Having an effective customer feedback acquiring system is not enough. Unless you know how to properly analyze this feedback, there is no way to improve customer experience and your net promoter score.
Truth is, the importance of customer feedback analysis for customer experience cannot be highlighted enough. It is THE only way to discover gaps in the services you provide or detect potential deal-breakers in your products. The quality of customer feedback gathered can vary in many ways. But when you have a well-structured feedback analysis program, you can extract meaningful and actionable insights that turn customer feedback into specific and useful pointers. You can aim for better business growth, enhanced customer experience, and fine-tune your services and products.
Research suggests that upon correctly analyzing customer feedback and taking appropriate actions, you can hike product prices even by 25 percent and attain continuous growth of revenue. The overall customer experience management program becomes more effective, which is ultimately reflected in your NPS.
Now, analyzing customer feedback correctly can be pretty difficult. And this seems like an insurmountable task as the volume of customer feedback increases, not to mention the complex language people use to express their views or the nature of their feedback which is often very generic. You cannot use all of the information to improve customer experience. The real essence lies in knowing how to analyze customer feedback the right way.
How to Analyze Customer Feedback?
The goal of your customer feedback analysis program should be to understand the “why” of your customer. For that, there are some basic steps to follow.
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Collate all the gathered information in one place
This is an obvious step, but extremely vital. For effective customer experience management, you need to keep track of all the sources of your customer feedback. The most probable sources include surveys for CSAT and NPS, social media reviews, chat interactions, CRM data, and call center data. Even if there are incomplete pieces of feedback, do not discard any. Collect them all and store them in a spreadsheet or repository before analyzing them.
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Segregate the feedback into categories and subcategories
Once you collate all the feedback into one place, you need to organize them into categories. Divide them into sub-categories, if needed, and try to detect if they reveal any pattern. Categorizing the customer experience feedback is essential for realizing the bigger picture that shows what is actually going on. Subcategorizing helps make this picture clearer.
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Segregate feedback based on their properties
Split the categorized feedback as positive, neutral, negative, or junk helps further streamline it. This segregation is immensely helpful for your teams to understand and analyze what worked well, what went wrong, and even what needs to be discarded. They can analyze each feedback uniformly and with better precision. While positive feedback acts as motivation, it also shows where to remain consistent, negative feedback reveals the loopholes and what needs change or elimination. Neutral feedback should be considered for what needs improvement.
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Root cause analysis
Analyzing the root cause behind each type of feedback holds the key to understanding how to improve customer experience. This is especially required for negative and neutral reviews because that will reveal why some customers were unhappy. For instance, if you find that the majority of feedback points to delivery service, you need to analyze exactly what went wrong in the delivery service and improve on it.
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Action plan and team involvement
After root cause analysis, you need to chart out an effective and feasible customer experience management plan to tackle the drawbacks. Your aim is to convert negative feedback into a positive or at least neutral one. This requires team involvement and communication on how to go about the whole plan. Prepare guidelines along with your action plan to help your teams adjust.
Customer Feedback Analysis Using Automated Tools
The most effective way of analyzing customer feedback and improving your net promoter score is by employing technology, i.e., automation.
Investing in automated tools does not only expedite the entire analysis process, but also offers excellent actionable insights with detailed reports and charts based on all the customer feedback gathered. Automation helps reduce the turnaround time for implementing changes and improvements and helps customers realize that your brand values their opinions. This leads to enriched customer experience and further business growth.