How Tony Roma’s Stays Focused on What Matters to Customers

Find out how Tony Roma's focuses their customer surveys on what matters to the customers, and synchronizes all their CX efforts.

In my last few posts, I’ve recapped some lessons shared by Choctaw Nation and Discount Tire, two out of three clients who participated in InMoment’s latest webinar. The third client participant was Tony Roma’s, and they had an equally valuable lesson to share for anyone focusing on CX: Stay focused on what matters to your consumer.

Though this may seem to be a basic component of CX (we all want to satisfy our customers), it can be a bit more complicated to maintain focus. Let me explain why. When we have a customer experience focus, we want to find out why customers choose our organization or what the differentiators are for our organization.

Pulling such insights from customer data can be a difficult process in itself, but an additional difficulty comes afterwards, when an organization can get distracted in a well-meaning attempt to offer more and more value to customers. But what if all that extra value isn’t focused on what your customer really wants? Then you’ve done all this work on areas that will not further your CX goals.

This is such a disappointing place to be, and I would venture to say that every professional wants to avoid wasting resources at all costs. Ultimately, keeping a consistent focus on what matters to your customers is vital to the effectiveness of your program.

In the Three Things I Wish I Would Have Known When Starting/Growing a CX Program webinar, the chief marketing officer for Romacorp, Inc., Jim Rogers, went over this issue, and shared with us a couple of the methods Tony Roma’s used to find out what matters to its customers and stay focused. I’ll be sharing those with you in my post today!

1. Streamline Questions and Standards

Consistency is key in customer experience, and Tony Roma’s stayed true to that principle with its efforts to streamline survey questions and standards company-wide. The goal of this method was to re-architect the program to focus on deeper customer understanding.As part of this process, decision makers made sure each question had a clear, focused purpose and was consistent across borders. This meant translating each question into the seven different languages they serve! They also ensured that they had solid standards for incentives, reporting, and follow-up all across the globe.

2. Re-Educate Globally

The next step was to re-educate the global organization on Tony Roma’s CX platform. They took measures to be sure that this education was consistent in every restaurant, everywhere. They made sure that all employees were aware of tool-specific standards and goals at the restaurant, country, and regional level. Additionally, employees knew that their results and responses to customer complaints were being monitored according to these standards.A few of the specific methods they used to get these points across were presentations at its global conference, sharing system results across the organization, and sending 24-, 48-, and 72-hour notices for customer complaints with follow-up from regional operations heads. This helped to increase employee focus and attention on customer experience and what really matters to their customers.

Customer experience is vital to any business, and it requires hard work and consistency. If you maintain focus and keep listening, all your hard work will pay off and customers will keep coming back for more.

How Discount Tire Uses Customer Advisory Boards with VoC for Customer Understanding

Learn how Discount Tire uses customer advisory boards to enhance their voice of customer programs and gain understanding.

In my last blog, I discussed several lessons learned from Choctaw Nation as part of our recent webinar together. This webinar gave listeners the opportunity to hear from different companies about their experiences implementing a CX program, so for those of you who missed it, I am going over each segment in a series of blog posts.

In this post, I will discuss the conversation I had with Mike Bolland of Discount Tire, regarding his company’s CX journey. As the director of omnichannel customer insights & experience, Mike is constantly looking for ways to capitalize on VoC data, and he was able to share one of the company’s innovative techniques with me: the implementation of Customer Advisory Boards.

Before I explain this technique, it’s necessary to give a little background on Discount Tire’s customer experience history. Discount Tire has had some form of VoC process in place since 2005, but they kept running into one specific problem: They knew what the existing issues were, but they weren’t sure how to continue the conversation with their customers to discover why those issues existed.

This was the genesis for Discount Tire’s Customer Advisory Board (CAB). The board started off as a group of about 20 customers who would meet with the Discount Tire team to get at the root of customer experience issues.

These boards have since become an integral part of the way Discount Tire approaches its customers, and has been even more useful since they have added InMoment’s advanced analytics to their CX efforts. They have found that their VoC program really informs the discussion in the CAB meetings, in that the insights they gain allow them to ask targeted questions and get the answers they need.

A Voice of Customer (VoC) program is vital to this process because as Mike says, “as employees of 20+ years, we can’t think like a customer.” In my own conversations with clients, I can’t tell you how many times I have heard something along these lines. The fact of the matter is that though businesses have an idea of what the customer experience issues are in their head, they do not often match up with what the customer views as the primary issues.

Using VoC and CABs in tandem is Discount Tire’s solution to this problem. With VoC analytics, unstructured feedback identifies the real issues or the “why,” which are then brought to the customer advisory board. This takes the process a step further, and allows a business to get an accurate, complete picture of the problem so they can act accordingly.

Discount Tire uses this technique consistently in order to keep tabs on their customers at the speed of business. They present new ideas and campaigns to this board as well as ask for background on existing issues. Members of the board are able to ask the Discount Tire team questions, which reveals the areas that the company could better define for their customers.

Overall, this idea of using customer advisory boards in conjunction with a VoC program creates a forum for any business to better understand their customers and better their customer experience.

Top 10 AI Terms Every CX Pro Should Know

Here are ten artificial intelligence (AI) terms every CX professional needs to know to keep up with the customer intelligence conversation.

There’s a lot of talk about Artificial Intelligence (AI) in CX these days, and while most CX pros won’t ever write an algorithm, understanding the fundamentals of analytics and AI is no longer an option — it’s a necessity.  Following are the top 10 key AI terms every CX practitioner must know in order to keep up with the AI conversation:

1. Artificial Intelligence

Advanced software that automates the learning and performing of tasks that normally require human intelligence, such as learning, decision-making, speech and image recognition, and translations.

2. Analytics

The detailed examination of data as the basis for discussion or interpretation. There are a variety of types of analytics processes. Gartner breaks them out this way:

    • DescriptiveCharacterized by traditional business intelligence (BI) and visualizations such as pie charts, bar charts, line graphs, tables, or generated narratives.

“What happened?”

    • Diagnostics – Characterized by techniques such as drill-down, data discovery, data mining and correlations.

“Why did it happen?”

    • Predictive – Characterized by techniques such as regression analysis, forecasting, multivariate statistics, pattern matching, predictive modeling, and forecasting.

“What is going to happen?”

    • Prescriptive – Characterized by techniques such as graph analysis, simulation, complex event processing, neural networks, recommendation engines, heuristics, and machine learning.

“What should be done?”

3. Machine Learning

This is a term sometimes used interchangeably with AI, but in fact, it’s one just one component, albeit an important one. Machine learning is computers the ability to learn a task or function without being explicitly programmed. There are several different types of machine learning, including:

  • SupervisedThe task or function is learned from labeled training data, most often curated by a human.  The algorithm adapts to new situations by generalizing from the training data to act in a “reasonable” way.
  • Unsupervised – The task or function is learned from hidden structures in “unlabeled” data. Because the dataset is unlabeled, there is no evaluation of the accuracy for the outputted model.
  • Neural Networks – A number of processors operating in parallel and arranged in tiers. The first tier receives the raw data, and then passes on its “knowledge” to each successive tier.
  • Deep Learning – a machine learning model that leverages hierarchical representation of the data. This is best illustrated when used with Neural Networks.

4. Algorithms

A set of rules or process to be performed in calculations, especially by a computer.

5. Models

Algorithms that analyze and visualize data through a specific lens. Some notable types of models include:

  • Anomaly – Recognition of a significant change in the data being monitored. (E.g. an increase in frequency of a particular issue being discussed by customers.)
  • Churn – The likelihood of loss, especially of a customer or employee leaving an organization.
  • Recommendation – A set of instructions given that will improve a specific key metric.
  • Financial Forecast – Using historical performance data, a prediction about future performance is made.

6. Speech Analysis

Recognition of customer tone, pitch, and volume to determine customer sentiment and emotion.

7. Automated Speech Transcription (Speech-to-Text)

Automated recognition of digitized speech wavelengths converted to text.

8. Facial Recognition

Machine learning applied to images to identify the key characteristics of human faces.  Typical applications include identifying a particular person (to unlock a device) or the emotions they may be expressing (a customer is unhappy).

9. Text Analytics

Identification of valuable concepts from human-created text data (social reviews, survey comments)

  • Natural Language Processing (NLP) – The application of computer processing to deriving patterns and meaning from large sets of text-based data. There are two types of NLP, rule-based and machine learning. With rule-based, human curation plays a role in creating and refining dictionaries, rules and patterns, which are then coded into the to the computer. With machine learning, the computer learns from existing data sets and then automatically generates the rules that drive the analysis of the text data.  
  • Natural Language Generation (NLG) – The automated creation of text data using computational linguistics to streamline the interaction between humans and computers. Siri and Alexa are examples of NLG.

10. Internet of Things

The interconnection via the internet of everyday computing devices enabling them to send and receive data. For example, the Bluetooth connection between your phone and car.

To read more about InMoment’s advanced analytics and the intelligence they provide, click here!

4 Lessons on Launching a VoC Program from Choctaw Nation

Here are four lessons a major entertainment conglomerate learned when implementing their voice of customer and CX program.

InMoment recently hosted a webinar with three of our clients to discuss the lessons they’ve learned as they worked to establish their CX program. In “Three Things I Wish I Would Have Known When Starting/Growing a CX Program,” I facilitated interviews with Choctaw Nation, Tony Roma’s, and Discount Tire, where we discussed lessons from their individual CX journeys.

The discussion was incredibly informative and eye-opening, so for those of you who were unable to tune in, I will be writing a three-part series where I review my favorite insights from each of the client interviews. Let’s dive in!

The first client we interviewed was Choctaw Nation, an Oklahoma-based business that operates gaming sites, resorts, RV parks, a printing company, travel plazas, farms and ranches, and a country market. With so many customer journeys the brand decided to implement its first formal customer feedback management program with InMoment in order to hear and respond to customer stories.

Tommy Rhoads, executive director of guest experience and operational excellence, joined our webinar to discuss his experience implementing Choctaw’s new program and shared four lessons for other practitioners who are just starting their CX journeys.

1. Set expectations.

The first lesson Tommy shared was that any organization new to a formal VoC program must set expectations for what will happen after implementation. Tommy explained, “Customers are going to complain. Yes, customers are going to have something to say about your business, and you know, that’s really okay!” He then went on to emphasize what we here at InMoment truly believe about negative feedback: that though it may feel negative at first, this feedback is ultimately an opportunity to show your customer that you’re listening to their voice.

When you start formalizing your approach to customer feedback, it is important to expect that there will be negative feedback, but instead of dwelling on it, use it as an opportunity to identify areas for improvement.

2. Anticipate and prepare.

The next lesson Tommy described involved taking a critical look at what you already know about your business’s existing customer experience. What are the known issues you have as an organization? By identifying these before customer feedback starts pouring in, you have the opportunity to start making a plan and “look at the capability of the organization versus the capacity… to [address] it and… meet the needs of our customers.”

Tommy said that in his mind, this initial overview before implementation is the most critical step you can take when starting your CX journey (and I’d have to agree)!

3. Be flexible.

This lesson is all about expecting the unexpected. Preparation can take you a long way, but it is just a fact of the journey that unknown issues will arise. In this case, it is imperative for businesses to be flexible.

Tommy describes this flexibility as “collaborative recalibration,” or the process in which a business sits down, faces the unexpected issue, and puts a plan in place that allows them to take action. This kind of flexible approach is what will really allow your company to bounce back from unexpected issues and find CX success!

4. Don’t lose sight of the big picture.

With the incredible amounts of new customer data you will get when first applying your VoC program, it can be easy to get caught up in the minutia. In the first 13 days of Choctaw’s new program, they received 8,000 responses. Safe to say, they felt like they had a lot of work to do.

Tommy said that in the face of what might have been an overwhelming situation, they were able to find inspiration from their big picture. They knew that this feedback would be pivotal in providing the type of experiences they wanted to, and would ultimately help them to meet all their goals as a company. They also took a look at their core cultural values as a company, and returned to their task with the intention of not focusing on the negative, but emphasizing the positive. It is with this big picture outlook that Choctaw was able to start off its formal VoC efforts on the right foot.

Starting off a new customer listening program is no easy feat, but it helps to hear from organizations who have been there before and can offer first-hand advice on how to overcome CX hurdles.

3 Ways Telecoms (and Other Businesses) Can Improve their Customer Experiences

How can the telecommunication industry improve customer experience? Our research revealed three key ways...

In today’s digital world, consumers’ dependency on telecom services like mobile, streaming and the almighty internet will continue to increase. And while this ever increasing demand means higher revenues for telecom, it hasn’t translated into good news for customers. While seeing some improvement in recent years, the telecom industry still hovers at or near the bottom of every major customer experience index.

The downside of being essential

With many lines of service – especially internet access – perceived by consumers as a necessity akin to oxygen, unsatisfactory experiences are magnified. When they’re working fine, however, no one is celebrating the service. And even when customers report feeling satisfied, they are incredibly stingy with the next level of relationship: loyalty.

According the our recent research, the downward spiral starts early. InMoment’s report, Customer Experience in the Telecom Industry, found that satisfaction plummets at the one-year mark – across all lines of service (TV, internet, mobile, etc.). During the initial honeymoon phase, the technology is still shiny and new, and introductory customer deals are still in place. But as service failures happen and introductory pricing is replaced by sometimes shockingly higher bills, deep frustration sets in. And while satisfaction does bounce back, it never fully recovers.

This dissatisfaction causes customers to look to greener pastures. Telecoms spend an inordinate number of resources luring new customers away from competitors. And while strong acquisition rates are highly prized by shareholders, the result is often a matter of “be careful what you wish for…”  The same study found that most of the time, these hard-won new customers are much less satisfied with their new provider than the one they abandoned. It may be a matter of inflated expectations, lofty promises, or a combination of both. Either way, these new, unhappy customers can be more tenuous and more expensive to maintain.

While telecoms face significant challenges, the research also reveals some steps they can take to make real improvements in customer relationships, and their business.

Continuously engage

Regularly engaging customers and consistently asking for feedback will help telecoms avoid unpleasant surprises and find new ways to enrich the relationships. A significant increase in a subscription fee or changes to an offering should never be a surprise. Concerted efforts to communicate changes and ensure customers fully understand and are enjoying the full value of their service can ease the transition.

Another major challenge for telecoms is service interruptions, some of which are within their control, and some of which are not. Either way, transparent and honest communication is the best policy. The Metropolitan Transport Authority in New York recently started being transparent with customers about train delays, and customers were reported to act less hostile, especially when they understood delays were not the train’s fault. Another key to successful regular and proactive communication is offering multiple, connected contact channels to alleviate customer frustration of having to restart the resolution process or have to re-enter information like their name and account number. A diverse group of channels ensures consumers can contact their telecom in the way that’s most natural and convenient for them, and have a seamless experience when they choose to switch.

Prioritize human interaction

Although AI and automated chatbot usage have increased and can add efficiency to the brand-customer equation, deploying these technologies at the wrong times increase frustration. Easy access to human representatives — especially for complex issues — is one of the best things companies can do to effectively solve problems.

The study found that customers across nearly every service line who had a personal interaction with a brand representative reported higher satisfaction levels than those who had not. Another report found that 67 percent of customers have hung up the phone if they weren’t able to talk to a real person, and another revealed that a bad phone experience would send three quarters of consumers to a competitor. That’s why it’s vital to both provide live human channels, and conduct comprehensive training for those in client-facing roles to ensure they’re well-prepared to thoroughly address each customer issue.

Technology investments should augment human efforts, providing agents with the information and context to handle more service requests faster, and more effectively. However, this cannot happen if customer queries and user information are not seamlessly exchanged between intelligent systems and their human counterparts.

Offer a range of engagement options

Because customers’ needs are varying, they should have access to varying channels for customer support as well. After all, different situations call for different paths to customer service.

For example. landline phone issues aren’t conveniently solved at a physical location—the device can’t even be brought into the store, so perhaps an online chat portal is a better fit. But when it it comes to issues surrounding mobile connectivity, in-store could be the perfect opportunity to bring in the actual device and dialogue face-to-face with a representative for a troubleshooting session.

The challenge to this upgrade in contact channel options means more experiences for telecoms to manage, though no matter where the telecom and customer interact, the experience should remain consistent. As telecom technology moves forward and a fast, quality internet connection becomes all-the-more a necessity, the investment will prove itself more than worth it in due time.

The most important piece of counsel any brand can receive is to invest generous resources in really listening to customers. Listening is more that doling out surveys, providing comment forms on your website, and even offering a real human to hear a complaint. With today’s technologies, customer listening can be always-on, multifaceted, and feel a lot more like a reciprocal conversation than an interrogation. Listening also consists of letting the customer know you’ve heard them, and taking their advice. Just like any human relationship, it’s not nice to ask if you have no intention of responding with integrity.  The logistics in doing this may be infinitely complex, but the rules of good human relationships remain pretty simple.

If telecoms will let them, customers can serve as valued consultants in helping these organizations focus resources in the right places to have an impact that matters to both customers and the bottom line.

How to Prioritize the Feedback that Actually Impacts Revenue

Are you following best practices for a closed-loop approach to customer feedback? Here's how you can prioritize your data to get the insights you really want and need.

When starting your CX journey, the immediate focus is almost always on collecting customer data. After all, how can you assess your current situation without any customer feedback? So after scavenging social channels, physical surveys, and phone surveys, you have a mountain of data in front of you. This is a definite accomplishment, but it is also the beginning of another phase of careful deliberation.

You know you need to prioritize this mountain of data in order to avoid picking up more than you can carry, but the way you categorize your customer feedback is rarely obvious. In fact, the most obvious path to take can actually get in the way of your CX program’s ultimate goal: positively impacting your revenue.

In order to help you develop an approach to your data, I will explain the obvious path many businesses follow, why it can actually harm your customer experience, and which two ways you can prioritize your data to get the results you want!

Don’t Weight Your Data

Many businesses try to summit their data mountains by weighting their data, or in other words giving data from one specific channel president over others. Though this option may seem like a good one at first, in the long run these businesses miss out on the best opportunities. Why do I say this? Because in weighting your data, you are missing out on improving other experiences. Yes, one area may excel, but one out of many is still a minority.

When it comes to customer experience, every experience matters. Each touchpoint available to your customer is an opportunity for them to interact with your brand and is therefore an extension of it. By weighting data, you are disregarding several points in your customer’s journey, risking a potential revenue loss because of a disjointed experience or a failure to deliver on a brand promise (which is essential to develop customer loyalty).

In order to avoid these difficulties, weight all data the same regardless of channel. An omnichannel perspective delivers a more thorough understanding of your customer’s needs and how you can meet them. Once you’ve done this, I suggest trying a few other prioritization methods that will bring you more success with your customers.

Do Prioritize Negative Experiences

Everybody appreciates a good compliment, so it can be tempting to reach out to satisfied customers to find out what you did right. While this can be helpful, it is ignoring your most at-risk customers. These are the customers that need the most immediate attention as 91% of unhappy customers won’t return to your brand. Because unhappy customers are a reality for any business, this means that putting off responses to unpleasant feedback is a sure way to lose customers.

When you prioritize these customers, the opposite it true. In fact, you are more likely to gain loyal customers as 70% of the time, a person will become a repeat customer when a complaint is resolved in the customer’s favor. It simply makes good CX sense to prioritize the negative experiences.

Do Prioritize by Time Cases are Created

After singling out negative experiences, I have one more way for you to narrow down your prioritization strategy: Respond to those negative experiences by the time they were created.

Think of your plan of attack like a countdown. Give yourself a time limit for how long a case can remain unresolved. This will help you to close the loop with your customers in a timely manner and to retain customers. I would suggest your goal be 48 hours and, at the very most, under a week, as 50% of consumers give a brand only one week to respond to an inquiry before they stop doing business with them. When you respond to your customers as quickly as possible, you are letting them know that they are your priority, and as we all know, the customer is king!

When it comes to approaching your customer data, it is imperative that you first develop a plan of attack. By making sure that you are weighing all your data equally and prioritizing by negative experience as well as the time cases are created, you are setting yourself up for positive revenue impact!

3 Things That Will Destroy Your Customer Experience Survey Before You Even Start

Here are three customer survey mistakes to avoid when crafting questions so you can get helpful, relevant feedback.

You’ve been put in charge of designing your brand’s Customer experience (CX) survey (my heartfelt congratulations to you my friend!) Before you go and design your CX survey, take a deep breath and ponder the famous adage of “garbage in, garbage out.”

For your CX survey, this means starting off right by laying the necessary groundwork that will pay you dividends in the long run. If you do not take the time now, it may come back to hurt you. Here are three things that, if not handled properly, will destroy your CX survey before it even leaves your desk:

1. Forgetting the “C” in CX.

You may have heard that your customer is king. This is especially true when structuring your CX survey. In fact, you’ll have the most success if you see your CX survey through your customer’s eyes. This means keeping your CX survey short and engaging so it is not painful (or maybe even enjoyable) for your customers to give you feedback. Additionally, it means keeping your CX survey consistent with your brand’s personality so your customers will easily recognize it as coming from your brand. Above all, make it easy for your customers to give you feedback.

2. Survey design by committee.

Once you have crowned the customer as king, quickly appoint yourself as Survey Steward (yes, this is a thing. Go ahead and put this title on your resume and thank me later). As the Survey Steward, you own the survey on your customer’s behalf. This doesn’t mean that your CX survey will not need buy-in or approval from internal stakeholders. Far from it. What does mean is that for your CX survey be successful, it must have someone who ensures the survey remains an easy way for your customers to give you feedback.

As the Survey Steward, this means you must be able to distinguish between “must have” questions and “nice to know” questions. You must also have the autonomy to say “no” or “not at this time” to any request to add, remove, or modify any question in your CX survey. You have the final say to ensure you are asking what matters most to your customers (which may not necessarily be what every internal stakeholder thinks is important).

3. Having questions with no purpose.

As newly appointed Survey Steward, you now have the power to elect a co-owner for each CX survey question. (Just don’t let this power go to your head, all right?) Along with the question co-owner, you must ask yourself: What are we measuring by asking this question? How will we know when we are successful?

By asking these questions, you will ensure that the purpose of each question is met and you’ll know when the question has served its purpose and should be modified or removed. This may mean setting a future date when the CX survey question will be removed or at least reviewed for effectiveness.

Tackling these three things will lay the necessary groundwork to better help you design your CX survey.  My apologies for suggesting that your CX survey may be “destroyed” if you have already started your CX survey without solving these three potential issues. That may have been a little harsh (but I said it out of love). Regardless, start now by eliminating these 3 potential pitfalls as much as possible and setting up the guardrails for future success as you listen to your customers for years to come.

How to Make Unhappy Customers Your Greatest Asset

Can unhappy customers help you improve customer loyalty? Find out how to create opportunities for improved customer experience.

The ultimate goal of any CX effort is to create the experiences that in turn produce happy customers who then become enthusiastic brand advocates. However, just like any goal, this is not necessarily achievable all the time.

For any business, the reality is that from time to time there will be unhappy customers. A particular location could have an off day or maybe a customer is just in a bad mood. Regardless of the cause, negative experiences will happen. The measure of your CX strength then isn’t whether negative interactions happen or not, but how your organization responds to them.

One course of action is to simply write off the experience with a “we’ll do better next time,” but I would argue that this reaction is not enough. In fact, just leaving those unhappy customers be could have dire consequences. After all, 91% of unhappy customers won’t return to your brand.

You may not be able to go back in time and stop that negative interaction before it happens, but you can treat this unhappy customer as an opportunity. Why? Because 70% of the time, a person will become a repeat customer when their complaint is resolved in their favor.

With the right approach, an unhappy customer can actually become your best CX asset. Here are two ways that you can use a negative experience to shape CX success:

Identify Areas for Improvement

Every company has areas where they can improve, but knowing which areas to spend time and resources on can be difficult. For each industry, there are the standby areas for improvement, and across all businesses, there are standards for cleanliness, service, and product. It would be easy to just assess the most popular categories to analyze, but this can be a dangerous policy.

In many cases, the areas an organization sees as needing improvement often do not ally with their customer’s pain points. This discrepancy can cause an organization to waste resources on areas that will not make a difference. This is where unhappy customers come in. In the very act of voicing their complaint, they are identifying the areas they would most like to see improved. By assessing unhappy customer feedback enmass, you can prioritize true areas for improvement and make informed, effective business decisions.

Use the Personal Connection to Create Brand Advocates

So a customer has voiced their complaint and now you need to react. Before reaching out to the customer, it is important to acknowledge that if you go in blind, you can do more harm than good. If a customer service representative is not armed with data when they make a call, they enable the customer to re-live their negative experience and all the emotions that came with it, making the call meant to recover them an equally unpleasant experience.

It is imperative to be informed of the customer’s situation before reaching out not just to avoid this potential blow up, but also because that familiarity provides the potential for a personal connection. When a company representative knows a customer’s situation, is able to apologize, and can offer to make it up to them, a customer feels known and important. This is the most effective way to create a brand connection and even more to instill loyalty and advocacy in your customers. The negative experience then becomes a positive one, and that positive experience can do wonders for your CX reputation. On average, Americans tell an average of 9 people about good customer experiences. That means you have the potential to create nine new brand advocates by simply closing the loop with one customer.

Feedback from an unhappy customer can seem like an overwhelming negative at first glance, but when you take a second look, the potential is even greater than the initial difficulty.

Ninety-one percent of unhappy customers refuse to give your brand another chance. However, resolve that customer’s complaint, and they’re 70% more likely to become a repeat customer. Each customer complaint represents a fork in the road that contains the opportunity to make your business stronger or tear it down little by little. Multiply it by the number of complaints you get in a year and that’s either a big liability or a whole lot of potential for your customer loyalty, depending on how you close the customer feedback loop.

Successful case management, or “closing the loop” on customer issues is a foundational element of any successful CX initiative. Now that customer experience has become the rage, it’s tempting for brands to jump ahead to the more trendy and scintillating areas like AI, personalization and “delight.”

However, without mastering this essential first step, all other efforts will fall flat. And while the process has hurdles, the benefits are well worth the effort, and there’s a fairly straight forward ROI naturally built in. Studies show that an increase of just 5% in customer retention can boost profits by up to 125%. And whether that accurately reflects your business, one thing is clear: For every customer you save, many dollars are earned.

Here’s how to get started on creating, or evolving your closed-loop program:

Understand the loop

Forty-two percent of consumers said that when they contact a brand for support, they expect a response within 60 minutes. Given this expectation, understanding what’s behind the customer feedback loop is essential in understanding how to close it.

In the world of customer experience, the term “closing the loop” was popularized by Fred Reichheld and Bain & Co. in their Net Promoter System, a comprehensive way of structuring immediate resolution of customer concerns, and applying the intelligence inside that feedback to improve all areas of a business. And while NPS is a popular and useful model, closing the loop as a concept that can be successfully applied to any customer experience framework.

We’ve developed our own take on a closed loop visualization. The inner circle represents the process of identifying and resolving individual customer issues, and also communicating those actions back the customer, and the employees who serve them. This “inner loop” is also often referred to as case management. The outer loop represents the bigger picture — the process of identifying and resolving larger organizational patterns and trends based on the aggregation of customer feedback, or identifying and taking action on root cause.

closing the loop

When it comes to implementing a customer experience program within an organization, this closed-loop model is a great process. However, there’s an additional element missing that’s essential to both that immediate and broader success: the frontline employees’ viewpoint, or Voice of Employee feedback.

Empower your employees

Understanding how the customer feels is obviously valuable, but it’s only part of the story. Frontline employees have a unique view to the customer’s journey. They can offer pointed insights into which processes are and aren’t working, and ideas on solutions to optimize the customer experience. This type of feedback is called Voice of Employee, or VoE, and differs from the traditional employee survey feedback where companies ask their workforce to weigh in on their experience as employees. VoE is employee feedback about the customer experience.  This type of intelligence is powerful. In fact, a study by InMoment and CustomerThink found that 66% of CX professionals consider employees the top source of actionable insights about their customers’ experiences.

And when you’re closing the loop, don’t forget to let employees know that you’ve heard them, and how their participation in the process is helping improve the customer experience. Creating authentic areas of contribution and ownership makes for a more effective CX strategy, and more engaged, effective, and loyal employees.

Get executive buy-in

It may be a cliche notion, but it doesn’t make it any less true: success starts at the top. Customer experience is more than a survey. It’s more than personalizing emails or offers. It’s more than resolving every single customer concern. Simply stated, CX is a comprehensive way of doing business. And thanks to this high-order nature, even the most basic elements, like case management, must be prioritized by leadership in order to be successful.

Gaining that executive buy-in is best done by CX pros who are part diplomat, part sales person. If you don’t already have this buy-in, understanding what really matters to both the personalities who make the decisions, and the business is critical. Take time to understand what moves those needles, and focus early initiatives on those areas. Has your business prioritized efficiency? Make sure to track action and report what you learn during customer interactions that streamlines interactions, decrease call-ins or returns, or gets rid of processes or policies that create pain for customers. Maybe your company is focusing on employee retention. The VoE element of closing the loop is an ideal way to boost that metric, given you measure and report on the impact.

If you’re starting with a resistant CEO, case studies, news articles and other stories about CX leaders they admire can be helpful in getting something started. In this case, however, it’s especially important to focus your efforts where you can get relatively fast, and easy to quantify results. An effective case management process is ideal for this scenario, and when done well, can open the door to even more opportunities to elevate your customer experience — and the value it can bring.

To engage more leaders across the business, CX leaders should repeat the same pattern: look for what matters to various stakeholders and how they’re rewarded (or punished). Look for insights from your closed-loop system that can help them make data-driven decisions.

In short, look at your organization’s leaders as an important customer segment. Listen intently. Understand what they want and need. And then deliver value that supports their success.

Break down the silos to act quickly

Businesses, especially large enterprises, are nearly always siloed: From policies and processes, to data and technology. And while separate areas of the business may not cross paths regularly, the customer data they’re collecting at the touchpoints they own (be it billing, legal, marketing, ecomm or retail) are all parts of the larger customer picture. You can close the loop all day long on customer complaints, but if you never fix what’s broken upstream, those efforts will have limited impact: like bailing water out of a boat with a large hole in the bottom.

And when silos prevent timely responses, the impact can be immediate–and harsh.  Time is of the essence, since 42% of consumers said that if they contact a brand for support, they expect a response within 60 minutes. Fifty-seven percent said they expect that turnaround time regardless of time of day or day of week.

Again, here’s where your diplomat-sales skills comes to the rescue, rallying colleagues and leaders to ditch “the way things have always been” and be bold to more strongly communicate across departments. Having a leader to blaze the trail in increasing that communication is essential because it brings clarity the entirety of the customer journey, and the integral role of employees. Open communication is key to a more open and cohesive corporate decision-making process–not to mention bottom line.

The journey toward high-value customer relationships may sound daunting, and it’s easy to feel overwhelmed by the task.  The key is taking one step at a time, starting with building a healthy foundation of resolving customer concerns quickly and well, and inviting employees to become true influencers in transforming your brand.

Every company provides some level of customer experience, whether they create it consciously or not. The question your brand needs to be asking is: Are you investing enough in your CX initiatives? In most cases, the answer is “no.”

There are dozens of reasons why your brand should be investing in customer experience. As a matter of fact, McKinsey & Company, notes that “Optimizing the customer experience typically achieve(s) revenue growth of 5-15% and cost reductions of 15-25% in just 2-3 years.” So why do so many brands choose not to invest, or invest enough, in customer experience?

We’ll dive into four of the most common reasons why many businesses put off investing in a CX program until it’s too late.

1. “I’m not sure how to prove ROI.”

Many businesses struggle to identify the ROI of a CX program and they use that as a reason to justify forgoing CX initiatives, and it is not an illegitimate concern. The ROI of CX can be hard to establish because it is not usually a single number. Measuring the ROI of CX is possible, it just requires a different approach.

The way your company measures ROI can depend on how the program is structured and whether a specific team owns it, or whether it’s a cross-functional endeavor. Some key items that can determine ROI are things like increasing lifetime customer value, reducing customer churn, increasing employee retention or reducing operational costs.

For more information on how to hone in on the ROI of CX, you can check out our eBook, The Five Steps to an ROI-Focused CX Program.

2. “It seems expensive.”

Doing business is expensive and spending even more money on customer experience can seem like just another extraneous expense. However not taking the time or spending the money to understand your customers, however, is even more expensive. By operating without the full context of your brand’s customer experience, your organization might be focusing on improving experiences that are not important to the customers, or that might not contribute economic benefits to the company..

By putting the customer first and understanding the experience from their point of view, brands are able to identify key areas for improvement and are better able to prioritize those that will have the most financial impact. When managed properly, most CX programs will pay for themselves.

According to Jocelyn Wieser, senior retail business intelligence analyst for Cabela’s, “Through the implementation of ….technology and best practices, we’ve tripled our feedback rate, created a more customer-friendly and effective survey, responded to nearly 9,000 customer concerns, and realized almost $9 million in new revenue. In under six months, the program paid for itself many times over.”

3. “I can’t please everybody, so I won’t rock the boat.”

The reasoning behind this excuse is based on the assumption that customers as a whole are hard to please. This leads to unfortunate idea that if not everyone can be pleased, why spend the extra money and make the effort?

Contrary to this idea, our 2017 CX trends report, “The Power of Emotion and Personalization,” uncovered that—regardless of industry or country—customer expectations are reasonable. Our research found that 38% of consumers worldwide ranked “satisfied” as the number one emotion they associated with positive brand experiences. However, this number doesn’t do the actual requirements for a positive experience justice.

Contrary to popular belief, consumers are generally pretty easy to please. The opportunity is there to create positive interactions with your brand. With such reasonable expectations, your organization can’t afford to do the bare minimum—or nothing at all. There is so much more to gain from investing in a CX initiative. To ignore the obvious benefits of these is to refuse the possibility to turn customers to brand advocates.

4. “CX doesn’t appear critical.”

The impact of a negative experience can ripple through any organization and have an adverse impact on your brand’s bottom line. Studies have found that it takes 12 positive experiences to make up for one unresolved customer experience. CX programs help to single out those negative experiences and close the loop with your customers, stopping the negative ripple effect in its tracks.

By using a dedicated program and advanced technology to measure the customer experience, businesses are able to realize the value of putting the customer first. Understanding that there is more to the customer story than just being satisfied or unsatisfied is the first step in creating a truly robust CX strategy that will ultimately impact business performance.

If you are considering investing in customer experience, you’re probably considering all sides of the decision. And though negative reasons (such as the ones listed above) do exist, they are more often a result of misunderstanding or a lack of information. A strategic, comprehensive CX program can clarify perspective to reveal the obvious answer: It is always beneficial for brands to spend their time and money on improving their customer’s experience.

Every second, vast amounts of information are transmitted across the globe. The number of Google searches, Facebook posts and WhatsApp messages sent in a mere 60 second time frame is truly phenomenal. Smart Insights recently revealed that approximately 3.3 million Facebook posts, 29 million WhatsApp messages and over 149,000 emails are sent every minute. In this fast paced digital environment, ‘data’ has thus gained considerable momentum and has become the lifeblood of the global information economy today. With this rise in data, data protection and privacy have become vital components of business practice. Recent cyber-attacks have further sparked an increase in these laws in over 100 countries according to Privacy International.

Data and the customer experience

The last 10 years has witnessed an upsurge in innovation, globalisation and digitalisation that has empowered people with advanced technology. This has caused a shift in global communication as more businesses move their dealings online. In fact, e-commerce has emerged a vital driver of economic growth around the world. A survey conducted by the Centre for Retail Research showed that the online retail sector is the main driver for growth in European retailing, achieving growth rates in Europe of 15.6 per cent in 2016, and expected increases in 2017 of 14.2 per cent and 13.8 per cent in 2018.

Alongside this revolution is a notable difference in customer experience (CX) strategies, and most organisations today consider it business critical. Personalisation strategies and functionality have become core components of many customer experience programmes today. Coca Cola’s ‘named’ bottles took the social media world by storm when they were first introduced. Amazon is also a prime example of a brand that provides customers with customised content and tailored messaging. Amazon’s commitment to personalisation has resulted in ownership of a whopping 16 per cent of UK’s online retail market. Suffice it to say, in order to meet the customer demands of today, businesses are collecting and analysing more and more customer data.

Importance of data protection and privacy laws

While the internet is recognised as critical for the majority of economic and social activities across the globe, policymakers are becoming increasingly aware of its ability to be a source of vulnerability. The only way citizens and consumers will have confidence in both government and businesses, is if there are strong data protection laws and regulations in place. Insufficient data protection can have long-lasting consequences as it may create negative market effects by reducing consumer confidence and overall customer experience. Today, consumer protection it is a fundamental right. Data protection is needed to protect consumers against deliberate acts of misuse or the possibility of accidental loss and misuse of data.

While there are common themes and similarities to the laws introduced by different countries, there are also variations in the levels of security, requirements, penalties and even interpretations by regulators and auditors. To effectively safeguard personal information across markets worldwide, global operating companies must understand all risks and legal responsibilities across a range of data protection laws.

Difference in global data protection laws

Among the many regions that have passed data protection regulations, the European Union (EU) has stood out for its comprehensive approach over the years. The General Data Protection Regulation (GDPR), effective from early 2018, will impact many companies doing business globally. The law impacts any business selling goods and services in Europe specifically those that store, process or transfer any kind of personal data of EU citizens – including posts on social media, payroll processing and medical records. An organisation’s ability to transfer personal data outside of Europe is restricted under EU data protection rules. Those restrictions will remain in place under the GDPR. The regulation will revamp the way information is collected from customers and used by businesses. It is expected to cement privacy rights for 500 million EU residents and will impose substantial fines for misconduct (up to 4 per cent of annual global revenues) and a 72-hour breach notification requirement.

With Brexit around the corner, the British government has further announced that it will adopt the new GDPR while the country remains in the EU and echo it once it leaves.

Under the GDPR, Member States are given some flexibility to pass local laws and further specify the GDPR’s application. Germany, already known to have the most stringent data protection laws, is the first to do so, and more EU Member States are expected to follow soon. It is, therefore, becoming apparent that while harmonisation is the ultimate goal of the GDPR, there are still going to be some variations between member states.

In this context, the German Federal Parliament recently adopted the new German Federal Data Protection Act (Bundesdatenschutzgesetz – BDSG) effective from May 2018. This new law replaces the existing Federal Data Protection Act of 2003 and is intended to adapt the current German data protection law to the EU GDPR. The new BDSG intends to protect personal data from being processed and used by both federal public authorities and private bodies. It further imposes specific data processing requirements with respect to video surveillance, and consumer credit, scoring and creditworthiness. In addition to the high fines imposed by the GDPR, the BDSG imposes fines of up to EUR 50,000 for violations regarding German law exclusively. Companies will further be obliged to appoint a data protection officer (DPO).

The United States on the other hand, has over 20 sector specific or medium-specific national privacy or data security laws, with different laws functioning among its 50 states. Additionally, there are a large range of companies that are regulated by the Federal Trade Commission. However, all the states within the U.S. follow a sectoral approach to data protection legislation, where the laws of data protection and privacy rely on a combination of legislation, regulation, and self-regulation rather than government interference alone.

France, however, protects data privacy of its citizens through The Data Protection Act (DPA) of 1978 (revised in 2004) and applies to the collection of information used to identify anyone. The rules apply to anyone collecting data located in France or those carrying out activities in an establishment in France. In 2014, Google France was fined for failure to comply with this and for violation of their privacy law.

China recently introduced cyber-security legislation banning the collection and sale of a user’s personal information. Firms within the country will have to store user data on servers inside China, and people will be given the right to have their information deleted. The Cyberspace Administration of China (CAC) said in a statement that the purpose is to safeguard China’s national cyber-space sovereignty and national security rather than to restrict foreign enterprises.

Less stringent laws in Australia are governed by Australia’s Privacy Principles (APP) – a collection of 13 principles guiding the handling of personal information. Companies are required to manage personal information in an open and transparent way, having an up-to-date privacy policy about how they manage personal information.

How can companies cope with global disparities in data protection?

A recent Veritas survey of over 2,500 senior technology decision makers, noted that individuals responsible for implementing a GDPR process also face a variety of risks if data is not handled properly. The survey showed that close to 40 per cent of companies were fearful of a major compliance failing within their business, and just under one-third (31 per cent) were concerned about reputational damage from poor data policies. Given already existing variations in implementation, companies will need to focus not only on the GDPR itself, but also on national law, as they prepare their compliance efforts. Given that the UK has one of the largest economies in the world, it is undeniable that these strict laws will have an impact on global business operations.

In order to continue executing superior customer experience strategies that mirror demands of personalisation today, decision makers must be wary of the differences in data protection laws in different markets. In practice, the first step towards successful compliance will be for businesses and their respective decision makers to know where their information resides and from where it’s being accessed. For companies with different office locations, the challenge will be working out which part of the data these changes apply to and determining which information currently residing in branches will have to be centralised to a geographical location compliant with the law.

Global and local businesses alike must ensure that any form of customer data is collected and stored in compliance with different country’s data protection laws. One example of this in practice is InMoment using cloud data centres to enable the secure storing of customer data for European clients.

Furthermore, it is important that businesses allocate resources and educate themselves on the steps needed to comply with future regulations. Conducting comprehensive risk assessments in 2017 can help companies identify and fill gaps in existing data protection programmes. It is important to understand that some may need a full year to remediate, implement and test compliant procedures and policies, which may even include the purchase of new technology.

Finally, companies marketing to customers and prospects across borders must use this year to look for continued global legislation, enforcement activity and litigation regarding the interplay between telemarketing, email marketing and text message marketing and data protection laws and regulations, particularly.

The journey to improve customer experience (CX) begins with identifying your business objectives, and recognizing the need to listen to your customers and analyze what they’re telling you. The steps forward from that starting point vary, but many organizations jump into comparing customer experience vendors right away.

Though researching is a critical step toward that ultimate goal, it should not be the first step you take. Let me explain why: By browsing the sites of various vendors, you get a great idea of what they have to offer you, but how do you know if they can fulfill your company’s needs?

The answer is you don’t!

This is why I am going to suggest an alternate first step for you. Before looking at vendors, it is pivotal to first plan your objectives. What does your company hope to gain with CX technology? What needs should be fulfilled? What areas of strength or weakness are you already aware of in your customer experience?

These questions should help to get you thinking, but I have also outlined three specific things you should do while planning your objectives.

Think Short and Long Term

Your ideal customer experience platform should be able to address all points on your business timeline, from the current state of your company and its immediate needs to your long-term goals. Outlining your big picture goals will help you to have your vision in mind when you look critically at potential CX technologies. This will also help you to determine which vendor best fits your company both now and down the line.

Include All Company Stakeholders

We are all familiar with the “it takes a village” saying, and more than likely, this is true of your company. When you are outlining your goals, be sure to include any decision makers, stakeholders, and influencers in the process. This will help you to gain a more comprehensive view of needs and requirements. Understanding expectations from all your company’s angles will help you to set clear requirements and guidelines for any CX vendor you choose.

Write It Up 

Once you have brainstormed, discussed, and specified your goals with your stakeholders, it’s time to put it all together. Consider creating a 1-2 page executive summary of your findings to use as a guide. This gives you something concrete to provide potential vendors as you research their solutions. From this document, they can more clearly communicate to you the areas of their program that will address your specific needs. Their response to this document will also give you a clear idea as to how the vendor will be to work with. If they respond with thoughtful questions and solutions, it is more than likely that they will prove to be an invested asset for your company in the future.

The CX journey is different for every organization, but planning objectives is a crucial step that will make selecting a customer experience platform that much easier.

So what are your next steps? If you would like more advice on where to go from here, check out our new resource, Customer Experience Buyer’s Guide: What to Know Before You Buy Software Promising to Improve the Customer Experience.

Download the full guide here.

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