to a report by Hootsuite, 73% of marketers believe social media marketing has been effective for their business.

A baker in your hometown notices that ads on social media bring more customers, as opposed to regular banner ads. So, she decides to spend more on social media ads. 

It is a win-win situation for both. You discovered yummy cakes because you found that ad on social media.

Keeping up with changing market trends

It is amazing to note that the global mobile banking market is estimated to reach $1.36 billion by 2028. Based on such estimations, banks that had embraced digital transformation to offer their services made more evident progress than their peers. 

This highlights the importance of strategically following future trends based on customer insights.

For instance, Singapore’s leading financial establishment DBS Bank has been recognized as one of the forerunners of digital innovation in banking and financial services. Their investment in technologies such as artificial intelligence and data analytics delivered an economic value of SGD 180 million, comprising a revenue uplift of SGD150 million and SGD30 million from cost avoidance and productivity gains.

All of these examples suggest one thing- customer insights carry information that can transform the way we do business. 

But simply analyzing the insights will not work. You will need a strategy to leverage those insights so that teams can chase common KPIs and businesses can make informed and strategic decisions. 

So, why is having a customer insight strategy a big deal? In the next part of this article, we will discuss that.

What is a customer insight strategy?

Think of it like a mind game and only with accurate answers! So, it’s all about finding what customers want and how to use customer feedback to make your business thrive.

Once you have figured out how to gather, understand, and put all the customer feedback data to good use, you can make business decisions that keep you ahead of the crowd.

Going by the definition, a customer insight strategy means a comprehensive plan for systematically leveraging customer insights to drive profitability. 

And how does it help? 

A good customer insights strategy creates magic and transforms your products or services into popular ones. In addition to increasing your revenues, this also adds an extra glitz to your overall customer experience.

From a webinar – Customer Support: Using Insights to Hear Your Customers Engage Your Employees, and Improve Your Profits, Taru Aalto had a one-on-one conversation with Richard  Jeffreys concerning the changes in the landscape of customer expectations.

“Are you caring about me and my family? Are you keeping your employees safe?… There’s a real shift to people looking at companies that meet their own values and doing business with those.” – Richard Jeffreys

This underscores a crucial aspect of customer insight strategies: the need for businesses to continuously adapt to changing customer behaviors and expectations. It’s more than just collecting and analyzing customer feedback; it’s about understanding the deeper behavioral shifts driving this feedback and responding with agility and empathy.

When you offer unmatched customer experience, it broadens your customer base, enhances customer loyalty, and eventually your overall business grows. 

A customer insight strategy typically explores ways a business plans to collect, analyze, and leverage customer data to make informed and strategic business decisions. 

However, comprehending what customers are saying has gotten tricky. With the overflow of feedback and online chatter, companies are hustling to create personalized experiences. A well-planned customer insight strategy is the solution for this issue.

The business value of having a smart customer insight strategy

We are listing down a few pointers below to elaborate on the business value of having a workable customer insight strategy-

  1. Data overflow: Businesses strategically leveraging customer insights are better equipped to handle the data overflow in the digital age and make smarter decisions.
  2. Personalization: Businesses that employ customer insights to tailor products and services tend to see increased customer satisfaction and engagement.
  3. Real-time insights: Businesses using customer insights in real-time can respond promptly to feedback and capitalize on immediate opportunities, contributing to enhanced customer satisfaction. 
  4. Multi-channel juggling: A customer insight strategy helps businesses create a seamless customer journey across various digital channels, improving overall user experience.
  5. E-commerce Magic: Businesses, especially e-commerce sites, using a customer insight strategy often witness improved online sales, optimized digital storefronts, and enhanced user experiences.
  6. Predicting Trends: Businesses that stay ahead of trends through customer insights tend to be more innovative, meeting customer expectations even before a trend hits the market.
  7. Customer Journey Mapping: Fancy, Right? Companies using customer insights for journey mapping can enhance, identify, and address pain points, resulting in a more satisfying user experience.
  8. Staying quick and ahead: Businesses utilizing customer insights can adapt more quickly to changing market conditions, fostering an agile and responsive approach to challenges.
  9. The ‘cool’ factor: While measuring the “coolness” index is a tricky business, companies with a top-notch customer insight strategy often gain a competitive edge because they understand and meet customer preferences better than their competitors.
  10. Loyalty rate: A robust customer insight strategy helps businesses identify and implement strategies to retain their customer base, building long-lasting and loyal relationships.

Now that you understand the impact of having a customer insight strategy, the next step is to see how to achieve that for your company. 

Every company has a different customer base. The ways you measure data may be different from your peers. But it is okay! It just means that your strategy will be different as well.

Creating a customer insight strategy should be aspirational but grounded in your resources and capabilities. 

First, You need a clear picture of what you are trying to fix and understand how that will impact the future. To do that, you will need your customer metrics at your fingertips, see what else is required, and decide who will be responsible for it. 

Let’s find out more.

Develop Your Customer Insight Strategy

Let’s quickly go over how you can create a workable customer insight strategy in 10 steps to make it more comprehensive.

Here we go-

strategy - Lumoa

Step 1: Define objectives and goals

  1. Identify business objectives: Outline your business goals and what you aim to achieve through customer insights as clearly as possible.
    You may include objectives like improving customer satisfaction, increasing retention or launching successful email marketing campaigns.
  2. Establish Key Performance Indicators (KPIs): Define your KPIs, see if they are measurable, and align them with your objectives.
    These might include customer satisfaction scores, retention rates, conversion rates, and others important to your business.

Step 2: Develop a data collection strategy (Source and method)

  1. Identify data sources: Determine and list the sources of your customer data, including CRM systems, social media, website analytics, surveys, and customer feedback.
  2. Choose data collection methods: Select and Implement various methods to collect data, such as surveys, interviews, focus groups, and social media monitoring.

Step 3: Segment your audience and create customer personas 

  1. Segment your audience: Analyze collected data to identify customer segments based on demographics, behavior, preferences, and other relevant factors.
  2. Build personas: Develop detailed personas for each segment, including their needs, challenges, preferences, and communication channels.

Step 4: Analyze and interpret data insights

  1. Use analytical tools: Use data analytics tools to interpret and analyze customer data. Identify patterns, trends, and correlations to gain valuable insights.
  2. Map customer journey: Understand the end-to-end customer journey, from awareness to conversion. Identify touchpoints and pain points.

Step 5: Implement personalization

  1. Tailor products and services: Use insights to customize offerings based on customer preferences, behavior, and feedback.
  2. Implement personalized marketing: Develop targeted marketing campaigns and communications that resonate with your desired customer segments.

Step 6: Enhance customer experience

  1. Address pain points: Identify and address areas where customers may face challenges or dissatisfaction. For example, improving processes or communication can be one way to enhance the experience.
  2. Optimize customer service: Use insights to enhance customer support by understanding common queries, concerns, and preferred channels.

Step 7: Implement real-time feedback mechanisms

  1. Use feedback systems: Use real-time surveys and feedback mechanisms to capture immediate customer sentiments and experiences.
  2. Act immediately: Develop a system for addressing urgent feedback promptly. It demonstrates responsiveness to customer needs.

Step 8: Foster a customer-centric culture

  1. Promote customer-oriented values: Encourage team members to prioritize and value customer insights. Ensure that a customer-centric mindset is a part of the company culture.
  2. Train your team: Offer training to employees on the importance of customer insights and how to leverage them in their respective roles.

Step 9: Measure and iterate

  1. Regularly measure performance: Continuously monitor KPIs and assess the impact of your customer insight strategy on business objectives.
  2. Iterate and improve: Based on performance metrics and evolving customer needs, refine and adjust your strategy to stay ahead.

Step 10: Stay informed about trends

  1. Research and stay updated: Regularly research and keep your teams informed about evolving industry trends, technologies, and customer behaviors.
  2. Embrace emerging technologies: Explore and adopt new technologies, such as Artificial Intelligence (AI) in customer feedback analysis , to enhance the effectiveness of your customer insight strategy.

By following these steps, you can develop and implement a powerful customer insight strategy that meets your business objectives and positions your company as customer-centric and adaptable in a dynamic market.

Conclusion

Trying to leverage every detail of customer insight might be a challenge, but with good strategy, it becomes a practice that contributes to organizational success as well as creating better customer experience programs.  

When used effectively, a customer insight strategy can improve brand loyalty, expand user base, and increase profitability. 

But before acting on it on an impulse, first, analyze what your company wants to achieve and set up your strategy accordingly. Assess how feasible are your goals with your current company structure, scope, and budget. Then, assess your customer needs and desires to determine the level of your current product experience. 

Once you have a hang of it, you can start to branch out into innovative and exciting new customer insight strategies to inform product, marketing, support, and everything in between.

Consultation Discover how can help you - Lumoa

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What is the Role of AI in Customer Feedback Analysis? https://www.lumoa.me/blog/artificial-intelligence-customer-feedback-analysis/ https://www.lumoa.me/blog/artificial-intelligence-customer-feedback-analysis/#respond Tue, 21 Nov 2023 08:08:13 +0000 https://lumoa.me/what-is-the-role-of-ai-in-customer-feedback-analysis/ Artificial Intelligence (AI) is used everywhere in customer experience management, especially in customer feedback analysis. Learn how you can benefit Natural Language Processing and why you should use a combination of machine learning and human intelligence.

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In many companies, even though customer experience is regularly measured, data transformation becomes challenging for many reasons. For instance, it is expensive, resource-intensive, and requires expertise. But it is no longer a challenge, thanks to modern technologies like martech tools and back-office solution software and the use of artificial intelligence (AI) in customer feedback analysis. 

In this article, we will go over how AI has transformed customer feedback analysis in detail while throwing some light on the trends, challenges, and the future. 

Enhancing customer experience via AI

A company’s ability to offer remarkable Customer Experience (CX) greatly determines the competitive advantage it has in the world of business. When it comes to increasing profitability and retaining a loyal customer base, the ability to smartly source, analyze, and use customer feedback data to enhance services and products makes all the difference.

But it is one thing to claim that a business values customer feedback and another to sift out the actionable data.

AI tools can help automate and analyze customer feedback with much precision and uniformity while saving time and resources for companies. With such tools, it is easier to analyze customer behavior patterns, needs, expectations, preferences, and pain points. AI tools can also highlight correlations between different data sets that are not visible otherwise.

Because of the use of AI in customer feedback analysis, companies do not need to shell out large sums on market research, a practice that is also very time-consuming.

The advantages of using AI in Customer Feedback Analysis

At a glance, here’s how the use of AI has transformed customer feedback analysis and customer experience-

  • Efficiency: AI tools can help companies efficiently categorize and analyze customer feedback data through an automated data processing system. This reduces manual work and the long hours generally put in by the team to process large volumes of data.
  • Accuracy: For processing the feedback data and making judgments based on it, AI tools help reduce human errors and oversights delivering accurate analytics. 
  • Consistency: While processing data with efficiency and accuracy is essential, results may vary without consistency. Inconsistencies affect results and decision-making. When automated to collect the same sets of data to study growth and behavioral changes over a certain period, the data can lead to helpful insights.
  • Detailed insights: in the age of fierce competition, knowing whether the customer is happy or not is not enough. Deeper insights into their buying patterns, preferences, opinions, and thinking processes help a company improve services and predict future consumption patterns.
  • Improved decision-making: AI tools used in customer feedback analysis ensure a data-driven decision-making culture which in turn helps enhance the products and services because such tools help every member of the team choose what sort of data they need to efficiently function in their role.
  • Better customer experience: With the correct insights on what customers want and what they are likely to use and purchase, it has become easier to improvise products without spending a lot of time and money on market research. The result is a happy customer who is likely to buy again or return for services.

Let’s talk a bit more about how the use of AI tools transforms customer feedback analysis in the next part of this blog.

AI meme

NPS Versus AI tools

Typically, NPS (Net Promoter Score) is the most widely used customer experience metric. It can provide all the necessary ingredients for actionability. With additional queries, this metric can offer some fruitful insights into what drives the satisfaction or dissatisfaction of customers. When the score is good, it generally implies that the business is thriving.

Contrarily, panic sets in when the number goes down. No one seems to know how to improve the metric. In such situations, it is difficult to pinpoint the causes and often leads to conflicts within various teams in a company.  

Thankfully, the most relevant AI development technologies evaluating customer feedback rely on sentiment analysis. It is a technique that uses Natural language processing (NLP) and machine learning (ML) to scour emotions, opinions, and perspectives.

For example, it can offer predictive analysis to understand how some people with specific characteristics or demographics are likely to make a purchase, what they could buy next, or what would be the way to convert them to returning customers. Apart from using human-like language, it helps bots to learn and improvise their responses based on their actions. It also involves exploring human psychology and the thought processes of a customer or a potential buyer.

Successful businesses using AI-powered tools

Starbucks’ Predictive Analytics and machine learning tool called Deep Brew is one of the finest examples of the power of AI in customer feedback analysis and how it is transforming customer experience. It helps Starbucks to personalize their communications, marketing, loyalty programs, and even keep a tab of in-store inventory.

The Starbucks app can swiftly suggest a drink based on location, the current weather, and other spending habits. And this was just one example. 

Linkedin creatives - Lumoa

The use of AI tools in customer experience is no longer a ‘nice-to-have’ but a ‘must-have’, even for small businesses. The big brands that had jumped into it much earlier are already reaping the benefits.

Another case in point would be the popular streaming platform Netflix’s use of AI and machine learning not only to suggest movies and programs to its viewers based on their watch history, ratings, preferred genre, etc. but also to produce future content that may bring better revenues.

The possibilities have grown in many folds since the development of the generative AI chatbot developed by OpenAI. In fact, it has transformed the world of Customer experience like never before. It has become so easy to process customer feedback, identify improvement areas, and even generate new product ideas just by using interactive chat sessions.

Moreover, customer support teams can now use OpenAI’s GPT to create message prompts without having to spend time composing the response or having any programming and technical knowledge.

Gathering customer feedback with AI

  • Feedback Tools like surveys and automated forms: Creating super interactive customer feedback surveys or forms has become so easy with AI that companies can use them to quickly ask their customers specific questions to steer the feedback towards a certain direction.

With such tools, they can focus on selected products or choose specific demographics for the survey. After the survey, the same tools can tell the intention and sentiments behind the feedback to help companies enhance quality.

  • Chatbots for interactions and real-time feedback: Integrating chatbots into a company’s app or website can help companies quickly find solutions to their customers’ problems, answer their queries, and even get instant feedback. Chatbots are capable of being developed to provide more useful responses because they’re trained on large language models and can go through LLM fine-tuning.

This real-time interaction method not only saves time and money but ensures that the customers feel heard and important which is a major influencer for a customer’s buying decisions. 

  • Social media monitoring: With the smart integration of AI and social media platforms, it has become a breeze to gather information about product mentions, positive and negative chatter about the business, and future trends in markets.

Analysing VoC (Voice of Customer) from the customer feedback acquired through AI-powered surveys, feedback forms, chatbots, phone calls, and even social media further helps in understanding what is negatively affecting the customer experience and what can be done to improve it.

The challenges of using AI in customer feedback analysis

In some cases, automated response is the key to dealing with the most typical complaints and suggesting solutions to routine problems. However, it is not just about technology. Inaccuracies may occur due to intrinsic biases in feedback despite algorithms and AI bots, equipped with text classification capabilities, bringing down errors to a minimum. Some errors can even incur losses to businesses.

Human judgment is essential for strategic decisions and understanding the sentiments in full context. Therefore, the most optimal analytics solution is to merge machine learning and human intelligence. While machine learning brings in speed, cost-effectiveness, and the ability to process massive text volumes in a split second, human ingenuity is needed to interpret and make decisions. Lumoa’s analytics is built on top of this philosophy. 

The platform combines machine learning and other AI technologies with human-built rules specific to each industry and is sometimes also tweaked to match the business requirements of our biggest customers.

In other words, we help you strategize how you use AI to improve your customer experience by helping feed the bots the right algorithm because it is crucial to know where to focus your efforts. The results are always relevant to the businesses we work with.

Lumoa is also the first CX platform to integrate with GPT. In a fast and secure environment, every employee in a team could ask questions relevant to their roles and get answers drawn from what customers actually say in real-time. Lumoa’s integrated GPT insights can instantly summarise different feedback while highlighting the positives and negatives.

When using a CX platform, one still needs to sift through the feedback and check the content. GPT helps you to find that answer without asking what is causing it. Lumoa helps you to strategize the use of these tools for best results.

Managing your customer experience with Lumoa

Here’s how you can manage your customer experience with Lumoa- 

Get an overview of your customer journey:

Lumoa’s dashboard helps you get a quick and easy overview and manage different customer journeys, touchpoints, and data sets in real-time. We help you create cards in your dashboard that represent a specific touchpoint, location, or channel. Then, you can compare the performance between cards and analyze fixed insights related to that card. Lumoa also helps you to find performance gaps by comparing different data sets. 

dashboard - Lumoa

Know what impacts your customer experience:

Lumoa shows the trends and topics that impact your customer experience and can quantify the impact. It makes it easy for companies to identify their focus area. You can get access to data sets that show correlations between your impact drivers and only see the feedback relevant to your case. Lumoa analyzes and detects the sentiment of customer feedback regardless of the language used.

lumoa with gpt summary - Lumoa

Get automated and actionable insights:

Let’s explore how Lumoa uses automatic detection of actionable insights to point out the issues that need immediate action.

  • Phrase detection: Lumoa’s phrase detection tool helps find frequently used phrases in customer feedback and generates concrete ideas of improvements for your metrics based on those phrases. 
  • Prioritized feedback: Lumoa helps companies prioritize feedback by calculating the impact so that they can act on the most important impact drivers first.

ai phrase detection - Lumoa

Swiftly turn insights into action:

Focusing on actionable insights has never been easier. Lumoa helps you to do it more methodically and fast by creating events.

  • Create automated events: Act on feedback in real-time by creating automated events that get triggered when you receive a certain type of feedback.
  • Assign responsibility and track progress: You can take action and assign tasks to a specific team or a person depending on the importance of the metrics with Lumoa’s dashboard. Additionally, track the development of those tasks and see if the matter is resolved. 

Focus on what matters more:

Monetary values can also be added to tasks to sort them based on their impact or importance. Manage and follow the development of ongoing events to ensure that the right action is initiated.

Find performance gaps:

Sort your performance by touchpoints, agents, or customer segments and swiftly uncover performance gaps.

Tap on individual feedback:

 All feedback under specific topics and insights can be checked on Lumoa UI. You can also create events for single feedback, act on them automatically or manually and sort feedback in different ways such as most positive or negative first.

Ask relevant questions with Generative AI:

With the help of Generative AI, you can now ask questions and get real-time answers on your customers’ preferences, challenges, and expectations. After asking a question, one can get an overview of a long conversation over email or phone at the click of a button.

 

ask lumoa ai2 - Lumoa

The results also throw light on the reason for those conversations, the emotions behind what is being said, and what is causing a problem. So the information shared with a support agent is no longer limited to that specific agent but can be assessed by the whole team. The feature also tells how the issue was resolved, points out the closing emotion, and offers recommendations to the agent for future conversations.

The future of AI in customer feedback analysis

The future promises even more seamless integration of AI in customer feedback analysis. As customer data becomes more valuable, the focus will shift towards data privacy and ethical practices. Customer consent will play a vital role in the process as well. A few less explored or untapped areas are Neurofeedback analysis, Augmented Reality feedback analysis, and combining AI with bioinformatics.

The possibilities are limitless. The journey towards deep leveraging AI for a better understanding of customer feedback is changing the dynamics of the business world in unprecedented ways. 

Conclusion

As we’ve explored, AI in customer feedback analysis is not just a trend; it’s a critical tool for modern businesses. With this technology, which we’ve focused on extensively, you can get an accurate picture of customers’ opinions. 

However, it’s important to remember that AI in customer feedback analysis works best when paired with human insight. Combining these two ensures more accurate, context-aware results.

Lumoa’s approach to AI in customer feedback analysis demonstrates this balance. By integrating advanced GPT technology, Lumoa enhances businesses’ interaction with and understanding of customer feedback.

Truly, AI in customer feedback analysis is key for those who seek a deeper understanding of their customers. And Lumoa is at the forefront of that technology, providing tools essential for businesses to stay connected and responsive to their customer base. As AI in customer feedback analysis continues to evolve, it promises to bring even greater insights and opportunities for businesses to thrive.

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5 Creative Ways to Use AI for Sentiment Analysis https://www.lumoa.me/blog/5-creative-ways-to-use-ai-for-sentiment-analysis/ https://www.lumoa.me/blog/5-creative-ways-to-use-ai-for-sentiment-analysis/#respond Wed, 20 Dec 2023 07:46:50 +0000 https://www.lumoa.me/?p=19784 Have you ever thought about how some businesses manage to analyze thousands of customer reviews and feedback quickly? The secret lies in the capabilities of AI and its proficiency in conducting sentiment analysis.  Customer feedback is a precious resource for understanding what’s effective and what needs improvement. However, manually sifting through and evaluating this feedback […]

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Have you ever thought about how some businesses manage to analyze thousands of customer reviews and feedback quickly? The secret lies in the capabilities of AI and its proficiency in conducting sentiment analysis. 

Customer feedback is a precious resource for understanding what’s effective and what needs improvement. However, manually sifting through and evaluating this feedback can be incredibly time-consuming.

Around 30% of IT professionals worldwide have reported that their organizations are witnessing time-saving benefits thanks to implementing new AI and automation software.

In this article, we’ll explore five innovative and creative ways to leverage AI for sentiment analysis. From enhancing customer support experiences to predicting market trends, AI empowers businesses across industries to make data-driven decisions that resonate with their audience.

Traditional sentiment analysis

Traditional sentiment analysis, often called manual sentiment analysis, relies on human analysts to evaluate and interpret text data to determine the sentiment expressed within it. This process involves reading and assessing the content to classify it as positive, negative, or neutral. 

Analysts might also assign a numerical score to indicate the intensity of sentiment. Traditional methods often use sentiment lexicons or predefined lists of words and phrases associated with specific sentiments.

However, this manual sentiment analysis has its limitations and challenges. Firstly, it is time-consuming and labor-intensive, making analyzing large volumes of data impractical. Human analysts can also introduce bias, as their interpretation of sentiment can be subjective.  

AI-driven sentiment analysis can be a valuable tool for businesses that seek more accurate and scalable sentiment analysis solutions.

Types of sentiment analysis

Within sentiment analysis, various types are tailored to specific use cases:

  • Aspect-based sentiment analysis. This type focuses on breaking down text into specific aspects or features and assessing sentiment towards each one. Regarding a product review, it can analyze sentiments related to various product attributes, such as design, performance, and price
  • Fine-grained sentiment analysis. Fine-grained sentiment analysis goes beyond the typical positive, negative, or neutral classifications. It aims to provide a more nuanced understanding of sentiment, often categorizing it into multiple levels, such as very positive, somewhat positive, neutral, somewhat negative, and very negative.
  • Emotion detection. Emotion detection involves identifying and categorizing the emotions expressed in the textual content. This type of sentiment analysis aims to understand whether specific emotions are involved, such as happiness, frustration, or sadness.
  • Intent analysis. Intent analysis delves into understanding the intentions or objectives behind a user’s text. For example, it can determine whether a customer’s comment implies a purchasing intent or help from customer support.

AI and machine learning are key in performing sentiment analysis using two primary approaches: 

  • Rule-based approaches use predefined linguistic rules and patterns to classify sentiment, making them useful for simple cases. 
  • Machine learning-based methods, like deep learning algorithms, utilize vast datasets to train models that can automatically identify sentiment. These machine-learning models can handle more complex language nuances and adapt to different domains and languages, making them a preferred choice for sentiment analysis tasks.

Five creative ways to use AI for sentiment analysis

AI has opened up opportunities for sentiment analysis beyond its conventional applications. Here are five creative ways to use AI for sentiment analysis:

Use AI to detect emotions and provide better support experiences

Sentiment Analysis

AI tools can assess emotions conveyed in substantial text inputs, such as customer reviews or feedback. These algorithms classify the sentiment as positive, neutral, or negative, providing valuable insight into customers’ feelings.

Traditional manual analysis of extensive text data is impractical and time-consuming. With its natural language processing capabilities, AI excels at quickly processing large volumes of text. 

It can help companies pinpoint areas for improvement within customer feedback. This information can later be used to assist and train chatbots to provide more human-like experiences.

Once emotions are detected, AI chatbots and virtual assistants can assess customer sentiment during conversations and tailor responses accordingly. For instance, if a customer expresses frustration in their feedback, an AI-powered chatbot can be trained to respond with empathy and understanding, offering solutions that align with the detected sentiment.

Detect liked or disliked product or service features 

AI for sentiment analysis is a game-changer, not just for marketers. Developers and UX professionals can also tap into its potential to enhance products and services. This aspect of AI sentiment analysis can pinpoint product features that receive praise or criticism.

Let’s say a mobile app receives positive sentiment regarding its user-friendly interface but negative comments about slow loading times. AI can flag these issues, clearly defining where the focus should be. Dev teams can make targeted interface changes and prioritize enhancements directly impacting customer experience.

Sentiment Analysis mobile

Unveil and predict market trends

AI goes beyond customer data analysis. Using NLP algorithms like RNNs and LSTMs, it analyzes vast textual data from social media and news to spot emerging topics and sentiment shifts.

Businesses can extract these insights to adjust their strategies according to market trends and consumer preferences. AI has become a vital tool for navigating the ever-changing landscape of consumer behavior and market dynamics.

Here are three examples of AI applications in unveiling market trends:

  • Social media sentiment analysis: Some AI-powered tools can analyze social media conversations and identify trends and shifts in customer sentiment related to specific products, brands, or industries. For example, companies can track brand mentions on X, formerly known as Twitter, to track public opinion and identify emerging trends.
  • News and content analysis: AI can process vast amounts of news articles and online content to detect emerging topics, keywords, and sentiment changes within specific industries. This allows businesses to stay informed about the latest trends and adapt their strategies accordingly.
  • Customer behavior analysis: AI-driven data analysis can reveal patterns in consumer behavior by examining large datasets of customer interactions, purchasing histories, and online activity. This information helps businesses anticipate market trends and make data-driven decisions, such as launching new products or adjusting pricing strategies.

Monitor and understand brand perception 

Monitoring and understanding brand perception is critical, and AI-driven sentiment analysis has revolutionized this process. Applying AI-powered sentiment analysis to market research gives companies a multifaceted view of how customers perceive their services or products. This involves analyzing information from various sources, including customer reviews, surveys, and social media conversations.

AI-driven sentiment analysis can assess whether a brand’s messaging aligns with customer perceptions. This alignment check empowers companies to refine their communication strategies, adopt a customer-centric approach, and cultivate a brand image that genuinely connects with its audience.

Product and employee satisfaction surveys

Through sentiment analysis, AI can determine whether the feedback is positive, neutral, or negative and identify specific product or service aspects that are being praised or criticized. This allows businesses to gain valuable insights into customer perceptions, uncover emerging trends, and pinpoint areas for improvement.

Here are some case studies to show how AI is making this happen:

  • Bank of America employs AI-driven sentiment analysis to capture VoC and identify customer pain points. Erica, their advanced virtual financial assistant, has had over one billion client interactions. This award-winning AI technology, launched in 2018, has assisted almost 32 million clients with daily financial tasks. This data-driven approach allows Bank of America to proactively enhance its services, ultimately improving the overall banking experience.
  • Ford uses advanced AI-driven sentiment analysis to carefully study customer feedback, helping them gain valuable insights into vehicle performance. This real-time feedback analysis has empowered Ford to identify concerns and implement necessary vehicle enhancements. As a result, Ford continues to deliver an improved driving experience to its customers while staying ahead in the automotive industry.
  • T-Mobile developed Natural Language Understanding machine learning models that extract meaning from vast textual data. They manage an extensive dataset comprising hundreds of thousands of daily customer requests and a knowledge repository containing answers to potential customer inquiries. These machine learning models forecast the information required to address specific customer needs, like bill payments or adding phone lines, and then present it to customer service agents. T-Mobile employs AI-powered sentiment analysis to detect and resolve issues, reducing customer complaints.

AI for sentiment analysis extends its utility beyond customer feedback to internal processes. It can be used to evaluate workplace satisfaction and understand the employee’s voice within the company. 

By analyzing employee feedback, whether through surveys, performance reviews, or other channels, AI can help identify areas where improvements can be made in the workplace.

Benefits and challenges of using AI for sentiment analysis

Using AI for sentiment analysis comes with substantial benefits, including:

  • Efficiency: AI algorithms can swiftly assess sentiment across numerous texts, making it ideal for handling large-scale data, such as social media comments, reviews, or feedback strategies.
  • Scalability: AI systems can effortlessly scale their analysis capabilities to handle an increasing volume of data. Whether a business is dealing with a small customer base or a massive global audience, AI can adapt and accommodate the workload.
  • Accuracy: AI algorithms continuously improve their accuracy by learning from large datasets. This enables them to identify subtle nuances, providing more precise and reliable results over time.

Challenges associated with AI sentiment analysis include:

  • Context understanding: AI sometimes struggles to grasp the context of language, leading to misinterpretations of sentiments. This is particularly challenging when dealing with sarcasm, irony, or cultural nuances.
  • Data privacy: Gathering and analyzing customer data for sentiment analysis raises concerns about data privacy and security.
  • Bias and fairness: AI models may inadvertently incorporate biases in training data, which can lead to unfair results. Efforts must be made to reduce bias and ensure fairness in sentiment analysis.

Final thoughts

When it comes to understanding customer feedback, AI-powered sentiment analysis can be a powerful tool. AI enhances analysis accuracy and efficiency by delivering real-time insights. However, ethical concerns, including bias, privacy, and transparency, require consideration.

Exploring these innovative approaches in your domain can be rewarding. AI sentiment analysis trends will include natural language processing, multimodal analysis, contextual analysis, explainable AI, and real-time analysis. Embrace these innovations for a competitive edge and improved customer experiences.

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Happiness in Customer Experience: A Competitive Advantage https://www.lumoa.me/blog/happiness-in-customer-experience/ https://www.lumoa.me/blog/happiness-in-customer-experience/#respond Tue, 24 Oct 2023 07:12:12 +0000 https://www.lumoa.me/?p=19627 Success in customer experience (CX) can be represented by numbers. A high Net Promoter Score (NPS), a large number of new customers in a month, or fewer unsatisfactory customer service request conclusions, are just some of the metrics we use to measure an effective customer experience. But in this pursuit of numbers, we mustn’t lose […]

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Success in customer experience (CX) can be represented by numbers. A high Net Promoter Score (NPS), a large number of new customers in a month, or fewer unsatisfactory customer service request conclusions, are just some of the metrics we use to measure an effective customer experience. But in this pursuit of numbers, we mustn’t lose sight of what truly drives customer experience: Happiness.

Customer Experience (CX) hinges upon customers’ sentiments. Happy customers are satisfied customers who will return to help your business. One surefire way to deliver happiness to customers is to create a culture of happiness within the company.

This article addresses the importance of happiness in customer experience, explains how happiness can drive growth and become a competitive advantage, and is inspired by the fireside chat “How can we use the science of happiness in CX?” that Carlos Del Corral, Lumoa CEO, had with Rosaria Cirillo, a renowned customer experience professional and a certified happiness expert.

Webinar How can we use the science of happiness in CX - Lumoa

Happiness and Customer Experience

Weaving happiness into your company’s customer experience strategy requires a change in perspective and leadership. Rather than being purely transactional, your strategy and leadership should focus on the following three elements that Rosaria defines as the basis of HCX (the future of CX) and Happiness Driven Growth:

  • Human-Centered Experiences: Build a business model that acknowledges and encourages the desires of customers and employees to live a peaceful and sustainable life.
  • Happiness-Contributing Experiences: Create and deliver meaningful and life-enriching products and services that make customers and employees feel empowered.
  • Heart-Connecting Experiences: Since people tend to make decisions driven by emotion before justifying them with logic, find ways to connect emotionally with customers and create a work culture that allows them to lead from the heart.

When your approach to customer experience incorporates these three elements, customers and employees come away feeling pleasant and enriching emotions. Understanding emotions and what triggers them is at the core of every customer experience strategy.

Based on the learning from Marshall Rosenberg NVC, Rosaria invited us to see (customer) emotions as the consequence of meeting needs or not and to simply see emotions as “pleasant/enriching” or “unpleasant/depleting”, instead of labeling them as positive or negative, which includes judgment and is less empowering.

When considering that “unpleasant” emotions are mainly a result of unmet needs, your customer experience strategy can promote happiness by proactively meeting your customers’ needs and by empowering your employees to address these needs.

Linking Happiness and Customer Needs

American psychologist Abraham Maslow introduced the concept of the “Hierarchy of Needs,” a pyramid with five levels that lead to human fulfillment and are foundational to customer understanding.

Picture1 - LumoaA customer experience that focuses on cultivating happiness needs to follow a similar model. It starts with recognizing that customers also have a hierarchy of needs in their dealings with a company. We will look at consumers’ hierarchy of needs in more detail below.

  • Level 1 Basic Needs: Involves giving customers access to a company representative who can understand their requests and take steps to solve them.
  • Level 2 Safety Needs: Taking steps to ensure customers can easily access the company’s representatives, like having a toll-free number, prominently displayed contact information, and being transparent with customers.
  • Level 3 Efficiency and Consistency Needs: Being able to meet customers’ requests in a short amount of time and maintaining the same level of service across all company touchpoints.
  • Level 4 Attention and Cooperation Needs: Enter the realm of personalization with agents who can recognize customers and recall what issues they’ve experienced earlier.
  • Level 5 Proactive, Self-Actualization, and Connection Needs: Forge a connection based on empathy between company agents and customers, where customer needs can be anticipated and met even before an issue arises.

A company should set out to meet each level of consumer needs in ascending order to build a happiness-centric customer experience. As you climb the ladder to higher levels, you might also notice metrics like your NPS rising in synchrony, as there is a correlation between Net Promoter Score and Maslow’s needs hierarchy.

Exceeding Customer Needs to Achieve Happiness

Our emotions do not exist in a vacuum. Rather, they are in a constant flow state, moving from pleasant to unpleasant and back again. It would be foolish and exhausting to expect an individual to be happy all the time. Instead, we should link our emotional state to how we feel when our needs are being met versus when they are not being met.

This allows us to act on unpleasant emotions by identifying unmet needs and taking steps to meet them.

In customer experience, this is a practical piece of advice that can help companies reduce customers’ pain points. Angry or difficult customers usually have urgent needs that need to be met, and companies can adapt their approach to address those needs proactively.

When you understand your customers’ needs, you can focus on adding value to their experience and making them happy, and sprinkle your customer understanding with the knowledge from the science of happiness to reach the top of the pyramid and proactively contribute to both customers’ and employees’ happiness.

The Nine Factors of Happiness

Happiness in customer experience is not limited to just the customers. Employees play an equally important role in creating a product or service that spreads happiness. Happiness trainer, educational speaker, and author of Yellow Factor: Happiness in Business, Rosaria has put forth a simple model for companies to apply the science of happiness to exceed both customer and employee expectations and achieve happiness-driven growth.

Based on the analysis of over 300 trailblazers cases and findings from neuroscience and positive psychology, Cirillo’s “Sunflower of Happiness” nine factors we can nurture to design and deliver HCX experiences. Let’s break down each of the nine petals, which conveniently fit the acronymous HAPPINESS.

Health

Being in good physical and mental health is the bedrock of happiness. Promoting practices that prioritize the health of employees and customers alike is essential for every company, not just those that work in healthcare.

Autonomy

Giving employees a degree of control over their actions lets them feel empowered. Having a say over their work-life balance and responsibilities makes employees feel positive about their role in a company.

Purpose

Working toward a worthwhile goal makes people feel happy about putting in effort. Companies should give employees a chance to contribute to something larger than themselves and help meaningfully. Customers can also be brought on board by offering them the chance to participate in company initiatives for the greater good.

Play

Cultivating a sense of fun is vital in a culture of happiness. Qualities like creativity and adventurousness should be encouraged in an environment that is free of any judgments. Play can extend beyond the workspace to customers as well, engaging them in activities that stimulate their sense of fun.

Integrity

In order to create a positive customer experience, companies need to make a positive impact on society. Employees feel proud, and customers feel comfortable being associated with businesses that take steps to improve communities, contribute to society, and protect the environment.

Nature

Being connected to nature promotes a feeling of holistic well-being. This could be as simple as allowing natural light into workspaces and creating experiences that simulate the sense of being in nature. Companies can also commit to preserving nature and allowing their customers and employees to enjoy their bounties by promoting initiatives that protect the environment.

Empathy

Shared connections bring people closer in business and their personal lives. Companies should convey their sense of empathy through their communications with clients, offering assurances that they understand their problems. Fostering better working relationships between employees also contributes to a culture of happiness.

Simplicity

Customers and employees alike would like to conserve their energy. Reducing the amount of demands on them and simplifying their transactions lets them remain energetic and happy.

Smiles

Our brain responds to our body’s signals, and smiles signify happiness. Turn milestones into moments of celebration, and share the joy with customers to spread happiness all around.

Achieving Lasting Growth with Happiness

Investing in a culture of happiness can yield positive returns for a company. Promoter scores, sales, and revenue all go up when your customer base is happy and satisfied. Learning about the benefits of happiness is only the first step.

Through repetition and consistency, you can hardwire happiness into your customer experience, which builds customer loyalty and employee motivation. And it all starts with nurturing your very own happiness to blossom like a sunflower. Turn happiness into your business (and personal) superpower!

As a special gift for Lumoa’s attendees in the fireside chat between Carlos and Rosaria and the readers (YOU), she has provided a free extract of her book “Yellow Factor: Happiness in Business” Enjoy.

Webinar How can we use the science of happiness in CX - Lumoa

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How to Analyze Survey Results: A Guide to Mastering Customer Feedback Analysis https://www.lumoa.me/blog/how-to-analyze-survey-results/ https://www.lumoa.me/blog/how-to-analyze-survey-results/#respond Wed, 09 Aug 2023 06:00:09 +0000 https://www.lumoa.me/?p=18147 Analyzing survey results is more than just crunching numbers – it’s also about unlocking stories, understanding needs, and adapting to changes. These in turn, can shape Customer Experiences. Welcome to a guide that’s all about making sense of those stories hidden within your survey data. Whether you’re a seasoned CX professional or just dipping your […]

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Analyzing survey results is more than just crunching numbers – it’s also about unlocking stories, understanding needs, and adapting to changes. These in turn, can shape Customer Experiences.

Welcome to a guide that’s all about making sense of those stories hidden within your survey data. Whether you’re a seasoned CX professional or just dipping your toes into the waters of customer feedback, this article is your friendly companion in turning those responses into actionable insights.

We’ll walk through the essentials and gradually go a bit more detailed in survey analysis, ensuring you’re well-equipped to elevate your customer satisfaction, boost sales, and fortify brand loyalty. From uncovering the basics to tackling common challenges, we’re here to help you navigate through the fascinating journey of customer feedback analysis.

Why Voice of Customer (VoC) Matters

To kick things off, we should first understand why Voice of Customer matters and how it affects your business. Customers are an integral part of any business’s success. Obviously, businesses wouldn’t exist without them! So it’s important to listen closely and understand what customers want from brands – that’s where the voice of the customer comes in.

Whether it be through surveys, focus groups, or even social media, businesses have access to valuable feedback on their products and services. This feedback helps inform how they operate going forward. And remember, feedback isn’t just about addressing criticisms—it’s also about recognizing and building on what you’re already doing well.

In one Gartner research, leveraging the data obtained from direct customer feedback can increase the chances of upselling and cross-selling by 15-20%. This shows the tangible, bottom-line benefits of listening to your customers.

Additionally, a well-executed VoC initiative also helps enhance customer retention, resulting in higher customer loyalty scores, reduced customer turnover, and increased customer lifetime value through repeat purchases. A ripple effect will occur – those businesses able to stay in tune with customer desires will have an advantage over their competitors. After all, if you know what your audience wants before they do – you’ll be miles ahead!

Why Analyzing Survey Results is Essential: Addressing Common Business Challenges

Imagine you’re running a bustling café in a busy city center. You pride yourself on the quality of your coffee and the ambiance of your space. To understand your customers better, you conduct a survey asking for feedback on everything from the coffee to the service. But what happens next is crucial. If you merely collect these responses without thorough analysis, you might miss key insights that could drive your business forward.

For instance, let’s say many customers subtly mention that they love the coffee but find the seating uncomfortable. Without proper analysis, you might overlook this feedback, focusing only on the positive comments about your coffee. This oversight could lead to a decrease in repeat visits, as customers choose other cafes with more comfortable seating.

This scenario highlights a common pain point for businesses: the gap between collecting customer feedback and effectively analyzing it to uncover actionable insights. Just as a chef needs to skillfully combine ingredients to create a gourmet meal, businesses need to adeptly analyze survey results to transform raw data into strategies that enhance customer satisfaction and drive growth.

When you know how to properly analyze survey results, you’re uncovering the story behind your customers’ experiences. It is this insight that enables you to make informed decisions, such as rearranging your café’s seating arrangement or tailoring your services to better suit your customers’ needs.

Categories of Questions to Ask in Your Survey

Okay, so now you understand the importance of not just collecting but also effectively analyzing your survey results. But where does this process start? It all begins with asking the right questions. Let’s shift our focus to the heart of any survey: the questions themselves. When creating surveys, asking the right questions is the key to unlocking meaningful insights from your customer feedback.

By asking relevant and targeted questions, you can create a comprehensive picture of customer sentiment and gain valuable insights into what customers want from your brand. Let’s check out the types of questions that can supercharge your VoC surveys.

Net Promoter Score (NPS) question: This is a popular metric used to measure customer loyalty and satisfaction. This particular question seeks to gauge how likely a customer would be to recommend a company’s products or services to their friends, family, or colleagues. Customers are asked to rate the company on a scale from 0-10, with higher scores indicating higher customer satisfaction.

A high NPS score is a strong indicator of customer loyalty, which can drive repeat business and positive word-of-mouth referrals, thereby contributing to your company’s growth and reputation.

NPS Visual

Customer Satisfaction questions: are designed to assess a customer’s overall satisfaction with the product or service they received, as well as their entire customer experience. How customers rate these questions can provide insights into how effective a business is, at meeting the needs and expectations of its customers.

In a nutshell, high CSAT scores often correlate with customer retention and loyalty, directly impacting your bottom line.

CSAT - customer satisfaction

Demographic questions: These questions gather information about the respondent’s age, gender, income, education level, and other demographic information that can be used to segment and analyze the data. Knowing the demographic makeup of customers can help identify trends and correlations between certain demographics and customer satisfaction.

When conducting a survey, it’s essential to avoid any questions that could be seen as discriminatory. We should also make sure the collected data is relevant and our respondents understand how their information will be used; all while adhering to legal/ethical guidelines around demographic info collection!

It can be tempting to ask a ludicrous amount of demographic questions, to truly understand your customer and where they are coming from. Unfortunately, these can be tiring to fill out from a user’s perspective.

Remember that each additional question you have in your survey will decrease the amount of responses you get, sometimes only by a little bit, but they add up! Try to ask questions for things that you aren’t already tracking in your CRM or other business tool so that the information is important and the survey is kept light.

dosanddonts

Behavioral questions will give you the bigger picture and help you assess how customers interact with a given product. This includes how often they use it, how much they spend, and how long they have been a customer.

What’s more, behavioral type of questions can help you customize your products and services accordingly.

Examples of some behavioral questions:

  • How do you go to your workplace?
  • How often do you buy travel tickets?
  • Do you pay by card or cash?

Open-ended questions on the other hand, help you understand customer sentiment. It provides insights into customers’ thoughts and feelings that would otherwise remain hidden.

With these questions, customers can express their opinions and frustrations in more detail than with a structured question. The most exciting part? It may reveal underlying customer sentiments, helping you identify potential areas for improvement and innovate your offerings based on real customer feedback.

Examples of some open-ended questions:

  • What were the main reasons you chose our product?
  • How would you describe your experience with us?
  • How can we make our product better for you?

Survey design best practices

Common Ways to Analyze Survey Data

Now that we’re all on the same page in the kind of questions to ask, let’s discuss the ways to analyze it. Analyzing survey data can be an overwhelming task, but with the right approach, it’s possible to extract meaningful insights from customer feedback and develop actionable strategies for improvement.

One such tool that can help is Lumoa, the first CX platform to offer GPT. thanks to its propriety AI, employees can now tap into any customer feedback, get clear answers, and take actions with a positive influence on KPIs.

In this section, we’ll explore some of the most common techniques used to analyze survey results, all of which can be easily performed using Lumoa. We’ll also provide screenshots from the Lumoa platform to give you a visual understanding of how these techniques work in practice.

From basic analysis methods to more advanced techniques, you’ll gain a better understanding of how to unlock the potential of your customer feedback.

  1. Frequency analysis: This involves counting the number of times a particular response is given to a question. It helps to identify patterns and trends in the data, such as which options are most popular or least popular.

    Frequency AnalysisIn the visual above, we see the frequency of responses to a question like “What region are you from?” This illustrates how frequency analysis can provide a clear snapshot of the distribution of responses, revealing patterns and trends.

    For instance, you can easily identify the most and least represented regions among your respondents. This logic can be replicated for each question in your survey, helping you understand the most and least common responses.

    Understanding these patterns can help you prioritize improvements and capitalize on what’s working well.

  2. Sentiment analysis: This is a method of using natural language processing and text analysis techniques to determine the emotional tone behind a customer’s response. It can be useful for identifying positive, negative, and neutral sentiments in open-ended survey responses.

    sentiment analysisIn the visual above, we see Lumoa’s AI in action, determining whether parts of a comment are positive, negative, or neutral. In this example, the AI has identified a portion of the comment as “positive.”

    With this information, you can address specific areas of concern and build on what’s working well to enhance customer satisfaction.

  3. Regression analysis: This method is used to identify relationships between different variables in the data and can help to identify patterns and trends over time.Regression analysis
    Here, we see an example of Lumoa’s AI performing regression analysis. In this case, the AI is determining that when people use the word “Price” in their open text response, they often do so when they are from regions like “Mexico” or when speaking to certain team members through support.

    This information will help you identify specific factors that influence customer feedback, enabling you to tailor your strategies and responses accordingly. For instance, you might decide to provide additional training for certain team members or review your pricing strategy for specific regions.

  4. Cluster analysis: This method groups similar responses together, which is useful for identifying patterns or segments within the data.Cluster Analysis

    In this case, Lumoa’s AI is showing us that when people mention “price” in their open text response, they often use the words “account” and “banking” in the same comment.

    The smileys represent the sentiment when those words are used. This insight identifies common themes or issues in customer feedback, enabling you to address specific areas of concern.

    For instance, if customers often mention “price,” “account,” and “banking” together in a negative context, you might decide to review your pricing strategy or improve your account management and banking services.

  5. Text mining: This method extracts useful information from unstructured text data, such as open-ended survey responses. It’s used to identify common themes or keywords in the data.

    Text miningIn the visual above, we see an example of Lumoa’s AI performing text mining. In this case, Lumoa has created overall groupings of themes found in open-text responses. These groupings, called “Topics”, can be managed and edited by your organization.

    This is beneficial in identifying common themes or issues in customer feedback, enabling you to address specific areas of concern.

    For instance, if a particular topic frequently appears in negative feedback, you might decide to focus your improvement efforts on that area.

  6. Data visualization: This method displays data in a graphical format, such as charts, tables, and graphs. It can be used to make the data more understandable and to identify patterns and trends that may not be immediately apparent in the raw data.
    Data visualizationIn the visual above, we see one example of how Lumoa can help you make sense of your data.

    Lumoa offers a variety of graphs and charts for different purposes, such as determining trends and recurring issues, as well as tracking issues over time.

    By presenting data in a visual format, you can gain a clearer understanding of your customer feedback, making it easier to identify areas for improvement and monitor the impact of your actions over time.

Best Practices for Interpreting and Utilizing Survey Insights

Having the right approach to analyzing survey data is essential for unlocking its potential, but it’s also important to know how to interpret and utilize the insights you uncover. Check out some best practices for interpreting and utilizing survey insights.

From understanding customer sentiment to developing actionable strategies, we’ll go over all the key steps involved in creating a successful VoC program.

  1. Clearly define your research objectives: Before beginning the survey, be sure to establish clear research objectives that will guide the design and analysis of the survey.

  2. Use a representative sample: Make sure that the sample of participants is representative of the population being studied in order to ensure the validity of the survey insights.

  3. Use open-ended questions: Open-ended questions allow customers to provide detailed feedback in their own words, which can provide valuable insights into their thoughts and feelings.

  4. Use data visualization: Use data visualization techniques such as charts, tables, and graphs to display the data in a way that is easy to understand and identify patterns and trends.

  5. Use statistical analysis: Use statistical analysis techniques such as frequency analysis, cross-tabulation, and regression analysis to identify patterns and trends in the data.

  6. Use text mining: Use text mining techniques to extract useful information from unstructured text data, such as open-ended survey responses.

  7. Look for patterns and trends: Look for patterns and trends in the data that can help identify areas for improvement or opportunities for growth.

  8. Identify key drivers: Identify key drivers of customer satisfaction, loyalty, and behavior that can be used to improve the customer experience.

  9. Prioritize your findings: Prioritize your findings based on their importance and potential impact on the business.

  10. Act on your findings: Use the insights gained from the survey to make data-driven decisions that will improve the customer experience and achieve organizational goals.

To illustrate the practical applications of analyzing survey results and implementing changes based on VoC insights, let’s look at a real-life example.

Huel, a popular meal replacement company, recognized the need to better understand their customers’ experiences and improve their Net Promoter Score (NPS). Before, they tracked NPS without taking any significant action. However, as the company decided to make NPS a key business KPI, they needed a scalable and efficient way to analyze and act upon customer feedback.

This led Huel to adopt Lumoa, a platform that enabled them to analyze NPS data, answer customer questions, and create targeted strategies. Lumoa’s intuitive interface and text analytics allowed everyone in the company to better understand customer sentiment, making NPS a more accessible and successful KPI.

Huel Case Study

One of Lumoa’s most impactful features for Huel was the ability to segment NPS data by different customer segments. This allowed them to track customer lifecycles and understand how perceptions and pain points evolved over time. As a result of implementing Lumoa, Huel saw their NPS score increase by 10 points and their global response rate increase by 164%, which significantly improved their customer experience and decision-making capabilities.

This example illustrates the power of effective survey analysis and the impact it can have on a company’s success.

Creating an Action Plan

Creating an action plan based on survey results is an effective way to turn customer feedback into meaningful insights. This will drive your business forward. It can help you identify key drivers of customer satisfaction, loyalty, and behavior so that you can make informed decisions and create strategies that improve the customer experience and achieve organizational goals.

  1. Identify Key Insights: Start by reviewing your survey results and identifying the most important insights. Look for patterns, trends, and key drivers that stand out. You can find out where customers are most satisfied or dissatisfied, what common themes are in open-ended answers, and what correlations there are between them.

  2. Prioritize Based on Impact: Not all insights will have the same potential impact on your business. Rank your findings by their potential to drive customer satisfaction, loyalty, and business growth. Consider the number of customers affected, the severity of the problem, and the potential for improvement.

  3. Set Clear Objectives: For each priority insight, set clear objectives. These should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, if customer service is a common complaint, you could aim for a 25% reduction in wait times within six months.

  4. Develop Strategies: Next, develop strategies to achieve your objectives. It may involve improving processes, investing in new tools or training, or making changes to your products or services. Consider investing in more customer service staff, implementing a new platform, or improving self-service options to reduce wait times.

  5. Assign Responsibilities: Assign responsibility for each strategy to a specific person or team. In this way, accountability is ensured and a clear point of contact is provided.

  6. Create a Timeline: Develop a timeline for implementing your strategies. To keep everyone on track, you should set key milestones and deadlines.

  7. Monitor Progress: Regularly monitor your progress toward your objectives. Tracking metrics, doing follow-up surveys, and getting feedback from customers and staff could be part of this process. Be prepared to reassess your strategies and make changes if you’re not making the progress you expected.

  8. Communicate Your Plan: Finally, communicate your action plan to all relevant stakeholders. This includes not only your staff but also your customers. You can build trust and improve customer satisfaction by letting them know you’re taking their feedback on board.

Wrapping up

Customer-centric businesses need to understand their customers’ needs, preferences, and pain points. Surveys are great tools for collecting this information, but their real value comes from analyzing and acting on it.

Throughout this comprehensive guide, we’ve explored why Voice of Customer (VoC) matters, the importance of analyzing survey results, the types of questions to ask in your survey, and the common ways to analyze survey data. We’ve also covered how to interpret and use survey insights, as well as how to create an action plan.

Remember, the goal is not just to collect data, but to transform it into actionable insights that drive your business forward. Getting the right approach to your survey data can boost customer satisfaction, sales, and loyalty.

Now, armed with this knowledge, you’re ready to take your survey analysis to the next level. No matter where you’re at with customer feedback, these strategies and techniques can help you get more value out of it.

So, don’t wait! You’ll see the impact it can have on your business when you apply what you’ve learned today. Remember, every piece of customer feedback is an opportunity for growth and improvement. Take it on, act on it, and watch your business grow. If you need more ways to boost your CX strategies, how about you check out the State of Customer Experience 2023? Download your copy now!

State of CX 2023

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Building Relationships Across Departments for Customer Experience Success https://www.lumoa.me/blog/building-relationships-across-departments/ https://www.lumoa.me/blog/building-relationships-across-departments/#respond Thu, 06 Apr 2023 09:16:58 +0000 https://www.lumoa.me/?p=18788 Relationships between customers and brands are the foundation of customer experience (CX) success. To ensure that customer experience is successful, companies must focus on creating strong relationships- by understanding customer needs and providing exceptional service. So how do you ensure that all your customer experience (CX) initiatives are successful? In this article, Here are some […]

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Relationships between customers and brands are the foundation of customer experience (CX) success. To ensure that customer experience is successful, companies must focus on creating strong relationships- by understanding customer needs and providing exceptional service.

So how do you ensure that all your customer experience (CX) initiatives are successful? In this article, Here are some practical tips to ensure that your CX initiatives successfully build strong relationships with customers.

Avoid Siloed Working

“The experience that a customer has with any organization is ultimately delivered by everyone in that organization,” shares certified CX Consultant Ian Golding. This means that everyone in the company is a critical component of customer experience, whether they work in support, sales, marketing, or any other department.

Siloed working negatively impacts both customers and employees, leading to the following:

  • Higher operational costs
  • Negative brand reputation
  • Bad customer experience
  • High acquisition costs
  • High churn rates

It’s essential to avoid silos and ensure that all departments are working together cohesively and have a clear understanding of the overall customer journey. By breaking down silos, companies can understand what customers are going through and make sure their experience is consistent across channels.

Revisit Organizational Culture

Gaps in organizational culture often regrettably stem from a less-than-ideal leadership style. Some leaders can single-mindedly focus on numbers and goals, overlooking the essential role of customer experience in business success.

Employees are stretched thin, especially post-pandemic layoffs that left most teams lean. As such, most departments are pressured to meet goal after goal, often leaving CX as a mere afterthought.

Leaders should look at the big picture and recognize that customer experience is a priority rather than an afterthought. Leadership needs to focus on building an organizational culture where customer-centricity is at its core.

As such, leaders should emphasize the importance of providing exceptional service by investing in team training, creating a positive work environment, and empowering employees to make decisions that are best for customers.

Make Customer-centricity Everyone’s Responsibility

This is a common question that CX consultants always encounter: Who owns CX? Does the responsibility fall with sales, customer support, marketing, or another team?

The answer is simple: Everyone. Customer experience should be owned by everyone in the organization, from top to bottom. It’s not just a marketing or support issue – it’s something that every single team needs to focus on.

Ultimately, everyone is responsible for the customer experience. At the end of the day, no one team or person (even the CEO) can take charge of a customer’s end-to-end experience. 

It’s not just about having a CX department or a CX manager, too—it’s about empowering other departments to understand customer needs and ensure that their actions reflect customer-centricity.

Assess the Current CX Landscape and Address Key Issues

We often get so caught up behind the scenes that we forget to look closely at how things are for our customers. So if you feel your customer experience initiatives are not working, maybe it’s time to take a step back and assess the current CX landscape.

First, you need to identify any critical issues impacting your customer experience. This could include anything- from long wait times for support inquiries to confusing navigation on your website.

Encouraging collaboration and feedback between teams is also crucial at this stage so that everyone can provide their insights and ensure that the customer experience is tailored to customers’ needs.

From there, you can create an actionable plan that addresses these key issues and helps ensure that your CX initiatives are achievable and are making a difference. To help you keep track of everything, you might want to make use of a customer experience audit checklist.

Leverage Data and Analytics to Inform Your CX Strategy

Data and analytics should be leveraged to inform your CX strategy and ensure you are making data-driven decisions. Having access to customer insights can help you understand how customers interact with your brand, as well as any areas for improvement in the customer journey.

You can use these insights to create personalized experiences and stay ahead of the curve to anticipate customer needs and offer tailored experiences. 

By combining data with customer feedback, companies can more effectively identify opportunities for improvement in their CX initiatives and create a better experience for customers.

CX leaders may often encounter other leaders or teams that distrust data or do not see its value, especially if the insights run counter to what they’re used to. In such instances, it might be helpful to highlight that these insights are not based on emotion, insight, or conjecture—they’re based on facts.

It’s also essential to make sure that data is accessible and understandable for everyone in the organization so that they can use it to inform the decisions they make. Ultimately, demonstrating how data helps teams provide better customer experiences can help build trust in its value and encourage more collaboration across departments on CX initiatives.

Here’s a pro tip for CX professionals: Keep a library of resources (articles, studies, blogs, journals, etc.) that support the data-based insights that you have so that they can be readily accessed when needed. This can also help others get a better understanding of how data can be used to improve customer experience.

Conclusion

Creating an exceptional customer experience can be challenging, but it can be successfully done with the right strategies and leadership in place. By breaking down silos and revisiting organizational culture, companies can ensure that everyone works together to provide the best possible CX. 

Additionally, by assessing your current CX landscape and leveraging data and analytics, you can create a strategy that is tailored to customer needs. It may take some time to get the ball rolling, but the effort will be worth it when customers are happier and more loyal to your brand. 

Building relationships across departments to prepare for CX success

 

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Buyer’s Guide to Customer Experience Analytics https://www.lumoa.me/blog/customer-experience-analytics/ https://www.lumoa.me/blog/customer-experience-analytics/#respond Wed, 19 Apr 2023 06:08:24 +0000 https://www.lumoa.me/?p=18688 As the volume of data companies collect grows and as artificial intelligence (AI) gets better, analytics is set to become a key differentiator for customer experience management.  Think about it. Your organization probably already collects data in many of these categories: Customer metadata (age, location, etc) Product and website usage patterns Survey data (Net Promoter […]

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As the volume of data companies collect grows and as artificial intelligence (AI) gets better, analytics is set to become a key differentiator for customer experience management. 

Think about it. Your organization probably already collects data in many of these categories:

  • Customer metadata (age, location, etc)
  • Product and website usage patterns
  • Survey data (Net Promoter Score, customer satisfaction, etc.)

Typically, this data lives in multiple systems and is only looked at by the teams that collect it ( and unfortunately, sometimes not even them!). Due to the sheer volume of tools used and data collected, it has become cumbersome and time-consuming—and sometimes near impossible—to generate useful insights at the pace necessary to stay ahead of the competition.

Enter Natural Language Processing (NLP).

NLP has made customer experience analytics way more accessible. Predictive modeling and real-time data analysis have created huge opportunities for companies to personalize the customer experience. Analytics was once the domain of a few experts, but today the power of analytics is available to a much wider audience. 

Let’s explore how you can use analytics to revolutionize your customer experience.

The Power of Customer Experience Analytics in CX Management

Customer experience has been seen as a differentiator in the market for years. And customer-centric companies have been using surveys to understand customer needs for even longer than that. 

Surveys are great tools because collecting Voice of Customer feedback is a vital part of understanding your customers better. But they’re only one small piece of the customer experience data puzzle.

customer experience analytics survey

CX Survey Sample

Your customers and prospects are constantly giving you data: Social media posts, sales calls, product usage patterns, emails, support tickets, product review pages, and so on. All of these data sources are things you can analyze to better understand your customers’ expectations and frustrations. 

It can feel like an overwhelming task, but once you’ve unlocked insights from that data it can revolutionize your business. 

The gap between those two—collecting data and understanding data—is where analytics and insights tools (this is where Lumoa comes into play).  

Unlocking insights from conversations with your customers is step one in unleashing the power of analytics to improve your customer experience. This power comes from being able to generate different types of insights by combining data in ways that manual effort simply couldn’t do.

Analyzing segments against one another 

It’s very likely you sell to more than one customer segment. A segment might be a location, company size, industry, contract value, or something else.

While individual data points are useful, combining data points across all channels and comparing the data against different segments will help you understand better ways to service each segment. You’ll be better positioned to remove friction from each segment’s use case. For instance:

  • You may discover that your CSAT is way higher for enterprise customers when you respond in under an hour, but SMB customers are willing to wait longer much longer.
  • Your technology segment may be willing to spend more money for additional customizations, whereas other segments aren’t interested.

In some cases, you may even discover segments that you didn’t know existed.

Receiving more precise observations

When metrics fluctuate, it’s often unclear what the root cause was. That makes it tough to know how to address those problems. 

Customer analytics gives you the ability to find the metaphorical needle in your haystack of data faster. By increasing the precision of your observations about your customers, you’re able to apply more effort on solving specific problems (versus spending time and energy on broad or poorly defined problems that are less likely to deliver an ROI).

Increasing value across the customer journey

Including more than just survey data enables you to spot problems across the entire customer journey. With a modern CX analytic tool, you can answer questions like:

  • When do potential customers leave your website? 
  • When do errors occur in product use? 
  • Is your onboarding program setting clients up for success?  

An analytics tool enables you to find the pain points across all of your customer touchpoints, both pre- and post-sale. Once you’ve clearly defined the pain points, you can get super strategic about how you solve for them. 

In summary, analytics unlocks all kinds of abilities that make it far easier for you to iteratively improve your customer experience across the board.

A sample of Hotjar's exit survey

A sample of Hotjar’s exit survey

Revolutionize customer experience

But exactly how are these analytics-driven capabilities revolutionizing customer experience? 

In short, they create an environment where you are able to holistically construct a seamless and holistic experience for your customers, from end-to-end. 

They make it easier for you to deliver a consistent delight.

Driving change from Voice of Customer feedback is a game changer in customer experience management. These powers enable remarkable changes to your customer experience, including:

  • Pattern prediction
  • Personalization
  • Service customization
  • Issue remediation and prevention

Pattern prediction

When it comes to serving customers, predicting when things are likely to need action leads to a smoother service delivery. With precise observations across specific segments of customers, analytics helps you recognize patterns and get better at predicting issues. 

For example, recognizing that a specific customer’s sentiment towards your brand is declining can be a predictor of future churn. Picking up on this signal early enables your team to take action to mitigate that churn before it happens. 

Analytics can combine data points from different sources in real-time. For instance, take the volume and sentiment of their support tickets, skipping their most recent business review, and recognizing a drop in product usage. On their own each of these factors is easy to miss or explain away, but taken together they’re a fairly strong sign that the relationship with this customer is unhealthy or at-risk. 

In situations like these, analytics is the red flag that lets you know you need to take action if you want to keep delivering value and retain your customer. 

Lumoa's Insights Card

Lumoa’s Topic impacts and Trending insights showing a drill down on what’s causing negative feedback regarding Updates

Personalization

Your customers want a personalized experience. They want to feel as if you know them and are catering to their needs. 

Analytics can help create this feeling of personalization. It can happen through small things, like automatically routing tickets based on their category, ensuring the right expert is always there to help. Or you can create custom marketing messages by segment that speak directly to the user and reference the things your analytics show they care about most. You can use product usage data to create tailored messages helping users be more effective at their work. 

Personalizing the message at the user level adds more value than a generic knowledge article or irrelevant marketing content. These personalized touches build trust and confidence that you understand your customers’ needs and business objectives.

Service customization

What if your products and services guided your customers at every step? 

Analytics help create that experience by identifying the behaviors that lead to a positive sentiment. Learning how your customers behave and what they like (or dislike) helps you deliver products and services which they love. 

Simple product changes—like suggesting more useful settings based on the type of customer or tool tips that remind customers of things that can help them achieve their goals faster—can have a big impact on your customer satisfaction. 

Analytics can also help you to customize workflows. For example:

  • If analytics shows your enterprise customers are particularly sensitive to being passed around between multiple support agents, you can update your ticket routing so that inbound tickets from that segment are automatically escalated to a tier 2 agent.  
  • If analytics shows your healthcare customers find more value from key features, you can adjust your onboarding process to highlight the things they’re likely to use most. 

While some of these changes may seem minor, having the customer knowledge to tweak products and processes creates a far more frictionless experience.

Issue remediation and prevention

When something does go wrong, analytics enable you to create better solutions. 

For example:

  • Which help center articles are not working?
  • What use cases need to be automated?
  • Where can products be changed or in-product guidance be added?  

All of these can be answered through effective customer analytics. When an issue occurs and you can accurately drill down to discover the root source of the problem, you’ll be better positioned to both fix the issue and prevent similar issues in the future. 

Leverage analytics to create the best customer experience

The advancements in text analytics and NLP technology have made it possible for CX teams across the world to drastically improve their understanding of their customers.

Customer experience has been considered a differentiator for years—but it’s been hard to execute on CX improvement opportunities because of siloed and unstructured data. Thankfully, these days are behind us! 

Modern feedback analytics tools—like Lumoa—mean you’re no longer blocked by the amount of data or tools used across your organization. It’s now easy to integrate tools and understand what your end-to-end customer journey looks like. 

Learn more about how you can unlock insights from your customer conversations in this on-demand webinar.

How to get insights from conversations with your customers

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How to get Insights from Customer Conversations & Analytics https://www.lumoa.me/blog/conversational-analytics/ https://www.lumoa.me/blog/conversational-analytics/#respond Tue, 07 Mar 2023 07:29:03 +0000 https://www.lumoa.me/?p=18386 Every company wants to know what its customers think of its product- but few think of simply asking them directly. Conversations with customers are the ideal way to get valuable insight and feedback into an organization’s performance. It allows companies to pinpoint their strengths and weaknesses and work on these issues quickly and flexibly.   Garen […]

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Every company wants to know what its customers think of its product- but few think of simply asking them directly.

Conversations with customers are the ideal way to get valuable insight and feedback into an organization’s performance. It allows companies to pinpoint their strengths and weaknesses and work on these issues quickly and flexibly.  

Garen Di Bernardo, Product Marketing Manager for Lumoa- a feedback analytics platform- provided some valuable tips on how to read customer conversations in an insightful webinar. The webinar showcases how companies can use the conversational analytics platform to see entire customer conversations, cut through the clutter, gain meaningful insights and act on these issues in real-time.   

Here’s a synopsis of the essentials from the webinar 

How to get insights from conversations with your customers

Why is Customer Conversational Analytics Important? 

Customer insights gleaned from feedback can be beneficial in several ways. It can help a brand innovate with new products; improve its reputation in the market; help outshine the opposition; and eventually, it can help increase sales and profits.

Apart from that, it can also help the brand refine the overall customer experience while giving them a better idea of its target audience and, thus, being able to customize its marketing strategies.

However, it isn’t enough to simply engage the customer in conversation to see these benefits. Understanding how to read this feedback is essential, so time isn’t wasted in guessing and sifting through unnecessary information.

Here is an easy step-by-step process that will help your organization streamline its customer insight process, basis the learnings of the webinar. 

Consolidate Feedback

The first and most crucial step in the process is gathering and storing customer feedback. This feedback could come from questions posed to customer support, reviews left on social media, or surveys answered by your most valued customers. Without this information, it’s impossible to know what customers are looking for, and thus leaves your product and brand stagnant.

Constantly keeping track of all the complaints and positive feedback left by your customers is the first essential step to understanding how your brand can innovate and market itself to potential customers better.

Focus on the Keywords 

After engaging with many customers, you’ll often be left with hours or even days of conversations that could be quite painful for an individual to sift through.

To save time and energy, focusing on only the most critical bits of these conversations is vital— questions explicitly related to a product, for instance, or requests for refunds. To get to the bottom of what the customer is actually trying to tell you, it’s important to cut out all the irrelevant bits and identify the most major talking points. 

Focusing on the keywords makes it much easier to sift through the noise and develop speedy solutions. 

Say, for example, you notice that the keywords “availability” features heavily in conversations customers have with customer support; this means you’re left with a concrete, identified problem that you can focus all energy on solving. 

Categorize Your Feedback

Once you have all the feedback consolidated by keyword, it can help to categorize these keywords further by topic. These broader buckets, such as “product,” “delivery,” or “shipping status,” can help you identify problems and positive feedback and allow you to work on them in a structured manner. 

Apart from topics, it could also be helpful to categorize the feedback by customer segments. For example, if you notice that some of your most highly valued customers are using a keyword very often, addressing those issues should be a top priority

Categorizing your customers by location could also be helpful in this regard, as it helps you deal with region-specific issues, such as a lack of product availability or problems with shipping in a specific area, for example.  

Identify Patterns

Once you have consolidated and categorized all the feedback by keyword, it’s time for the next critical step  — looking for patterns. There’s no point collecting all this feedback if it doesn’t help you find the right solutions, after all.

Do you find, for example, specific issues that constantly come up in customer conversations? Are there any common themes you should be looking out for but are currently ignoring? Are there Certain times of the year when some keywords appear more often than others? 

Once you start seeing patterns in your feedback and conversations, you’ll be able to gain quite a bit of valuable insight into what you could be doing better. 

Say, for instance, that customers often complain about the quality of a specific product but tend to praise related products. It’s a sure-shot sign that something needs to change. 

Use Analysis Tools 

Following through with steps one to four could require immense human effort and valuable time. So when trying to consolidate and understand customer conversations, it isn’t a bad idea to consider using tools like sentiment analysis or text analytics. Some of these tools are designed to specifically help you sift through large amounts of customer feedback- accurately and swiftly. 

These tools can help you identify common themes and sentiments and categorize them into neat buckets. They can further assist you in sifting through words that appear in both positive and negative contexts while compiling the frequency of keywords. 

Some platforms, such as the one offered by Lumoa, are easy to implement and offer real-time analysis that impacts key metrics. Once you figure out the insights that are actually relevant to your business and save a lot of time having to do all of the above manually, there’s no stopping innovation.

Final Thoughts

As most companies will probably already know, engaging with customers is an ongoing process, one that requires immense time, effort, and ongoing follow-up. However, as we’ve learned from the insightful webinar, simply engaging with customers isn’t the end goal. Learning to read insights from these conversations and finding solutions is. When organizations save time answering unnecessary questions and sifting through noisy material, it saves them a lot of time for innovation and customizing their product to the right customer.

 

6 Most Popular Customer Experience Metrics and KPIs

 

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How to Re-energize Your VoC Program https://www.lumoa.me/blog/re-energize-voc-program/ https://www.lumoa.me/blog/re-energize-voc-program/#respond Wed, 22 Feb 2023 06:32:39 +0000 https://www.lumoa.me/?p=18317 VoC — or Voice of the Customer programs — helps businesses learn more about their consumers’ wants, needs, and preferences. While most VoC efforts start strongly, many tend to lose their traction over time— especially if the program isn’t properly implemented or the company becomes complacent. The good news is that there are still ways […]

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VoC — or Voice of the Customer programs — helps businesses learn more about their consumers’ wants, needs, and preferences. While most VoC efforts start strongly, many tend to lose their traction over time— especially if the program isn’t properly implemented or the company becomes complacent.

The good news is that there are still ways to get VoC programs back on track. The first step is to assess where you are now and then make an action plan. In our last webinar, Lumoa CEO Carlos del Corral sat down with Mark Barrett and Sian Kerr from Watermelon Research to discuss just that.

Here are some key insights.

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Signs That a VoC Program is Losing Momentum

We can begin by looking at the program and remembering why it exists in the first place. What was its purpose? What has it recently or in the past helped your company with? From there, we can understand our present position and the indicators that our programs are running out of energy.

Focusing Heavily on Metrics

The first sign that a VoC program is losing momentum is when it becomes just another way to measure and report performance metrics. 

According to Mark Barrett, “at this point, we’re worrying more about whether the needle is moving in the right direction rather than what problems and challenges the VoC program is helping us identify or solve- and how it helps shape product and service development.” – says Barrett

When Things are Taking Longer Than They Used to

Mark Barrett shares another sign to look for: the amount of time it takes for things to happen. We must rethink how quickly we can get from data to an idea to an initiative to completion. The question is, how quickly or slowly is a change being applied?

We also need to consider whether we still have our internal stakeholders’ buy-in. This is critical because it allows us to progress from an idea to a complete initiative to launch a product or communication at the same rate that we used to.

Lack of internal support will affect how the program is used and implemented. It also lessens the program’s benefits to the company, which snowballs into even lower buy-in.

Barrett provided several additional questions for evaluating your VoC program:

Barrett compares the VoC to a living organ. You must continue monitoring your VoC program to ensure that it adapts, changes, and evolves over time.

Primary Areas That Define the Impact of a VoC Program

Sian Kerr shared the three key areas to consider when assessing the impact of a VoC or CX program:

How Each Team Uses the Results

Look at how individual teams can use the insights and feedback they get from customers. How do they apply customer feedback to enhance and transform the customer experience?

According to Kerr, the tactical side of things comes first. This includes being able to successfully guide customers to different information resources or communication channels, as well as being able to resolve contact inquiries.

She explained that the second way to tell if an insight is effective is to look at the strategic side. It looks at how feedback from the programs is being used to shape, inform, and create initiatives that are then applied to transform customer service.

Insight is Used to Understand the Whole Customer Journey

It’s essential for everyone working in your organization to understand the entire journey from a customer’s point of view. When the various teams working on different parts of the company genuinely understand how they impact the customer experience, the business can create a seamless customer experience that keeps them coming back for more.

This is in contrast to a siloed approach in which teams are unaware of how their customer service affects the customer’s experience or how it could affect another team.

Insights are Analyzed Through a Commercial Lens

Looking at insights through a commercial lens essentially ties it in with other relevant management information or commercial data that provides your organization with more than a view of the experience. It shows how the initiative is affecting the business’s bottom line.

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Tips to Re-energize Your VoC Program

Sian and Mark shared a couple of ways to reenergize VoC programs- although effectiveness would be dependent on the design and maturity of the program:

Take a Step Back

Mark suggested taking a step back from where you are now and not getting too caught up in the specifics. He further advised mulling through these few questions as an exercise as if you were starting the project afresh:

  • What would we want the program to achieve?
  • What do we want it to measure for us?
  • What channels and touch points should it cover?
  • Who are the people that will need to be involved in designing and shaping the program to have the biggest possible impact?

Take a look at your responses and evaluate how they relate to your current circumstances. Find any gaps, then consider the possible impact of implementing changes on the company. Consider how much time, money, or effort it would take to set up and implement changes.

In a perfect scenario, this would be the starting point for planning a VoC program’s future and prioritizing some of the initiatives you’ve identified.

Gamification

Gamification is all the rage in survey research and for good reason! It can not only increase response rates but also capture more meaningful feedback from participants – who are usually happy to put down their pens with traditional surveys.

Gamifying your surveys give you insights beyond what people say: measuring responses speed or using emoticons instead of words allows you to dig deeper into how they feel as well. A top tip? Consider a behavioral science approach when crafting your gamified questions; that way decision-making will be better understood…and we all know understanding leads to success!

Reflect on Your Successes

Sian explained how acknowledging your wins could re-energize your VoC program. It involves pausing to reflect on your accomplishments over a specific period—say, within six months to a year—and then looking backward.

The purpose of this is to drive engagement and re-motivate the team by showing what their efforts have achieved so far. This also fosters a sense of pride within the organization and motivates the team to strive for continued success.

Share these details with the entire team and all stakeholders, from upper management to frontline employees:

  • What the program achieved within that period
  • What initiatives have come out
  • What impact have they had (in terms of customer experience and commercial)

Present your VoC program’s achievements thus far, and discuss your plans for expanding the initiative.

Omnichannel strategy

Barrett mentioned that for businesses that follow an omnichannel approach, it is important to identify the reason behind the decline in the Voice of the Customer (VoC) program.

One should begin by examining whether customer journey maps have been created to capture feedback at critical touchpoints, and if the program is aligned with those maps. It is also important to determine whether the program is dynamic enough to provide a nuanced understanding of customer experiences across channels. Rather than taking a siloed approach, businesses should consider all the key channels, journeys, and touchpoints and how they relate to one another.

This can help identify the priority gaps and challenges, and ultimately, reinvigorate the program.

“To inform the channel strategy, businesses should consider the operational costs, volume of traffic, drivers of channel preference, barriers to channel use, first contact resolution, and issues in completing actions by channel. By taking a commercial lens and considering the desired channel mix, businesses can build a stronger VoC program and enhance the customer experience.”

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How to use public reviews to improve customer experience https://www.lumoa.me/blog/how-to-use-public-reviews-to-improve-customer-experience/ https://www.lumoa.me/blog/how-to-use-public-reviews-to-improve-customer-experience/#respond Fri, 09 Dec 2022 05:15:27 +0000 https://www.lumoa.me/?p=17811 People give public reviews on your product whether it’s on the App Store or Play Store, on TrustRadius or Capterra, on Tripadvisor or Booking.com. And, it’s more likely that you’re very familiar with how many stars or thumbs up you get on average. On the other hand, you might not know why people rate your […]

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People give public reviews on your product whether it’s on the App Store or Play Store, on TrustRadius or Capterra, on Tripadvisor or Booking.com. And, it’s more likely that you’re very familiar with how many stars or thumbs up you get on average. On the other hand, you might not know why people rate your product high or low.

Recently, we organized a webinar about how to integrate public reviews using Lumoa where “that cool guy Garen” showed:

  • How to bring public reviews in Lumoa within minutes
  • The dashboard where you can monitor what customers say in real-time
  • How to identify key pain points that you can immediately tackle to increase the score
  • How to add your competitors’ public reviews to the mix, so you can get a reliable benchmark and win in the market.

 

There are many ways to use the integration function, and this is just one example. Lumoa has very clear open APIs and based on your goals, integrations can serve various purposes. By using this feature, you will learn much more than you ever thought possible and be more capable of “owning the market”.

Public reviews - Lumoa

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Closing the loop with Lumoa Insights https://www.lumoa.me/blog/close-the-loop-with-lumoa-insights/ https://www.lumoa.me/blog/close-the-loop-with-lumoa-insights/#respond Fri, 23 Sep 2022 07:30:49 +0000 https://www.lumoa.me/?p=17199 Occasionally, you might get a feeling about your customers’ dissatisfaction with your latest line of products. However, you may not be able to fully understand the complaints. Or perhaps a mobile app that has recently been updated seems to have some issues, but you aren’t sure how to address them. Sadly, these problems may take […]

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Occasionally, you might get a feeling about your customers’ dissatisfaction with your latest line of products. However, you may not be able to fully understand the complaints. Or perhaps a mobile app that has recently been updated seems to have some issues, but you aren’t sure how to address them. Sadly, these problems may take too long to be solved. Worse, it may not even be addressed until another issue surfaces again.

Recently, Lumoa organized a webinar about Insights where we talked about the challenges in identifying emerging trends, root causes, and how to properly close the loop with your customers.

This interactive infographic presents excerpts from a webinar in which Garen (Product Marketing Mgr.) explains how Lumoa customer insights analysis can show EXACTLY what the customers are saying, conduct a root cause analysis, and identify the best way to close the loop with customers.

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How to close the loop 

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What is survey fatigue and how can you prevent it? https://www.lumoa.me/blog/survey-fatigue/ https://www.lumoa.me/blog/survey-fatigue/#respond Wed, 04 Jan 2023 04:00:04 +0000 https://lumoa.me/?p=16648 “How likely would you be to recommend (insert business name) to someone?” – An endless question asked in multiple ways and several forms. Almost every day it feels like a deja vu moment since every company says, “Your opinion matters” or “You are important to use”.   I mean, we get it. In order to […]

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“How likely would you be to recommend (insert business name) to someone?” – An endless question asked in multiple ways and several forms. Almost every day it feels like a deja vu moment since every company says, “Your opinion matters” or “You are important to use”.

 

Surveying

I mean, we get it. In order to maintain customer loyalty, businesses must engage customers until the very end and treat every customer journey equally. Nowadays, many businesses apply voice-of-customer programs to their operations and treat them as valuable sources of information since it shows that they value what customers have to say.

Furthermore, this makes it easier to close the loop with customers in the process. Many believe (and it makes sense) that customer experience can be any business’s unique value proposition against competitors. On the other hand, you need to consider that you’re not alone in wanting to have a positive customer experience.

Recently, I read a blog by Ron Miller (author at TechCrunch and former corporate blogger for Intronis) entitled “I’m so over customer surveys“. He talks about his annoyance with endless survey requests regarding company products and services.

In Miller’s view, a customer feedback survey is intended to enhance the customer experience, but in reality it compromises the customer experience itself. What makes it more difficult is the lack of understanding of how to take customer feedback.

Businesses sometimes don’t seem to be able to succeed with these kinds of initiatives. They didn’t realize that the business’ integrity was also being compromised as well as the customer experience. The question is, what can a business do to turn things around?

We already know voice-of-customer is important, but without further knowledge of how to use and analyze it, this can either make or break its effectiveness.

Here are three reasons why, and how you can prevent it.

Undefined goals that lead to nowhere

Are you asking the right questions? Many businesses are seeking answers. Knowing what makes your customers like or dislike your products/services is a game-changer. The problem is that some businesses tend to just start taking initiatives without prior knowledge of what they want to achieve in the first place.

Without a defined goal or objective, there will be no clear solutions. Before anything else, it is important to know what key performance indicators you plan to measure. This will give the data recording a logical result and will make the rest of the processing significantly easier.

Brad Cleveland quote

 

Survey fatigue will often occur

Yes, there is a thing called survey fatigue and it is more common than you think. There are two kinds, survey response fatigue, and survey-taking fatigue.

In a survey response fatigue situation, a customer is asked for feedback, but because anyone can only do so much, at some point, motivation for anyone to participate (even employees) will drop and a ripple effect occurs.

Survey-taking fatigue, on the other hand, happens when customers leave halfway through the survey process, or when surveys are too long, the user starts to lose interest in answering properly which results in surveys getting poor and inaccurate results.

Email spamming or even popping surveys on a page every time a user interacts with something is not a way to solve it and will trigger survey fatigue. One way to avoid this happening to customers or even employees is to properly time when and where this should be delivered. Set it up so surveys are done regularly (not daily).

Remember! There are ways in which a business can adopt a style of sending out non-intrusive survey requests, using tools that can integrate rules when delivering requests (e.g. follow-up survey after 6 months).

 

Ron Miller Quote

 

Untailored customer journey mapping

Creating a good customer experience also means meeting the goals at every stage of the customer journey. Otherwise, a customer will just feel lost.

Miller’s blog makes a very valid point, but unfortunately, this is happening in the opposite direction. Asking customer feedback every step of the way for every stage of a customer journey is not how a business should be doing it. This will only cause survey fatigue.

The intent gets clouded when you suddenly notice the same questions are being asked every time you engage in an interaction. This makes you think, does this company care what you tell them?

Map the journey. This is one way to make sure that your business has a customer-centric mindset. Align your operational data with journey maps to discover opportunities and perhaps see through what is not working.

Often, businesses give consumers the opportunity to tell what they think without filling up a survey through product reviews and or ratings. This is where the public can openly share their experiences.

Businesses should be able to analyze and assign this information at a certain stage of the journey. By doing so, it will avoid asking customers questions that have already been answered. Another option to make this simpler for everybody is to ask one open-ended question. Open-ended feedback has an increased chance of an authentic response. This is because respondents freely state memorable events during their interaction with a business.

 

7 ways to increase response rates of NPS surveys

 

When a business says “we value your thoughts”, I would like to assume that they mean what they say because otherwise, what is the point of all this?

Customer feedback, when requested, should, in my opinion, be used for both the consumer and the company’s benefit. This is because I believe there is always room for improvement when it comes to creating a positive customer experience.

 

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How to Sell Customer Experience to Your Organisation https://www.lumoa.me/blog/how-to-sell-customer-experience/ https://www.lumoa.me/blog/how-to-sell-customer-experience/#respond Fri, 01 Jul 2022 04:26:00 +0000 https://lumoa.me/how-to-sell-customer-experience-to-your-organisation/ To be an effective CX leader, you need to know how to sell customer experience to your boss, to the leadership team, to your peers, and to the whole organisation.

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If you want people in your organization to appreciate the value of customer experience, you need to learn how to sell customer experience (CX) to those who are not dealing with it day in and day out. It’s a rather simple idea to understand, but not an easy thing to do in practice. And that’s why CX is an area of business that’s often underappreciated, undervalued, and overlooked.

As a CX leader, it’s possible to feel a little demotivated by that.

You might get feedback from your team about their perception of not being taken seriously across your organization. Maybe they don’t get included in product decisions or informed when new marketing campaigns are run. They might feel frustrated and unhappy because they see huge opportunities for your company that isn’t being capitalized on.

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The only way to change this is by tackling it head-on. You need to learn (and teach) how to sell customer experience to your whole organization. While this isn’t something you can achieve completely by yourself, you can do a lot to influence the perception of CX throughout your company.

You can become a driver of change.

Increasing the standing of the CX team across the company is also the best way to increase investment in your team. The more your company invests in CX systems and teams, the more you’ll feel the positive impact on your customers (and your business metrics).

The research on customer experience value speaks for itself: 

In your quest to achieve those types of goals, it might be a great first step to start asking some questions regularly in your team meetings. For example:

  • What do we do to promote the customer experience?
  • How do we talk about the value of what we do?
  • When is the right time to raise a specific CX issue and how?

And while this is a great place to start, mastering how to sell customer experience is not a trivial task.

 

Why selling customer experience is challenging

There are a few common challenges when trying to make customer experience value visible across your company:

  1. Lack of good data
  2. Contact rate
  3. Competing priorities

Each of these challenges makes it harder for you to prove the ROI of customer experience and to sell other leaders on the importance of investing in CX.

Lack of good data

Many customer experience and customer insights teams suffer from a lack of good data.

Categorizing, analyzing, and quantifying different parts of the customer experience can be very time-consuming. Every CX team needs to figure out a reliable way to collect data before they can start providing meaningful insights to the company.

Desperation strikes as you try to find how to sell customer experience among a mess of customer data
When your customer data is messy, finding how to sell customer experience gets more complicated.

Messy and unreliable data makes it more complicated for you and your team to find how to sell customer experience. But fortunately, this is a relatively small hurdle to overcome. It’s often best to start with what you have—even if it’s not perfect—and begin building momentum. Over time, you can work to make that data more comprehensive and trustworthy.

Contact rate

Many people assume that customer experience refers to support tickets. That’s a limited view because your customers have many different touchpoints with your product and brand over time.

Support interactions are an important part of the customer experience you’re creating, but making them the main thing can hurt you. It creates one main challenge: Are the insights you gain from tickets representative of your customer base?

Only a very small proportion of your overall customers likely end up contacting you in a given month or quarter.

This doesn’t mean that you can’t use those insights or that they aren’t valuable. You just need to address this barrier proactively. You can either use data that shows these insights are representative or include other sources of feedback in your CX program to paint a fuller picture of your customer experience across different stages of the customer journey.

Competing strategic priorities

Let’s say you’ve managed to handle the other two challenges. You have some data and you can back it up well enough that it’s validated and taken seriously by other leaders in your organization.

Translating that data into meaningful action is your last and biggest hurdle.

Every company has a huge list of competing priorities. In the famous words of Steve Jobs, “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are.”

Every strategic decision comes down to deciding to focus on one thing over another. It’s on you to make the case that customer experience is one of the things that need to be prioritized.

How do you establish that customer experience brings a great return on investment? How can you even measure the impact of CX?

How to sell customer experience across your organization

There are three big things you can do to promote the customer experience across your company:

  1. Measure the impact that CX has on financial or business metrics
  2. Proactively advocate for CX across the company
  3. Develop the CX team so that you can represent the voice of the customer

Measuring the impact of CX

It’s okay to start selling CX with generic stats about how valuable customer experience can be across industries. You can make a general case about how a great customer experience drives sales and loyalty. This will translate to financial and business metrics, which is the bottom-line impact you’re looking to have.

Moving from generic to company-specific arguments is much more powerful. 

That may sound like a huge and intimidating project. That’s why starting small is the best way to begin. This is much easier to do when you already have some buy-in. You can build a case for CX for your CEO first to justify an initial investment, then branch out from there. 

Another great approach is to prioritize projects within your team that will have the biggest impact on the company’s success. If your product is business-critical for some of your customers, maybe great incident detection and response is how the CX team contributes the most. If you run a B2B subscription model, maybe relationship-building and customer success are what you should focus on.

ROI of Customer Experience

It’s easier to measure the impact of projects when you’re specific about what you’re prioritizing. Pick one area and make a change to the customer experience. Compare key metrics before and after the change to understand the impact. If possible, try segmenting your customer base and running A/B tests simultaneously to see the impact in real-time. 

Quantifying the business value and ROI of customer experience is tough, but it’s the foundation for mastering how to sell customer experience.

Advocating internally for the CX team

It’s easy to underestimate how much of an impact internal advocacy can have on changing the reputation of customer experience across your company. CX teams are often taken for granted and not given the attention of teams like Product or Sales.

As a CX leader, it’s your responsibility to figure out what to do to promote the customer experience and set the tone for how CX achievements and feedback are perceived across the company.

You can influence this in numerous ways:

  1. Build relationships with leaders across your organization. Do you have a good understanding of how CX impacts Sales and Marketing? Does your Product team listen to your feedback? Do you understand other teams’ priorities and strategic goals? CX impacts every area of your company, which means you have a great opportunity to collaborate across the board.
  2. Communicate your wins as a CX team. Find ways to track specific positive feedback from your customers. Are there situations where your team successfully retained a customer after a bad product experience? String together enough of these examples and you can make a much stronger case for customer experience value. 
  3. Encourage others to shadow the CX team. Look for opportunities to enable senior management, QA testers, developers, and others to interact directly with customers. It’s easy for teams—especially senior leadership—to become separated from your customers. Every time you can draw them closer to your customers you’re building momentum for CX initiatives.

Internal advocacy is worth investing energy into across all parts of your organization. It’s tempting to get stuck on the leadership level. Get buy-in from the top and it will translate to results, right? 

Focusing your attention on one or two teams is great as a starting point, but customer insights can be valuable across all teams. Every team will need something slightly different from you, but tailoring your communication and data to each audience will make it far more impactful.

Representing the voice of the customer

Voice of the Customer (or VoC) is a methodology used to understand how your customers feel about and experience your business.

You can use every piece of feedback and interaction you have with a customer to build this understanding. The goal behind running a VoC program is to enable everyone across the company to know what your customers need and want.

The CX team is often uniquely positioned to collect and share this information. If you’re looking to master how to sell customer experience, getting your CX team involved in building a robust Voice of the Customer program is a great way to get started.

The outcome of our VoC program should be clear analytics and reports describing your customer experience. It will arm you with specific and actionable insights whenever someone in your organization needs them.

Your VoC program should also include regular opportunities to update your company on CX initiatives. How did your latest marketing effort or product change impact your customers? How is your price increase being received? 

Customer experience value lies in your ability to digest data and translate it into meaningful insights to share with other parts of your organization. 

Is The Organisation Sold on CX yet?

After all the effort you have done to learn (and to teach your team) how to sell customer experience across your organization, a final question is legit: how do you know if you’re being successful and all departments truly understand the value of CX? 

This is something you can probably figure out in the long term, but there are some early signs you should look out for. Those are:

  • People across your organization proactively ask the CX team for input and feedback.
  • More money and company investments are directed toward customer experience.
  • Customer metrics and business KPIs, like customer loyalty and churn, see hand-in-hand improvements.

Remember that changing perception across an organization takes time and mastering how to sell customer experience is no trivial feat. And at the end of the day, the more people you get on your side and the more things they will do to promote the customer experience, the more empowered your CX team will be to help your company succeed.

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The State of the Shopping Apps Report for 2022 https://www.lumoa.me/blog/shopping-apps-report-2022/ https://www.lumoa.me/blog/shopping-apps-report-2022/#respond Fri, 20 May 2022 04:21:08 +0000 https://lumoa.me/the-state-of-the-shopping-apps-report-for-2022/ In our State of the Shopping Apps report, we explore the performance of the top ecommerce apps on Android and iOS based on customer feedback.

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Online shopping has become the norm across a wide range of industries and this practice is still on the rise. Retailers need to assess all of the potential variables impacting the performance of their shopping apps to be successful and customer reviews allow them to collect feedback directly from the source. 

According to our State of the Shopping Apps Report for 2022, technical variables have a huge impact on customer satisfaction levels – but the list of factors that users take into account doesn’t stop there. 

Our State of the Shopping Apps Report for 2022 breaks down the customer satisfaction performance of the top shopping apps in the Google Play Store as well as the Apple App Store. In addition to the overall performance analysis, we also detail the specific variables that have the biggest influence on customer satisfaction across three statistical categories.

Download the 2022 State of Shopping Apps report

What’s Inside Our State of the Shopping Apps Report

The digital revolution has brought a myriad of changes to the retail industry, including the birth of online shopping. While effective feedback collection mechanisms have been in place for some time, retailers of all sizes still encounter difficulties when analyzing this data. In many cases, this is due to the format of the feedback or the sheer volume of reviews that need to be assessed individually. 

Through our ecommerce apps ebook, we aim to establish a connection between factors that impact the customer experience and the influence that these variables have on satisfaction levels. 

However, we’re also tackling one of the industry’s biggest challenges to date: transforming tens of thousands of customer reviews into actionable data that can be used to make business decisions.

Our shopping apps performance report includes.

  • An explanation as to why users have a better experience on Android mobile shopping apps than on iOS platforms.
  • How usability elements and technical variables influence the shopping experience.
  • What factors separate leading shopping apps from bottom performers.
  • The different elements that are essential to a good mobile shopping experience.
  • Insights about the top performing shopping app categories (spoiler: beauty and grocery apps).
  • Textual examples of customer reviews that illustrate their pain points.
  • Non-app related variables that impact customer experience.
In our State of Shopping Apps Report, customers seem to prefer shopping for beauty and grocery products
Mobile consumers prefer shopping for beauty and grocery products. Download the full shopping apps report to find out why.

The Impact of Customer Satisfaction and Loyalty

All ecommerce companies want customers that purchase products on a regular basis, are loyal to the brand, and share their experiences with their inner circles.

Ensuring high customer satisfaction levels can help you achieve these goals and place your retail business on a growth trajectory. Here are some of the benefits that, according to PWC, are associated with high customer satisfaction levels.

A Higher Price Premium

Customers are willing to pay up to a 16% price premium across all industries when subjected to a great experience, and this statistic doesn’t factor in higher loyalty rates. Loyal customers can result in more referral sales and a higher loyalty program subscription rate.

More Recurring Customers

Generating sales from existing customers is more affordable than attracting new clients. A great customer experience means that customers are more open to trying additional products and services from your brand. This is because consumers evaluate a company’s overall quality, in large part, from its customer service.

Better Resource Allocation

It’s estimated that 3 out of 5 consumers in the US are willing to share personal data with companies that make them feel valued. This data can be used to create detailed marketing campaigns and to allocate resources to the more profitable channels.

Download the 2022 State of the Shopping Apps Report

Do you want to learn the true impact of customer reviews and understand the elements that impact client satisfaction levels? Download our State of the Shopping Apps Report for 2022 today.

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How to Use Customer Feedback to Drive Action https://www.lumoa.me/blog/how-to-use-customer-feedback/ https://www.lumoa.me/blog/how-to-use-customer-feedback/#respond Fri, 03 Jun 2022 04:45:39 +0000 https://lumoa.me/how-to-use-customer-feedback-to-drive-action/ Collecting reviews is crucial, but learning how to use customer feedback is a completely different process. Learn how customer feedback can drive action in this blog post.

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There is no doubt that customer feedback is one of the most valuable resources that companies have available. When used properly, reviews and other types of feedback allow enterprises to develop engaging marketing campaigns, design better products, and make strategic decisions based on what customers expect from their products and services.

Nevertheless, learning how to use customer feedback to drive action poses a significant challenge, especially for organizations that leverage multiple channels to collect mass feedback.

At Lumoa, our goal is to look at customer feedback to tell companies what to do next to grow their organizations. In one of our latest webinars titled How to Use Customer Feedback to Drive Action, we pose a sustainable strategy to solve the challenge of transforming mass reviews into information that can be used while making key company decisions.

This webinar was organized in partnership with customer experience pundit and CXMania founder Matthieu Bonelli, so we’ll be including some of Matthieu’s most valuable insights in the form of quotes edited specifically for this piece.

How to Use Customer Feedback to Drive Action - Webinar Banner

Three Key Elements to Effective Customer Feedback Collection

It’s difficult to analyze feedback without a strategy, so the first thing that companies need to do is develop an assessment process that starts with effective customer feedback collection.

According to Matthieu Bonelli, the feedback collection process should be developed using three key concepts.

Focus on Sentiment Rather than Quantitative Ratings

“There’s no need to ask 50 questions and there’s no need for all of these to be quantitative. You know, asking customers to rate satisfaction on a scale from one through five,” says Matthieu.

“What is important is to use sentiment analysis in order to determine what customers have to say about the experience they just had. The goal is for them to show you the pain points they are experiencing right now, that they may not share later.”

Time Your Questions Properly

According to Mattieu, “it’s also important to ask the right questions at the right time and to have everything as open and unbiased as possible. We’re performing sentiment analysis and that means a lot of qualitative feedback.”

In other words, time your survey questions right in order to get feedback about a specific topic. Customers should have the ability to provide feedback after every key interaction so that they can express opinions about their individual experiences, rather than a general rating that holds less value.

Develop an Effective Analysis Process

“There will be a lot of comments coming into the system so you don’t want to have a free-response survey with ten thousand replies in an Excel sheet. You need to time questions properly and have a tool that allows you to categorize the feedback in order to perform a quick analysis,” says Matthieu.

The idea here is to find a mechanism that allows you to accurately parse and understand qualitative or free-response questions on a large scale. Manual reviews are not a sustainable strategy, even for large corporations. So, it’s necessary to look at your resources and the tools you have available to develop a tailored system to manage online reviews and understand the feedback you collect.

Customer feedback, different speech bubbles.
Analysing customer feedback manually is often impossible. There are tools to help you understand the feedback you collect.

How to Use Customer Feedback to Drive Action

Once you’ve created a plan to collect and assess customer feedback properly, it’s time to transform this data into actionable information.

In short, Mattieu’s process is designed to drive action through feedback by understanding feedback, prioritizing the biggest pain points, and sharing the steps that need to take place with the team.

1. Get the Full Picture

“Customers will tell us what is important to them in their own words. The analysis tool should categorize the comments and help us understand what reviewers are saying in a more general sense. At this point, you can have positive as well as negative sentiments because users will want to speak their minds whenever they get a chance to be heard,” says Mattieu.

Matthieu continues by adding that “you need to figure out what feedback you want to hear first. This will reveal what you’ve done as well as the steps you should take to further focus on satisfaction and give customer importance throughout the entire journey.”

Implement Tools that Accurately Categorize Sentiment

Having a powerful feedback analysis tool is the only way to categorize sentiment property when assessing a large number of reviews. “This allows you to link what’s important to consumers and what they are satisfied with. We mentioned these two elements before, satisfaction and importance, so it’s crucial to guarantee both at every touchpoint,” continues Matthieu.

Consider Different Touchpoints

It’s necessary to gather reviews from all the touchpoints because it gives users the ability to rate experiences individually. Besides learning how users feel at each touchpoint, it also helps customers stay unbiased when evaluating each experience.

“When you send a survey to consumers you’re giving them the ability to speak. If they haven’t had another opportunity, they will take this chance and tell you about everything. This is why it’s very important to collect feedback from all the touchpoints. If you check in at different stages, you can create a voice of customer map that tells you how users feel at every touchpoint and use these as queues to figure out what areas need work.”

2. Find Out the Root Cause of the Problem

Collecting and categorizing feedback is a great step, but according to Matthieu, this is just the beginning.

“You need to go deeper because this will allow you to get to the root cause of the problems. The good news is that we are in 2022 so you don’t need to read every review to find out what’s wrong. Thanks to tools like Lumoa, you already have categories and filtering options as well as other features to help you,” continues Matthieu.

Here are a few steps that can help you zero in on the root cause of the negative feedback.

Remove Biases and Avoid Making Assumptions

“I ask clients ‘what do you think are the three main pain points you have within your company?’ you know, the pain points that customers are most vocal about?” says Matthieu.

“A lot of times I get answers like delivery times. But, after assessing the feedback, shipping is what customers are most satisfied with because they have the expectation that ecommerce takes a few days. We need to remove biased logic and take the picture for what it really is.”

Leverage the Most Valuable Feedback

“When the customer completes the buyer’s journey, we go from getting payments, to seeing a list of customer pain points and reading ensuing comments. This part, reading the comments, is key to everything we’re trying to do, in my opinion. By analyzing the most valuable feedback, you’ll motivate your team and connect the negative sentiments with the appropriate factors,” says Matthieu.

3. Prioritize the Most Important Obstacles

“If you do a great job collecting feedback, you may end up with 40 or 50 pain points. How do you prioritize these? That’s the goal after all,” says Matthieu.

Assess the Impact of Each Blocker and Create a List of Priorities

“The objective is to get specific actions from the entire customer experience. If a pain point is so big that it will break the user experience, it needs to be addressed. If it’s annoying, it needs to be worked on, but it can be prioritized later on after the major problems have been addressed.”

“In order to assess the impact of each negative variable, you should create a rating scheme. The simplest is the following: if a negative factor is big enough to break the experience and result in a lost customer, it needs to be prioritized right away. No questions asked,” continues Matthieu.

“More basic issues that hinder the experience, but are not big enough to completely disrupt the purchase process, are second priorities. For example, if you notice that customers complain about a slow payment page, but continue to purchase from you, it’s an issue you need to address but it doesn’t necessarily have to be right now. And that‘s how the prioritization process works.”

4. Share the Message with Your Team

“After completing the work, the last step is to tell the story to your team. In one project, we presented the analysis from customer feedback in a group meeting called international meeting day. It was basically designed for us to share specific pain points and show data around them,” says Matthieu.

Set the Right Goals and Expectations

According to Matthieu, “it’s fundamental for companies to set goals and expectations because these serve as a basic premise for their teams. As a business, it’s important for employees to know the areas that they should exceed in because it simply sets the right tone.”

Remember, to set the right expectations, you need to coordinate with other decision-makers and department heads and agree on the essential elements that will help you achieve success. Only then you’ll be able to set the right set of objectives for your team.

Create Best Practices

Creating best practices is essential and this process may be easier to assimilate if your team is involved in the development of these habits.

“During one of our meetings we showed the map highlighting the pain points and comments illustrating them. Most of the time there was no movement while feedback flashed. Until we got an email from an annoyed customer saying that some products were not available although they appeared in stock at the time of purchase. It said something like ‘in 2019 this is a rather poor and disappointing ecommerce experience, our issue is real amateur’ and a huge silence followed after I finished reading,” says Matthieu.

“The CEO was in attendance and he put his head up saying ‘I don’t care how long it takes, we have to drop everything and fix this’ and so next morning I had emails from team members asking for the responsibility or to get a project started to collaborate.”

Want to Drive Action Using Your Customer Feedback?

Transforming customer feedback into actionable steps requires an organized approach that allows you to get a full picture, find the root of the problem, identify key obstacles, and get your whole team on board.

We hope that the tips provided by Matthieu during our webinar help you on your quest to create a more effective system for using feedback to drive action.

If you want to learn more about implementing Lumoa as part of this mechanism, get in touch with us today and we’ll be glad to help.

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Introduction to Customer Experience Design https://www.lumoa.me/blog/customer-experience-design/ https://www.lumoa.me/blog/customer-experience-design/#respond Wed, 10 Nov 2021 09:40:23 +0000 https://lumoa.me/a-helpful-introduction-to-customer-experience-design/ CX design helps organizations act more customer-focused, which in turn promotes decisions that empower, engage, and enlighten customers.

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The relationship between businesses and their customers is changing. As companies increasingly pivot towards providing online interactions, your business needs to keep the customer experience in mind.

To do that, you’ll need to come up with a strategy for how you integrate multiple technologies to attract, retain, and delight your customers at every stage of your sales pipeline. You can accomplish this feat by focusing on your customer experience design.

What is Customer Experience Design?

The customer experience constitutes various touchpoints from the beginning, middle, and end of the customer journey. Customer experience (CX) design is the process of finding ways to leverage those experiences so they engage and thrill customers throughout the lifetime of their relationship with a brand. 

By making customer-centric decisions for everything from products and services to public statements and advertising campaigns, a company can optimize the customer journey through transformative customer experiences, thereby creating a more loyal and enriching customer-brand relationship.

CX design helps organizations act more customer-focused, which in turn promotes decisions that empower, engage, and enlighten customers. Organizations that dedicate their energies to customer experience design find ways to let their customers know that they are valued, and commit to a strategy that can lead to measurable improvements in churn, retention, conversions, and ROI. 

A good CX design addresses the subjective and objective needs of the customer. It acknowledges that a customer’s feelings and impressions of a brand are just as important as the money they spend on it. 

The Difference Between UX and CX Design

Before we proceed, we must make a distinction between customer experience design and user experience (UX) design. 

Customer experience includes all of the interactions that a customer has with your brand. This includes a customer’s first impression of your business, their feelings connected with your brand, and the likelihood that they will continue using or recommending your products and services.

Meanwhile, user experience concerns the specific, transactional interactions that a customer has with your business. UX design focuses on helping customers to navigate your website, locate your products and services, make a purchase, and contact your customer service staff. 

In short, all user experiences are customer experiences, but not all customer experiences are user experiences. 

Difference between UX and CX design - Lumoa
Source: Digital.gov

UX is an essential part of CX and should feature heavily in any customer experience design. After all, any company should want people to enjoy using its products and services, which is what UX is all about. However, it is only a piece of the puzzle, albeit a concrete one. 

Why is Customer Experience Design Important?

Even before the covid-19 pandemic, customer experience design ranked high on the list of strategic initiatives for many businesses. 

Around 45% of professionals believe that a company’s main focus should be on optimizing CX over pricing and product design. It’s easy to understand this sentiment, given that nearly 75% of buyers indicate that they would pay more for a product in exchange for a great customer experience. 

Business priorities - Lumoa
Source: SuperOffice

A solid customer experience helps to build brand loyalty, which in turn lowers churn and increases the lifetime value of the client relationship. 

At the same time, the pandemic has made accelerating the customer experience more important than ever. 

It’s difficult to stand out in a crowded space, and nowhere is this more true than in digital commerce. With more and more businesses shifting their operations to web and cloud-based solutions and given that 82% of customers will leave a brand over a bad customer service experience, there has never been a better time to consider how your business approaches CX design.

Customer experience - Lumoa

5 Key Principles of Customer Experience Design

Nurture Your Brand Identity

Most successful brands got to where they are because they took the time to develop a strong brand identity. 

Your brand identity includes everything from your products to your style, marketing, customer service experience, core values, and everything else that influences how customers perceive you. 

To nurture your brand identity, you have to first know who you are as a company. From there, you must find ways to express and share your identity so people instantly recognize your brand and associate it with your products or services. 

Empathize With Your Customers

Customers want to believe that the brands they support care about them. Developing customer empathy is the first step to creating a deep connection with your customer, which can help foster brand loyalty, grant better insights into customer motivations, and lead to improved problem-solving.

When creating your customer experience design, keep in mind ways that you can invite customers to engage with your brand. Surveys, reviews, and feedback forms can help you collect data about how customers feel about your processes, products, and services. You can then leverage this data to make customer-centric decisions that drive engagement and boost brand loyalty. 

Map the Customer Journey

The customer journey contains multiple touchpoints, each of which involves unique experiences. In order to understand this journey and the pain points that occur at each step, it helps to visualize all of the ways that a customer can interact with your brand through every stage of your relationship. 

Creating a customer journey map will allow you to outline all of the opportunities and challenges present in each interaction between a customer and your brand. You can then use this information to tailor your CX design to address common pain points and identify areas where you can improve.

Customerjourneymapping - Lumoa
Source: Bright Vessel

Personalize Communications

Never underestimate the power of personalization. 72% of customers only choose to engage with brands that use personalized messaging, which means that companies that take the time to get to know their customers can gain a serious competitive advantage in attracting, engaging, and retaining customers. 

Customer experience is subjective and varies wildly depending on the interactions and touchpoints that a customer encounters during their engagement with a brand. By making personalization a part of your customer experience design, you can smooth out potential pain points that occur due to miscommunication and reduce the impact of any negative interactions. 

Emphasize the Digital Experience

Gone are the days when the majority of people go to a store and conduct business face-to-face. More and more people expect to get the answer to their questions across multiple platforms quickly and easily.

By emphasizing the digital experience, you can make sure that your online integrations are created with the user experience in mind. This may include adding omnichannel communications, email and content marketing, VR or AR experiences, and any one of a number of digital solutions to make the customer’s online experience with your brand more enjoyable and rewarding. 

What Does a Good CX Design Look Like?

Microsoft

Microsoft customer experience design

It’s difficult to point to a segment of the customer experience design that Microsoft doesn’t do well. For the past few decades, Microsoft has invested heavily in making both its partners and customers feel like their opinions and input are valued. 

Microsoft shares its best practices with other companies and emphasizes making its products easy to access, use, and customize.  

It maintains a well-curated online and social media presence, enabling customers to interact seamlessly interact with its brand across multiple platforms. By focusing on the digital experience and empowering its customers, Microsoft ensures that its followers stay devoted to its products and services. 

Adidas

Adidas Customer Experience Design

 

 

 

 

 

 

 

 

Despite the decline in brick-and-mortar stores, increased competition, and pandemic-influenced shopping stoppages, Adidas has managed to weather these complications through its focus on creative customer experience design. 

It all started when Adidas dedicated itself to optimizing the digital experience for its customers through the release of the Adidas App, which provides customers with a personalized shopping experience based on their behaviors and preferences. 

Adidas has also empowered its customers by listening to their desires for more sustainable products with the release of the new 100% recyclable Futurecraft, Loop shoes. Decisions like these help to curate Adidas’s brand identity as a company that cares not only about the planet but also the feelings and desires of its customers. 

Netflix

Netflix Customer Experience Design

Few companies use personalized communication better than Netflix. The popular streaming service makes personalization a core tenet of its customer experience design, which has helped to fuel its atmospheric ascent.

Using sophisticated artificial intelligence, Netflix takes customization to a whole new level by presenting customers with tailored playlists based on their viewing history. In addition, it provides each title with a score that measures how likely it is that the viewer will enjoy watching that program. 

Netflix diligently tracks how often – and how long – viewers watch each title and uses this information to promote certain programs and develop new content. Through their viewing behavior, Netflix customers directly impact the programming that is available on its platforms, which drives increased engagement and provides a more empowering customer experience. 

Why Customer Experience Design Matters

The current trends in customer experience design point to its increasing importance in helping businesses to distinguish themselves from their competitors. 

CX design turns customer insights into a resource that your business can leverage to raise your brand recognition, reduce pain points, and fuel financial growth. If you invest time identifying your brand identity, empowering clients, mapping the customer journey, personalizing communication, and optimizing the digital experience, you can take your CX design to the next level and strengthen the relationship between your company and customers. 

Customer experience - Lumoa

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Actionable Insights: What, Why and How https://www.lumoa.me/blog/actionable-insights/ https://www.lumoa.me/blog/actionable-insights/#respond Thu, 01 Apr 2021 03:48:00 +0000 https://lumoa.me/actionable-insights-what-they-are-why-theyre-important-and-how-to-get-them/ Actionable insights are data sets that prescribe any direct, meaningful actions you can take based on the analysis of raw data.

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Knowledge is power. It’s a cliche saying. Nevertheless, it’s still true. We spend lots of time, energy, and effort getting feedback and insight from customers. Whether it be through surveys, heat maps, or some other means, we try to learn all the time. 

Gathering information is an important thing to do. But what’s most important is what you do with the information you get. Does it allow you to improve your product? Or, perhaps, it could help you overhaul your customer journey. Putting information to work for you is the only way to get any benefit from it. 

The way you collect information matters too. How do you make sure you get the right information to inform business decisions? It’s not as straightforward as you may think. 

In this article, we cover what actionable insights are, why they’re important, how to collect the information you want and some tips on taking action. 

What are Actionable Insights? 

Actionable insights are processed data sets that prescribe any direct, meaningful actions you can take based on the analysis of raw data.

For example, let’s say you’re looking through survey responses and see that you have a large drop-off point after the fifth question. The actionable insight would be to change the design of the survey and rephrase/change the question. 

It wasn’t a hunch or something anecdotal that led you to that choice. You came to it after reviewing the information at hand and there were hard numbers you could look at. On the other side of the coin is data that you already know, or that you can’t find any sort of pattern for. 

Example of actionable insights 

Let’s go through some examples of actionable insights and non-actionable insights. 

Example 1

Insight: An auto repair shop knows that the number of oil changes increases in May.

VS.

Actionable insight: An auto repair shop knows that the number of oil changes increases by 20% in May. 

Example 2

Insight: Feedback from customers reveals that your App is not working properly. 

 VS.

Actionable insight: Feedback from customers reveals that 100 people have mentioned that the login function is not working properly. 

Example 3

Insight: Your NPS score dropped by 5 points last month.

VS.

Actionable insights: Your NPS score dropped by 5 points last month due to an unsuccessful software update. 

As you notice in the examples above, what distinguishes actionable insights from “normal insights” is that an actionable insight will give you concrete data that backs up the stated insights. Non-actionable insights are just statements, that are “nice to know” but you don’t get understand the “why” behind it. 

Some customer insights tools like text analytics are specially developed for finding actionable insights from customer feedback. 

 
insights from customer feedback
Lumoa can find insights automatically from customer feedback

With this example from Lumoa, you can easily identify the topics that have the biggest positive or negative impact on your metric, and you can also see exactly how much it drives the score up or down. 

In addition, Lumoa also identifies the most mentioned insights in the feedback, that help you uncover issues and understand the customers better. 

Why are Actionable Insights Important?

As we mentioned earlier, actionable insights help you make decisions. More than that, they allow you to make informed decisions. 

Sometimes you have to try new things without any data to back it up, but there is a lot more risk involved in those circumstances. 

In Lumoa State of CX report, said 38,2% of leaders within CX that they want to improve the actionability of customer feedback and customer experience metrics.

Sk25C325A4rmavbild2B2019 07 032Bkl.2B10.28.41 - Lumoa

Actionable insights allow you to make strategic, well-thought-out decisions. 

Though some may debate how granular to get, even the smallest details can bring huge returns. Google ran a test of 41 different shades of blue for advertising links to see which performed best. This may seem like overkill, but the end result was that they increased their ad revenue by 200 million dollars that year by optimizing the color. 

Is that going to be a common outcome? Probably not. 

However, it does illustrate how important it is to test and consider your options. Many companies say they want to be data-driven, but few actually put it into practice. According to Forrester, 74% of firms say they want to be “data-driven” but only a few – 29% – say they can actually connect the data they collect to actions they can take. 

Gathering Insights

In order to get actionable insights, you need strong data. Typically, you can find actionable insights by collecting customer feedback.

The most common way to collect customer feedback is through, surveys, social media, online reviews, or chat. According to research, 64% of customers prefer to give feedback in-app. The most usual way to collect in-app feedback is through surveys.

Guide How to Calculate the 5 Most Important Customer Experience Metrics and KPIs - Lumoa

If you want to collect feedback through surveys, then the three most commonly used surveys are: NPSCSAT, and CES. Each has their pros and cons, but all are useful. Below is a brief overview of each type of survey.

  • CSAT – CSAT is simply an abbreviation of “customer satisfaction.” In some ways, it’s a catchall term but refers to a pretty standard type of survey companies send out.
How a CSAT survey can look like
How a CSAT survey can look like. Image by Retently.

The goal of these surveys is to see how satisfied a customer is and generally focuses on one interaction. It’s very common to use a 1-10 or 1-5 scale to measure how satisfied they are. These surveys may include other questions to gain qualitative data, but the number of questions are directly used to calculate a CSAT score.

  • NPS – Net Promoter Score surveys are very simple and only contain two questions. A scale question asking the customer how likely they are to recommend your company to someone on a scale from 1-10, and then a question asking why they gave the answer they did. It’s a very straightforward survey.
How an NPS survey may look like.
What an NPS survey may look like.

NPS is more worried about measuring the overall sentiment of customers to find who your “promoters” and “detractors” are. Also, since NPS surveys are shorter, completing them is generally easier for the customer.

  • CES – Customer Effort Score is a little bit different than the two mentioned above since it’s more concerned with figuring out how much effort, as the name suggests, the customer had to exert to accomplish their goal.
How a typical CES survey can look like.
What a typical CES survey can look like.

Measuring the effort is useful to find if there are any pain points in your product or areas of friction you could smooth out. In terms of actionable insights, CES can provide the most straightforward information.

If you want to read more about different metrics, then check out our article where we have made a top list of the most popular customer experience metrics.

Turning Feedback Into Action

Once you’ve gathered your data the first step to turning it into action is organizing. There isn’t one specific way to do this but there are three buckets most feedback falls into:

  1. Customer Service Feedback
  2. Product Feedback
  3. Sales and Marketing Feedback

The categories mentioned above are the general buckets and you’ll probably have subcategories for each to get more granular. For example, product feedback may be broken down further to bugs and feature requests. 

Data is only good to you if you can do something with it. As we mentioned above, after gathering you need to organize the data into different buckets. Doing this not only allows you to start understanding the value of the insights and what the data actually is telling you, but it also allows you to deliver it to the proper people and teams.

Once you’ve delivered the sorted data to a specific team, they can review it to see if there are common threads in the data. Perhaps you see that lots of customers are complaining about the lack of self-service options, in that case, you know that you need to build out those features. Though data is a good way to get new ideas, it’s also a way to validate ideas you already have.

If you had some plans to build out five different features data collected could help you prioritize building certain features over others. You may even find that customers aren’t excited about a proposed feature, meaning you could remove it from your roadmap altogether. That’s still a win because it frees up time for your team to work on projects users actually want.

Conclusion

Understanding your customer’s needs is very useful to your business. According to a Harvard Business Review study, the fastest-growing companies develop an advanced understanding of how their technology impacts the human experience. They constantly rely on feedback from customers to move forward.

Data is only useful if you put it to work for you. Gathering information can be a tricky first step. Once you’ve found the best method to get feedback, you need to organize the information. Deliver the data to the right parties so they can dive deeper and find new insights or confirm ideas. Once you have those insights prioritize, make a plan, and execute. When you complete those steps you’ll be well on your way.

Webinar Close The Loop With Customer Insights - Lumoa

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What is Qualitative Data and Why You Should Collect it https://www.lumoa.me/blog/what-is-qualitative-data/ https://www.lumoa.me/blog/what-is-qualitative-data/#respond Wed, 23 Jun 2021 08:16:36 +0000 https://lumoa.me/what-is-qualitative-data-and-why-you-should-collect-it/ While numbers and ratings from research are easy to analyze, businesses require insightful qualitative data to have a complete picture of their customers.

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Collecting qualitative data is necessary when improving customer experience, and customer service, or when you want to maximize sales, and business growth. While numbers and ratings from research are easy to analyze, businesses require insightful qualitative data to have a complete picture of their customers. 

What is Qualitative Data?

Qualitative data is data that describes qualities, patterns, and characteristics, usually in the form of descriptive words. 

Unlike quantitative data, which generally gives you numerical values that you can see at face value—qualitative data is a narrative. It allows you to create implications and recognize patterns based on in-depth responses to questions. 

Businesses need data to back up their decisions. From sales and marketing to customer experience, your business must collect feedback to recognize patterns and understand where you need to make improvements.

Qualitative data gives you a more complete picture of customer behavior. It shows you the perspective of the customer and the reasons for their decisions. If you can find out why your customers consistently behave the way they do, you can understand how to provide better service for them. 

Examples of Qualitative Data

To get qualitative data, you must conduct some form of meaningful qualitative research, such as collecting feedback with surveys where your customers have the option to freely express their thoughts. 

Researchers say, “Qualitative research can help researchers to assess the thoughts and feelings of research participants, which can enable the development of an understanding of the meaning that people ascribe to their experiences.” 

That means that if you collect qualitative data it will provide insight into the feelings and meaning behind the behavior of your customers.   

Examples of qualitative data include:

  • Responses to interview questions 
  • Written responses from customer questionnaires/surveys
  • Notes from focus groups

These methods’ responses are written descriptions, narratives, and short answers that will tell you more about your customers.

- Lumoa

What is the Difference Between Qualitative Data and Quantitative Data?

Both qualitative and quantitative data have pros and cons that will determine which one is best to use in a specific case to gather the information you need. 

Quantitative data

Quantitative data is usually in the form of a numerical value. 

When customers fill out a survey with a rating scale or ask your customers to answer a poll, both of these research methods will give you a numerical value or a percentage. 

This information is easy to graph, and you can use this information to predict customer behavior. 

Quantitative data is excellent for computing numerical information. It provides concrete evidence to test a hypothesis and prove specified conditions. 

Quantitative data lacks the ability for your respondents to elaborate on their answers. With numbers, you can’t tell why you’re seeing the behavior and decisions on the respondent’s part. 

Qualitative data

Qualitative data are narrative responses that tell you why customers do what they do.

It will tell you how customers feel so that you can understand their behavior and why they behave that way. Qualitative data gives you the customer’s point of view and allows you to identify strengths and weaknesses. 

Qualitative data provides a direct customer perspective with narrative answers, so you can understand how customers feel. It allows you to understand the customer’s perspective to develop customer empathy. 

Collecting qualitative data can take time. Since it does take time, it is usually more difficult to gather from a larger sample size. Also, since you make the conclusions from the qualitative research, there is more room for error when trying to understand customer behavior, due to the subjective nature of the data. 

Why collect Qualitative Data 

Qualitative data is useful when you want to track particular behaviors. The key to getting value from your qualitative data is using it to identify patterns, repeat responses, and commonalities between customers. 

By collecting qualitative data, you understand things like customer empathycustomer loyalty, and customer engagement. Responses to questionnaires or short interviews will tell you how the customers feel about your brand, why your customers stay with you, and overall, why they enjoy your products or services. 

You use qualitative data when you want to analyze your customers’ behavior or if you need insight into the motivations and feelings your customers have behind their decisions. Qualitative data is also useful when you want feedback about your performance. Your clients can give you direct reports about how business is going from their side. 

You can also use qualitative data to understand how customers are emotionally connected to your brand. You can use it to determine why they give you brand loyalty and how your brand stands compared to the competition. 

These are all forms of qualitative data that you can gather through a few research methods. 

How to Collect Qualitative Data 

The most common ways to collect qualitative data are through:

  • Observations
  • Interviews
  • Surveys & Questionnaires

Observation

Observations are when you observe a particular behavior and identify factors that affect that behavior. You might observe a customer call where a customer is troubleshooting a problem with one of your employees. You can take note of customer responses and behavior. Notice how your employees tend to service different issues. This qualitative data will help you understand how to keep up the quality of customer service that you provide. 

Interviews

Interviews are another way of collecting qualitative data. The most important part of the interview is asking the right questions to get the answers that address the behavior in question. You want to ask a question that guides the customer to giving you an informative answer. Take notes on what customers say and keep in mind similar responses from different customers. 

Surveys & Questionnaires

Finally, there are surveys and questionnaires. Surveys help you ask a series of questions and get insightful answers quickly. If you’re taking a qualitative approach with surveys and questionnaires, make sure that the questions are open-ended questions that require the customers to explain or describe. Refrain from using multiple-choice answers designed to get a numerical value in your results. 

Questionnaires and surveys typically allow the respondents some space to type their answers in a few sentences. You can think of surveys and questionnaires as a way of asking the same interview questions to a larger sample size. It’s a great way to collect qualitative data at scale.  

Observations, interviews, and questionnaires will give you responses that are elaborate and that provide perspective. Take note of the patterns you notice in responses and use qualitative data and quantitative data to show customers that you value their business and want to serve them better. 

Have a mixed approach – collect both types of data

While qualitative data plays the role of showing you the emotions, motivations, and points of view of your customer, it’s crucial to also collect quantitative data when conducting research in a mixed methods approach. Experts define mixed methods as utilizing both quantitative and qualitative methods of research to get more complete results. 

Your quantitative research will essentially tell you what your customers are doing and tell you how satisfied your customers might be. Your qualitative data will tell you why your customers are doing what they do and how they feel about it. 

Using this mixed methods approach allows you to make better marketing, sales, and customer service decisions in the future. Ultimately, both methods inform your customer empathy and help you bring more value to your clients. 

With NPS you collect both qualitative and quantitative data

For example, you send an NPS survey to your customers where they can motivate their answers. The written answer in this case would be qualified as qualitative data, and the number they picked would be equal to quantitative data. 

Collecting qualitative data is a great way to gain insight into why customers like certain products, your strengths, and weaknesses, which products need improvement, and ultimately how to make good decisions for better service in the future. 

Analyzing customer feedback that contains qualitative data

Analyzing qualitative data can be challenging and time-consuming. Qualitative data is almost always unstructured, which makes the analysis hard since there are no clear patterns or ways to group your data. 

However, nowadays there are tools like Lumoa that allow you to analyze customer feedback automatically for you. 

Analyze qualitative data with Lumoa

Lumoa Customer Experience Analytics will automatically find the most important insights and key drivers from your qualitative data, which means that you don’t have to manually analyze and search for insight patterns in your data. 

You can find out more about Lumoa here.

ROI of Customer Experience

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Customer Feedback Loop: What Is It and How to Close It https://www.lumoa.me/blog/customer-feedback-loop-what-is-it-and-how-to-close-it/ https://www.lumoa.me/blog/customer-feedback-loop-what-is-it-and-how-to-close-it/#respond Tue, 13 Oct 2020 05:25:52 +0000 https://lumoa.me/customer-feedback-loop-what-is-it-and-how-to-close-it/ Closing the customer feedback loop drives your business forward with a customer-centric strategy while including your customers in a dialogue about positive changes based on their needs.

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The customer feedback loop is a term that you might have heard before. But what is it actually? In this article, we’ll explain to you what customer feedback loops are, explain the difference between the inner and the outer customer feedback loops, and give some concrete examples of them. 

More and more companies are turning to customer-centric business strategies to differentiate themselves from the competition with customer experience. Customer-centric businesses are not only more relevant to customers, but 5x more likely to be a top competitor in their industry, and 4x more profitable than competing businesses that don’t focus on customer experience (Forrester, 2016). Every customer-centric business strategy centers around putting the customer at the core of the business, and that means closing the customer feedback loop.

While surveys like NPS, CSAT, CES, or market research can be helpful tools for understanding your customer base, they come with their own share of challenges. For one, they require the participant to opt in. For companies that have trouble achieving high enough response rates, this raises issues with statistical validation based on sample size, making any data collected less actionable. 

This is why more and more companies with successful CX and voice-of-customer programs have turned to the front lines, using text feedback from on-the-ground individuals who interact with your customers every day through support conversations or through responding to online reviews. That’s where the real informational goldmine is. To maximize information received from the customer-facing team members of your business, it’s important to establish the customer feedback loop.

What is the Customer Feedback Loop?

Mature CX programs have customer feedback coming at them from all directions: NPS surveys, CSAT ratings, CES (customer effort score), and even activity and behavior monitoring. But all companies, even companies with less mature programs, get tons of customer feedback thrown their way from another source: the customers themselves. 

Conversations with support team members and sales team members happen every day. The challenge is aggregating this feedback, tracking it to surface meaningful insights, using those insights to inspire action, and then most importantly, getting back to the customer to inform them change has taken place. 

This is what makes up the customer feedback loop: gathering insights from customers, circulating those insights across the company to inspire action, and then relaying that action to the customer so they can reap the benefits, and receive even more value from the products and services your business provides. 

Why is it important?

According to research from New Voice Media, the top reason customers switch brands is from feeling unappreciated. Customer relationships are relationships after all, and any relationship expert will tell you the importance of listening and positive reinforcement. The customer feedback loop is important because it shows the customer your business is listening. Not only is your business listening, but it’s responding. It’s letting the customer know their insights are valuable enough to drive change

The customer feedback loop actually works more like two loops that work together in tandem, the inner customer feedback loop, and the outer customer feedback loop.

What is closed loop feedback?

An inner customer feedback loop is the organizational structure that allows for customer feedback to circulate throughout the business to any departments that impact the customer experience, like support, marketing, sales, product, and engineering – almost everyone! The inner loop is important as it prevents silos between departments and prevents a fragmented customer journey by unifying departments with a single source of truth. 

The outer customer feedback loop refers to the path from the customer’s expression of feedback, to the final answer from the business based on action taken from feedback. The outer loop is important because it shows your customer that you are listening, your business cares, and you’re dedicated to making changes on their behalf. The outer loop is important because closing the outer loop makes your customer feel appreciated

Customer experience - Lumoa

Closing the inner feedback loop

The inner customer feedback loop refers to the communication loop from surveys like NPS, or aggregated feedback from customer-facing teams like support and sales, to departments throughout the company to drive business decisions. 

Examples of the inner customer feedback loop:

The sales team receives information on pain points that prospective customers want to solve with the product, relaying that information to marketing teams to inform messaging and positioning. They also relay that information to the product team, which uses the insight to better solutions for those specific pain points in the product. 

The support team recognizes trends in a particular feature request as they notice customers get deeper and deeper in the product. That information is relayed to the product team, who adds that feature to the product roadmap. It’s also relayed to the marketing teams, who use real-life examples of customers asking for the feature to inform marketing materials.  

The product team conducts an NPS survey. Promoter sound bites get sent to marketing as potential case studies or candidates for reviews. Detractor feedback is sent to support and success teams to offer a personal touch to turn a frown upside down. The Product analyzes the passives for how they can improve the roadmap to make customer experiences a little less “meh.”

In all of these examples, we see customer feedback exchanged between teams and collaborative action take place based on the same source. We don’t see siloed departments making their own decisions based on their own research, fragmenting the customer experience. For any of this to be possible, it’s important to use tools that allow you to aggregate data into a single source of truth across departments. 

Closing the outer feedback loop

The outer customer feedback loop refers to the customer delivering that feedback (either to your frontline team or via survey and review), then receiving some sort of information from the company their feedback has been heard and the company has taken action. This is not simply saying “thanks for the feedback.” This is a genuine response that shows your customers that you care about what they have to say, and that you are willing to use that feedback to drive action within the company to provide greater business value for your customers. 

Examples of the outer customer feedback loop:

A customer leaves a positive review on a review site. The review results in increased traffic and business, that the company notices. The company recognizes the customer as a super fan, and sends them coupons and swag as a thank you for the positive recognition. 

Support hears back from product that a new product several customers requested will be released! While there will be a larger marketing blast and a feature in a product blog, support personally lets the requesting customers know so they can immediately derive value from the feature they wanted. 

An NPS survey reveals that customers who use the iPad app find it buggy, resulting in passive scores. Increased investment goes into QA and development for the iPad app, turning those passive customers into promoters. 

The inner loop serves to make the product or service better by disseminating customer feedback throughout the org, but the outer loop lets the customer know that the product or service is now actually better. Not only can customers enjoy the better product or service, but they also know your business is one that listens and takes action. Not only is the product better today, but your business has delivered on a promise that it will continue to get better day after day.

Closing the Customer Feedback Loop

Executing all of this at scale requires coordination from the entire organization. Fortunately tools like Lumoa help with every step of creating and executing on customer feedback loops, from aggregating the data to a single source of truth, to closing the outer loop with customers delivering feedback. 

Closing the inner feedback loop is all about making sure feedback is delivered and executed internally, that the right insights are delivered to the correct teams to make the best decisions for the customer within their respective departments. Closing the outer feedback loop is all about letting the customer know their feedback has been heard, and change has taken place as a result. Putting customer feedback loops in place not only drives your business forward with a customer-centric growth strategy but also keeps your customers happy by including them in a dialogue about positive change and action based on their needs. 

Customer experience - Lumoa

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Why Ask for Open-Ended Feedback in Surveys? https://www.lumoa.me/blog/open-ended-feedback/ https://www.lumoa.me/blog/open-ended-feedback/#respond Mon, 26 Aug 2019 07:36:17 +0000 https://lumoa.me/why-ask-for-open-ended-feedback/ Sometimes, asking your customers for open-ended feedback can be better than giving a long survey to answer. When you ask for open-ended feedback, the respondent usually comments on what they experienced to be the most critical things in the interaction they just had with your company.

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In this article, we’ll discuss the challenges of low response rates on surveys and why companies should consider asking just one open-ended question for feedback instead.

Open-ended feedback allows for more authentic responses and avoids survey bias. However, managing open-ended feedback in a scalable and structured manner can be difficult.

To solve this issue, companies can use AI-powered text analytics software to process and analyze customer feedback, giving more consistent and real-time results. By keeping surveys simple and using AI-powered text analytics, companies can gather valuable insights about their customers and improve their overall customer experience.

asking open-ended questions

The first question you might be asking is, why are you having low response rates?  Low response rates on surveys are a common problem faced by many companies. While collecting a lot of information from customers can be valuable, long surveys often lead to low participation and unreliable data.

To overcome this issue, companies can consider including one open-ended question for feedback instead. This approach not only saves time for customers, but also ensures that the data collected is of better quality and reliability.

According to SurveyMonkey, the longer the survey, the less time respondents spend answering each question, hence affecting the accuracy of the data. By asking just one open-ended question, companies can still gather valuable insights about their customers and avoid the pitfalls of long surveys.

 
Response time table surveys

Source: SurveyMonkey

Usually what happens in this scenario is that the respondent rushes through the questions, giving super short answers without any real thought or detail included. You are left without any actionable insights.

Depending on your business, level of resources, and the ambition that you have with regards to surveying your customers, it could be smarter to just give them the chance to leave some open-ended feedback. Skip all the fuss, and just get straight to the point!

To learn more about best practices for collecting customer feedback, check out this article: How to collect customer feedback

Why ask for open-ended feedback and why some don’t like it

When you ask for open-ended feedback, what usually happens is that your respondents comment on what they experienced to be the most critical things in the interaction they just had with your company. According to Survicate, open-ended feedback allows you to get more authentic responses where you get to know what your customers really think about you.

Think about it, if you encountered an exceptionally bad customer service representative, this would probably be the first thing you would comment on if you were given the chance to leave open-ended feedback. In some cases customers will write the equivalent of a short novel, sharing in great detail what was good and what was not so good. Responses like this yield really rich insights for companies that aspire to greatness!

Another important thing to consider when deciding between open-ended feedback and long surveys with lots of specific questions is bias.

If you have a survey with 200 questions (a bit overboard, but you get the point!), you practically give your customers a guided tour of the kind of answers you would like them to give you. Some companies add the chance to leave open-ended feedback after the 200 questions, at which point the customer has already forgotten about the most important thing they wanted to comment on in the first place. In cases like this, it is not uncommon to get an angry comment saying; “survey far too long, don’t ask me for feedback again”.

The simplicity of asking just “tell us what you think” can be so much better. Then you really get to know what customers think and talk about, and what is most important to them.

What can be challenging with open-ended feedback, however, is processing the feedback in a scalable manner and ensuring that all valuable insights are realized. Open-ended feedback for many can be viewed as a great unstructured mess. It is often seen as way too difficult to manually structure the data, even with the promise of those golden nuggets of insight at the end!

Tips for Writing Effective Open-Ended Questions

If you’re looking to get the most out of open-ended feedback surveys, it’s important to craft effective open-ended questions. Here are some tips for writing open-ended survey questions that provide meaningful insights:


1. Use Actionable Language – Ask open-ended questions that allow customers to provide detailed responses about their experiences. Avoid using open-ended questions that could easily be answered with yes/no or multiple-choice answers.

2. Keep Questions Open to Interpretation – Make sure open-ended survey questions are framed in a way that allows for different interpretations and opinions. This will enable you to get more detailed and varied responses from customers.

3. Ask Open-Ended Follow Up Questions – Depending on the open-ended survey questions you’re asking, it may be helpful to follow up with open-ended questions that allow customers to elaborate further.

4. Balance Open-Ended Questions With Multiple Choice – Don’t forget to include multiple choice and yes/no survey questions in your open-ended feedback surveys. This will help to limit open-ended responses and enable you to better analyze and compare customer sentiment.


By following these tips, open-ended survey questions can be an invaluable tool for gathering valuable insights about customer satisfaction and overall sentiment. With open-ended feedback surveys, businesses can accurately assess sentiment and identify areas of improvement in order to better serve their customers.

How to manage open-ended feedback in a scalable and structured manner

There is a simple way to retrieve customer insights and structure the data you receive from open-ended feedback, and that is to analyze it with AI-powered text analytics software made for customer experience management. The advantages of using text analytics are many- including scalability, real-time analytics, and consistent criteria.

Scalability means that it allows businesses to structure a large amount of feedback in seconds, rather than days (sometimes even weeks or months), and you can use it to structure text from different data sources, such as email, social media, chats and so on.

Text analytics enables you to get your results in real time. Having a delay between a customer’s negative experience and you taking action to resolve the problem can often mean that you lose a customer and create a brand detractor.  Text analytics makes it possible to act on and resolve negative feedback as soon as it arises.

Another great about using AI-powered text analytics is that you can reduce the number of human errors. Manually analyzing a large amount of text is not fun, and it takes a lot of time.  Since the process itself is so monotonous, the risk of making errors is really high.

As humans, we are also influenced by personal experiences and beliefs that can affect the manual analytics process and give biased results, leading to the wrong conclusions. AI-powered text analytics, trained to identify specific categories or topics for your industry, will definitely give you more consistent results.

You can harness the power of AI and let it process and analyze your customer responses, calling out the positive and negative things that people are saying about your brand, product or service. AI can categorize your feedback and help you to answer a key question- “What are my customers talking about?”

Wrapping it all together

It makes sense to avoid making surveying too complex – especially if you don’t have the resources to manage all the responses to your 100+ questions! And be honest, are all these questions really that important? Probably not. The only result you’ll get is a frustrated customer and a pile of responses that you cannot structure or retrieve any insights from. Keep it simple- ask for open-ended feedback and use an AI-powered text analytics service.

Improve customer satisfaction version 2 100x400 1 - Lumoa

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EP 2: Inside CX by Lumoa – Democratization of CX and the importance of diversity https://www.lumoa.me/blog/inside-cx-by-lumoa/democratisation-of-cx-and-the-importance-of-diversity/ https://www.lumoa.me/blog/inside-cx-by-lumoa/democratisation-of-cx-and-the-importance-of-diversity/#respond Wed, 23 Jun 2021 04:56:49 +0000 https://lumoa.me/ep-2-inside-cx-by-lumoa-democratization-of-cx-and-the-importance-of-diversity/ In episode 2, we are joined by Merete Medle, Customer Experience Manager at ICE Norway. We talk about democratizing customer experience in organizations and the importance of being able to offer diverse experiences.

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About this episode

In this episode, we are joined by Merete Medle, Customer Experience Manager at ICE Norway. We talk about democratizing customer experience in organizations and the importance of being able to offer diverse experiences.

Our Guest

Merete Medle is an experienced CX practitioner with strong leadership and strategy skills. Long track record with gathering insights and operationalizing improvements based on voice of the customer, establishing customer insight programs, and working strategically and operative with CX and customer journey management.

Passionate about diversity and people in general, with a strong commercial, growth, and digital mindset. I truly believe that by focusing on people first- both the customer/user and the employee, fantastic results will present themselves!

Episode Transcript

Sofia: Hello and welcome, everyone.

I’m Sofia Ohlson. I’m the host of Inside CX by Lumoa. Thanks for watching. Today we’re going to talk about democratizing customer experience and diversity in customer experience. 

Joining me in this episode, I have Merete Medle experienced CX practitioner, founder of NCXN, operative share woman, writer, and podcast host, welcome, Merete

Merete: Thank you so much. Thank you.

Sofia: So well, you do like a lot of things. And besides all this, you’re also a customer experience manager at ICE. And just for you who don’t know what ICE, it’s a big telecommunications company in Norway.

Merete: Yes, the third biggest in Norway. So yeah, we’re practically the challenger on the Norwegian mobile market.

Sofia: So how did you end up working in cx? Where did your journey start? Your cx practitioner? I assume you’re passionate about cx. So where did it all come from?

Merete: I mean, I guess I suppose I’m just a people person. So being a part of creating good experiences for people, in general, is something that I suppose gives me a lot.

But it all started back in the actually the restaurant bar and hotel business, you know, where you are close to the customer. And you realise that if you, if you don’t have a customer centric mindset, you’re never going to be able to create good experiences and this line of business good experiences is what you live from. 

So imagine running a hotel and I’m not focusing on good experience, then nobody would visit your hotel. So, you know, in this in this branch, it becomes pretty clearly that you have to take care of the customer. So, I was 19-20 years, I moved to Spain, I started working in a hotel there. I was running up the poolside bar for the first six months. And then I joined reception eventually. And when I came back to Norway, after that, I was working quite a few years in TGI Fridays in Bergen.

And, you know, just the combination of loving to talk to people and getting to know people and understand how people work and what it is that make them happy, you know, combined with the, you know, being the provider of this experience that they come to you for, for instance, a restaurant visit or.

Yeah, so I suppose it started there. And then just along my career, it’s always been important to me to have the customer and focus and keep in mind that no matter where you work, no matter what it is you do, it’s the customer that pays your bill and pays your, your salary, and you have to have focus on that. Otherwise, you’re gonna lose. And on top of that, it’s fun. It’s a lot of fun working with customer-centricity because, you know, at the end of the day, you’re you’re creating something you’re adding value for people.

Sofia: Right, right, exactly. So okay, you have your background in the restaurant and service, or whatever it’s called. And yeah, it’s true, it comes like very naturally from there, like, I’ve been myself working in the restaurant before. And it’s very, like, customer-centric, or you notice that it’s, it’s a big part of it all. And then I’ve learned also myself quite a bit from that.

Merete: I think, you know, I’ve done so many things, like you say, and but it all ends-up, I can always track it back to the things that I learned back then. It’s, you know, it’s in your nerves eventually, because it’s, it becomes part of who you are. And you learn stuff the hard way as well. And, you know, if you if you trip and fall and you and you drop a Fanta over a kid, which I actually did, you know, you’re gonna learn from that. It’s not a customer, you know, on the other side of the phone or, or behind the screen, but it’s actually in your face, and you have to deal with it, which makes you very aware of what’s good customer experience and what’s not. Obviously, losing a cup of Fanta in a kid’s lap is not a good customer experience, at least not for the parents, but luckily, it all turned out well.

Sofia: That’s good. That’s good. Stuff like that happens. So as I briefly mentioned in the beginning, we’re going to talk about democratizing customer experience and diversity in customer experience. And many of you have probably heard about the term democratizing customer experience, which is a topic regarding like the responsibility of customer experience, should it be spread out within the organization? Should everybody care about customer experience? Or should it be more focused to a team or department or a specific person who is responsible for it and held accountable for it? 

What is your thoughts Merete on this? How should see CX management organisation? Is it something that everybody should care about? 

Merete: Yeah, I mean, it is a difficult question, because I think the answer varies regarding who you talk to, right. So obviously, a lot of people will probably recognize themselves as the person in the corner of the organization, maybe responsible for the NPS measurements, trying to have everyone else be customer-centric.

And this is where it starts. For a lot of companies, you know, when it’s a good start, you hire a person to be in charge of what you call customer experience, or customer loyalty or, or customer relations. But then at some point, you realise that you’re only getting thus far, by rigging yourself this way. So at some point, if you want to mature within customer experience, you need to widen your horizon. 

And I think in today’s companies and in 2021, with all the digitalization that’s going on and and technology is evolving, I think the sooner you can become customer-centric, from an overall perspective, the better and I truly believe that every company should actually have a customer operating and chief customer officer or at least the head of customer experience, or somebody in what either the top management group or one of the top management groups being responsible for it.

And it’s, it’s not only to, to put it on the paper so to say but you have to, you actually have to be the person willing to, without compromise, talk to customers case, wear the customer hat, to be the customers ally around the table when you discuss product development,strategy, cutting costs, you know. You always have to see what consequences the decisions you make from a customer’s perspective. 

So applying the outside in way of thinking, which I think is really, really central and the way of working with customer experience. Obviously, it takes time, but at somepoint, you should reach this level where you have this one person, you may not have to have customer experience in your title, you can might as well be the commercial director or the chief operating officer. But at somepoint, you need to make the decision that the customer is going to sit by the table where decisions are being made. 

So yeah, I think a combination, depending on your maturity, but definitely you should have somebody work with gathering insights.I think this is one of the crucial parts of customer-centricity. So you definitely need I would say, a team, where you divide, you know, the, the assignments of gaining the insight, understanding it, analysing it, and then somebody needs to operationalize it into improvements, right.

Because the insight is valueless if you don’t do anything about it. So. So that’s like the minimum, you should you should have this one, two or three people who actually, it’s their job to think about what’s the consequences of the stuff that we do with regards to customer and also collect insight and analyse and see how are we developing? How are the customers receiving us as a company? How are they? You know, what’s the perception of us as a company out there, you need to keep track on that. So you definitely need a team. But at some point, I think it’s really important as a part of the strategy as well, if you want to succeed, because if it’s not, the effect is going to be only this big. 

Sofia: Exactly.

Yeah, I really like the way you said, like having being an ally with your customers like, so you’re sort of there, right? Like if I had one that represents your customers in the board, or whatever, when you’re making strategies, or creating strategies and thinking about future that you have one that represent the customers and have their voice.

Merete: very often you will find this person and I see myself in this role quite a lot. And this happens on a daily basis, I suppose that you will find yourself being the devil’s advocacy, like, you know, the advocate. So when people are saying, Yeah, we should do this product, and then you’ll be like, but what about the customer, like, if we do this, then that’s going to affect and then you have to rethink it, right? 

And then Okay, so now this is the plan, and then you’ll be like, Well, excuse me, but you know, if we think about the customer, so you will, at some point, you will also be maybe the party pooper in the company. But at the same time, it’s a really important party pooper role, because this is this is the way to ensure customer-centricity. And I’m not saying that the customer should always get, you know, the best solution for them. 

Because, you know, as a company, you also have to think about growth, and you need to be you know, you have to do things in a sustainable way. But you know, it’s a good start to at least consider the effect this will have on the customer. And if you still decide that you’re not going to go with the best customer most customer-centric solution, at least you’ve made a conscious choice about it, and you know what to expect. Maybe you should prepare for a little higher churn or, you know, so it gives you the ability to be, you know, you can predict a little bit more how consequences are going to be by from the decisions that you make.

Sofia: Exactly, yeah. So, like you also said like, that, at some point, customer experience should be a part of the strategy, be something not necessarily only handled, managed by a person or team, it should be something that the whole organization works or strives against. So to be able to do that, I guess, the top management or people working on a company needs to have some knowledge about CX, what it is and how important it actually is. 

How should organisation develop the knowledge about cx?

Merete: Actually, I think and I don’t intend to be blunt, but I don’t think you need so much competency about cx in general, because this is common sense. If you treat somebody nicely, they’re going to come back. It’s as easy as that. 

And my experience is that the more operational the resources are and the people in an organisation are, the more customer-centric they want to work. Now the problem kind of the problem arises when you need to start prioritising, right, are we going to do the stuff that creates the most value on a short term basis? Or are we going to make the decisions that’s going to create long-term value but it’s going to be You know, you’re not going to be able to see the results. So fast. 

So I think actually, management is the ones that has to be trained in the in the value of working in a customer-centric way. And they don’t even have to be trained. But they have to be reminded, I think, I think, and also we need to my opinion is that we’ve turned things around a little bit when we work, especially in growth company. So we want to start initiatives to increase revenue to reduce churn. But instead of focusing too much on the initiatives, and this is supposed to work, the customer-centric way of thinking comes in. So instead of focusing too much on the initiatives and the and the goals you want to reach, then we start thinking about what kind of experiences is it that we want to create.

Because if we design a great experience, and we strive to reach that, then all of these:reduce churn, increased revenue, those things are going to come almost automaticall. Obviously, you have to work better, and you need to twist and turn. But I think it’s really important to turn the focus around and focus on where you want to be and what kind of experiences that you want to provide, and not just focusing on the initiatives themselves. 

So that’s probably one of the main things that I’ve learned from working with this, across the years. And also, for management groups, it’s hard to prioritise because there are so many decision decisions to make. So I think it’s really important that the customer experience parts of the organisation is really good at proving return on investment, we need to become so much better at you know, showing to the results that we achieve when working customer-centric, we need to track, we need to measure, we need to evaluate.

Because so many times we fight so hard to get the fundings to do a customer centric initiative. So then we do it, and then afterwards, nothing happens. And we never prove the value of the investment that we made. So this is where cx ambassadors and practitioners needs to become, I think way better, we need to start focusing on also reporting on the stuff that we do, because otherwise we’re not going to be able to prove our track record, right. 

So myself I’ve been, yeah, this is something we work really hard within ICE now that we need to evaluate and track and prove that we’ve actually we have returned the investments of these initiatives that we’ve started. 

Sofia: Yeah, yeah, this is a challenge for I guess, many companies that are working with customer experiences. Many times, it’s really hard to, or it’s a challenge to track that or prove the return on investment on that and to get like concrete numbers out of it.

Merete: Yeah, I mean, a guy, he’s in the insurance business in Norway, and he works with customer experience. He once said, at the gathering that, you know, we report customer experience in rainbows and unicorns, you know. And it’s, it’s a little true, you know, we say that, we think that if we do this, then that many customers may not churn. So it’s hard, you know, to define the outcome. But this is why it’s so important that when you do an initiative to improve, then you track and you kind of measure the effect that it’s had afterward, because then you can use this case, kind of opened the door for the next one. 

Sofia: Exactly. Yeah.Yeah, that’s really, really good. Good point. So following up on that, how do you, as an organization (ICE) work to improve the customer experience? How are you managing this? Do you have any good examples? or? 

Merete: Yeah I mean, early on in ICE, this was before my time, but they did a huge strategy project where, first of all, they saw that in the market, there was a position for a company, you know, Telecom, as telecom operators are, we don’t have the best rumor, you know.

It’s no interest products, everyone has it, and it’s basically based on price a lot of the times you know, where can you get the cheapest subscription. And, and, obviously, to a certain level, coverage is important as well. 

So, but ICE did a strategy project and they realised that the customers and the market was actually ready for an operator who, who wanted to be the customers friend, you know, who wanted to not write things in the, in the contracts with the little letters, but you know, being open about this is what you get, this is who we are. 

So, so from this, from the early beginning, I think ICE had, the they saw that there would be a value in being this, this operator. And so this was back in 2016. And then obviously, the journey has taken us on various journeys to where we are today. But I think what’s most important today is that we, we work cross functionally with customer experience. We spend quite a lot of money on gaining insight both from the market but also from The customers themselves.

And it’s not just standard surveys, but we try to talk to them, we try to involve them. And we truly try to understand what it is that the customer need and want. So the customer experience line organisation consists of only two people, which is me and our cx analyst. So she is responsible for basically understanding how the customers are and you know, across the customer journey, Where does it hurt to be ICE customer, and where does it not. 

And then, together with a core team and the customer, we call it the customer experience stream. So we are a core team of six people. Where customer lifecycle management is represented, we have customer services, we have technology, we have digital sales and digital business development. So this is a core team of six, and we evaluate all insight and we define where the pain points are.

And then we have an extended part to this team that we call the extended customer experience stream, where we basically have a representative from every single corner of the organisation. So whenever a pain point indicates that now today, we need to talk to product,to fix this, or to see or analyse this problem and see how we can fix it, then we do have a person in product that’s kind of aware of their responsibility, and they will be invited to the to the customer experience core meeting, and we will discuss this exact pain point. 

So you know, depending on the size of the pain point, and depending on how complex it is, and what kind of resources you would need to solve it, we establish a task force, and that could consist of one person or 10, people depending on the size, and you know how big it is. And then these people work with this, together with their line, obviously, their line functionality. But since we’re cross functional, a lot of stuff happens just just by being able to sit down in the same room, the same team’s channel this time. 

So and also, this creates a pretty good and broad understanding of so everyone knows a little bit about how the customer journey is in ICE. So product knows what customer services are about, and customer services know what technology it’s about. So, you know, it’s also experience sharing and and this, you know, we get to know the organisation pretty well and understand the complexity of the issues that the customers experience. So crossfunctionality, I think, is the key together with insights.

Sofia: Yeah, to get the whole, like, full picture and overview of what the customer is actually going through as a whole. And, and it’s what, customer experience is about, like the summary of the whole experience as it is so so that makes a lot of sense.

Merete: No, I just I wanted to add that, I think, obviously, it’s important that you have an owner. So in ICE, I own the customer journey, it’s my main responsibility. Now, I can’t feel the customer journey with all its content, the line organizations have to do that, but I can define the framework of this is what it should be like for our ICE customer, information should be coherent, you know, across channels, we should same, say the same things, things like that. We should have the framework and somebody should own that. 

And also, somebody should own the customer. You know, if you don’t know who owns the customer, then you don’t know who owns the customer pain. So in ICE, it’s the customer experience department that kind of together with the customer lifecycle management, and the customer journey team, which is the team that we are all located in. We own the customer at ICE. So I think, you know, just as a, just having this define, I think is important.

Sofia: Yeah, exactly. To have somebody that is responsible and have the main responsibility of that stuff actually happens and then improve, and so on. 

Have you seen any like, so you started with, like, heavy focus on improving the customer experience back in 2016? If i understood it right. So it’s like, for four plus years? Have you seen any concrete results from this your initiatives that you’re done? Can you tell us something about that?

Merete: Yeah, I mean, obviously, we’re increasing every quarter we grow. So I think that’s maybe one of the biggest indications that we’re doing something right, because we become bigger each day. New customers choose us every day, even if we’re the third biggest, you know, among the three operators in Norway, we’re the third one building our own network. So, you know, it’s only three of us have our own network and we’re the newest with, you know, with the ”latest start” so to say.

Our network is a lot newer than the two other operators. So, you know, being in this position and but still gaining more customers constantly. That’s an indication that you know, the way we work is correct. And this, I mean, it’s not only the customer experience department who, obviously we work with churn and retention. And we believe we truly believe that if you create a good customer experience, this is a part of working with churn. So churn is not something you do at the end of when the customer is notifying you that they might leave. 

We think it’s too late, then obviously, we do have attention activities as well. But we focus on, you know, being upfront and being more proactive. So we don’t always do things, right. But I think just having this mentality and wanting to work this way, helps us do that as much as possible, at least.

And also, you know, we see our customer service, when prices, we develop disruptive products, we were the first operator in Norway with a free subscription for children, for instance. We were the first company in Norway who allowed data rollover, so what you didn’t spend one month, you actually got to roll over to the next. Nobody did that. 

So two days after I think it was, the others copied it, but still, we were first. So you know, we’ve shown that we’re willing to be the company that puts the customers first, in quite a few examples. And then obviously, we have made decisions as well, that may have not been too popular amongst our customers, but at least you know, we try to learn from every mistake we do. And I think there isn’t a single part and the organisation and is now that doesn’t talk about or think about the customer when making decisions.

And like I said, there are cases where we can’t put the customer first there and then, but at least I think we’re very aware of what what consequences that will have. If we don’t so yeah, this is obviously we measure NPS, and we have a positive trend, you know that for the last two years that we’ve done it, you know, properly because these things take time to establish an NPS programme, it’s going to take time to have a stable measurement, but you know, the trend is positive. And we get feedback, we measure it, we use it, and we we try, you know, as best we can to share it with the whole organisation. And also, you know, let the organisation know what the CX stream is about, what is it? We do? How are we working? You know, we try to talk a lot about it.

And

so, slowly, slowly working progress. Yeah.

Sofia: it seems really like you have been able to create a real customer-centric culture that you have the culture in place, and you have that foundation, and then from there, you can like build up and improve your customer experience. And as you said, it’s something it’s a progress or process, it takes time. But most importantly is that you have the culture and the customer in mind.

Merete: And I think this is we need to do like a send, send a big, huge thank you to our, we have, other companies call it HR, we call it DNA and I so we have a DNA department and they are really conscious about us being the customer company as well. 

So in every recruitment process, and in every interview that you do with ICE, you’re going to hear one of the first things you’re going to hear when you get to know us is you know we value the customer. And it’s to a point where sometimes it can actually become a little like a comic because we talk so much about the customer. 

But I think you know, you can’t repeat this enough times. And this is I suppose we are very conscious about the customer and ICE is also full of very good people like we are great people, there is so many good people with so many good values, I think so. I think it’s also about being a value driven company wanting to create a difference.

Sofia: Exactly.

So moving on, let’s go to the other topic, diversity in customer experience. It’s something that is sort of trending right now or really hot. And it would be great. If you could explain what does it mean with diversity, customer experience? What is that? 

Merete: Yeah, so, um, I, my wife works with diversity. And she is in HR. And one of her main responsibilities is diversity and inclusion. So we talked about this a lot at home. And obviously, I’m affected by the discussions and I really, I really care about diversity, you know, in a general perspective.

And then I started thinking, why are we not working more with diversity within customer experience, because you know, we are creating these customer journeys, we’re defining these experiences that we want our customers to have. But at some point we forget that our customer isn’t just this one persona, with this one skin colour or you know, sexuality, religion or his type of lifestyle.

This is the whole shebang, you know, out there, and we cannot fool ourselves and think for a second that by communicating this way, everyone is gonna like us, you know? And then you can ask the question, is it? Is it. Are we supposed to be liked by everyone? I don’t think we should. But I think you know, wanting to be the customer company, you should at least be aware of, you know, what is that you say? When do you say it? Is there a holiday that you need to, you know, take into consideration? 

We have Easter coming up, you know, should we only communicate Easter and Christmas and the traditional Nordic holidays? Should you be aware of St. Patrick’s Day, that was yesterday? You know, there’s so many things to take into consideration. And, and it seems nobody, well, I’m not gonna say nobody thought about it, because I think probably a lot of people did. But how can we start being more diverse in our customer experience way of working working? 

And how far Should we take it? You know, should we should we make a statement in every single holiday there is just to make sure that we don’t offend anyone? Or, you know, I think we need to think about having a strategy around these things, and also have in mind, who are our customers? And can we personalise communication and customer journeys, based on who they are, and not just what they want, but what they actually need and prefer from us. 

We provide them with, you know, the most important gadget in our lives probably at the moment. So we should be aware of this. And I don’t know how yet, because I haven’t thought about it long enough. But you know, this is a process. And that’s, you know, been going on just maybe the last year, but I think there’s, again, you know, it’s a lot to gain for us, because we will be able to create a relationship to our customers and create value. So this is good for us. 

But also, we could help people, you know, in their everyday life by, you know, adjusting to their needs and their interests. So I don’t have all the answers. But I think it’s really interesting, because when you start thinking about it, we communicate so so it kind of non-diverse.

Sofia: Yeah, exactly. I think this is a really interesting topic. I said, I haven’t myself thought about this, too much, I until now, I did some research for this interview, reading some more about it, I think it’s in the in the current time we live in, it’s very, very important. As you said, we usually businesses or organizations, they have their buyer personas or personas that they have identified and after that they make their communications and whatever, but it’s not actually that easy. It’s not actually maybe how it looks like, as you said, your customer base is much wider and broader than that.

Merete: Yeah. So, you know, from, from a perspective, the perspective of communication as well. Should we, we have a lot, you know, we have a lot of immigrants in Norway. I mean, it’s we don’t have to go that far back when Norway was for Norwegians, you know, this is different, like we’re all New York by now. It’s, it’s so diverse out there. So should we start presenting our commercials in Polish and English and you know, all these different languages that we know are represented within our both local and national communities?

Why should it you know, should we need to think about these things? And language is one thing and then, you know, who are we using when we create commercials? Are we using like white, young, pale people with blonde hair the typical Nordic or are we actually presenting our diverse customer base in within our commercials as well? How do we talk? How do we, which references do we use all of these things? I think at some point, we need to start considering how do we want to approach this.

Now, in June month, everyone, it seems it’s become a pretty big hype, you know, to marksolidarity with the pride movement, right. So and this is also a really important question because you have the, you have the, the term pinkwashing which basically means company trying to profit on that pride movement. So by changing your logo to the rainbow colours, you know, a company with think probably that they’re providing support. 

But for the pride movement, it looks like you’re trying to, you know, capitalise on our case. But so should you, you know, if you want to be a diverse company, should you also not just think about your statements and what you do? But should you actually work for some of these things as well? Like, should you? Should you give, you know, support foundations that work for human rights? And some you know, so there are so many questions.

Sofia: there are. It’s big topic.

Merete: And I think it’s, yeah, it is.

And I think, you know, to start with, we just, we need to raise the questions, and then slowly, we can start figuring out, you know, how to approach it, and people are probably going to write books about how to do things, and people are going to start doing different initiatives and fail and learn and fail and learn again, and this is gonna evolve. 

But I think it’s really interesting. And since I am a, I consider myself a people’s person, and I really love people. And I really, I think it’s really interesting to see the differences in people, then I would really like to include this in my work and be able to, you know, create customer experiences for everyone, not just the typical customer that you target in your case. 

It’s complicated. Yeah.

Sofia: It’s really, it’s a big question that’s complicated. And not that black and white, so to say, what do you think be the benefits of having a more diverse customer experience?

Merete: Well, obviously, I think you would be able to attract way more customers. I think it would be much more fun for your employees to work in a company that focuses on diversity, both from the inside out and the outside in. There is, it is, proven that it’s, you know, you there, it’s the economics and the financials, and this is, is absolutely present, and there are so much value to gain from it. 

And, you know, from the, I suppose, also from the environment, environment, environmental perspective, you know, because diversity also includes, at least in my world, and includes, you know, taking care of our, the world we live in, and you know, making sure our children have a future and all those things. And I really think it’s going to become more and more important to stand for something and to do it, not just because you think it creates value, but to do it, because you actually mean it and live by it, you know.

Not start with the initiatives, but start with what is it that you want to be for people, and then the initiatives will come and create the results that you want. So I think there’s a whole lot to gain from this. But mostly, I think it’s going to empower your employees in a totally new way. And people are going to be more loyal to you as, as an employee and or as an employer. And also your customers are going to be way more emotional about the relationship to you, which is basically what loyalty is about, right? 

Sofia: Exactly. 

Merete: What your customer is not to like you only, but you want them to love you and this, this is a win-win for the customers.

Sofia: It really is.

So like, there are some very good like positive things, with having a diverse customer experience, loyal customers, employees, having a diverse set of employees, diverse teams, better employee experience, and so on. But how, how can you create a more diverse customer experience?

Merete: I think this starts from within. I think we need to be more aware of the diversity within our teams and our organization. And be willing to, you know, make some choices. Or at least be conscious about like, who do we hire and what, what is their background and where they come from and dare to be different. And also, I think, even in you know, in ICE, it’s really diverse, but I think diversity isn’t only like skin color or sexuality or religion or the typical things but you know, we’ve all lived lives even you and me are pretty similar in many ways. 

Right, but I’m pretty sure that if we start digging in my past in your past, we’re going to find some pretty opposite histories. So just by daring to share those and be a little bit more personal, being able to, you know, ”bjuda på”, as they say in Swedish. You know, I think starting there is it’s just going to be more meaningful, right? And this is what people are looking for in 2021. People want things to be meaningful.

Sofia: Yeah. Really good. Exactly.

Merete: And also remember that, you know, if you and me looking the, you know, so much the same as we do, we still are so different than, you know, you can only imagine what the customer base looks like. But take this in and understand that we need to be more diverse in the way we communicate, and we need to make some choices about how do we want to include as many as possible in our journey?

Sofia: Exactly. Yeah. yeah. It’s a really interesting topic. And it’s..

Merete: it’s exhausting actually.

Sofia: like where to start? 

So we’re at the final question, like final question, that I have for you. We’re now moving away from diversity, customer experience and go to a more like easy going question. 

What if, What is the most important, so we like feedback, we like the term feedback. So therefore, we say what is the most important feedback you would give to an organization who would like to become more customer-centric? Have you any tips and tricks?

Merete: Yes, you need, you need to spend money on insight. Market Insight, you know, have your analysis resources ready to understand what it is that your customers try to tell you invest in, you know, different tools that helps you understand what it is your customers need, and, and what they kind of want from you. Because you cannot improve if you don’t know which direction to go, and gut feeling is very often correct. But you need to confirm it, you know, you need to make sure that you, you’re not guessing.

So I suppose insight, this is something we learned only, you know, not long back, that the more money we invested in insight, the more we were actually able to say, you know, it’s not me saying this, this is our customers saying. Then you open doors, you know. So, so don’t, you know, if you have to save money, don’t save it on insight initiatives, because this is,this is your goal. This is where you get your kind of initiatives and where you get your drive from, and your direction.

And also make sure that the customer has a place around the table, somebody up there and management, top management needs to, you know, have this reflection that whenever you talk about initiative or some strategic direction, you need to stop and think how will this affect our customer? Will it be good or bad? And it both like how is it going away and try to analyse the situation.

So I suppose that number three, and then I, I’ve already said this before today, but you know, you need to evaluate and document the results of the stuff that you’ve done to prove that, you know, these things actually do create a better experience. And do you know, regression analysis and do you know, do your analysis, right and make sure that you understand the relationship between for instance, customer loyalty and churn. Find your drivers. Yeah. A little bit one or three things. But yeah, I suppose so.

Sofia: really, really good points. And thanks for that. Thank you for like, thank you for being here today. It was really fun to talk to you and there were some really interesting stuff you shared with us.

Merete: Thanks for having me. It’s you know, it’s really cool to be able to do this. And also I’m a huge fan of your work and yeah, it’s brilliant. I think this will probably in some ways create value as well for other people out there. I hope so.

Sofia: Yeah, I think we should have had like more time to do this. They could talk much longer I think. So we maybe have to like, meet again and have another interview or talk some more. Thank you for watching. Thank you, Merete! That was all for today.
 

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How to Collect Customer Feedback https://www.lumoa.me/blog/how-to-collect-customer-feedback/ https://www.lumoa.me/blog/how-to-collect-customer-feedback/#respond Wed, 19 Jun 2024 05:02:00 +0000 https://lumoa.me/how-to-collect-customer-feedback/ Want to know how to collect customer feedback? How do design your customer surveys to ensure high response rate? Read about the best practices, find out when, where and how to ask for feedback and build a follow-up plan.

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Customer feedback matters more than ever to companies wishing to grow. It is the lifeblood by which organizations aiming to thrive across increasingly competitive marketplaces can enhance customer satisfaction and loyalty while identifying growth areas.

Before now, collecting customer feedback involved manually filling out and analyzing surveys and questionnaires. However, more and more businesses are turning to advanced analytics tools, such as those offered by Lumoa, to gain deeper and more targeted actionable insights. In addition to boosting customer loyalty, advanced analytics uncover hidden patterns or trends that manual analysis processes might have overlooked.

So, how can you make the most of collecting customer feedback? Let’s find out.

Why Customer Feedback is Important

One happy customer will share their positive customer experience with 9 people. However,  unhappy customers are even more likely to share their experiences: on average, an unhappy customer shares their bad experience with 16 people.

collect customer feedback

Customer feedback holds significant value, with 83% of customers feeling loyal towards companies that listen to, respond to, and resolve their concerns and complaints. Moreover, 73% of customers now say that customer experience (CX) is the number one factor they consider when deciding whether to purchase from a company. This data underscores the importance of collecting customer feedback, not just for improving sales but also for safeguarding the organization’s reputation.

Traditional feedback methods regularly fail to provide businesses with the insight required to maintain customer satisfaction and grow. For example, common pitfalls include:

  •         Asking closed questions
  •         Poorly structured surveys that fail to capture the scope of customer sentiment
  •         Manual analysis processes are time-consuming and at risk of human error

These issues hamper a business’s understanding of how customers feel about it. Either they fail to capture the full depth and scope of customer sentiment, resulting in flawed data that does not reflect customer opinion, or time-consuming and inefficient analysis methods fail to provide high-quality, actionable insights.

As it becomes apparent why customer feedback is crucial in maintaining customer loyalty and improving sales, it’s also essential to understand the substantial benefits on offer to complete the picture.

Integrating customer feedback into an overarching business strategy delivers a vision of what their customers want and need. There’s no better way to understand this than by getting it from the horse’s mouth rather than making assumptions and imposing ultimately useless solutions on them. This information helps identify common themes around what customers want and uncover potential issues. These insights can then be used to inform product development strategies, and when addressed proactively, businesses can troubleshoot problems before they escalate and mitigate any risk to the organization.

Modern Methods for Collecting Customer Feedback

Methods of collecting customer feedback have evolved enormously from the days of cold telephone calls or market surveys conducted using a clipboard and pen in a noisy shopping mall. Today, businesses increasingly use more agile, user-friendly, and intuitive methods to gain faster and more accurate insights.

The Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) are two of the most popular metrics used to gauge customer satisfaction today. While both metrics provide organizations with a clear and concise view of customer loyalty, they offer different insights.

Net Promoter Score (NPS)

The Net Promoter Score measures customer loyalty and has grown since its design by Fred Reichheld in 2003 to become one of the most widely used metrics in measuring customer satisfaction.

 

Net Promoter Score is short and simple for customers to answer.

Around 64% of organizations use NPS to measure their customer service performance. Customers are asked, “How likely are you to recommend our product to a friend or colleague?” on a scale of 0 to 10. Depending on the result, respondents fall into one of three categories:

  • Promoters (answer 9 or 10): Loyal customers who would recommend you
  • Passives (answer 7 or 8): Satisfied customers but could switch to the competition
  • Detractors (answer 0 to 6): Unhappy customers with a high churn rate

NPS Visual

The score is calculated by finding the difference between the percentage of promoters and detractors. The higher the number, the better your NPS.

Customer Satisfaction Score (CSAT)

Meanwhile, customer satisfaction measures the specific customer experience with each transaction, making CSAT a more transactional metric than the relational NPS score.

CSAT is usually calculated through a short customer survey after a business interaction. Typically, customers are asked, “How would you rate your recent product experience?” with customers able to select 1 to 5 stars.

The CSAT score is taken as an average of all customer responses, with the highest score showing the best level of customer satisfaction.

Now we know the difference between NPS and CSAT, here are the best modern methods of collecting customer feedback:

Short Surveys

Your immediate reaction might be to create a survey and ask what your customers think about every single aspect of your service. Don’t. Short, snappy surveys are one of the most effective ways of collecting customer feedback. Both NPS and CSAT scores are calculated from short surveys containing a single question and provide a valuable snapshot of how businesses are viewed by their customers.

 

CustomerFeedbackNumberofQuestionsStatistics e1603194141682 1 - Lumoa

Short surveys are particularly effective as they do not take much customer time and effort. Thus, they’re likely to have high response rates while providing insight into areas an organization is doing well or needs to improve. Understanding how to design a feedback survey to gain the most significant insight is essential to an organization’s success.

QR Codes / Social Media

Meanwhile, more avenues are available to businesses to engage with their customers than ever before. QR codes on posters, a business website, or receipts can be scanned for a quick snapshot of their service.

 

Lumoa QR Code

In addition, social media is a valuable method for businesses to collect customer feedback, particularly after a product launch, to understand whether their customers feel the product meets their needs.

AI Sentiment Analysis and Chatbots

The emergence of AI technologies is revolutionizing the collection of manual customer feedback. Natural Language Processing (NLP) and sentiment analysis can assess free text feedback gained through surveys, email, and social media.

Ask Lumoa

 

In addition, more businesses are seeing the benefit of AI chatbots as a valuable tool in their customer feedback collection process, as they allow customers to provide real-time feedback. AI then uses machine learning, NLP, and sentiment analysis to extract data and provide in-depth, actionable insights.

Why Analytics Matter in Customer Feedback

So, you’ve collected reams of data. How on earth do you process the results to gain actionable insights? Analytics plays a considerable role by transforming raw data into insights that drive change. We’ve already looked at the advantages of AI in data collection. While AI provides huge benefits in collecting customer feedback, it’s important to be mindful of the limitations of purely relying on Generative Pre-Trained Transformers (GPT) tools such as Chat GPT.

5 feedback Problem - GPT alone

A recent survey undertaken by Lumoa showed that almost 65% of 10,000 user reviews analyzed by GPT analytic tools alone were filed under ‘General’ rather than a more specific category. When the same 10,000 reviews were analyzed by GPT and Lumoa’s powerful analytics, more than three-quarters of reviews were accurately categorized. In addition, customers have raised concerns that businesses that use GPT tools to generate content feel less authentic.

These results show that AI has been a game-changer during the analytics process, but only when harnessed in the right way. Rather than relying on time-consuming manual processes with potential human error, AI-powered analytics can process and interpret data from structured and unstructured sources to deeply understand customer sentiment.

While metrics such as NPS and CSAT can be quickly generated to provide a useful strategic overview of customer satisfaction, these AI-driven analytics provide deeper insight that can be used to drive improvements and reduce risk.

Nutrition firm Huel saw a 10 percentage point increase in its NPS by using Lumoa’s analytics tool, which doesn’t simply enable businesses to ask questions but gain insights to answer them and effectively close the feedback loop.

Case study See How Huel Increased NPS by 10 pts - Lumoa

Similarly, Fibrus, a UK broadband provider, had a TrustPilot score of just 1.7 and an NPS of -28, indicating severe customer dissatisfaction. Within eight months of using Lumoa’s analytics tools to gain valuable, actionable insights, the NPS rose to +56, and the Trustpilot score increased to 3.9

The value of using analytics to drive improvements in customer satisfaction is demonstrated in how US firm Johnson Outdoors uses Luoma’s customer analytics tool to better understand its customers’ needs. Whenever a score of 5 or below is received, a Customer Service team member proactively reaches out to the customer to ensure they feel heard and understand the specific issues.

In addition, when their NPS score fell below 50, Lumoa provided the context behind the overnight drop, helping them identify the exact issue related to a product update and inform the engineering team to take immediate action.

In each of these examples, improvement in customer satisfaction has been derived from understanding the importance of collecting customer feedback and gaining outstanding, targeted customer insights.

Conclusion

Leveraging analytics to collect customer feedback is growing in importance as businesses seek ways to remain at the head of their industries. Companies that neglect their customers will see a high churn, particularly with 78% of customers giving up on a transaction because of a negative customer experience.

Businesses that value their customers’ comments and make them feel heard benefit from improved customer satisfaction scores (CSAT). They are more likely to grow through word-of-mouth recommendations to new customers from existing ones who have had a positive experience.

As AI continues to revolutionize an organization’s ability to collect and analyze huge swathes of feedback and data without error while delivering outstanding actionable insights, businesses must adopt these technologies to stay at the forefront of their market sectors.

So, if you want to elevate your customer experience and gain actionable insights on how to grow your business, sign up for Lumoa’s free trial today and kick-start your customer feedback revolution.

Trial Start Building a Customer Centric Business with Lumoa - Lumoa

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