Are You Really Listening To Your Customers?
By John Roach, Editor, Retail Solutions Online
When I left a Cosi restaurant the other day, I carried more than just a T.B.M. sandwich out the door. The receipt in my hand would save me $2 off my next meal — and give me the chance to win $1,000 or an iPod — if I filled out an online customer survey. In contrast, when I visited a Subway restaurant a few days later, my receipt noted only the company's Web site address and the words "for more info." Can you guess which receipt inspired me to go online and which one ended up in the trash?
It's clear which of these two companies is trying harder to engage its customers. And even though this high-noon showdown took place between two restaurant chains, it nonetheless raises a critical question for retailers: Do you effectively leverage online surveys to learn more about your customers and their needs? If not, don't be surprised if your competitors do — or if they use that information to better target your customers.
The global economic recession is making it more important than ever for retailers to really listen to their customers. Decreased consumer demand and increased expectations are putting tremendous pressure on merchants to better satisfy and engage their customers. "The smart retailers understand that it's never been more important to get feedback from their customers and to get it at a speed that allows them to see their customers' changing expectations," Gary Topiol, managing director of Empathica, a customer experience management solutions provider, recently told me. (Coincidentally, Topiol's firm turned out to be the one behind Cosi's survey campaign, I later discovered.)
To facilitate this dialogue with customers, retailers are increasingly turning to online surveys powered by enterprise feedback management (EFM) software and services. EFM systems make it easier for retailers to manage the online survey process, and enable them to receive continuous, real-time, location-level feedback from their customers. Retailers who use EFM service providers can either tailor their own specific survey questions or choose from a host of sample questions. The provider takes over from there, setting up an EFM system that will enable the retailer to achieve its online survey goals.
Electronic media has become the primary delivery channel for survey invitations, according to a recent Aberdeen Group report entitled "The ROI on Customer Feedback: Why it Pays to Listen to the Voice of the Customer" (March 2009). Retailers now deliver survey invitations to customers via POS systems, Web sites, e-mail campaigns, and other electronic touch points. "We're seeing a generational shift toward online and away from phone surveys," Jim Martin, founder and CEO of Inquisite, an EFM software and service provider, told me.
Phone surveys have fallen victim to caller IDs, do-not-call registries, and consumers who use their cell phones as their home phone. Plus, interrupting your customers during dinner for a phone survey is not the best way to endear your brand to them. "With traditional methodologies, there was really no cost-effective way to get location-level data on an ongoing basis," Empathica's Topiol added.
The survey responses are collected and organized by the EFM software. Customer feedback data repositories and analysis tools help retailers integrate and process survey data quickly and efficiently. The analysis can then be used to measure customer satisfaction levels, gauge interest in new products, and predict buying trends, among other tangible benefits.
When these conclusions are disseminated throughout the organization, they can have a significant impact on customer loyalty and retention efforts. "Retailers are trying to get faster trend-spotting information and quicker response time to customers," said Inquisite's Martin. "They also want to include more people in the feedback loop, so it's not just the back-office manager looking at reports."
A few months ago, Tesco, the world's fourth-largest retailer, began a trial of a new customer feedback program called "Every Comment Helps," according to the Aberdeen Group report. Tesco customers are invited to comment online about any part of their shopping experience; the EFM program then analyzes the feedback in real time, responds to customer queries, and routes other data to the appropriate departments. Such real-time feedback and response is far more valuable to retailers than the cost of a $2 coupon.
Speaking of the Cosi receipt, the company makes another simple pitch right on the printout: "Let us know about your experience." That's a request you should be asking your own customers these days, if you want to keep them — and keep them engaged.
Have a comment about this article? Let me know. Visit our blog or contact me at jroach@vertmarkets.com.