The Role of Acknowledging Customer Feedback

Listening Is Just The Start: The Crucial Role of Acknowledging Customer Feedback in Customer Service Operations

?In an increasingly customer-centric world, simply listening to the voice of the customer is not enough; companies must make a concerted effort to acknowledge and act upon the feedback they receive. The realm of customer service and strategy , in which I've spent a considerable amount of my career, is no exception.

?The "Feedback Gap"

Picture this: You just completed a transaction with a bank, and you're prompted to fill out a feedback form. You take the time to offer detailed insights aimed at service improvement, only to be met with a terse "Thank you for your feedback." Immediately? after? you click the submit button. Days, weeks, months pass by, and you're left wondering, "Was my feedback even read?"

The kind of situation above raises concerns not just about customer experience (CX) but also about the service operations within an organisation.

Another instance , when you? are? closing an account? there is? a text field? which you fill up? and take the trouble to give the? real? reason and no one reads it (I confirmed this with dealing officers). In companies where? there? is too? much focus? on? automation, probably a? process has not been set to capture and? analyse? unstructured data.

?When feedback is collected but not acted upon, it creates what I call a "Feedback Gap."

?Why Feedback Gap is a Problem

• Customer Disengagement: When customers don't see evidence that their feedback is valued, they're less likely to engage in the feedback process again.
• ?Missed Improvement Opportunities: Unacknowledged and unacted feedback is essentially data going to waste. For companies obsessed with data-driven strategies, this is an enormous missed opportunity.
• ?Siloed Operations: When feedback isn't systematically processed and routed to the right teams, it contributes to operational silos within the organisation, hindering the goal of achieving well-aligned teams. Internally, companies should have mechanisms for routing customer feedback to the appropriate teams for action.

The Power of Acknowledgment: Acknowledging feedback does more than just close the loop; it demonstrates that a company values its customer’s voice and takes it seriously enough to initiate action. This can be done in a myriad of ways:

• Instant Follow-Up: An automated email acknowledging receipt of feedback is the bare minimum, but a personalised follow-up discussing the action items based on your feedback could be the gold standard.
• Progress Updates: Let the customer know what changes have been made as a result of their feedback. It not only instills a sense of contribution but also exhibits transparency in operations.

Cost Effective Alternative to Market Research: Ignoring? readily available feedback, but then spending millions to engage an agency to do a large survey is not necessarily a great? idea.?Ultimately embracing and acting upon customer feedback provides a direct, cost-efficient window into consumer preferences. This responsive strategy not only conserves resources but also fosters a business model that is deeply attuned to customer needs and expectations.

Case for Banks and Financial Institutions: As a seasoned banker, I've seen first-hand how the finance sector often falls into the trap of collecting data without actionable insights. With heavy competition and regulations, banks can't afford to ignore customer voices. Successful institutions need? to set the bar high not only by collecting feedback but by regularly updating their customer base on how they are using it to improve services.

Closing Thoughts: When businesses view feedback as a vital part of their service operation rather than an add-on, they can create more streamlined, customer-centric processes. And it doesn't have to stop at just acknowledging the feedback; the real value comes when this customer input is integrated into the service delivery architecture, affecting changes that resonate at every operational level. By doing so, they align themselves not just with market demands but with their most valuable asset — the customer.

So, the next time you're tempted to overlook customer feedback, think again. It's not just a one-off task; it's a mission-critical operation that warrants alignment across all departments.?

Want to know how to better align your service operations with customer feedback? Feel free to reach out. After all, an aligned team is better than a siloed operation.

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