Measuring customer loyalty and identifying sources of product and service improvements

Customers are the best source of information about how a company’s products and services are perceived in the market place in relation to competitors.  Understanding how customers experience a company’s products and services provides the foundation of business growth.  Continuous growth requires continuous measurement of the value that is delivered to customers compared to competitors.

The best approach for customer feedback systems includes:

  • Systematic, annual (or more frequent) measurement of customers’ perceptions
  • Quantitative measures to track changes in perceived value compared to competitors
  • Linkage to continuous improvement process
  • Linkage to strategic planning

Potential customers and lost customers are also a source of valuable information, but the customers provide the foundation of a systematic tracking of the value of a company’s products and services.

Systematic customer feedback systems can provide a positive return on investment.  The quantifiable sources of the ROI  include:

  • Improvement in customer retention
  • Increases in customer referrals
  • Identification of improvements in services and products that improve market share
  • Identification of new products or services that expand market share
  • Increases in the share of products that a customer buys from your company versus your competitors

With IntelliQ's Customer Feedback Systems, we help our clients identify a path to improvement and growth with a positive ROI.  If the customer feedback project is designed badly and no one does anything with the VOC results, then there is going to be no return on the investment.

A positive ROI on a customer feedback program requires

  • Asking the right questions
  • Getting answers from a representative sample of customers,
  • Analyzing and presenting the results clearly
  • Interpreting the results into focused changes in products and services
  • Implementing the changes that will produce a positive ROI