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The power of accurate customer service measurement

Guest article

Expert opinion

The power of accurate customer service management

Jonathan Winchester is the Chief Executive of insight6, the largest customer experience (CX) consultancy in the UK. insight6 is passionate about helping businesses create customer experiences that drive engagement, promote loyalty and build meaningful relationships. One of the most common tools deployed by businesses to benchmark performance and understand what makes customers tick is the customer survey. Here, Jonathan explains where they can fall short and how they should add value.

He says: “The accuracy of customer satisfaction measurement directly impacts a business’s ability to make informed decisions and drive improvements. When we first work with firms who have used customer surveys, we often find they are making some basic errors. Questions are poorly written, which makes it impossible to make sense of the true data, and surveys are often too long, which can water down the feedback as the client becomes wary of spending their personal time on such an activity. Plus, we often see low response rates, with as little as 5% of customers completing the survey, which means the data can’t be reliably called on to offer true customer-wide insights as it has most likely been completed by brand champions rather than detractors.”

Jonathan says there are six key reasons why accuracy in customer satisfaction measurement is important:

01

Informed decision-making

Inaccurate data may lead to misguided decisions, potentially resulting in ineffective strategies and resource misallocation.

02

Effective problem identification

Accurate measurements help identify specific areas that require improvement or attention. Where measurements are inaccurate, businesses may address the wrong issues, leading to persistent problems and dissatisfaction amongst customers.

03

Resource allocation

Precise measurements assist in allocating resources strategically to areas that will have the most significant impact on customer satisfaction. Misallocation of resources, based on inaccurate data, can lead to wasted efforts and investments.

04

Customer retention and loyalty

Reliable measurements of customer satisfaction enable businesses to implement targeted initiatives to enhance customer loyalty. Inaccurate measurements may result in misguided efforts that fail to address the root causes of dissatisfaction, potentially leading to customer churn.

05

Building trust with customers

Customers value transparency and honesty. Accurate measurement of satisfaction demonstrates a commitment to understanding and addressing customer needs. Inaccurate or manipulated data can erode trust, damaging the relationship between the business and customers.

06

Benchmarking and comparisons

Accurate measurements facilitate meaningful benchmarking against industry standards and competitors. Inaccurate measurements may lead to false conclusions about a company’s performance relative to its peers, hindering the ability to identify areas for improvement and growth.

Jonathan concludes: “Accuracy in customer satisfaction measurement is fundamental for making informed decisions, improving customer experiences, and building a strong and sustainable business. It contributes to trust, strategic planning, and the ability to effectively meet customer expectations, ultimately leading to business success and growth.”  

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