Businesses are transforming into more customer-centric organizations where the customers are put at first and their satisfaction is the top priority. In highly competitive and dynamic market landscape such as in Dubai, Sharjah, Abu Dhabi and other regions of UAE, businesses need to understand customers’ demands, desires, expectations, preferences and trends to ensure a sustainable long-term success. That is why businesses collect customer feedback with an efficient and effective digital customer feedback system but the customer feedback collection have its own challenges and even when the feedback is collected the feedback management is another challenge.
The customer feedback management is a processes that also encompasses feedback data collection but it majorly emphasize of analyzing the data, extracting actionable insights from it, implementing those findings and aligning business with customers to ensure highest customer satisfaction. The customer satisfaction plays a crucial role when it comes to customer loyalty, and the customer loyalty is essential for long-term success and profitability. In this blog we will discuss major customer feedback collection and management challenges and how to overcome them to leverage the full potential of the customer feedback.
Overcoming Challenges in Customer Feedback Collection and Management
Common Customer Feedback Collection and Management Challenges
Every business or organization have a customer experience manager or a customer success manager who is responsible for ensuring a seamless customer feedback management drive. Although the customer feedback collection is a continuous process and businesses should regularly collect customer feedback to remain up-to-date, however, the customer feedback collection and management is not as that simple as it may sound. It is a complicated and lengthy process, it requires a lot of efforts and human resource to successfully execute the campaign.
See Also: 11 Customer Feedback Examples for Business Success
Therefore businesses are utilizing several customer feedback systems which are digital solutions and help aiding the process with digitalization and automation. However the traditional or poorly managed customer feedback campaign could be very challenging.
Here are some common challenges businesses are facing while collecting and managing customer feedback data:
- Poor or Lack of Management Process: In today’s digital world, the customers are usually scattered on various channels, collecting feedback data could be very difficult. However, collecting valuable, precise and actionable feedback data is even more difficult without a proper feedback management system and strategy in place.
- Scattered and Fragmented Feedback: The customer feedback data is coming from various channels and in various forms. Businesses usually use customer feedback form, pools, happiness meters and capture feedback during the customer interaction at service center. It is very challenging to consolidate all those feedbacks and extract insights from it.
- Low Response or Insufficient Data: This is basically one of the most fundamental challenge every business face. Most of the time due to poor choice of channels and the low quality of questionnaire people don’t respond much. However, there are other things too, sometimes businesses make feedback submission process difficult or lengthy which also repel customers.
- Lack of Context or Unstructured Feedback: Collecting feedback is not the only challenge, analyzing unstructured feedback and feedback data with little or no context could lead to incorrect analysis or lengthier and difficult analysis, in both cases the outcome and impact of the feedback is undermined. Extracting meaningful insights is crucial from the feedback data.
- Large Volume of Feedback Data: It is not just low response and insufficient feedback data that poses challenges but the overwhelming and large volume of feedback data could be extremely challenging for the feedback managers. It is also difficult to categorize and organize the feedback data which results in poorly compiled insights or it could even lead to inaccurate conclusions.
- Digitalization of the Feedback Data: The traditional methods of collecting customer via manual channels such as paper & pencil, feedback cards or printed survey forms. All this data has to be digitalized in order to perform analysis and draw insights. The data entry and processing of such data could be problematic, time-consuming and could have a lot of errors.
- Language & Communication Barriers: This is the most common problem with the traditional customer feedback collection and management methods. Businesses often failed to include all native languages, and sometimes the language they are using is not as that understandable which undermines the quality of the feedback and it also reduce the responses.
- Lack of Integration and Automation: Today’s modern businesses run on several digital systems and IT tools, and most of the time there is a primary or central operating system which is usually an ERP. If the customer feedback system is not integrated with other relevant tools such as CRM or analytical platforms, the data has to be migrated manually, which is a big challenge.
Customer feedback data collection and analysis is a very challenging feat. It requires a lot of resources, efforts, and time to conduct a successful feedback campaign. It is not only about collecting customer feedback data, but it is also about transforming this data into actionable insights, implementing those actions and then informing customers about what actions has been taken. This is also called a closed-loop customer feedback system and is proven to be the most effective feedback management method.
See Also: 5 Types of Customer Feedback
Common Customer Feedback Collection and Management Challenges
Customer Feedback System Streamline Feedback Management Process
A digital customer feedback system is an exclusively designed software-powered tool which help facilitating and streamlining all processes involved in customer feedback collection, management and even closing the feedback loop. The customer feedback system software is usually hosted online or in cloud, and it is connected with multiple channels such as website, emails, SMS, mobile apps, WhatsApp, customer portals, interactive kiosks, touchscreen tabletop kiosks and many more. It is this ability that enables a digital customer feedback system to effectively and efficiently collect valuable, precise and large quantity feedback data.
See Also: Leveraging Customer Feedback System for Business Growth
A modern digital customer feedback system offers many advantages that help businesses to overcome the most of the feedback collection and management challenges. Here are some:
- Enhanced Accessibility: A digital customer feedback system offers multiple channels to customers to give their feedback from anywhere and whenever they want. This can greatly increase the response rate and also help improving the feedback data quality.
- Streamline Data Collection: The powerful customer feedback system software is capable of automating the feedback data collection process. It can collect customer feedback data from various channels and it can automatically consolidate it in a central database.
- Advanced Analytical Tools: A digital customer feedback system has in-built analytical tools and smart algorithms which help automatically analyzing large amount of data. Getting customized reports or exporting data is seamless and requires literally a few seconds.
- Enhanced Targeting and Personalization: The customer feedback system has in-built smart algorithms which enables it to classify customers as per their preferences and profiling, this enable businesses to send personalized and tailored feedback requests to improve quality.
- Multi-lingual Support: Businesses can share same questionnaire in multiple languages to target multiple customer groups. It also helps improving the communication which encourages more customer to share their opinion, hence the quality of the data is raised.
- Customer Sentiment Analysis: Modern customer feedback systems comes with in-built AI tools with advanced learning and language capabilities. This let the system to perform several sentiment analysis on a large-scale and unstructured feedback data and customer comments.
- Real-time Monitoring and Alerts: Real-time monitoring and alerts is a remarkable feature of digital customer feedback systems, it enable businesses address the most important issues as they arise and also help them proactively manage customer experience via instant alerts.
- Close the Feedback Loop: Closing the feedback loop is crucial, customers appreciate when a business values their feedback, take actions and respond instantly. With a digital customer feedback system closing the feedback loop is seamless and fully automated.
- Reduce the Cost and Efforts: A digital customer feedback system is capable of automating several feedback collection channels and feedback management processes which help minimizing the human efforts hence time and cost and make it more cost-effective.
- Scalability and Customization: A digital customer feedback system is a software-based solution which offers in-built features to customize the feedback management system and processes to adopt to emerging challenges and growing business needs.
- Support Continuous Feedback: It is crucial to continuously collect customer feedback and stay connected with your targeted audience. The customer feedback system help scheduling feedback collection campaigns and it also enable managing multiple campaigns separately.
- Third-Party System Integration: The modern customer feedback systems offers simple and flexible integration features to integrate with other third-party systems, tools, databases, and central information centers such as CRM, ERP, HR System, Inventory & Sales Systems, etc.
- Advanced Administrative Tools: The customer feedback management system is a digital tool, it offers dedicated administrative dashboards and control panels to increase control and monitoring of the entire feedback management process and make it more efficient.
- Security and Data Protection: The customer feedback data contains sensitive and crucial information, the digital customer feedback system helps businesses implement their security policy with advance authentication and access control tools.
A digital customer feedback system is a full-fledged framework which can greatly improve the customer feedback management process and help businesses minimize the cost, time and efforts. It lifts the heavy load, automate several processes, and it offers advance reporting and analytical tools with flexible integration and customization abilities. This makes it an ideal solution to deal with the most common and sophisticated customer feedback collection and management challenges.
See Also: Key Features of a Customer Feedback System
Customer Feedback System Streamline Feedback Management Process
Conclusion
Customer-centric businesses need effective customer feedback collection and management process which helps them aligning with their customers’ preferences, expectations, needs, and desires. A digital customer feedback system is an ideal solution to navigating through the complexities of a customer feedback management drive. From scattered and multi-channel feedback data to overcoming language barriers and streamlining the analytical processes a customer feedback system enhances each and every process involved in the customer feedback collection. Whether it is closing the loop or consolidating the feedback data from multiple sources, a customer feedback system is an ideal tool for that. If you want to perform sentiment analysis or if you want to share reports automatically with colleagues, management or relevant personals, a customer feedback system provides you automated features which greatly reduce your efforts and maximize the efficiency.
With a closed-loop and well-structured customer feedback system businesses can foster a continuous engagement with customers which help obtaining customer loyalty. In a highly competitive market landscape businesses needs a great competitive advantage and the customer feedback has potential to deliver it. In this blog we have discussed the most common and critical challenges businesses can face during their customer feedback drive and how a customer feedback system can help overcoming them. If you want to learn more about the subject or if you want our help to design a bespoke customer feedback system for your business, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.