Customer
Experience:
The Customer Complaint Iceberg©
2004. Written by Paul Quinn. Stop!
Before you dismiss last week's customer complaint as unimportant, consider this:
research by US firm TARP shows that for every 26 unhappy customers, only one will
lodge a formal complaint with Management. The real concern, however, comes from
the finding that an average of 1,560 people will hear about at least one of these
unhappy customers' experiences. That's
right. On average, each unhappy customer will tell 10 people, who in turn will
tell 5 others. This finding makes for a compelling wake up call for businesses
that take the task of collecting and responding to customer feedback lightly.
Send a shiver up your spine? It's
bound to generate anxiety in any recruitment organisation serious about generating
positive word of mouth and building strong brand awareness. Indeed, recruiters
need to understand that soliciting ongoing client and candidate feedback - both
good and bad - is crucial to their continued success. How do you collect feedback? Companies
should look upon every interaction with their customers as an opportunity to gather
feedback. The most effective way to do this is to develop a multi-channel customer
feedback system that encompasses opinion from clients, candidates and staff. Don't
fall into the trap of relying on only one feedback channel (such as paper-based
feedback surveys) because to do so results in two main problems:
| (i) Accessibility - You limit a customer's
access to providing feedback. Your customer feedback system must be flexible enough
to allow customers to provide you with timely comments no matter how they come
into contact with you. (ii) Convenience
- Offering only one feedback channel limits feedback from customers who wish to
interact with you via a different channel. It's no good, for example, only offering
candidates a postal address to submit feedback if most of them prefer to correspond
with you via the Internet. |
Customer
Feedback Systems - 5 Pitfalls To Avoid:
1.
An informal and/or unstructured verbal feedback process. 2.
Feedback not recorded (for later action and review). 3.
Feedback system not 'owned' or 'championed' by Management. 4.
Poor feedback communications loop (to advise on outcomes and action plan). 5.
Feedback sought too infrequently (once a year is not enough).
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Often recruiters cite an informal face-to-face
feedback process as an alternative to having a formal customer feedback system.
However relying solely on verbal feedback sought by the person who serviced the
client is insufficient for companies serious about making positive customer-driven
business improvements. The main problems with informal feedback systems are:
- Lack of Consistency - a lack of consistent criteria
to evaluate and record feedback.
- Lack
of Accuracy - often the difference between what the customer said and what the
consultant heard can be substantial.
- Confrontational
- would a hiring manager feel comfortable about telling a consultant that they
performed poorly in a face-to-face (potentially confrontational) situation? Some
hiring managers may. Most won't.
Accordingly,
relying on an informal face-to-face customer review performed by the recruitment
consultant who conducted the assignment is clearly not the best method of gaining
quality customer feedback. Leverage
technology to aid your efforts The
widespread use of the Internet and the advent of online survey technology is making
the customer feedback process easier than ever. Fast and cost effective, online
systems enable the recruiter to instantly receive customer feedback, collate information
and view reports in real time. In addition, response rates are frequently higher
than paper-based surveys as online surveys are usually quicker and more convenient
for respondents to complete. Some good
examples of online customer feedback systems currently in use by recruiters include:
- A major ASX-listed recruiter conducts monthly
post-placement feedback surveys with both clients and candidates and asks respondents
to 'tick the box' if they have raised any issues that they would like a 'Quality
Manager' to follow up with them over the phone.
- A
small Melbourne-based recruiter surveys clients on a quarterly basis regarding
hiring intentions and salary levels and then distributes the feedback to clients
as part of their newsletter.
- A
large Sydney-based recruiter uses client feedback as part of their consultant
performance review process. A below-average client satisfaction rating for a particular
consultant can indicate a 'red flag' issue that needs to be addressed by Management.
- A large corporate employer
in Brisbane uses an online survey tool to quiz candidates about the effectiveness
of their recruitment process and provides an incentive to candidates for the submission
of ideas on how the process can be improved.
Online
feedback systems should not be used in isolation, however the benefits of speed,
cost, accuracy and convenience over traditional paper-based survey techniques
ensure that online feedback systems in the recruitment process are becoming more
widely used and accepted. Ask For
Feedback - Then Take Action! Remember
too that asking for feedback alone is not enough - you must make the commitment
to establish an effective customer feedback response process that addresses each
issue that arises. In doing so, you not only encourage people to continue giving
you feedback (because they know that you'll do something about it), but research
also shows that between 54-70 percent of business from complaining customers can
be won back if the process is handled promptly and professionally.
Consider
this scenario …
Feedback:
A client completes your online post-placement feedback survey and highlights his
disappointment with a reoccurring problem relating to the coding and layout of
his invoices. He says that after a number of prior requests to address the issue
this latest occurrence is the final straw and he intends on taking his business
elsewhere. He also indicates he's willing to talk with the company's Quality Manager
about his experience. Action taken:
Within 20 minutes of receipt of the feedback, the Quality Manager phones the client,
listens to his concerns (without defense or judgement) and commits to promptly
investigate the problem. Within 24 hours the Quality Manager has talked to the
Accounts Department, identified the appropriate steps to resolve the issue, and
called the client back to go though the five actions the company is taking to
address the situation to ensure it never happens again. Key
message to aggrieved client: (i) we listen and don't blame or pass the buck,
(ii) we are responsive to your needs, (iii) we are committed to improvement, and
(iv) we value your business! End
result: Avoided potential client defection, and stimulated positive word of
mouth as the client tells other colleagues and associates about the timely and
professional response he received.
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Offering
a system that makes it easy for your customers to provide you with regular feedback
is not only good business practice - it's plain common sense. By letting you know
when they are unhappy, customers give you a golden opportunity to correct the
immediate problem, restore goodwill and avoid the negative word of mouth that
results from the phenomena known as 'The Customer Complaint Iceberg'.
In
Summary:
| 1. | Actively
seek and encourage feedback - remember the 'Customer Complaint Iceberg' and understand
that no news is BAD news. Every customer interaction is an opportunity for feedback. |
| 2. | Develop
a multi-channel customer feedback system that enables you to capture, record and
report information quickly and easily. Leverage technology to aid your efforts. |
| 3. | Follow
up issues. Review feedback regularly. Commit to a process of constant customer-driven
improvement. | | 4. | Complete
the feedback loop. Give prompt feedback to your clients, candidates and staff
about the actionsyou've
taken, or intend to take, as a result of the feedback you've received. Encourage
them to keep the dialogue with you open. Reinforce you're listening, and that
you genuinely care what they think. |
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