A new research report from industry analyst firm Aberdeen Group called “Customer Experience Management: Engaging Loyal Customers to Evangelize Your Brand” reveals how organizations that achieve superior performance in customer retention and customer satisfaction grow and harvest customer advocates.
Some of the most compelling survey findings include:
- 70% of firms that enjoyed Best-in-Class performance periodically used customer feedback to influence strategic decisions (versus 29% of Laggards). [By comparison, the report notes that even though "70% of Industry Average organizations indicated they collected customer feedback...only half of these organizations actually used feedback to influence strategic decisions."]
- 96% of respondents saw value in formalizing a strategy to encourage or incent loyal customers to promote the brand, product or service.
- 37% of respondents currently have a formal program in place to systematically identify and encourage loyal customers to become advocates for the brand, product, or service.
- Over the next 12 months, more than three-quarters of all organizations will either have in place, or be in the process of pursuing, a formalized program to promote customer advocacy.
The report also cites a March 2009 Aberdeen study titled “The ROI on Customer Feedback: Why It Pays to Listen to the Voice of the Customer” which found that the number one pressure driving investments in customer feedback initiatives is to increase customer retention and customer loyalty.
Since every interaction that a business has with a customer is an opportunity to positively influence the customer experience as well as grow customer retention, customer loyalty and customer advocacy, it makes sense that customer feedback has become a critical component in these initiatives.
Kimberly Mathie, MarComm Manager, Allegiance
