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How Social Media Monitoring Can Impact Your Business

Social media monitoring is how an organization stays connected with what customers, consumers, and competitors are discussing on social media platforms and using that knowledge to make informed business decisions and build stronger relationships.

Did you know consumers ranked social media in the top five most preferred channels for customer support? Furthermore, more than 80% of consumers expect a response from businesses on social media within two business days. With these customer expectations in mind, having a robust social media monitoring strategy that helps you stay connected with your customers has never been more important for maintaining a positive customer experience.

What is Social Media Monitoring?

Social media monitoring is the practice of actively tracking, analyzing, and responding to online mentions of a brand, product, or topic across social media platforms like Facebook, Twitter, Instagram, and LinkedIn. Social media monitoring is part of comprehensive social media management.

When an organization is tuned in to social media conversations, it gives them insights that influence everything from customer service protocols to marketing strategies and product updates.

Social Media Monitoring vs Social Listening

Social media monitoring is reactive to certain mentions, reviews, or posts made by customers. Social media monitoring is the base that social listening is built on.
Social listening is a proactive strategy that uses social media data to uncover customer insights and make broader business decisions.

While often used together in conversation, social media monitoring differs greatly from social listening. Both involve tracking online conversations, however, social media monitoring focuses on immediate action and responding in real-time, making it useful for handling customer inquiries or managing problems as they happen.

Conversely, social listening identifies larger trends and themes through audience analysis, competitive intelligence, and customer sentiment tracking. This helps organizations understand the bigger picture behind consumer behavior and market performance.

Why Is Social Media Monitoring Important

Social media monitoring is important because 88% of consumers expect a response from an organization on social media within two business days. Furthermore, 76% of consumers are frustrated when they do not get personalized communication from a business. By leveraging tools to monitor social media, you can improve your response time with customers and offer them a more personalized experience.

Benefits of Social Media Monitoring

When brands consistently track and analyze social media mentions, they can use those findings to assist their brand reputation management efforts, improve the customer experience, and capitalize on market insights. Here are some other key benefits of social media monitoring:

Enhanced brand awareness
Improved customer engagement
Effective crisis management
Competitive Analysis
Informed Market Research

Enhanced Brand Awareness

Social media monitoring allows brands to gauge their visibility across channels and understand how their audience perceives them. By tracking your brand mentions specifically, you can assess the reach and tone of conversations you are part of. This helps you stay connected with how consumers view your brand. This level of awareness ensures that your brand can strategically build and maintain a positive image. In fact, 83% of marketers say their social media monitoring efforts have increased their brand exposure.

Improved Customer Engagement

Properly responding to customer questions, complaints, or compliments can significantly impact customer loyalty. Social media monitoring enables your organization to identify and engage with your audience at crucial moments, such as when a customer leaves a bad review after a negative shopping experience. A quick response time shows that your brand is attentive and responsive and builds stronger customer relationships.

Effective Crisis Management

Social media monitoring can be the difference between a quickly resolved emergency and a crisis that destroys your brand image. With social media monitoring tools, your organization can identify emerging problems and spikes in mentions, such as a viral post of a customer detailing poor customer service they experienced with your brand. When you can identify these issues early, you can address them before they escalate.

Social media monitoring also makes it easy to communicate with your entire customer base in a crisis. A pre-planned crisis management strategy can make crisis management easier through social media monitoring tools.

Competitive Analysis

Social media monitoring tools do not only monitor mentions of your organization. They can also monitor chosen keywords such as product names, industry buzzwords, or names of your competitors. By monitoring industry-related conversations, you gain insight into competitors’ strategies, market gaps, and your current brand equity. This information is invaluable for helping your brand stand out in the market.

Informed Market Research

As mentioned earlier, social media monitoring is the foundation of social listening. That means that social media monitoring can be the filtering system for what is explored more in-depth with social listening. By tracking which topics are being mentioned frequently, you can identify this as a trend that can be further explored with social listening tools.

Who Should Use Social Media Monitoring

Social media monitoring can be useful to any CX teams or similar groups within your organization that rely on customer sentiment, engagement, and overall brand presence. For these teams, social media monitoring can improve strategies and influence business objectives. Here is a closer look at who can benefit from using social media monitoring:

Marketing and Brand Managers
Customer Service Teams
PR Professionals
Sales Teams
Product Development Teams

1. Marketing and Brand Managers

Marketing teams can use social media monitoring tools to understand the reach, sentiment, and engagement around campaigns and brand mentions. Using this insight, they can change their messaging, identify successful content, and maintain brand consistency across social platforms.

2. Customer Service Teams

Social media is now in the top five most preferred channels for customer service. Customer service teams that monitor social media channels can promptly address inquiries, resolve issues, and manage complaints.

3. Public Relations (PR) Professionals

PR teams must maintain a positive public image and handle any issues before they develop into a crisis. Social media monitoring helps them stay attuned to public opinion and track the success of PR campaigns. By catching negative mentions early, PR teams can proactively address concerns, manage rumors, and prevent reputation damage.

4. Sales Teams

Social media monitoring can help sales teams identify leads and better understand customer needs and preferences. Monitoring industry trends and tracking potential customers’ pain points can give sales teams an edge in personalizing pitches and addressing the most relevant concerns. This data-driven approach can improve the quality of their outreach and boost conversion rates.

5. Product Development Teams

Social media is a valuable source of customer feedback. Users frequently share experiences, pain points, and feature requests. Product teams can analyze this feedback to improve products, add new features, or create new offerings that align with customer needs. Social media monitoring provides real-world insights that complement other sources of product data.

Key Metrics for Social Media Monitoring

Social media monitoring is more than scanning through unstructured data. There are quantifiable metrics that can help you track the status and progress of your social media monitoring efforts. Here are some essential metrics to focus on:

Brand Mentions
Customer Sentiment
Share of Voice
Engagement Metrics
Topic and Keyword Trends

Brand Mentions

In order to understand your brand visibility and relevance, it is crucial to monitor the number and context of brand mentions. Tracking when, where, and how often people mention your brand gives insight into your reach and presence across social platforms. By analyzing both direct and indirect mentions (variations of your brand name or common misspellings), you can be sure that you are capturing the full scope of brand-related conversations.

Additional Tip: You should also monitor the brand mentions for your top competitors. Monitoring competitor mentions gives you insight into the conversations they are a part of. This can be a great advantage for your organization as you can identify your competitors strengths and weaknesses as they are reported on by customers or third-party organizations.

InMoment’s platform gives you the ability to track your competitors’ mentions as well as compare your organization beside them. When you identify and track competitors with InMoment, you can also see how you both compare for industry-related keywords.

Competitor comparison showing the performances of two businesses for the same keyword.

Customer Sentiment

Customer sentiment analysis measures the emotional tone behind social media mentions. This metric provides insight into how people feel about your brand and whether the sentiment changes over time.

Engagement Metrics

Engagement metrics, including likes, comments, shares, and retweets, reveal how actively users interact with your content. Tracking engagement metrics on posts mentioning your brand helps you identify which content types and topics resonate most with your audience.

Topic and Keyword Trends

Staying on top of relevant topics, keywords, and hashtags in your industry helps you tap into conversations that matter most to your audience. By monitoring trending topics, you can align your content with current interests, join popular discussions, and ensure your messaging remains relevant.

Tools for Social Media Monitoring

Selecting the right social media monitoring tool can streamline the process of tracking brand mentions, analyzing customer behavior, and staying responsive to your audience. Here are some popular tools for social media monitoring:

InMoment
Sprout Social
Mention
Brandwatch
Agorapulse

1. InMoment

InMoment includes a comprehensive social media management tool through a Hootsuite partnership. This tool includes monitoring, scheduling, and analytics capabilities that allows brands to track keywords, hashtags, and brand mentions across multiple platforms in real time.

Its analytics dashboard also allows users to gauge engagement, sentiment, and campaign performance. It is an all-in-one solution for businesses that want to manage content and monitoring from a single platform.

2. Sprout Social

Sprout S ocial is known for its robust analytics and customer engagement tools. It enables brands to monitor mentions and keywords, assess audience sentiment, and manage interactions through a unified inbox. Sprout Social’s reporting features provide valuable insights into brand health, competitive positioning, and audience engagement trends, making it particularly useful for teams focused on data-driven strategies.

3. Mention

Mention offers a straightforward, user-friendly solution for tracking brand mentions, competitor analysis, and sentiment. With Mention, users can set up custom alerts for keywords and topics and receive real-time updates, helping brands stay proactive in responding to mentions and trends. This tool is ideal for small to medium-sized businesses that want efficient monitoring without complex features.

4. Brandwatch

Brandwatch specializes in social listening and analytics, providing powerful tools for analyzing customer sentiment and market trends. Its AI-powered analytics offer in-depth insights into brand perception and competitor activity. Brandwatch is well-suited for businesses that need advanced data analytics, sentiment analysis, and trend tracking to stay competitive in their industry.

5. Agorapulse

Agorapulse combines social media management with monitoring, allowing brands to track mentions and keywords while scheduling content and engaging with their audience. Its social inbox is ideal for teams that manage multiple accounts, as it centralizes interactions from various platforms. Agorapulse’s analytics reports also help users evaluate engagement and sentiment, making it a practical choice for mid-sized businesses looking for a mix of functionality.

Key Features for Social Media Monitoring Platforms

Social media monitoring tools can vary in functionality based on the use cases for which they are built. However, there are certain core features that every effective social media monitoring tool will have. Here are some of the most popular features to look out for as you choose a social media monitoring tool:

Real-Time Alerts

Ensure your chosen tool can deliver real-time notifications for brand mentions and tracked keywords. This improves your response time and is especially useful for time-sensitive situations such as handling customer complaints and spotting trending topics.

Through InMoment’s platform, you can respond to customers quickly by setting up customizable alerts for reviews and social media mentions. Also, you can manage the workload by assigning specific tasks to team members in the platform.

Sentiment Analysis

Understanding the tone of social media mentions can help you gauge overall customer sentiment and track how it changes over time. Sentiment analysis provides insights into whether conversations around your brand are positive, negative, or neutral.

InMoment’s sentiment analysis is driven by award-winning text analysis software that gives you the most accurate reporting and lets you dive deeper into intent, perceived effort, and emotion hidden in feedback so you can craft the best response.

A sentiment analysis dashboard categorizing trending keywords by sentiment.

Cross-Platform integration

With social conversations happening on multiple platforms, it is important to have a tool that pulls data from all relevant social networks to capture a comprehensive view of your brand’s digital presence. You want to choose a tool that integrates with all major platforms, such as Facebook, X (formerly Twitter), Instagram, and LinkedIn, as well as review sites such as Google and Yelp.

If your team uses other platforms, such as a CRM, marketing automation software, or customer support tool, look for social media monitoring tools that can integrate seamlessly to consolidate data and streamline workflows.

Competitive Analysis

Understanding what’s happening with competitors provides valuable context for your brand’s performance and helps identify gaps or opportunities within your industry. Monitoring competitors’ social media presence, engagement levels, and customer sentiment lets you stay ahead and make more strategic decisions.

Choose tools that allow you to set up competitor tracking with customizable comparisons, share-of-voice analysis, and benchmarking features. Some tools can also analyze competitors’ content to reveal which topics and formats resonate most with their audience.

Reporting and Analytics

Detailed, customizable reporting and analytics simplify tracking performance over time, measuring campaign success, and sharing insights with key stakeholders. Strong reporting features make it easier to turn social media data into actionable insights that support strategic decision-making.

How to Implement A Social Media Monitoring Strategy

Implementing an effective social media monitoring strategy requires a structured approach to make sure your organization is tracking the right data to make the best decisions. Here are the key steps to setting up a successful social media monitoring strategy:

Define Your Goals
Identify Key Metrics
Choose the Right Tools
Set Up Alerts and Track Keywords
Establish a Response Protocol
Analyze and Report

Step 1: Define Your Goals

Start by identifying your main objectives. Whether it’s improving customer service, managing brand reputation, tracking competitors, or gauging campaign performance, knowing your goals will help you focus on the most relevant metrics and guide your monitoring efforts effectively.

Step 2: Identify Key Metrics

Based on your goals, choose the key metrics to track, such as brand mentions, sentiment, engagement, or share of voice. You may want to consider choosing social media metrics that can correspond with KPIs in customer experience. Defining the best metrics to track first will help you better track success over time.

Step 3: Choose the Right Tools

Once you have outlined goals and defined the most important metrics for your team, select a social media monitoring tool that aligns with your needs, team size, and budget. Look for features that will support your specific goals, like real-time alerts, sentiment analysis, competitor tracking, and customizable dashboards.

Step 4: Set Up Alerts and Track Keywords

Configure alerts for brand mentions, industry-related keywords, competitors, and any hashtags relevant to your brand. Real-time alerts help you stay responsive to important developments and engage promptly with customers and followers.

Step 5: Establish a Response Protocol

Create a protocol for responding to different mentions, such as positive feedback, complaints, or potential crises. Define who will respond to each type of interaction, the preferred tone and style, and a timeline for response. Having a clear plan helps teams remain consistent and proactive in customer interactions.

Step 6: Analyze and Report on Insights

Review the data regularly to assess performance, monitor sentiment trends, and identify recurring issues or customer preferences. Share insights with relevant teams, such as marketing, product development, and customer support, to inform decision-making across the organization.

Common Challenges in Social Media Monitoring

While social media monitoring is an extremely important part of efforts to improve customer experience in your organization, it comes with its own set of challenges. Here is a look at some common obstacles and practical solutions to overcome them:

Information Overload

Problem: Social media platforms generate an overwhelming amount of data daily, and trying to monitor every mention can be exhausting and counterproductive.
Solution: Focus on the metrics and keywords that align directly with your goals. Set up filters to prioritize mentions based on relevance, sentiment, or source, and consider creating tiered alerts that notify you only of high-priority mentions. Using tools with AI-powered analytics can also help in sorting and analyzing large volumes of data effectively.

Detecting Nuanced Sentiment

Problem: Automated sentiment analysis often struggles to detect sarcasm, humor, or subtle tones, leading to inaccurate readings of customer sentiment.
Solution: Consider using monitoring tools with advanced AI capabilities or natural language processing (NLP) to improve sentiment accuracy. For high-stakes conversations, rely on manual review or human oversight to ensure nuanced messages are correctly understood.

Cross-Platform Consistency

Problem: Different social media platforms vary in user demographics, content style, and engagement norms, making it difficult to maintain consistent monitoring across channels.
Solution: Use a tool that integrates multiple platforms into one dashboard, making it easier to monitor and compare across channels. Create platform-specific monitoring criteria to adapt to the nuances of each social network, ensuring that your approach is relevant and effective.

Start Social Media Monitoring with InMoment

InMoment’s social media monitoring solution through Hootsuite, paired with an award-winning customer experience platform, gives organizations all the tools they need to create a consistent customer experience that keeps customers coming back. See what InMoment can do for you by scheduling a demo today!

References

HubSpot. 2024 HubSpot State of Service. (https://offers.hubspot.com/state-of-customer-service). Accessed 11/4/2024.

Mckinsey & Company. The value of getting personalization right—or wrong—is multiplying. (https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying). Accessed 11/4/2024.

Social Media Examiner. 2024 Social Media Marketing Industry Report. (https://www.socialmediaexaminer.com/social-media-marketing-industry-report-2024/). Accessed 11/4/2024.

Sprout Social. Sprout Social Index Report 2023. (https://sproutsocial.com/insights/index/). Accessed 11/4/2024.

In this Post

What is Social Media Monitoring?Why Is Social Media Monitoring Important Benefits of Social Media Monitoring Who Should Use Social Media Monitoring Key Metrics for Social Media Monitoring Tools for Social Media Monitoring Key Features for Social Media Monitoring Platforms How to Implement A Social Media Monitoring Strategy Common Challenges in Social Media Monitoring Start Social Media Monitoring with InMoment

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From proving ROI and navigating budget constraints to adopting AI and creating seamless omnichannel experiences, these challenges are shaping the future of customer experience. In this report, discover actionable insights and recommendations from our CX experts to help you overcome these obstacles and drive growth.

Updated November 12, 2024

Published November 12, 2024

Written by Mike Henry

Reading time 14 minutes

2025 Consumer Trends Report

The One Report You Don't Want to MIss: The way customers interact with brands is evolving faster than ever. Our free 2025 Consumer Trends Report highlights the key shifts transforming customer experience (CX) and what your business needs to stay competitive.

How Customer Experience Automation Can Improve Business Performance

Customer experience automation is the process of automating touchpoints in the customer journey. This improves the customer experience while also giving your team more time to focus on complex customer cases.

Did you know that 92% of customer relationship management (CRM) leaders say AI and automation have improved customer service response times? Furthermore, 86% of those leaders also agree that AI and automation have helped them scale their operations, with the majority believing those tools are more effective for scaling operations than hiring more customer service representatives.

What is Customer Experience Automation?

Customer experience automation refers to automating interactions or touchpoints throughout the customer journey. This can be done using tools such as AI, natural language processing (NLP), and automated workflows. Customer experience automation allows organizations to connect with customers in a relevant, timely, and personalized way without extra manual input.

Why is Customer Experience Automation Important?

Customer experience automation is so important because 99% of service professionals at organizations who use it say that it allows them to focus on individual customers. Furthermore, an average of 90% of professionals in an organization investing in AI and automation say that it has helped reduce service costs.

Implementing customer experience automation as a regular part of your operations can help you improve business performance by cutting out the time usually needed for routine tasks and reinvesting that time in more complex customer issues, ultimately resulting in a better customer experience.

Benefits of Customer Experience Automation

The benefits of customer experience automation include:

Enhanced efficiency
Scalability
Improved personalization
Data-driven decision making

Enhanced Efficiency

Customer experience automation can reduce the workload on customer service teams by automating repetitive tasks. This allows them to focus on complex issues that require a human touch. Of the 81% of organizations automating workflow processes, 98% report that reducing errors is a major or minor benefit of customer experience automation.

Scalability

Customer experience automation systems can handle high columns of interactions simultaneously. This is useful for organizations managing an expanding customer base as their business grows. In fact, 91% of service professionals at organizations using automation have time to take on new projects due to customer experience automation.

Improved Personalization

While some may believe that automating certain touchpoints creates a similar, stale experience for every customer, the opposite is true. Over 80% of CRM leaders say that AI and automation make customer communication more personalized. Customer experience automation allows organizations to personalize more interactions based on customer data, creating an experience that is more relevant and memorable to the user.

Data-Driven Insights

Customer experience automation software can analyze automated interactions to provide insights into common customer preferences, behaviors, and pain points. Organizations that invest in AI and automation report that it has helped them better serve customers.

The Four Pillars of Customer Experience Automation

The four pillars of customer experience automation, originally developed by Gartner as the four pillars of customer service, represent the most important building blocks of customer experience automation and guide how it can be achieved. The four pillars are:

Orchestration
Segmentation
Personalization
Automation

1. Orchestration

The first pillar of customer experience of automation is orchestration. Orchestration refers to creating a cohesive and smooth customer journey. You want to ensure that interactions, whether from emails, SMS messages, chatbots, live support, or any other channel, are connected and tested before the user encounters them.

2. Segmentation

Segmentation in customer experience automation leverages customer data to group customers by behavior, preferences, or demographics. This enables more relevant and targeted communication.

3. Personalization

Personalized experiences are more than addressing customers by name. Customer experience automation can use customer data to understand purchase history and interests to craft messages that resonate with individual customers.

4. Automation

The automation pillar of customer experience automation refers to tactically scheduling, triggering, and handling responses based on customer interactions. This allows your brand to keep up with customer expectations 24/7.

Who Uses Customer Experience Automation

Various teams can use customer experience automation to accomplish different goals. Regardless of where the CX team may live in your organization, there is a place where customer experience automation can improve your performance. Here are some examples of how different teams can use and benefit from customer experience automation:

Marketing teams
Sales teams
Customer support teams
Product teams
Operations teams

Marketing Teams

By leveraging customer experience automation, marketing teams can deliver highly personalized campaigns, segment audiences, and engage customers with relevant messaging. Setting up automated journeys, such as welcome emails and post-purchase follow-ups, helps increase engagement and build stronger customer relationships.

Sales Teams

Through automated, data-driven triggers, sales teams can leverage customer experience automation to interact with leads at the right moments. Using customer experience automation tools throughout the sales process, sales teams can nurture leads more effectively and close deals faster.

Customer Support Teams

Customer experience automation allows frontline customer support teams to automate responses to common inquiries, route tickets to the right agents, and send proactive updates. This reduces response times and allows support teams to focus on complex issues.

Product Teams

With customer experience automation, product teams can collect customer feedback, analyze customer usage patterns, and identify pain points in real time. This data-driven approach can help product teams make more informed decisions about future product features and communications.

Operations Teams

Operations teams can use customer experience automation to streamline workflows, automate data collection, and ensure consistent service delivery. From order tracking to post-purchase surveys, customer experience automation tools help operations teams optimize processes and improve efficiency.

How to Use Customer Experience Automation

Here is a quick overview of how to use customer experience automation to improve the customer journey at your organization:

Map and Examine the Customer Journey
Integrate Data
Create Segments and Triggers
Personalize at Scale
Monitor and Optimize

1. Map and Examine the Customer Journey

If you haven’t already, you must create a customer journey map with a high-level view of the end-to-end customer experience. Once completed, you must identify the touchpoints that can be improved through customer experience automation. These touchpoints could include onboarding, feedback requests, or follow-ups.

2. Integrate Data

To effectively use customer experience automation tools, you must integrate your customer experience automation platform with your organization’s other systems. This means connecting your customer experience automation platform with CRM systems, marketing automation tools, and any other data sources that provide insights into the customer experience.

3. Create Segments and Triggers

You can create customer segments based on behaviors, demographics, and other criteria, such as purchase history or engagement level. Customer segments help you organize your customers into meaningful groups for targeted interactions.

Then, you will want to create automated triggers for each segment. Triggers prompt automated responses, such as sending a thank you email after a purchase, offering a discount to customers who haven’t engaged recently, or delivering relevant content after someone attends a webinar. Triggers allow you to respond promptly and deliver the right message at the right moment to increase engagement and conversions.

Setting up automated workflows in InMoment's XI platform.

4. Personalize at Scale

Once you have this in place, you can fully implement your customer experience automation solution. Customer experience automation allows you to provide a high level of personalization for hundreds or thousands of customers simultaneously. At scale, this will improve your overall satisfaction and customer loyalty.

5. Monitor and Optimize

Continuously track the performance of customer experience automation strategies to refine and improve customer interactions over time. You can track this by monitoring pre-selected customer experience metrics to identify trends, understand customer preferences, and detect any drop-offs in the automated journey.

This data can be used to refine triggers, update personalization parameters, and adjust your customer segments. For example, if a triggered email isn’t generating clicks, it may need more compelling content or a different call-to-action.

Customer Experience Automation Examples

Here are some industry-specific examples of customer experience automation:

E-commerce: Automated cart abandonment emails that include a personalized discount, encouraging customers to complete their purchases.
Financial Services: Proactive notifications alert customers to unusual account activity or personalized tips to improve financial wellness.
Healthcare: Automated appointment reminders or follow-up messages post-visit, ensuring patients feel cared for and valued.
Hospitality: Sending personalized booking confirmations and pre-arrival checklists for a smoother guest experience.

While these examples provide a high-level overview of customer experience automation use cases, it is also important to showcase in-depth examples of organizations using customer experience automation to improve their business.

Jack in the Box

Jack in the Box struggled to provide personalized customer experiences and solicit accurate guest feedback. After choosing InMoment as their customer experience management solution, they were able to leverage InMoment AI and the XI Platform to automate feedback and pinpoint trends for business decisions, expedite insights across regions, and realize systemwide sales growth.

Customer Experience Automation Tools

While many organizations provide customer experience automation tools, some of the most popular are:

1. InMoment

2. HubSpot

3. Salesforce

4. Zendesk

5. Adobe Experience Cloud

1. InMoment

InMoment’s customer experience automation tools are led by award-winning AI that helps organizations handle repetitive tasks, predict customer intent, and generate actionable insights. Advanced analytics features, like sentiment analysis and feedback segmentation, allow brands to uncover deep insights and make impactful, real-time improvements. With intuitive integrations and customizable reporting, this solution is ideal for enterprise organizations looking to improve the customer experience while linking CX efforts to revenue growth.

2. HubSpot

HubSpot’s customer experience automation solution is directed at frontline customer service teams that want to provide support on multiple channels. HubSpot offers automated workflows and personalized email marketing, which are ideal for engaging customers at every stage of the journey. While HubSpot is effective for smaller to mid-sized businesses aiming to build brand loyalty, its customer experience automation capabilities may require additional customization for large-scale enterprise needs.

3. Salesforce

The Salesforce CRM platform uses customer experience automation to deliver personalized customer experiences and support quality service at scale. With a vast range of integrations and robust data management features, Salesforce is a solid choice for larger organizations seeking an all-encompassing approach to customer experience. However, the platform’s complex setup and maintenance can demand significant resources, especially for companies new to customer experience automation.

4. Zendesk

Zendesk excels in customer support automation, providing tools like chatbots, ticket routing, and knowledge bases that streamline responses and improve efficiency. It’s particularly strong in service automation, making it a top choice for businesses prioritizing fast and effective support. While Zendesk is highly valuable for customer support, its customer experience automation capabilities focus more on service interactions than a complete customer journey across marketing and sales.

5. Adobe Experience Cloud

Adobe Experience Cloud offers a robust suite of tools for large enterprises aiming to personalize and orchestrate experiences at scale. With powerful analytics, real-time data integration, and content customization options, Adobe is ideal for brands leveraging data to drive engagement. However, Adobe’s features can require advanced technical expertise, and the platform is best suited for larger organizations with dedicated resources for setup and maintenance.

Customer Experience Automation Features to Look For

The performance of a customer experience automation platform will vary depending on your industry and the use cases of customer experience automation in your organization. Regardless, here are some of the most important features to look for in customer experience automation software.

Integrations
Call Transcriptions
Customer Sentiment Tracking
Employee Coaching
Triggered Surveys
Automated Alerts

Integrations

When evaluating a customer experience automation platform, look for a platform that can easily integrate with your existing tech stack. Ensuring that your customer experience automation platform is compatible with CRM systems, marketing automation, and data platforms will ensure a seamless data flow between tools that give teams a unified view of the customer experience. This also makes it easier to automate processes across platforms.

InMoment’s CX integrations ensure that your team doesn’t miss a beat by letting you connect your CX data with your CRM, marketing, call center, internal collaboration tools, and more to ensure you can collaborate and amplify your CX success across your organization.

Call Transcriptions

Call transcriptions are an important part of customer experience automation platforms. Call transcription features automatically convert a spoken conversation into text, which makes it easier to analyze customer interactions and track issues. Transcriptions also help with compliance, training, and quality assurance by allowing teams to review past conversations and see insights that can influence future customer service.

InMoment’s conversation analytics software saves teams up to three minutes per call by automatically documenting agent notes, generating call summaries, and more to clarify actions to be taken after spoken conversations.

InMoment's conversation analytics software generating a conversation summary after a call.

Customer Sentiment Tracking

Customer sentiment tracking uses AI to analyze customer emotions and tones. By identifying positive, neutral, or negative sentiments, customer experience automation tools can help your organization respond appropriately and prioritize interactions that may need immediate attention.

InMoment’s XI Platform lets you quickly prioritize the most important actions from your unstructured data with real-time customer sentiment measures. This ensures that your most important customer issues are resolved first, helping you identify common sentiment themes or trends within your customer feedback.

Employee Coaching

Customer experience automation tools can also help improve employee coaching capabilities by providing feedback and training based on past performance. These tools can analyze customer response patterns and highlight areas for improvement, such as communication skills, adherence to company best practices, and more.

InMoment lets your managers coach employees with smart recommendations based on customer data. With customized, role-based action plans, managers in your organization can effectively drive improvements.

Triggered Surveys

Triggered surveys are one of the best examples of customer experience automation. Triggered surveys are sent automatically based on specific customer actions such as completing a purchase or ending a support call. These targeted surveys help brands gather timely customer feedback at critical touch points.

With InMoment’s XI Platform, you can automate event-based workflows that allow you to respond to customer actions as they happen. These workflows can be tailored to specific triggers, such as a recent purchase, a support ticket resolution, or a recently attended event.

Automated Alerts

Automated alerts notify teams of important events or issues as they happen, such as a high-value customer showing signs of customer churn. These alerts help teams respond proactively to minimize negative customer experiences and improve customer retention.

InMoment’s XI Platform acts as an always-on analyst by scanning our data and providing you with alerts on any patterns, trends, or anomalies that occur. With this information, you can act quickly on important information related to your customers, products, or services.

Customer experience automation powered by AI in InMoment's XI Platform.

Set Up Customer Experience Automation With InMoment

InMoment has been recognized as a leader in customer experience automation. Organizations that partner with InMomet realize ROI on their CX investments twice as fast as they would with competitors. To see how the InMoment platform can improve your organization, schedule a demo today!

References

Salesforce. The Sixth Edition State of Service Report. (https://www.salesforce.com/resources/research-reports/state-of-service/). Accessed 10/29/2024.

HubSpot. 2024 Annual State of Service Trends Report. (https://offers.hubspot.com/state-of-customer-service). Accessed 10/29/2024.

In this Post

What is Customer Experience Automation?Why is Customer Experience Automation Important?Benefits of Customer Experience Automation The Four Pillars of Customer Experience Automation Who Uses Customer Experience Automation How to Use Customer Experience Automation Customer Experience Automation Examples Customer Experience Automation Tools Customer Experience Automation Features to Look For Set Up Customer Experience Automation With InMoment

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Updated November 7, 2024

Published November 7, 2024

Written by Mike Henry

Reading time 12 minutes

2025 Consumer Trends Report

Conversational Surveys: A Game-Changer in Feedback Collection

Conversational surveys are surveys designed to feel like a natural conversation rather than traditional survey questionnaires. With advanced AI, it enables an interactive approach to gathering more detailed customer feedback beyond the standard response of good, bad, or okay.

Conversational surveys are revolutionizing how businesses gather customer feedback by creating engaging, personalized interactions that resonate with all age groups, from Gen Z to Gen X. These dynamic surveys adapt their follow-up questions based on responses, enhancing engagement and encouraging more comprehensive survey participation.

This innovative approach not only improves customer experience but also yields richer, actionable insights that empower businesses to refine their strategies. Discover how Conversational AI can transform your customer feedback process and help your business thrive.

What are Conversational Surveys?

Conversational surveys represent a modern approach to collecting customer feedback, transforming the experience from a static questionnaire into a dynamic conversation. These surveys use Conversational AI to mimic natural human dialogue, making the feedback process more interactive and engaging for respondents.

With InMoment’s customer feedback software, respondents are 2.4x times more likely to leave actionable verbatim feedback. A higher engagement level can help you find areas where improvements will greatly impact CX. As a result, businesses can see a quicker ROI on customer experience.

How Do Conversational Surveys Differ from Traditional Surveys?

Traditional surveys typically follow a rigid format. Respondents must go through a set order of questions, regardless of their responses. This impersonal approach can lead to high drop-off rates and often results in incomplete or superficial responses.

In contrast, conversational surveys are designed to feel more like a two-way interaction. Using chat interfaces or conversational AI, these surveys adjust their questions based on the respondent’s previous answers.

This creates a more personalized and engaging experience. Conversational surveys encourage respondents to provide more detailed feedback. They also make the process feel more natural and less stressful.

Our conversational AI helps respondents 24% more likely to share valuable insights into their intentions. This opens more pre-emptive opportunities for engagement. By fostering a natural, open dialogue, it enables businesses to anticipate customer needs and respond proactively, strengthening connections and driving impactful customer interactions.

How are Conversational Surveys Beneficial for Businesses?

Conversational surveys offer several key benefits for businesses looking to elevate their customer experience:

Higher-Quality Feedback Collection: Conversational surveys talk to customers in a more natural way. This approach can collect up to 5x more actionable data compared to traditional methods. The flexibility of these surveys allows them to dive deeper into customer sentiments and uncover valuable insights that might otherwise be missed.
Faster Issue Resolution: With features like InMoment’s Rapid Resolution Engine, conversational surveys can identify and address customer issues in real-time, often before they escalate. This proactive approach not only enhances customer satisfaction but also reduces the volume of inquiries reaching your support team.
Enhanced Customer Experience and Satisfaction: By offering a more personalized and engaging feedback process, conversational surveys help foster stronger connections with customers. This, in turn, boosts loyalty and encourages repeat business.
Lower Support Costs: Channel deflection through conversational surveys means fewer issues escalate to costly customer service interactions. This efficiency translates to significant cost savings for businesses.

Our conversational survey has proven highly beneficial for our clients, with respondents leaving 70% more words in their feedback. Additionally, feedback related to customer effort increased by 17%. This gives your team a clear view of friction points along the customer journey. These added details provide richer insights, empowering your teams to take more personalized and impactful actions that truly resonate with customers.

How Do Conversational Surveys Work?

Conversational surveys work by utilizing advanced AI technologies to create a more interactive and responsive feedback experience. Tools like InMoment’s Active Listening AI engage with respondents in real time, prompting them with follow-up questions based on their initial answers. This approach not only keeps the conversation going but also ensures that the feedback gathered is detailed and contextually rich.

As customers provide feedback, the Rapid Resolution Engine analyzes their responses and identifies any underlying issues. It then offers immediate solutions, such as a helpful tutorial or video, directly within the survey. This seamless integration of feedback collection and problem-solving helps businesses elevate customer experience by addressing concerns before they become larger issues. Learn how the features of Active Listening and Rapid Response can elevate the customer experience.

Examples of Conversational Surveys

Conversational surveys can take many forms, depending on the context in which they are used. For example:

Chat Surveys: These surveys use a chat interface to interact with customers. They might appear in the survey question itself, as a chat window on a website, or within an app, where the customer can provide feedback in a conversational style.
SMS Surveys: Similar to chat surveys, SMS surveys engage customers through text messages, asking questions, and collecting responses in real-time.
In-App Feedback: Embedded within mobile apps, these surveys can pop up at key moments in the customer journey, such as after completing a purchase or using a new feature, to gather immediate feedback.

How to Analyze Data from Conversational AI Surveys?

Conversational surveys are a powerful tool for gathering richer, more insightful customer feedback. Here are a few key steps to analyze conversational survey data effectively to enable your business to drive meaningful improvements in customer experience:

Organize and Structure Responses: Start by categorizing responses based on topics, sentiments, and themes. Use natural language processing (NLP) tools or text analysis software to automate some of this categorization, grouping feedback by intent, emotion, or keywords.
Sentiment Analysis: Apply sentiment analysis to determine the tone (positive, negative, or neutral) of responses. This step can help identify areas where customers are either satisfied or frustrated, allowing teams to prioritize areas for improvement.
Thematic Analysis: Identify recurring themes, such as product features, service issues, or general experience. Text analytics can cluster feedback into topics, providing an overview of common areas customers mention. With conversational surveys, this might include tracking how often intent-driven words or phrases appear.
Intent Analysis: Intent analysis goes beyond sentiment by identifying the purpose behind responses. For instance, customers may express a desire to buy, get support, or provide feedback. Recognizing these intents helps businesses identify pre-emptive engagement opportunities.
Generate Actionable Insights: Use dashboards and reporting tools to transform raw data into visual summaries, allowing CX teams to quickly identify actionable insights. Regular reports that highlight emerging trends or urgent issues keep stakeholders informed and aligned.

However, with a surge of detailed responses, CX managers and teams face the challenge of efficiently analyzing it all. Depending on the volume, it can take weeks or even months to sift through feedback, delaying critical improvements that enhance customer satisfaction and demonstrate ROI. This bottleneck can slow your team’s ability to deliver impactful results, affecting overall business outcomes.

Empower your CX team to focus on implementing impactful strategies instead of getting bogged down in time-consuming analysis. That’s where InMoment’s text analytics solutions come in. With our advanced software, you can uncover rich insights in minutes rather than weeks. Our text analytics models identify 54% more topics, enabling your team to discover improvement opportunities with remarkable scale and precision.

How to select the right conversation survey solution?

Choosing the right conversational survey solution involves several key considerations:

Customization: Ensure the solution allows you to tailor surveys to reflect your brand’s voice and meet the specific needs of your audience.
Integration: The solution should easily integrate with your existing platforms, such as CRM systems, to streamline feedback collection and analysis.
AI Capabilities: Look for advanced AI features like Natural Language Processing (NLP) and machine learning, which can enhance the quality of insights gathered from your surveys.
Data Security & Compliance: It’s crucial to choose a solution that keeps your data secure and complies with local regulations, especially if you operate in multiple regions.

InMoment’s Conversational Surveys are available to all existing customers at no extra cost. Reach out to your Customer Success Manager to start leveraging this powerful tool. If you’re new to InMoment, schedule a demo. With InMoment’s Conversational Surveys, you’ll collect richer insights, resolve issues faster, and boost customer satisfaction—all while enhancing your bottom line.

In this Post

What are Conversational Surveys?How are Conversational Surveys Beneficial for Businesses?How Do Conversational Surveys Work?How to Analyze Data from Conversational AI Surveys?How to select the right conversation survey solution?

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Unlock Expert Guidance on Today’s CX Challenges & Opportunities

Updated November 6, 2024

Published November 6, 2024

Written by Barbara Wharton

Reading time 6 minutes

2025 Consumer Trends Report

Why New FTC Policies on Reviews and Ratings Matter for Your Business

In today’s digital-first marketplace, consumers rely heavily on online reviews and ratings when making purchasing decisions. Trust in these reviews is paramount, and a single misleading or deceptive review can jeopardize that trust.

Recognizing the crucial role online reviews play, the Federal Trade Commission (FTC) has recently announced stronger regulations to combat deceptive practices involving reviews and endorsements. These rules, which recently took effect, are designed to ensure transparency, fairness, and trust in online reviews, making it more important than ever for businesses to comply.

It’s essential for businesses to understand the FTC’s guidelines and why adhering to them is not only a legal obligation but also a pathway to building sustainable trust and customer loyalty.

The FTC’s Updated Regulations on Reviews and Endorsements

In August 2024, the FTC finalized new rules targeting fake reviews, deceptive endorsements, and manipulation of customer feedback. These rules prohibit a range of activities including:

Fake or False Reviews: Businesses are banned from creating or disseminating reviews that misrepresent the reviewer’s identity, such as AI-generated reviews or testimonials from individuals who did not actually use the product. For example, companies cannot post fake positive reviews or purchase them from third parties.
Incentivized Reviews: Offering compensation or incentives for positive reviews or specific sentiments is illegal. Even offering incentives for a neutral or negative review, if the intent is to sway sentiment, is also prohibited.
Insider Reviews: Reviews from employees or company insiders must include clear and conspicuous disclosures of their relationship to the business. This ensures that consumers understand the potential bias in such reviews.
Review Suppression: Companies are not allowed to suppress negative reviews, whether through threats, legal action, or by selectively displaying only favorable reviews on their platforms.
Manipulating Social Media Indicators: Purchasing fake social media likes, followers, or views to falsely inflate a company’s reputation is also prohibited.

The FTC has made it clear that violating these rules could lead to steep penalties, including fines of up to $51,744 per violation. But for companies, the real damage can go beyond financial penalties—violations can severely erode customer trust and damage long-term brand reputation.

Why Trust in Reviews Matters More Than Ever

At its core, the purpose of reviews and ratings is to create trust between businesses and potential customers. Even the SEO benefits of high ratings and review volume only exist because search engines like Google see value in prioritizing businesses that have established this positive relationship.

In fact, Google recently announced it would impose restrictions on businesses that engage in fake engagement. Consumers depend on these reviews to provide an honest reflection of the product or service they are considering and when this trust is violated, it has ripple effects that can go far beyond a single purchase decision.

While the monetary fines imposed by the FTC are significant, the long-term damage to customer relationships and brand loyalty is much more alarming. Violating customer trust can take years to recover from, if at all. But in an era where reviews and ratings impact the bottom line so significantly, what is a business to do if its online reviews are not up to par?

The Struggle for Positive Reviews is Real—But Deception Isn’t the Solution

Businesses often struggle to gather a substantial number of positive reviews. Human nature dictates that consumers are often motivated to leave a review after an extreme experience. Regrettably, the threshold for an extreme experience tends to be highly positive or moderately negative. This means that businesses might feel that their current reviews don’t accurately reflect the quality of their products or services, as many satisfied customers do not leave reviews.

It’s understandable that businesses might feel tempted to manipulate reviews to offset the negative ones or to create a more favorable impression. But violating the FTC’s rules is not the solution.

The Ethical, Sustainable Path to Positive Reviews

Step 1 – Ask for Reviews: Instead of resorting to fake or incentivized reviews, businesses should focus on proactive engagement with customers to encourage honest feedback. There are tools available that allow businesses to easily solicit reviews from their broader base of customers. By making it easier for satisfied customers to leave feedback, businesses can ensure that their review profiles more accurately reflect their true service levels. Research shows that just by asking for reviews a business can improve their star rating.

Step 2 – Respond to Reviews: 94% of consumers say that a bad review has convinced them to avoid a business, but 45% of consumers say they’re more likely to visit a business that responds to negative reviews. The truth is that negative experiences reflected in reviews sometimes happen for valid and entirely explainable reasons. Respond to reviews to provide the necessary context and empathy. And because 53% of customers expect businesses to respond to negative reviews within a week, it’s important for businesses to respond in a timely manner.

Step 3: Leverage the Voice of the Customer to Improve your Product: Reviews provide businesses with deeper insights into their business, helping identify what they’re doing well and where they might improve—even at the individual location level- as well as feedback left for their top competitors. Collecting customer feedback allows businesses to address concerns, improve their services, and naturally generate more positive feedback from satisfied customers.

Beyond public reviews, businesses can directly survey their customers as well as monitoring social media to capture broader Voice of the Customer (VOC) elements. By combining these methods, companies can address pain points before they even surface in public reviews, ensuring a more proactive and holistic approach to customer satisfaction.

Conclusion: Ethical Reviews Are the Path to Long-Term Success

In a landscape where consumers are increasingly reliant on online reviews, businesses that prioritize transparency and authenticity will ultimately succeed. Violating FTC rules on fake or incentivized reviews may offer short-term gains, but the long-term consequences—both financial and reputational—are far more damaging.

For businesses, the key to gathering positive reviews is not manipulation but engagement. With the right tools, companies can ethically and effectively manage their online reputation. By fostering genuine customer satisfaction, businesses can ensure that their reviews reflect the high quality of their services—without the need for deception.

As the FTC continues to crack down on deceptive practices, businesses have a clear choice: embrace transparency and ethical practices or risk facing severe penalties. The smart choice is clear, and with the right approach, it doesn’t have to be an onerous task.

References

The Verge. Google Maps is cracking down on fake reviews (https://www.theverge.com/2024/9/26/24254882/google-maps-removing-fake-business-reviews-warning-message). Accessed 10/31/24.

National Strategic Group. Why Would They Write That?! The Psychology of Customer Reviews (https://www.nationalstrategic.com/why-would-they-write-that-the-psychology-of-customer-reviews/#:~:text=Surprising%20Consumer%20Behavior,to%20sound%20smarter). Accessed 10/31/24.

Watch The Video – Make Online Reputation Your Acquisition Strategy

97% of consumers scope out online reviews before making a decision – watch this video to see how InMoment’s solution grows your business through online reputation management.

Updated November 4, 2024

Published November 4, 2024

Written by Sarah Speigle

Reading time 5 minutes

2025 Reputation Industry Benchmark Report

We analyzed 31 million reviews from 226,500 business locations to uncover the key trends separating industry leaders from those falling behind. Want to see where you stand?

Spotting Fake Reviews and How to Get Real, Authentic Reviews

Fake reviews, often written by paid individuals, bots, or competitors, misrepresent genuine customer experiences and can mislead consumers. Spotting them involves looking for overly positive or negative language, vague descriptions, and suspicious reviewer profiles.

Fake reviews are an escalating problem for both consumers and businesses. Nearly 30% of online reviews are now estimated to be fake, and this figure keeps rising. As consumers grow more aware of this issue, they’re becoming increasingly cautious about purchasing products or services.

In fact, over 50% of consumers say they wouldn’t buy a product if they suspected the reviews were fake. Businesses can report fake reviews on platforms like Google and to the FTC, and using tools like InMoment’s Reputation Management can help gather authentic reviews and strengthen customer trust.

What is Considered a Fake Review?

A fake review is any review that is misleading, fabricated, or incentivized in a way that doesn’t represent a genuine customer experience. These can include reviews written by paid individuals, ai-generated reviews, or even disgruntled competitors looking to harm a business’s reputation.

Where do Fake Reviews Come From?

Fake reviews originate from various sources. Some businesses might pay for positive reviews to boost their products or competitors might post negative reviews to undermine other businesses.

Automated systems, often referred to as bots, can also be programmed to flood review platforms with misleading feedback. Additionally, incentivized reviews, where customers are given free products or discounts in exchange for positive reviews, are increasingly common.

How to Spot Fake Reviews?

Spotting fake reviews can be challenging, as they often blend in with genuine feedback. Inauthentic reviews—whether excessively positive or sharply critical—can distort a business’s real value and lead to misguided decisions. Here are some quick tips to help you identify fake reviews:

Overly positive or negative language: Authentic reviews tend to be more balanced. Be cautious of reviews that are excessively enthusiastic or intensely negative, as they may be less trustworthy.

Generic descriptions: Watch for vague language that lacks specifics about the product, service, or experience. Genuine reviewers typically mention specific features, benefits, or issues they encountered.

Reviewer history: Check the reviewer’s profile age and activity. Fake profiles are often newly created, with little review history or reviews across unrelated categories.

Consistent monitoring: Regularly review customer feedback to catch suspicious patterns early. Set up alerts or schedules to keep track of any sudden changes that could indicate fake activity.

InMoment review management dashboard that shows reviews from multiple sites.

Fake Review Checker

Several tools are available for detecting fake reviews, such as Fakespot and ReviewMeta, which analyze reviews for patterns that may indicate inauthentic behavior. These tools can be helpful for evaluating the credibility of product reviews on platforms like Amazon, but they are less effective for location-based reviews found on platforms like Google Maps, Yelp, or TripAdvisor.

This is a limitation for businesses interested in managing their local reputation, as location-based reviews significantly impact consumer trust and search rankings. While tools tailored specifically for location reviews are less common, review management software can help you monitor your customer feedback and address fake reviews at a location level.

How to Report a Fake Review?

Many review platforms allow users to report reviews they suspect are fake, though the process can vary by site. When reporting, it’s helpful to gather as much information as possible to support your claim. Supporting evidence can include specifics like unusual language patterns, repeated phrases across multiple reviews, or timing patterns that seem out of the ordinary.

Businesses also have an additional avenue for reporting fake reviews: they can file complaints with the Federal Trade Commission at ReportFraud.ftc.gov. The FTC takes consumer and business reports seriously as part of its mission to protect against misleading practices.

How to Report a Fake Review on Google?

With 57.5% of all online reviews appearing on Google, knowing how to report a fake review is essential. Here’s a step-by-step guide to help you attempt removal if you suspect a review is inauthentic:

Sign in to your Google account and go to Manage Your Business Profile.
Open the profile for the business you’d like to manage.
On the left-hand menu, select Reviews.
Locate the review you want to report, then click Flag as inappropriate.

Once flagged, Google will review the report. If the review is found to violate Google’s policies, it may be removed. To check the review’s status, you can visit the support page or contact Google support if no action has been taken within a few days

Are Fake Reviews Illegal?

Yes, fake reviews can be illegal in many jurisdictions. In the U.S., for instance, the FTC has clear guidelines against deceptive practices, which include posting or commissioning fake reviews. The FTC considers fake reviews a violation of the FTC Act, as they mislead consumers and distort fair competition. Companies found guilty of such practices can face substantial fines and other penalties.

The Risk of Faking Your Reviews

Posting or encouraging fake reviews carries significant risks beyond potential fines. For example, fake reviews can damage a brand’s credibility if customers suspect or uncover them. Once trust is lost, it’s hard to regain, and a company’s reputation may suffer in the long term. Search engines also have algorithms that detect suspicious review activity, so the risk of detection is high.

It’s far better to invest in strategies that organically boost positive customer reviews and ratings. Reliable, honest feedback is always more valuable and sustainable for business growth.

Boost Authentic Positive Reviews With InMoment

InMoment can help you get more authentic reviews and elevate your customer experience. Our Reputation Management solution empowers brands to grow their positive review base, all while staying compliant with FTC guidelines to protect brand reputation and foster long-term trust.

With InMoment, you can request reviews and even automate your solicitation workflows, saving valuable time while maximizing results. Review and keyword alerts enable your team to quickly address issues and spot reviews that might be fake.

Additionally, InMoment’s Integrated CX approach combines reviews with other valuable experience signals, such as survey data, competitor insights, call center data, and more. This unified perspective uncovers actionable insights for operational improvements that help you enhance customer experiences, leading naturally to more 5-star reviews.

Say “no” to fake reviews with InMoment! Schedule a call with us today to learn how to get more real reviews and boost your reputation.

References

Invesp. The State of Fake Reviews – Statistics and Trends [2025] (https://www.invespcro.com/blog/fake-reviews-statistics/). Accessed 10/31/24.

Wisernotify. 15 Fake Review Statistics You Can’t Ignore (2024) (https://wisernotify.com/blog/fake-review-stats/). Accessed 10/31/24.

In this Post

What is Considered a Fake Review?Where do Fake Reviews Come From?How to Spot Fake Reviews?How to Report a Fake Review? Are Fake Reviews Illegal?The Risk of Faking Your Reviews Boost Authentic Positive Reviews With InMoment

Watch The Video – Make Online Reputation Your Acquisition Strategy

97% of consumers scope out online reviews before making a decision – watch this video to see how InMoment’s solution grows your business through online reputation management.

Updated November 1, 2024

Published November 1, 2024

Written by Kameliya Doncheva

Reading time 5 minutes

2025 Reputation Industry Benchmark Report

We analyzed 31 million reviews from 226,500 business locations to uncover the key trends separating industry leaders from those falling behind. Want to see where you stand?

Call Center Metrics: How To Track & Improve for Better Customer Service

The call center is often the first point of contact between customers and the business. By tracking and improving key call center metrics, you can resolve customer queries effectively and foster long-term loyalty.

Your call center plays a huge role in your brand reputation. A single negative experience with one of your agents can be enough to drive a customer to your competitor.

Despite the availability of digital channels, many customers pick up the phone to complain or seek support. As a result, it’s important to deliver a positive call center experience that meets customer expectations. The best way to get started is by tracking and monitoring call center metrics.

What Are Important Call Center Metrics to Measure?

Call center metrics provide insight into the customer experience and quantify agent productivity. They remove the guesswork for companies and help pinpoint areas for improvement.

With an overwhelming number of key performance indicators (KPIs) available, it’s crucial to focus on the most impactful ones.

Here are 30 important metrics you can track to ensure your call center achieves its goals. These metrics are categorized by call center performance, operations, and customer experience:

Average Handle Time (AHT)
Average Speed of Answer
Agent Utilization Rate
Agent Effort Score
Call Availability
Average First Response Time
Average Hold Time
Service Level Rate
Active Waiting Calls
Average Talk Time
Average Time in Queue
Wrap-Up Time
Average Call Abandonment Rate
Total Resolution Time
Transfer Rate
Adherence to Schedule
Calls Answered per Hour
Calls Handled
Types of Calls Handled
Cost Per Call (CPC)
Call Arrival Rate
Peak-Hour Traffic
Average Age of Query
Repeat Call Rate
Percentage of Calls Blocked
First Call Resolution (FCR)
Customer Satisfaction Score (CSAT)
Quality assurance (QA)
Net Promoter Score (NPS)
Customer Effort Score (CES)

Call Center Performance Metrics

To achieve effective contact center optimization, start by gathering and analyzing call center performance metrics. This approach helps identify improvement opportunities that can swiftly boost customer satisfaction. To show you can further improve the performance of your contact center, fill out the calculator below to discover your business’s ROI using InMoment’s conversational intelligence tools:

Calculate your business’s ROI using InMoment’s conversational intelligence tools.

Industry

Number of calls per year

Number of agents

Average call duration in minutes

Percent of calls where issue is not resolved (%)

Agent time spent per call in minutes

Percent of calls reviewed by supervisors (%)

Currency

Estimated Revenue Growth

Use the calculator to find an estimated ROI

Total ICX ROI

Submit two or more calculators to show an overview of what your integrated CX program could return.

Average Handle Time (AHT)

Average Handle Time (AHT) measures the average time taken by an agent to complete a single call. Lower AHT reflects efficient service. However, to ensure customer satisfaction, it’s important to balance speed with high-quality support.

For example, an agent who consistently records low AHT might not be resolving all the customer’s issues. On the other hand, a high AHT implies that the agent is not being productive.

You can improve AHT by providing comprehensive training to agents. Another good practice is to prepare effective scripts that agents can follow for issue resolution. Consider including self-service options like chatbots for customers who don’t want to spend time with an agent.

InMoment’s contact center solution can reduce AHT by up to 33% with one-click conversation summaries that improve contact center capacity and overall experience.

AI generated conversation summary that highlights customer insights.

Average Speed of Answer (ASA)

This metric measures the time it takes for an agent to answer an incoming call. In the call center industry, the standard time to answer is 20 seconds or less.

A lower ASA improves the contact center experience by reducing wait times. A high ASA suggests that your agents either struggle to answer calls quickly or the volume of calls is overwhelming for them.

Hiring more agents and investing in training programs can help you improve the average speed to answer.

Agent Utilization Rate

This metric measures the time agents spend actively handling calls relative to their total available time. For example, if an agent spends 6 of 8 hours on calls, their utilization rate is 75%. High utilization shows efficient agent deployment but requires balanced workloads to prevent burnout.

Agent Effort Score (AES)

AES is a unique metric that provides insight into agent performance from their perspective. It measures how easy it is for agents to address and resolve callers’ issues. A low score indicates obstacles or sub-optimal structures that make it difficult for agents to achieve their goals.

You can measure AES by surveying agents on how much effort they have to put into customer interactions. The feedback will highlight the issues preventing agents from being their most productive selves. For example, they might not have easy access to customer data, making it difficult to resolve issues quickly.

Improving AES is key to agent satisfaction, which in turn has a positive impact on customer experiences. In fact, call center managers believe that improving agent satisfaction can boost customer satisfaction scores by 62%!

You can improve AES by leveraging call center management software like InMoment. With its ability to integrate with CRM systems and organize feedback in a central place, it simplifies the process of gathering and analyzing customer data.

Call Availability

Time management is a crucial skill for call center agents. A productive agent who manages their time effectively can be more available for customers throughout the day. Call availability is a metric that looks at the total time an agent is ready to receive a call.

Low availability suggests that the agent might be struggling to manage their time. It can also highlight peak hours for the call center. Businesses can use this information to train agents and adjust their schedules to ensure availability at all times.

Average First Response Time

This metric measures how quickly an agent initially responds to a customer inquiry. A fast response time improves customer satisfaction. You can improve the metric with a priority system to handle inquiries based on urgency. Consider assigning simpler queries to chatbots to reduce wait times for initial responses.

Average Hold Time

No customer likes to be kept on hold, especially when they require urgent resolution. The Average Hold Time metric calculates how long customers wait on hold during a call. Train your agents to embrace smart workflows and software for quick access to customer data. Invest in self-service options to enable customers to find answers faster if they are experiencing a basic issue.

Service Level Rate

This KPI measures the percentage of calls answered within a specified timeframe. Optimizing this rate depends on your service level standards. For example, answering 80% of calls within 20 seconds could be a standard you encourage agents to meet.

If your staff struggles to fulfill this goal, it could suggest that your scheduling is not optimal. Emphasize the importance of adhering to a schedule and hiring more agents if necessary. Offer multiple interaction channels to customers so they don’t have to rely on calls alone.

Active Waiting Calls

Addressing a single call successfully is one thing, but how do your agents handle larger volumes? The active waiting calls metric looks at the proportion of active calls that are on hold. A high rate means many customers have to wait before agents get back to them, which has a negative effect on their experience.

You can improve this metric by focusing on smarter workflows that reduce wait times. For example, automating simple tasks and effective scripts for agents can speed up resolutions. Consider hiring more agents if you’re struggling to distribute call volume among your current staff.

Average Talk Time (ATT)

ATT tracks the duration of conversations between agents and customers. It differs from AHT as it doesn’t account for hold time or follow-up actions after the initial call.

Just like with AHT, though, a low score doesn’t necessarily indicate good performance. It may suggest efficiency, but it’s important to deliver quality solutions, too. Providing agents with resources and scripts can help manage talk time effectively.

Average Time in Queue (ATQ)

ATQ measures the average wait time customers experience before connecting with an agent. Reducing queue times involves efficient staffing and optimized call routing to ensure minimal delays for customers.

Wrap-Up Time

Wrap-Up Time measures the time agents spend finalizing a call after the customer has hung up. Post-call actions can include updating records, sending follow-up emails, or escalating the ticket. While these steps are necessary for complete customer satisfaction, they contribute to wait times for other customers.

Companies using AI-powered automation are cutting repetitive tasks by 40%, so it makes sense to invest in this technology. Leverage automated workflows for activities like updating records to save time that agents can utilize for other calls.

Average Call Abandonment Rate

If customers have to wait longer than expected, they will likely hang up out of frustration. The average call abandonment rate is the proportion of received calls that your agents didn’t handle. Tracking this KPI will provide insights into how frequently customers have given up on waiting.

You can lower this rate by letting customers request a callback. This allows callers to keep their place in the queue without staying on hold. As a result, they don’t have to waste their valuable time since the agent can call them back when it’s their turn.

Another good practice is to use customer data from the abandoned call. Even though the customer had a bad experience, the agent can call them again to see if they can provide any support.

Total Resolution Time

This KPI tracks the average duration of resolving a customer ticket. It’s a marker of agent productivity as it indicates their effectiveness at addressing and resolving caller concerns.

A high total resolution time suggests that your agents might be struggling to access relevant customer data. For example, if the caller initially complained via email before picking up the phone, they will expect the agent to have a record of that initial communication.

This is where the omnichannel contact center solution provided by InMoment can assist your agents. By integrating customer data from various channels into a unified dashboard, the software saves agents valuable time and effort that they can put towards resolving the issue.

Overview of contact center channel interactions in InMoment's XI Platform.

Transfer Rate

Transfer Rate tracks the percentage of calls that agents transfer to other departments. For example, if a billing inquiry is transferred to the finance team, it counts toward the transfer rate.

Lower rates suggest that agents are well-equipped to resolve issues directly. Meanwhile, a high transfer rate suggests that customers might be reaching the wrong agent on their first attempt.

Therefore, one way to reduce the rate is to improve your internal routing system. Simplify your interactive voice response (IVR) menu by making the options user-friendly. Collect feedback on the IVR system’s ease of use at the end of a call and adjust accordingly.

Adherence to Schedule

This KPI reflects how closely agents follow their assigned schedules. For example, if an agent starts on time and sticks to breaks, they have high adherence. Improving the adherence to schedule ensures adequate coverage and reduces wait times during peak hours.

Calls Answered per Hour

This metric counts the number of calls an agent completes within an hour. High calls per hour indicate efficiency. However, balancing quality with quantity is key for customer satisfaction. Effective call center scripts and software help streamline CX workflows without compromising on quality.

Types of Calls Handled

Agents have to address and resolve various types of customer concerns. Common types of calls include:

Queries
Technical support
Refunds or claims
Complaints
Order placement and tracking

Analyzing the most common call types will help you identify trends and prioritize resource allocation.

Call Center Operations Metrics

Tracking call center operations metrics is essential to making sure you are running a sustainable and effective call center. The following metrics help provide a clear view of daily performance and resource allocation. By monitoring these, managers can identify areas for improvement, optimize processes, and ultimately deliver a higher standard of service.

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6 Steps to Future-Proof Your Contact Center

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Calls Handled

This simple metric counts the total number of calls handled by the call center within a given period. Monitoring the number of calls handled helps in understanding workload distribution and identifying peak hours. Ensure you have an adequate agent count to evenly distribute calls and balance the workload.

Cost Per Call (CPC)

CPC measures the average cost of handling each call. You can calculate this metric by adding up all associated costs, like labor, technology, and overhead, and dividing it by the total number of calls. A lower CPC indicates efficient usage of resources to address and resolve customer queries.

Reduce CPC by leveraging self-service options for basic queries and automating repetitive tasks. This approach frees up agents to handle more complex issues, optimizing resource allocation.

Call Arrival Rate

Call Arrival Rate tracks the number of incoming calls within a specific period. This metric is especially useful in preparing for seasonal or promotional spikes. Use historical data to forecast call volume and adjust staffing schedules accordingly.

Peak-Hour Traffic

This metric helps you identify peak hours, which is when your agents receive the highest volume of calls. Understanding your busiest hours can help you schedule and allocate resources accordingly. Increasing staff availability and training your agents to handle peak-hour scenarios can help.

Average Age of Query

The average age of query metric determines how long unresolved customer tickets stay open. It reflects the efficiency of query management and response processes. A high figure suggests that agents are struggling to resolve certain queries. You can lower this metric by intelligently routing queries to agents who have the right skill set to resolve them.

Repeat Call Rate

This contact center metric tracks the percentage of repeat calls received by a business. Repeat calls occur when the issue isn’t resolved on the first attempt. As a result, a high rate is indicative of sub-optimal first contact resolution.

Identifying and analyzing recurring issues can help enable effective resolution. InMoment’s contact center AI can help by providing insight into repeat call customer profiles. It leverages analytics and intent recognition to highlight common issues and the information sought by these customers.

Smart summary of customer feedback within InMoment's platform that simplifies customer insights.

Percentage of Calls Blocked

This KPI tracks the proportion of calls that fail to connect because the call center’s capacity is full. High rates indicate that customers are unable to reach support, which can dent their perception of your business. Invest in a good IVR system to handle customers if they can’t reach your agents.

Customer Experience Metrics

Call center metrics are essential to a holistic CX strategy. They serve as vital indicators for your customer experience KPIs, enabling you to track and enhance success across touchpoints.

First Call Resolution (FCR)

This metric evaluates the percentage of calls an agent resolves during the initial interaction without any follow-ups. These follow-up actions could include transferring, escalating, or returning the call later. High FCR indicates effective problem-solving during the first attempt, as it reduces repeat calls for customers.

By training your agents to handle tickets effectively, you can improve your FCR score. The training could include educational resources and role-playing exercises. Leveraging self-service channels can also help address customer concerns without multiple calls.

InMoment’s conversational analytics software also helps improve your FCR score by allowing you to efficiently analyze speaker data for insights and opportunities to better understand your customers and improve your customer service.

InMoment's contact center solution that shows individual speaker insights to help improve customer service.

Customer Satisfaction Score (CSAT)

Businesses calculate this metric with the help of a customer satisfaction survey featuring a set of questions. These questions ask customers to rate how satisfied they are with the support provided by the contact center. Higher scores indicate that customers are largely happy with the service and are likely to call again.

Since the CSAT is a quantitative metric, it provides limited context. A customer may have an 8/10 experience, but you’ll have no idea what they liked or disliked about your agent’s performance. After all, the rating suggests that while the overall experience was good, there is slight room for improvement.

Therefore, a good practice is to include text fields at the end of surveys. This option encourages customers to provide relevant details that will help you make better decisions.

Quality Assurance (QA)

Call centers use quality assurance (QA) to monitor their customer service quality. A QA score is generated based on a scorecard after reviewing call recordings and interactions. The scores are used to determine if agents are offering the efficient services expected from them.

For example, are they hesitant when offering solutions? How do they behave in front of a disgruntled customer? Do they balance the quality of the solution with their speed of service?

You can improve QA scores by emphasizing the importance of quality service to your agents. Consider setting objectives for them and giving them recognition when they meet their targets. This can motivate agents to deliver the best possible experiences to customers.

Net Promoter Score (NPS)

If a customer is loyal to your brand, they have likely had a positive experience with your call center, too. The Net Promoter Score (NPS) metric measures loyalty by asking customers how likely they are to recommend your business to others.

Responses are measured on a scale from 0 to 10, classifying customers as promoters, passives, or detractors. Your goal is to understand what experiences contribute to each category. For example, if you find that detractors are disappointed by long wait times, you can potentially convert them into promoters by making your workflows more efficient.

Customer Effort Score (CES)

The Customer Effort Score (CES) for call centers highlights how difficult it is for customers to resolve their issues with your agents. It is usually calculated on a 5- or 7-point scale. Higher scores indicate that customers agree that it was easy to interact with the call center.

You can improve this metric by simplifying the contact center journey. Provide multiple interaction channels, like email and live chat, for contacting agents. Leverage self-service options like chatbots to help customers resolve simpler issues on their own.

Call Center Metrics Examples

Businesses in various industries rely on call center metrics to better serve their customers. Here are two examples from the retail and hospitality sectors that demonstrate the impact of tracking these KPIs.

Retail Call Center

Jane, a customer at a fashion retailer, has a complaint regarding her latest purchase. The boots she ordered online are the wrong size, so she’s hoping to get a replacement. She picks up the phone and is eventually routed to a call center agent.

Despite her negative experience, the business can still make a good impression on Jane by focusing on the following call center metrics:

Average Speed of Answer: Responding to Jane within 15 seconds will prevent a lengthy wait for her and avoid further frustration.
Average Handle Time: By following a script and leveraging CRM software to fetch Jane’s details, the agent can quickly understand that she’s looking for a replacement.
First Call Resolution: Jane isn’t interested in talking to multiple agents. She simply wants to lodge a complaint and get the boots she ordered in the right size. If the agent can process her request and send a replacement by the time the first call ends, Jane is likely to feel better about the brand.
Repeat Call Rate: It turns out that Jane received the wrong order because of an oversight from the staff. By addressing this specific act of negligence, the retailer can prevent repeat calls related to this issue from Jane and other customers.

Therefore, by tracking a few impactful metrics, the retailer can succeed in resolving Jane’s concern and retaining her as a customer.

Hospitality Call Center

Mark is looking to stay at a hotel for the weekend during his business trip. After a quick Google search, he finds a hotel to his liking. However, he wants to know more about the location and the amenities he can expect. Before picking up the phone, he decides to visit the hotel website.

By including an AI-powered chatbot on its website, the hotel contact center can improve the following metrics:

Average Time in Queue: Mark asks the chatbot a few questions and receives satisfactory answers. As a result, it’s very likely that he doesn’t need to call the hotel anymore. He doesn’t have to wait in a queue, and things are off to a great start for him!
Cost Per Call: Since Mark’s query is resolved on the website, he doesn’t have to contact an agent. It saves the business time and labor costs that can be invested into improving its operations.
Peak-Hour Traffic: By encouraging Mark and other customers to utilize its chatbot, the hotel can prevent calls for basic to moderate queries. As a result, it’s less likely to receive an overwhelming volume of calls, which will help it manage peak-hour traffic.

Therefore, investing in self-service technology helps the hotel’s call center agents by saving them time and effort.

How to Improve Call Center Metrics?

Invest in agent training and coaching.
Implement self-service options.
Automate routine tasks.
Use QA scores to monitor and improve performance.
Emphasize First Contact Resolution.
Track call center progress over time.
Set goals for your agents based on metrics.
Create effective call center scripts.
Collect and act on customer feedback.
Leverage contact center software.

Tracking call center metrics highlights key strengths and weaknesses. For example, a high cost per call might indicate efficient use of resources and workforce. However, a low call availability could suggest that you need to invest in more agents to avoid overwhelming your current staff.

With this information, you can make adjustments to optimize call center performance. Here are some strategies you can implement to improve call center metrics for customer satisfaction.

1. Invest in Agent Training and Coaching

Agent performance metrics help you identify issues holding your agents back. Maybe they struggle to work under pressure in peak hours. Perhaps they don’t have easy access to customer data.

By training your agents to handle a range of scenarios, you can ensure they are better prepared to meet customer expectations at all times. Consider surveying them and tracking their QA scores to create targeted coaching programs for them.

InMoment’s contact center solution gives managers the power to create action plans for employees based on smart recommendations from past interactions. With these customized action plans, managers can effectively improve employees’ performance.

Smart action plans for the most effective employee training.

2. Implement Self-Service Options

Self-service options like chatbots, IVRs, and online FAQs encourage customers to find quick answers. As a result, customers with basic queries don’t have to wait in queues or be put on hold. It also frees up time and effort for human agents that they can put towards resolving complex issues.

3. Automate Routine Tasks

A great way to make the most of your agents’ time is to automate repetitive tasks. For example, processes like data entry and follow-up emails don’t require human intervention. Automating these tasks can save agents time that they can put toward more impactful customer experience tasks.

4. Use QA Scores to Monitor and Improve Performance

QA scores evaluate agents’ interactions to ensure high standards. Regularly monitoring these scores highlights areas for coaching and skill improvement. This helps agents deliver consistently high-quality service.

5. Emphasize First Contact Resolution

Emphasize the importance of effective issue resolution to your agents. Solving problems within the first attempt reduces the repeat call rate and customer frustration. Training and equipping agents with CRM software can help enhance first contact resolution.

6. Create Effective Call Center Scripts

A good call center script provides a template that agents can refer to for quick issue resolution. It also helps prevent inaccurate responses to customer inquiries. However, a script alone isn’t enough. Your agents need to understand the value of improvisation to address customer needs.

Train your staff with role-playing scenarios so that they can practice how to use their scripts in various scenarios. Encourage them to come up with quick solutions in situations where scripts don’t provide the relevant information.

7. Track Call Center Progress Over Time

Monitoring call center metrics over time helps identify trends and areas that need attention. Consistent tracking enables data-driven decisions. It also allows managers to adjust strategies to meet performance goals effectively.

8. Set Goals Based on Metrics

Setting metric-based goals gives your agents something to work towards. For example, you can set a goal of answering calls, on average, in less than 20 seconds. Giving your agents recognition for achieving these goals will motivate them to be even more productive in the future.

9. Collect and Act on Customer Feedback

A customer-centric brand understands the value of feedback for all aspects of its business. Ask customers to rate their experience after each call with a single digit. Collect more in-depth data through a customer feedback questionnaire every month. Acting on this feedback shows your commitment to customer experience. It also highlights the necessary changes you need to make to improve call center performance.

10. Leverage Contact Center Software

Contact center software helps streamline data tracking, call routing, and analytics. For example, InMoment’s tools offer insights into performance metrics, which enables informed decisions for process improvements. These tools support consistent, efficient service so that your agents can deliver positive experiences.

How to Report Call Center Metrics and KPIs

The right call center technology can help you track and report key metrics. Reporting is crucial as it transforms raw figures into actionable reports for call center management. It provides insight into call center performance and what aspects require improvement.

Using a Call Center Metric Dashboard

Dashboards are powerful tools for reporting and visualizing call center metrics. They can help you improve performance by providing real-time visibility into KPIs and operational data.

Agents can leverage dashboards to track important metrics like call volume, average talk time, and satisfaction scores. This transparency helps them identify wins and areas for improvement in their performance. As a result, they have the information and motivation to meet their targets.

Call center managers can leverage dashboards to monitor their department’s performance. For example, they get a comprehensive view of metrics like adherence to schedule and service level rate. This enables them to make data-driven decisions, allocate resources effectively, and identify which agents to train.

Dashboards for a contact center agent and contact center manager.

Enhancing Call Center Analytics with InMoment

A call center can be a valuable asset to your business. By providing instant and efficient support to customers, your agents can help encourage customer loyalty. With the help of InMoment’s contact center software, you can report key metrics and gain analytical insight into both customer and agent experiences. See what InMoment’s platform can do for you by taking a product tour today!

References

Invoca. 39 Call Centre Statistics You Need to Know in 2024 (https://www.invoca.com/uk/blog/statistics-call-center-managers). Accessed 30/10/2024.

InMoment. InMoment Market Pulse (https://www.linkedin.com/posts/weareinmoment_b2b-customersuccess-ai-activity-7251989745914818560-haGe?utm_source=share&utm_medium=member_desktop). Accessed 10/30/2024.

In this Post

What Are Important Call Center Metrics to Measure?Call Center Performance Metrics Call Center Operations Metrics Customer Experience Metrics Call Center Metrics Examples How to Improve Call Center Metrics?How to Report Call Center Metrics and KPIs Enhancing Call Center Analytics with InMoment

Updated December 13, 2024

Published October 31, 2024

Written by Mike Henry

Reading time 21 minutes

Contact Center Trends & Customer Expectations

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The Future of Contact Centers

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Customer Experience in Insurance: Strategies to Boost Customer Satisfaction

With growing competition and customer expectations in insurance, providing positive experiences is more important than ever before. Insurance providers should invest in personalization, digital solutions, and agent-customer interactions to satisfy and retain customers.

Did you know that one negative experience is enough for 50% of customers to switch to a competitor? This is especially true in insurance, where customers have diverse preferences and a growing demand for personalized services. There are several best practices, trends, and challenges you need to consider to deliver an exceptional customer experience in insurance.

What is Customer Experience in Insurance?

Customer experience (CX) in insurance refers to the overall journey customers go through when purchasing a policy from an insurance provider. Customers are increasingly demanding faster, more accurate, and personalized experiences. These expectations stem from a need for both efficient digital solutions and the human touch of in-person interactions.

As a result, CX is now a major differentiator in the hyper-competitive insurance industry. Corporations like Amazon and Google are also entering the space, making it more difficult for incumbents to stand out. Insurance companies that can successfully provide seamless experiences will likely come out on top with a base of satisfied and loyal customers.

There are various types of customer experiences in the insurance sector. Here’s a quick breakdown of customer expectations by category:

Health insurance customer experience:
Customers expect easy access to healthcare networks. They expect fast claims processing and personalized health management. Clear communication and self-service tools are crucial to their satisfaction.
Life insurance customer experience:
Life insurance customers need clear, simple communication about policy terms. They expect personalized financial advice and a smooth application process to build trust.
Property and Casualty (P&C) insurance experience:
P&C customers want fast claims resolution and easy-to-understand policies. They also appreciate risk management tools like home protection services and real-time alerts.
Auto insurance customer experience:
Auto insurance customers value personalized offers based on driving habits. They want fast claims handling and easy-to-use mobile apps to manage policies.
Commercial insurance customer experience:
Commercial clients need customized solutions for their specific industry risks. They expect expert advice, dedicated support, and flexible policies.
Home insurance customer experience:
Home insurance customers want clear coverage options and quick claims processing. They appreciate proactive communication on potential risks like weather hazards.

Importance of Customer Experience in Insurance

A 2023 McKinsey survey of over 8,500 North American insurance customers suggests that CX initiatives are crucial to revenue growth and employee satisfaction.

Here are a few key reasons why it’s important for companies to embrace a customer-centric approach:

It enhances customer retention and loyalty. A positive customer experience fosters trust and satisfaction. It makes policyholders more likely to stay with an insurer long-term. Customers who feel valued are more inclined to renew policies and become loyal brand advocates.
It improves customer satisfaction across all touchpoints. Quick, transparent, and efficient services reduce frustration and improve the customer journey. By leveraging digital solutions and user-friendly interfaces, insurers can enhance customer satisfaction at every touchpoint.
It gives insurance brands a leg-up on the competition. In an industry where products are often similar across providers, customer experience can be a key differentiator. Insurers who offer exceptional experiences can stand out in the marketplace and continue attracting new clients to maintain their competitive edge.
It boosts the insurer’s brand reputation. A strong focus on customer experience goes a long way toward improving a company’s public image. Satisfied customers are more likely to share positive reviews and recommend the company to peers. As a result, good customer experiences enhance an insurer’s brand reputation management efforts.
It enhances operational efficiency. Investing in CX initiatives spells internal benefits for the insurance providers themselves. For instance, by utilizing chatbots to quickly respond to customer complaints, companies can save hours’ worth of time that can be invested into building rich customer relationships.

Insurance Customer Experience Statistics

The following statistics highlight modern customer expectations and opportunities that insurers can leverage to meet their business objectives:

CX leaders in the insurance industry outperformed their competitors in total shareholder return (TSR) by 20% for life insurers and 65% for property & casualty (P&C) insurers between 2017 and 2022. (McKinsey & Company)
Approximately one in six customers report that insurers don’t follow up with them after an initial discussion. (McKinsey & Company)
Virtual assistants are in use by only 16% of insurers, but 38% of consumers find value in AI-based communication. (Mendix)
Human agents and advisers remain the highest-rated channel for customer satisfaction, with 20% of customers willing to switch insurers if their adviser left. (McKinsey & Company)
49% of customers believe a human advisor is more trustworthy in filing a claim than an automated service or a chatbot. (Mendix)
50% of five-star ratings from insurance customers highlighted that a “positive or empathetic adjuster attitude and handling approach” is important to their satisfaction. (Hi Marley)
A successful customer-centric approach results in a 20% boost in employee satisfaction for insurance companies. (McKinsey & Company)

How to Improve Customer Experience in Insurance?

Personalization, multi-channel journeys, and customer convenience are key to improving CX in insurance. Here are some strategies for enhancing customer retention and loyalty:

1. Ensure an Omnichannel Customer Journey

Customers are no longer comfortable restricting themselves to a single interaction channel. They expect a consistent experience from their insurance provider wherever they are.

For example, let’s say a customer interacts with an agent via email for the first time. Later, they pick up the phone to have a direct conversation to discuss the issue further. They expect the company to have a record of their communication so far to ensure minimal delay.

This expectation stems from a need for convenience. Customers want to interact in various ways and expect smooth transitions between channels. The takeaway for insurers is to invest in multiple communication channels. Each channel should be reliable, safe, and easy to use.

Another good practice is to synchronize customer data across these channels. Building an omnichannel customer experience makes the process smooth for customers as they don’t have to repeat information or stick to one channel.

InMoment is the premier solution for insurance providers looking to build an omnichannel customer experience. The InMoment platform is built to help you monitor and analyze data from multiple sources such as reviews, calls, and survey responses.

Overview of channel interactions in InMoment's XI Platform.

2. Deliver Personalized Experiences

Personalization is a cornerstone of exceptional customer experience in the modern age. In fact, it’s one of the most impactful applications for collecting customer feedback. The insights into individual behavior and expectations help businesses tailor their services accordingly. For example, insurers can provide specific risk assessments based on customer profiles.

InMoment’s XI Platform can help by collecting data from every channel and organizing it into one central location to gain a complete understanding of the customer, which allows you to deliver a more personalized experience.

This approach makes customers feel valued and heard. Therefore, personalization makes them more likely to stay loyal to you.

3. Invest in Digital Channels

Customers are increasingly keen on digital interactions. Apps and websites simplify a range of tasks, from purchasing policies to submitting claims. Unfortunately, insurers still struggle to provide quality digital experiences. Over 30% of customers express dissatisfaction with the digital channels available.

One of the best ways for insurance companies to stand out is to invest in reliable, secure, and efficient digital channels. Features such as instant quotes, real-time support, and eForms help provide a smooth customer experience.

4. Train Employees

While digital channels are important, in-person experiences still matter, especially for complex inquiries. 53% of customers want an in-person interaction before purchasing an insurance product.

Leveraging the human touch is important for insurance companies to strengthen customer relationships. Training your staff to be empathetic, knowledgeable, and efficient can go a long way. It can greatly enhance customer satisfaction during critical touchpoints across the customer journey.

Also, it’s important to ensure consistent service from frontline staff across all your physical locations. Inconsistent customer experiences result in mixed reviews, which makes it difficult to attract prospects.

5. Simplify Products

Purchasing insurance products can be an intimidating process. By simplifying your offerings, you make it easier for customers to make informed decisions. Simplified products and clear communication also increase transparency. This enhances customer trust in your brand and makes it more likely that you get positive reviews.

6. Educate Customers on Risk Prevention

Educational content on risk prevention and management can help customers make informed decisions. It encourages good daily habits, like safe driving and staying healthy, to minimize relevant insurance costs. By educating customers, you also establish yourself as a reliable authority and strengthen your relationship with them.

7. Make Documents Mobile-Friendly

Customers expect smooth access to important information on their smartphones. This helps them make decisions or seek support on the go. Mobile-friendly documents enable this convenience by offering accessible and readable content on customers’ devices.

8. Leverage AI & Chatbots

Chatbots enable customers to find quick answers to their questions without having to wait for a human agent.

For example, a chatbot can guide customers through the claims filing process after a car accident. It would start by requesting relevant details, such as the accident date and type of damage. After processing the information, the chatbot can leverage its knowledge base to suggest next steps and personalized advice.

The self-service enabled by chatbots can help your business by reducing support costs. It helps improve customer satisfaction by cutting down on wait times and increasing efficiency.

9. Offer Flexible Policy Options

Flexible policy options allow customers to customize their coverage and only pay for the insurance they need. Many customers appreciate the ability to tailor aspects of their policy, like coverage limits and deductible amounts. Therefore, by introducing flexibility, you can make your offerings accessible and improve customer convenience.

A wider range of options also helps you attract more customers from different financial backgrounds. Existing customers are also more likely to be loyal to a business that adapts to their needs.

10. Prioritize Data Security

The sensitive nature of the information in insurance transactions makes data security crucial. Customers need an assurance that you will protect their data from misuse or information breaches.

Investing in measures like encryption and secure data storage will help you better protect customer privacy. Your commitment to security will also improve your brand credibility by making it easier for customers to trust you.

Insurance Customer Experience Best Practices

The following practices can help you deliver consistent and rich experiences to customers with a focus on transparency and efficiency:

Collect regular customer feedback and act on it. Gathering and analyzing customer feedback enables a deeper understanding of the individuals you’re serving. For instance, with the help of a customer feedback questionnaire, you can ask targeted questions that give you relevant information. The data can help you make immediate adjustments to customer service operations.
Be transparent with your customers. Prioritizing clear communication and transparency across all touchpoints of the customer journey will help you reduce frustration and enhance long-term trust in your brand.
Streamline workflows. Simplifying the application and underwriting processes will help you attract prospects away from competitors. This is because customers are always going to choose the most convenient and easy to use option. Investing in automated pipelines for tasks like claims processing and policy issuance will reduce wait times for customers. It will also save you time that can be utilized in other aspects of your service.
Personalize the customer experience. Tailoring your products and services to cater to individual preferences enables you to enhance customer satisfaction and retention.
Continuously improve and adapt to changing customer needs. Customer expectations will keep changing, especially during these uncertain economic times. It’s a good practice for insurers to stay flexible and track customer sentiment over time. This ensures your services stay relevant and impactful despite the economic climate.

Popular Customer Experience Trends in Insurance

Looking at some of the CX trends in insurance can help you identify what you’re doing right and what you can improve. The following trends are emerging as key drivers of growth for insurers:

There is a growing demand for personalization. Customers expect personalized services more than ever before. This comes from a growing need for convenient and relevant experiences. Insurance providers can leverage AI to tailor their services to unique individual needs. As a result, customers feel understood, which enhances their loyalty to the company.
Omnichannel interactions are gaining relevance. Customers want to interact with their insurers through several channels. For instance, a customer on the move would prefer a quick chat via a mobile app. However, she might feel the need to have a detailed in-person interaction once she has enough time on hand. An omnichannel approach ensures that customers receive consistent service wherever they are.
Customers appreciate intuitive self-service. The need for quick and seamless experiences has also given rise to the idea of self-service options. Digital tools like mobile apps, chatbots, and online portals are relevant here. These tools allow customers to complete tasks on their own without taking too much time.
It’s important to think about risk mitigation. Customers are starting to embrace risk prevention and mitigation incentives. For instance, by offering safe driving discounts, your company can benefit by encouraging good habits. The safer your customers drive, the less likely you are to receive claims. Moreover, the discounts will prevent customers from seeking cheaper alternatives.

Examples of Insurance with the Best Customer Experience

Companies can achieve impactful business outcomes by delivering excellent customer experiences. The following insurance providers demonstrate the value of adopting a customer-centric approach:

Ohio Mutual Insurance Group

The Ohio-based insurance company maintained its competitive edge with a Voice of the Customer (VoC) program. It leveraged the InMoment CX platform, especially its text analytics and case management features, for this purpose.

As a result, Ohio Mutual boosted its survey response rate to 25% and reduced survey response times from a few weeks to just a few days. Also, it captured analytical insights from feedback that provided a clearer picture of customer satisfaction levels.

A Fortune 500 insurance company

This P&C national insurance company had a clear goal: maintain a strong brand reputation to thrive in the competitive industry. Through their partnership with InMoment, the insurance provider gained access to an intuitive and easy-to-use reputation management software. The decision was crucial to improving their public image to prospects.

Their average star rating increased by 8.7% from 4.48 to 4.87, while the review volume increased by a staggering 452%. The increased brand credibility enabled them to rise up the Fortune 500 list by 57 positions!

Allianz Trade

Allianz understood the importance of text analysis software in gaining a deeper understanding of customers. It partnered with InMoment to add over 30 contextual data points to each piece of feedback.

The enriched data helped identify areas for improvement in issue resolution for frontline staff. As a result, Allianz witnessed a 5.7% and 6.7% growth in business and profit, respectively.

What are the best Customer Experience Metrics for Insurance Companies to Measure?

Once you’ve implemented your CX strategy, it’s imperative that you evaluate and measure its performance. Here are ten key metrics to help you see if your CX initiatives are delivering the expected returns:

Customer Effort Score (CES): Measures how easy it is for customers to perform tasks like purchasing a policy, filing a claim, or resolving any inquiries.
Claim Processing Rate (CPR): Tracks the speed at which you process insurance claims. A faster processing rate implies streamlined and efficient workflows that are likely to maintain or enhance customer satisfaction.
Claim Denial Rate (CDR): Measures the percentage of claims you are rejecting. A higher rate, especially if it’s above the industry average, can result in increased customer dissatisfaction as policyholders will feel the insurance is not serving them according to their expectations.
Customer Satisfaction Score (CSAT): Evaluates customer satisfaction with specific interactions like filing a claim or talking to customer support. A higher CSAT suggests that your CX initiatives are succeeding at resolving customers’ pain points.
Average Time to Quote: Measure how quickly you provide a policy quote to customers once they provide their information. A faster response time enhances customer satisfaction and makes it likely that your company will be recommended to others.
Average Time to Bind: Tracks the time needed to finalize a policy after a customer accepts the quote. Shorter times indicate that you are properly utilizing digital solutions like automation to streamline your workflows.
Average Handling Time (AHT): Measures how long it takes to resolve customer inquiries, whether over the phone, via chat, or through email.
Cross-Selling Rate: Measures how often existing customers purchase additional products or services, like adding home insurance to an auto policy. A higher rate implies a high level of customer trust in your brand, as they clearly find value in your offerings.
Net Promoter Score (NPS): Evaluates customer loyalty by asking how likely customers are to recommend your insurance company to others. A high Net Promoter Score (NPS) suggests that your services and CX efforts are good enough to encourage positive reviews from customers.
Policy Renewal Rate: Monitors the percentage of customers who renew their policies, reflecting how well you have fostered strong customer relationships.

Customer Experience Challenges in Insurance

A positive customer experience in insurance depends on overcoming obstacles like intense competition, fragmented journeys, and diverse preferences. Here’s a closer look at some of these challenges:

Digital solutions fail to live up to customer expectations. While insurance customers appreciate apps and websites for their convenience, the current state of digital platforms leaves much to be desired. Clunky, slow, and difficult-to-understand digital channels are the reason why only 20% of customers rate them as their top choice for interactions.
Customer journeys are fragmented from the beginning. There is a lack of cohesion in insurance customer journeys. Six out of ten customers switch channels before completing a purchase. Moreover, the transition between offline and online platforms tends to be sudden. These factors make it difficult for insurers to prioritize the right interaction channels.
There is a strong customer need for interactions with human agents. Even the best digital systems can’t completely replace the human touch for insurance customers. Human agents are far better at handling complex issues like claims disputes and personalized advice. Therefore, it’s important for companies to maintain and train their workforce to this end.
Customers have diverse channel preferences. The growing expectation for convenience means customers want to choose any communication channel at a given time. Without investing in an omnichannel approach, it will be difficult for insurers to fulfill this key demand.
There is growing competition from big tech corporations. Tech giants like Google and Amazon are starting to enter the insurance space. Their resources allow them to offer innovative digital experiences and quick services. This growing competition puts pressure on incumbents to evolve and meet higher customer expectations.

How to Select the Right CX Software to Manage Insurance Experience

Insurance providers can streamline their customer experience management efforts by investing in intuitive and feature-rich CX software. Here’s what you should look for when selecting the right platform:

Omnichannel Feedback Collection

Customers interact with their insurers through multiple channels. This makes it crucial for companies to connect experience data from various sources. InMoment’s CX integrations ensure you don’t miss out on any insights by integrating your platform with all the systems you use to collect feedback.

AI-Driven Text Analysis

AI empowers you to unlock meaningful information from volumes of feedback so you can make data-driven decisions. The award-winning AI text analysis software offered by InMoment helps you automate the collection of analytical insights. As a result, you can save valuable hours that your workforce can invest in acting on the feedback itself.

Review Monitoring & Response Automation

The right CX platform should have features to monitor customer reviews across platforms such as Google, Yelp, or social media. Automating responses to these reviews helps manage your online reputation. It also shows customers you respond to them in real-time, enhancing satisfaction.

InMoment’s platform allows you to generate review responses using AI. These responses can be set to adhere to specific brand guidelines to maintain a consistent tone across channels.

Review response automation using InMoment's XI Platform.

Case Management

It’s crucial to manage client concerns and issues to reduce complaints. This is where case management capabilities, such as the ones offered by InMoment, can help. These features empower your agents to address customer needs and build long-term relationships.

InMoment’s case management software simplifies the tracking of customer experience cases by allowing you to solve cases, identify larger trends, and quickly identify the root cause of a case based on customer and employee perspectives. This solution also recommends the most efficient way to solve cases, which empowers employees to handle issues promptly.

Case management tracking dashboard in InMoment's XI Platform

Compliance & Security

When selecting a customer experience software for your insurance organization, robust compliance and security are essential. Due to the sensitive nature of customer data, from health information to financial records, insurance companies must ensure that the software they select meets the requirements of strict data protection regulations. Considering this feature helps safeguard against risks while providing strong security protocols that protect your client’s privacy.

At InMoment, we’re dedicated to safeguarding the confidentiality, integrity, and availability of our clients’ data; and our compliance programs reflect that. We’re committed to meeting and exceeding industry standards in regulatory compliance. Our platform is SOC 2 Type II compliant and ISO 27001 certified, and we’ve partnered with a hosting provider that adheres to Sarbanes-Oxley, HIPAA, and Gramm-Leach-Bliley regulations, ensuring that your program is protected by the highest standards in the industry.

Improve Your Insurance Customer Experience with InMoment

Investing in excellent customer experience helps you win by boosting customer satisfaction. With InMoment’s comprehensive CX platform, you can automate the collection and analysis of feedback so that your agents can spend more time focusing on what truly matters: fostering rich relationships with customers. Schedule a demo today to experience the transformative capabilities of our platform for yourself!

References

Insurtech Insights. Here’s How Google, Amazon, Facebook and Apple are Targeting the Health Insurance Market (https://www.insurtechinsights.com/heres-how-google-amazon-facebook-and-apple-are-targeting-the-health-insurance-market). Accessed 10/17/2024.

McKinsey & Company. Elevating customer experience: A win-win for insurers and customers (https://www.mckinsey.com/industries/financial-services/our-insights/insurance/elevating-customer-experience-a-win-win-for-insurers-and-customers). Accessed 10/17/2024.

Mendix. The Future of Insurance: 20 Stats That Show Customer Experience is Vital (https://www.mendix.com/blog/20-stats-future-insurance-depends-customer-experience). Accessed 10/17/2024.

Hi Marley. CONSUMER AND CARRIER CX INSIGHTS: What Drives 1-Star and 5-Star Customer Satisfaction Scores in Claims (https://www.himarley.com/wp-content/uploads/2022/03/Whitepaper-What-Drives-1-and-5-Star-Scores-In-Claims-1.pdf). Accessed 10/17/2024.

In this Post

What is Customer Experience in Insurance?How to Improve Customer Experience in Insurance?Popular Customer Experience Trends in Insurance Examples of Insurance with the Best Customer Experience What are the best Customer Experience Metrics for Insurance Companies to Measure?Customer Experience Challenges in Insurance How to Select the Right CX Software to Manage Insurance Experience

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Unlock Expert Guidance on Today’s CX Challenges & Opportunities

Updated October 30, 2024

Published October 30, 2024

Written by Mike Henry

Reading time 18 minutes

2025 Consumer Trends Report

Customer Loyalty: Experiences that Increase Retention

Customer loyalty is when customers consistently choose your brand over your competitors. You can encourage feelings of loyalty by consistently providing smooth, personalized, and convenient experiences.

A loyal customer is a valuable asset to your business. In fact, 64% of loyal customers are more likely to purchase frequently, and 31% are willing to spend more to stay with their brand of choice. Since customers have so many businesses competing for their attention, investing in customer loyalty can give you a major competitive edge.

What Is Customer Loyalty?

Customer loyalty defines how willing a customer is to repeat business with a company. Positive experiences compel customers to engage with you again. After all, if you’re meeting their needs and expectations, they have little reason not to trust you. Meanwhile, one negative experience can be enough to drive them to your competitors.

Loyal customers help your business by:

Purchasing your product or service repeatedly
Recommending your brand to friends and family
Boosting your engagement by interacting with you online
Providing thoughtful customer feedback to help you improve

The Importance of Customer Loyalty

Customer loyalty is crucial to business growth and sustainability.

Loyal customers tend to spend more over time and refer new clients. They also require less marketing effort to keep them engaged compared to new customers. Since a repeat customer has a 60-70% chance of converting, you’ll have to spend less on other conversion strategies.

Building customer loyalty results in higher retention, increased revenue, and positive word-of-mouth, which helps you stand out in competitive markets. To see how you could maximize your business revenue and ROI with InMoment’s voice of the customer (VoC) tools, fill out the ROI calculator below!

Calculate your business’s ROI using InMoment’s VoC tools.

Industry

Number of Customers

Annual Revenue per Customer ($)

Lead to Conversion Rate (%)

Number of calls per year

Percent of calls where issue is not resolved (%)

Currency

Estimated Revenue Growth

Use the calculator to find an estimated ROI

Total ICX ROI

Submit two or more calculators to show an overview of what your integrated CX program could return.

What Are the Different Types of Customer Loyalty?

In general, loyal customers are a by-product of excellent customer service. Positive customer experiences give rise to six distinct types of loyalty.

Happy customers
Price-loyal
Convenience-loyal
Loyal-to-freebies
Loyal-to-loyalty program
Truly loyal

Happy customers have never had reason to complain. They are satisfied with your offerings and customer service. Even though they often engage with you, your competitors can still sway them. For example, by selling the same product at a lower price, your competitor could convince your customer to try them out.

Price-loyal customers love your brand because of your pricing. Since affordability is key for them, they can easily leave if they find lower prices elsewhere. Retaining such a customer might seem simple, but you’ll have to compromise on your pricing model.

Convenience-loyal customers appreciate smooth and simple interactions. If you’re easy to find, contact, and buy from, they’ll become long-term consumers. Pricing isn’t a huge concern for them. So, if a competitor somehow offers an even smoother customer journey, they can be swayed even if it means they’ll have to spend more.

Freebie-loyal customers are drawn to your free offerings. For example, if your cafe offers free WiFi, you’ll attract many of these customers. They might not necessarily buy your coffee or other menu items, though. As a result, these customers don’t really contribute to your revenue streams despite being loyal to you.

Loyalty-program loyal customers appreciate your loyalty rewards more than the products themselves. When choosing between businesses, they focus on which one offers the best deals or discounts. Despite your pricing or convenience, you can retain these customers if you reward them well for their loyalty.

Truly loyal customers love your brand in every sense. They appreciate your offerings, convenience, programs, and customer service. As a result, they interact with you repeatedly and encourage others to do the same.

What Kind of Experiences Are Customers Loyal To?

Customers are loyal to experiences that save their time, make them feel valued, and satisfy their needs. The following aspects contribute to experiences that drive loyalty:

Consistency: Customers expect reliable service and product quality whenever they interact with your business. A consistent experience builds trust and encourages repeat business.
Quality: High-quality products and services are crucial to excellent customer experience. When customers see an unwavering commitment to quality, they are more likely to choose you over competitors every single time.
Loyalty rewards: Offering rewards for repeat purchases incentivizes more loyalty. Discounts or points-based programs make customers feel valued and encourage long-term engagement.
Nostalgia: Experiences that evoke positive memories can strengthen loyalty. For example, a sneaker brand releasing a new product line paying tribute to an iconic athlete would help it connect with nostalgic sports fans. Familiarity and nostalgia create a sense of connection that can strengthen customer relationships.
Personalization: Experiences tailored to customer profiles encourage loyalty. This is because they make customers feel understood and appreciated.
Convenience: Customers are loyal to brands that make it easy to find, purchase, and use their services. Simple and intuitive processes create a frictionless experience that appeals to everyone.
Customer service: Prompt, friendly, and effective customer support is crucial to retaining customers. It’s normal for issues to arise, but how you resolve them can be the difference between a loyal customer and one who decides to leave!
Brand values: Customers connect with brands that reflect their own values. Brands that show commitment to sustainability, ethics, or social causes can foster loyalty through shared principles.

What Is the Most Direct Cause of Customer Loyalty?

The most direct cause of customer loyalty is a consistently positive experience.

By providing reliable services and seamless interactions on a regular basis, you can build trust and loyalty over time. Customers have little to no reason to look elsewhere if you’re checking all the boxes for them.

Additionally, businesses that resolve issues in a swift and empathetic way show customers that they care. Responding to customer feedback within 24 to 48 hours boosts retention by 8.5%. Therefore, these actions can encourage loyalty even after a negative experience.

How Do You Build Customer Loyalty?

Building customer loyalty requires time and consistent effort. Use these tips to lay the groundwork for lasting customer loyalty and retention:

Simplify everything for your customers.
Meet customers where they are.
Personalize the experience.
Keep evolving to meet changing customer needs.
Focus on effective communication.
Invest in loyalty programs.
Build a deep emotional connection.
Build a community around your offerings.
Express gratitude.

Simplify Everything For Your Customers.

Customers appreciate ease at every touchpoint of their journey. Simple and convenient experiences encourage repeat business because they require very little customer effort.

For example, you can include a chatbot on your website to offer instant support to customers. Instead of waiting for a human agent, they can find quick answers to some of their pressing questions. This ease of finding support will prevent frustration and encourage repeat interactions.

Meet Customers Where They Are

Another way to offer convenient experiences is to meet customers where they are. For example, if a portion of your customers are avid Instagram users, it makes sense to have an active presence there. This makes it easier for them to discover your products or reach out to you for support.

94% of customers will spend more with businesses that offer their preferred mode of communication to contact customer service. As a result, building an omnichannel customer experience will help you satisfy customers and drive revenue.

Personalize the Experience

With a growing demand for personalized services, it’s important to tailor customer experiences to individual profiles. Personalization makes customers feel understood and valued, which can lead to loyalty over time. This is where collecting and analyzing feedback can be a game-changer for you. There is no better way to understand your customers’ needs than by simply asking them!

A CX platform like InMoment simplifies this process for you. It helps you collect feedback from every possible source so that you don’t miss out on valuable data. With the award-winning InMoment AI, you can then capture analytical insights from the feedback. These insights help you better understand your customers, allowing you to personalize your services.

Keep Evolving to Meet Changing Customer Needs.

You need to change the way you think about customer loyalty. Instead of treating it as the final destination, you should view it as an ongoing journey. Since customers tend to be loyal to a few different brands at one time, there is no room for complacency.

Keep up with the times by tracking customer sentiment toward you and your competitors. See what trends are going viral and where customer preferences are leaning. If you have multiple locations across the world, it’s crucial that you don’t ignore regional trends.

You can stay relevant by adopting a customer-centric approach and tweaking offerings where necessary.

Focus on Effective Communication

Good communication builds trust and strengthens relationships. Customers who interact with a transparent and honest business are more likely to stay loyal to it.

Be clear, concise, and responsive in all interactions. Address customer concerns promptly and provide regular updates when needed. Make clear announcements in case of a major change, like a product update or change in business hours. This will help you prevent misunderstandings and build trust over time.

Responding is just half of effective communication. Listening to feedback and acting on it is just as crucial. Consistently engaging with your audience resolves issues and strengthens loyalty by making customers feel heard.

Invest in Loyalty Programs

Loyalty programs are a powerful tool for retaining customers. Customers who feel valued are more likely to return and spend more.

Offer rewards, discounts, or special perks to show appreciation for repeat business. Keep the program simple and easy to use. Exclusive deals or early access to products can also make customers feel special.

A well-structured loyalty program encourages long-term engagement. This drives continuous business and helps build stronger relationships.

Build A Deep Emotional Connection

Go beyond transactions to connect with customers on a deeper level. Forming an emotional connection is even more important if you want to elevate your marketing efforts.

For example, if you want to collaborate with a celebrity to promote your brand, your efforts will be more effective if customers are already emotionally invested. Otherwise, it will be difficult to generate significant interest.

Start by establishing trust and transparency. Regularly collect and respond to feedback to show customers you are listening. Follow up with them to create a feedback loop to further show your commitment towards them.

With the help of InMoment’s Active Listening, you can generate intelligent questions with ease that capture customer preferences and needs. This information enables you to create personalized experiences that appeal to customer emotions. As a result, you will earn emotional buy-in from customers, turning them into loyal advocates.

Build A Community Around Your Offerings.

Create spaces where your customers can connect with each other and your brand. This can happen through social media, forums, or events. Engage regularly by sharing content, hosting discussions, or offering exclusive insights.

Encourage customers to share their experiences and ideas. A community fosters a sense of belonging, making customers feel part of something bigger than themselves.

Express Gratitude

Remember that your business succeeds because of your customers. They have several options to choose from, but they decide to trust you. Show your gratitude to them to reinforce the idea that they are valuable to you.

Include thank-you notes after product purchase or delivery. You can take it one step further by sending special messages during the holidays. These actions add a personal touch, which creates stronger customer relationships.

How Do You Measure Customer Loyalty Analytics?

Net Promoter Score (NPS)
Customer churn rate
Customer retention rate
Social media engagement
Customer Loyalty Index (CLI)
Customer Satisfaction Score (CSAT)

Loyalty is easy to understand, but how do you quantify it? Some businesses measure loyalty by looking at how many customers they have retained. Other companies monitor social media behavior or churn rate.

A combination of these metrics can help provide a complete picture of customer loyalty to identify areas for improvement.

Net Promoter Score (NPS)

Net Promoter Score (NPS) measures how likely customers are to recommend your brand to others. A high NPS indicates strong loyalty. Meanwhile, a low score suggests room for improvement in encouraging positive feelings towards your business.

Customer Churn Rate

Customer churn rate shows the percentage of customers who have stopped doing business with you. A low rate suggests that most of your customers trust your brand enough to interact with it again.

Customer Retention Rate

Customer retention rate highlights the percentage of customers who continue doing business with you over time. This is an important metric to track if you want to gauge long-term loyalty.

Social Media Engagement

While it’s not a quantitative measure, your customers’ social media activity can indicate their loyalty towards you. For example, if they engage frequently with your social media profile and leave positive comments, they are likely satisfied with your services.

Consider using social media management software to track keywords related to your brand. It can also help you identify customers who are advocates for your business.

Customer Loyalty Index (CLI)

Customer Loyalty Index (CLI) measures the strength of customer loyalty towards your business. It combines metrics like NPS, repurchase rates, and upselling to build a comprehensive loyalty score.

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) measures satisfaction with a product, service, or specific interaction. It typically features questions like “How satisfied are you with [product/service/interaction]?”

Satisfied customers are likely to become repeat customers. Therefore, CSAT is a useful metric for measuring overall customer loyalty.

What Should You Look For In Customer Loyalty Software?

Customer loyalty software helps simplify the process of tracking key metrics and making improvements where necessary. Here are the key features to look for when choosing the right platform:

1. Omnichannel Communication

The ability to meet customers where they are is crucial to driving loyalty. It’s a significant part of creating smooth and convenient experiences. From Instagram DMs to emails, customers expect several options to communicate and seek support. The right software should allow you to gather customer data from every possible source in one place.

The InMoment XI platform can help you provide an omnichannel customer experience to foster loyalty. Its purpose-built tools enable you to collect and connect high-quality data from multiple platforms into a unified interface. As a result, you don’t miss out on valuable customer insights.

Customer signals from different channels being summarized to provide an omnichannel customer experience.

2. Analytics and Reporting

The software you choose should let you track and analyze key metrics like NPS, churn rate, and engagement levels. This will help you make data-driven decisions to improve the customer experience across all touchpoints.

InMoment simplifies this process by letting you create a custom customer experience dashboard featuring your brand’s most impactful metrics. You can also create and share actionable reports that provide a clear picture of your customer loyalty efforts.

Custom built CX dashboards and reports in InMoment's XI Platform.

3. Social Media Management

Social media is a key part of customer engagement. As a result, it’s important to monitor social media activity and leverage it for brand reputation. A good CX software should take care of this by helping you create content and track customer sentiment on various platforms.

InMoment’s social media management software helps you tap into the power of social media. From content curation and scheduling to social listening features, the platform makes it possible to create targeted content and drive engagement.

4. Custom Integrations

The right customer loyalty software should also integrate with your existing CRM, POS, and other key systems. Custom integrations enable you to build a unified customer view so that you don’t miss out on anything essential.

With InMoment’s CX integrations, you can easily connect all your current systems to your CX platform. As a result, you get to make the most of the customer data available to you.

5. Automation Tools

Automated workflows are key for closing feedback loops without wasting time. For example, it’s helpful to have automated responses and alerts that enable quick customer service.

InMoment offers automated alerts based on customer behavior so that you can act quickly and recover a customer before it’s too late. If a customer has a complaint, you are notified of it right away so that you can respond and resolve it in time. Similarly, you can use its automated tools to send personalized offers or reward notifications to customers.

AI CX automation in InMoment's XI Platform.

Inspiring Customer Loyalty Quotes to Get Buy-In

Customer loyalty efforts are successful when every member of your team believes in their value. The following quotes can help you motivate your teams to focus on loyalty-driven strategies:

“Satisfaction is a rating. Loyalty is a brand.” – Shep Hyken

“The goal as a company is to have customer service that is not just the best, but legendary.” – Sam Walton

“There is a big difference between a satisfied customer and a loyal customer. Never settle for ‘satisfied’.” – Shep Hyken

“The purpose of a business is to create a customer who creates customers.” – Shiv Singh

“Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.” – Chip Bell

Increase Customer Loyalty with InMoment

Loyal customers bring more revenue by repeating business with you and recommending you to others. Therefore, converting a satisfied customer into a loyal one can make a world of difference for your brand.

With InMoment’s customer loyalty platform, you can leverage feedback collection, sentiment analysis, and actionable insights to deliver memorable experiences. Schedule a personalized demo today to see how you can keep customers coming back!

In this Post

What Is Customer Loyalty?What Kind of Experiences Are Customers Loyal To?What Is the Most Direct Cause of Customer Loyalty?How Do You Build Customer Loyalty?How Do You Measure Customer Loyalty Analytics?What Should You Look For In Customer Loyalty Software?Inspiring Customer Loyalty Quotes to Get Buy-In Increase Customer Loyalty with InMoment

Watch the Video – Get More Out of Your CX Program

Watch this demo video to see how InMoment’s award-winning AI tech does the heavy lifting on analysis so you can spend more time lifting CX results.

Unlock Expert Guidance on Today’s CX Challenges & Opportunities

Updated October 29, 2024

Published October 29, 2024

Written by Mike Henry

Reading time 14 minutes

2025 Consumer Trends Report

Restaurant Reputation Management: Increase Diner Feedback & Demand

Reviews and ratings are the biggest drivers of spending for diners. By managing your restaurant’s reputation, you can generate more positive reviews to attract more diners, boost revenue, and stand out from the competition.

When you’re thinking of ordering takeout, or planning a date at a fancy restaurant, what’s the first thing you look at? Online reviews are the most trusted source of information for most people interacting with a restaurant for the first time. This is where restaurant reputation management can be the difference between a new client and a lost opportunity.

What is Restaurant Reputation Management?

Restaurant reputation management is the process of monitoring, responding to, and addressing feedback from various sources. Customers love talking about their experiences, especially if they had an exceptionally good or bad time. They share their thoughts on social media platforms like Facebook or Instagram or through review platforms such as Yelp and Google reviews.

The average customer sentiment across the online space contributes to the restaurant’s reputation. The more positive reviews a restaurant receives, the better the public perceives it. On the flip side, nothing affects business like negative feedback. In fact, 22% of customers will not dine at a restaurant after reading a single negative review!

To assess the current state of your restaurant’s reputation, get your personalized reputation score today! The score is calculated based on customer reviews, response rate, response time, and more. It allows you to see your overall brand health and current reputation standing.

How Reputation Management Impacts A Restaurant

Reputation management impacts a restaurant in terms of public opinion and business metrics. When you consciously manage your restaurant’s reputation, you can better control how people perceive your business. Perception is important in the digital age, where word-of-mouth spreads faster and is more impactful than ever before.

The value of customer feedback and reviews is evident from the following statistics:

46% of diners, representing 79 million customers, say that positive online reviews made them more likely to visit a restaurant. (PYMNTS)
Reviews and ratings, with a share of 39%, are the biggest drivers of customer purchase and spending. (InMoment)
39% of diners are extremely likely to leave a positive review after a good dining experience. (PYMNTS)
Bad online reviews and negative feedback from friends are among the top two reasons diners avoid certain restaurants. (TouchBistro)
33% of customers say they will not choose a restaurant with an average three-star rating on review sites. (ReviewTrackers)
Reviews and ratings, with a share of 42%, are the most popular way customers interact with brands. (InMoment)

Therefore, the data suggests that online reviews are a huge factor in customers’ visiting or avoiding a restaurant. More negative reviews lead to fewer customers, which has an adverse effect on revenue, profit, and business growth.

When you think about the competitive nature of the restaurant industry, it’s clear that online reputation management is crucial for survival.

Benefits of Restaurant Reputation Management

Reputation management helps restaurants improve diner trust and business performance. Here are some of the key benefits:

It helps restaurants attract more customers. Positive reviews and a strong online presence can draw new customers. Meanwhile, effective reputation management minimizes the impact of negative feedback.
It results in increased revenue. A better reputation leads to more bookings and higher diner demand. These improvements drive sales and revenue.
It boosts customer trust and loyalty. Responding to reviews and addressing customer concerns builds trust. As a result, customers are more likely to stay loyal to your brand and even advocate for it.
It improves a restaurant’s brand image. Proactively managing your restaurant’s reputation enhances your brand image and makes your business more appealing to potential customers.
It gives restaurants a competitive advantage. In a crowded market, a well-managed reputation helps differentiate your restaurant from competitors.

Curious about the ROI you could achieve with InMoment’s reputation management software? Try the ROI calculator below and see the impact for yourself!

Calculate your business’s ROI using InMoment’s reputation management tools.

Industry

Number of Locations

Monthly Revenue per Customer ($)

Currency

Estimated Revenue Growth

Use the calculator to find an estimated ROI

Total ICX ROI

Submit two or more calculators to show an overview of what your integrated CX program could return.

Restaurant Reputation Management Best Practices

You can’t ignore online conversations around your business. Regardless of the sentiment, it’s important to monitor and respond to reviews. The following five best practices will help you overcome challenges and provide positive customer experiences:

Monitor Online Reviews

Online reviews are a key aspect of restaurant reputation management. After all, 94% of diners choose restaurants based on online reviews. The last thing you want is to miss out on prospects simply because you haven’t been tracking your reviews.

By monitoring online reviews, you get a clearer picture of public sentiment toward your restaurant. It’s easier to plan and prioritize once you understand the general opinion around your services.

Are diners mostly satisfied with your food quality, ambiance, and wait times? What are the most common complaints, if any? Do people believe you have done enough to address these complaints? These are the kinds of questions you can answer by analyzing customer reviews.

Once you have the answers, you can set about making the necessary adjustments. Negative customer feedback highlights areas for improvement that you should prioritize. Positive feedback helps you boost your marketing efforts and showcase your restaurant in a positive light.

The Melting Pot, a fondue restaurant with over 105 locations, realized the importance of diner feedback. Through its partnership with InMoment, it collected real-time feedback and analyzed it for deep insights into customer behavior. As a result, the restaurant improved the “speed of service” metric by 47%. It also significantly reduced time and risk in introducing new menu items.

Ask for and Respond to Reviews

Monitoring reviews is important, but it’s not enough. The next step is to address the online feedback and respond to it the right way.

Getting your review response strategy right can give you a significant competitive edge. Leaders in the restaurant industry have a response rate of 94%, while the average is 61%. Similarly, leaders have a response rate of 1.21 days, roughly half the industry average of 2.66 days.

So, how do you come up with the best possible response? It’s important to avoid sounding too general. Customers expect an empathetic reply to their feedback instead of something that feels automated. Address the feedback directly, explain why the issue occurred, and suggest specific solutions. Conclude with a note of thanks to show the customer that you always value their opinion.

Your work isn’t done with that initial response. Once you’ve made the necessary adjustments, it’s crucial to follow up with the customer. The resulting feedback loop will help you better understand your customer. Meanwhile, the customer will appreciate the follow-up and feel better about you as a brand.

As important as it is, providing a tailored response to every review can be challenging. This is where InMoment’s reputation management software can help you win over your customers. It allows you to leverage generative AI to create responses that align with your brand’s voice guidelines. As a result, you can create and close feedback loops with ease. You also save valuable time that you can invest in other parts of your operation.

Be Active on Social Media

You can’t underestimate the importance of social media marketing for reputation management. Over 40% of diners look up a restaurant on social media before making a decision. This is because platforms like Facebook and Instagram host a ton of content from influencers and regular consumers alike.

Much of this content comprises reviews and opinions, including those on dining experiences. If your restaurant is receiving a lot of praise or criticism on social media, you need to tune in!

Start with your social media profile and look at the interactions with your recent posts. Then, search for your restaurant to see what comes up. It could be tags from food vloggers on their Stories or a post from a recent customer.

All the content related to your brand will give you a better idea of the current public sentiment. You can then craft meaningful responses where applicable to show that you’re listening and taking opinions into account.

Track Competitors’ Reputation

It’s no secret that the competition in the restaurant space is brutal. With so many trends and viral concepts emerging daily, it’s important to stay up-to-date so you don’t fall behind the pack.

Think about your biggest competitors and analyze their profiles. What are they doing right, and what mistakes are they making? What kind of reviews do they get from diners? Is there an opportunity for you to differentiate your offerings from theirs?

The insights you get from competitor analysis will help you find unique ways to win over customers to your tables.

Showcase Customer Testimonials

Positive customer testimonials are powerful marketing tools. Sharing glowing reviews or success stories builds trust and improves your brand equity. It also encourages potential customers to try your restaurant.

To showcase your strengths, highlight real experiences from happy diners through written testimonials, video reviews, or social media shoutouts.

Tips for Managing Restaurant Reputation

The following tips will help you manage your restaurant reputation for diner satisfaction and business outcomes:

Build a Consistent Experience

A restaurant experience is never just about the food. Diners want to feel welcome and comfortable throughout their journey with your restaurant.

Even if your food quality is top-notch, diners could still have mixed or negative feelings if they had to wait too long. Or, maybe they have a pleasant time talking to your staff on call, but their in-person interactions end up being the opposite.

It’s important to deliver a consistently positive customer experience across all touchpoints. From the food quality to service and ambiance, each aspect of your restaurant should satisfy customer expectations. Work with your staff across all departments to ensure everyone follows a customer-centric approach.

Develop a Crisis Management Plan

Sometimes, issues tend to crop up when you least expect it. From a diner complaint going viral to getting your account hacked, restaurants can face any number of unexpected challenges. With a crisis management plan, you can minimize the fallout from these situations.

Start by establishing communication protocols and training your staff on them. Every member needs to know the what, where, who, and how of communication during a crisis. As a result, your team will be prepared to respond when such situations arise.

Assign responsibilities so that everyone knows their role during a crisis. For example, if the CEO is occupied with a PR crisis, someone capable should be on standby to run the ship until the situation is resolved.

The goal is to manage the situation before it gets out of hand. This helps you stay in control and reduce the impact on public perception. It also allows you to turn a bad situation into an opportunity to show your dedication to customer service.

Create Location Pages

If your restaurant has multiple locations, it’s good practice to have specific location pages on your website. These pages help you connect with diners in specific regions and address their concerns.

Additionally, they contribute to local SEO, making it easier for customers to find your restaurant. Include information like hours, menus, and contact details for each location.

As a result, your business performs better across all regions. You will also be able to boost your visibility online, which brings more foot traffic through your doors.

Train Employees

Training employees to provide excellent customer service makes a huge difference. Ensure your staff understands the importance of consistency, attentiveness, and hospitality.

Regular training sessions keep staff updated on any new protocols, menu changes, or customer service strategies. This ensures they’re always prepared to offer top-tier service.

Well-trained staff can turn first-time diners into loyal customers by creating a welcoming and memorable experience.

Host Special Events

Special events and promotions are a great way to drive customer interest and boost your reputation. They help you engage the local community and show them that you’re more than just a place to dine.

For example, you could host a monthly cooking class for a reasonable fee, with a portion of the proceeds going to a local charity. An event like this helps you generate public interest in your brand, as customers love creative events that contribute to a good cause.

Features to Look For in Restaurant Reputation Management Software

Investing in the right software for restaurant reputation management simplifies the process for you and helps you boost your brand. Here are the key features to look for when choosing the right tool:

Review Monitoring and Aggregation

Diners provide reviews across the online space, from sites like Yelp to social media like Instagram. Your software should enable you to track each piece of incoming feedback so that you can respond to it swiftly and maintain your reputation.

InMoment’s review management platform helps you monitor and connect all your review data in the most accurate and reliable way possible. As a result, you don’t miss out on any insights and can prioritize your responses accordingly.

A chart showing review sites distribution for platforms such as Google, Facebook, and Tripadvisor.

Automated Alerts

Reputation management is all about receiving feedback and acting quickly. Therefore, the right software should send automated alerts to inform you of real-time customer activity. The sooner you’re aware of a review, the quicker you can process and respond to it for effective management.

Sentiment Analysis

Tracking what your customers are saying is not enough. You need to quantify their experiences to help you better understand their overall sentiment and how you can help them. You can accomplish this with sentiment analysis, a technique that helps you capture meaning and emotion from textual reviews.

InMoment’s sentiment analysis features empower you to gain insight into every piece of feedback you receive. The platform leverages industry-recognized metrics and real-time intelligence gathering to help you better understand customer opinion.

By removing guesswork from the process, the right software can save you valuable hours with analytical insights into customer behavior.

Review Response Templates

Not sure about the right response for diner satisfaction and issue resolution? A good reputation management software can solve this headache with review response templates. These templates can help you generate quick and effective responses to feedback while reflecting your unique brand voice.

Social Media Management

Without managing your social media presence, you’re at risk of missing out on vital insights. Your software of choice should help you track customer interactions across platforms like Facebook, Instagram, and X.

InMoment enables social media management for businesses with content scheduling and curation. It also leverages AI and sentiment analysis to track keywords and brand mentions so that you can stay on top of conversations around your restaurant.

Competitor Comparison

Understanding how your competitors are performing is key to staying competitive. Look for software that includes competitor comparison tools, which allow you to monitor their reviews, ratings, and feedback.

InMoment’s reputation management platform gives you access to competitor analysis software to capture key insights for staying ahead of the pack. It helps you identify competitors, see how you rank against them, and set alerts to stay informed on performance changes. As a result, you stay in the loop and can refine strategy where necessary.

A chart showing local search rankings for a specific keyword by business.

Local Listings Management

Inaccurate and inconsistent business information across your listings can turn away customers. For example, a change in business hours or branch location that is not reflected in your listings will confuse diners. This can hurt your credibility as a brand. Therefore, your software should help you manage your listings to boost visibility and attract more customers.

InMoment’s local listings management software lets you decrease ad spend by making the most of your local listings. The tool gives you insight into your local reputation by offering ROI-specific insights from your Google Maps listings. You can use the information to increase your influence, outrank competitors, and create relevant Google posts to drive organic sales.

Google maps performance charts that show how users interact with local listings.

Survey Tools

Surveys are tried-and-tested means of feedback collection that can help you better understand your diners. The right software should feature survey design tools to help you gather consistent insights.

InMoment’s XI Platform gives you the ability to build surveys from scratch or choose from pre-built templates. As a result, you collect actionable feedback quicker, which helps you improve diner satisfaction.

Survey design builder to help collect customer feedback

Integration with Reservation Systems

Your reputation management software should integrate seamlessly with your reservation or point-of-sale systems. This feature allows you to link reviews directly to specific customer interactions. It also enables automated survey requests that you can send once a reservation is complete. Therefore, you can seamlessly collect feedback and determine areas for improvement.

Review Generation

Review generation tools boost your online reputation by requesting feedback from satisfied diners. The software you choose should allow you to send requests that prompt customers to leave reviews after their dining experience. Since the process is automated, you can request and collect reviews with ease to enhance ratings and credibility.

Improve Restaurant Reputation Management with InMoment

Your restaurant could have the best chefs and attention to detail when it comes to food. But, without robust reputation management, you’ll struggle to differentiate yourself and keep diners coming through your doors.

With InMoment, you get access to award-winning reputation management software that helps you consistently win over customers and boost your brand. Schedule a demo today to see how you can stand out and stay ahead!

References

WOWAPPS. How Restaurant Reviews Impact People’s Decisions (https://www.wowapps.com/how-restaurant-reviews-impact-peoples-decisions). Accessed 10/21/2024.

PYMNTS. Everyone’s a Critic: 49M Consumers Recently Posted Online Restaurant Reviews (https://www.pymnts.com/restaurant-innovation/2023/everyones-a-critic-49m-consumers-recently-posted-online-restaurant-reviews). Accessed 10/21/2024.

InMoment. Restaurant Consumer Trends Report (https://inmoment.com/wp-content/uploads/2023/03/RP-02389-03-NA-2023-Food-Service-Restaurant-Trends-Report.pdf). Accessed 10/21/2024.

TouchBistro. 2024 Dining Trends Report: The Latest Restaurant Industry Trends (https://www.touchbistro.com/blog/diner-trends-report). Accessed 10/21/2024.

ReviewTrackers. Powerful Restaurant Reputation Management in 5 Steps (https://www.reviewtrackers.com/blog/restaurant-reputation-management). Accessed 10/21/2024.

In this Post

What is Restaurant Reputation Management?How Reputation Management Impacts A Restaurant Benefits of Restaurant Reputation Management Restaurant Reputation Management Best Practices Tips for Managing Restaurant Reputation Features to Look For in Restaurant Reputation Management Software Improve Restaurant Reputation Management with InMoment

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Updated October 25, 2024

Published October 25, 2024

Written by Mike Henry

Reading time 14 minutes

2025 Reputation Industry Benchmark Report

We analyzed 31 million reviews from 226,500 business locations to uncover the key trends separating industry leaders from those falling behind. Want to see where you stand?

Why A Customer Engagement Platform Is Crucial for Business Success

A customer engagement platform allows your business to interact with every customer, on every channel, all in one place. Organizations that invest in customer engagement platforms see increases in revenue, loyalty, and satisfaction.

Did you know that brands that invested in customer engagement saw an average revenue increase of 68%, with top-performing brands realizing a 123% increase in revenue? With acquisition costs at an all-time high, it has never been more important to engage your customers in a way that makes them lifelong fans of your brand. This can be done by using a customer engagement platform.

What is a Customer Engagement Platform?

A customer engagement platform is a tool that allows businesses to interact with customers on different platforms, all in one place. Customer engagement platforms consolidate customer data into one location and provide tools to engage customers consistently and personally, regardless of how they interact with your business. This means you never have to leave your customer engagement platform if you respond to a customer via email, SMS, online review, or chatbot.

What is the Difference Between a Customer Engagement Platform and Customer Relationship Management (CRM)?

Debating the differences between customer engagement platforms and CRM systems is natural. When doing so, some key differences need to be considered.

Customer Relationship Management (CRM)

Customer relationship management systems utilize the data of existing customers and focus internally. CRMs are typically used by teams managing the current relationships of clients or accounts. They aim to convert leads to closed deals, identify the most successful business activities, and manage the communication between businesses and current customers.

Customer Engagement Platform

Customer engagement platforms, however, are external and focus on the interaction between customers and consumers. They integrate with apps, websites, and social media to provide a consistent customer experience across all channels. These platforms focus on improving customer experience metrics such as customer satisfaction, loyalty, and retention.

The Importance of Customer Engagement Platforms

Today, 70% of consumers expect a response from a customer service team within the same day. If your brand takes longer than that to respond to customers, you risk damaging your customer experience and brand reputation management efforts.

Customer engagement platforms are crucial for organizations to maintain and improve customer experience. You can create alerts when a response is needed and respond to customers on different channels while never having to leave your chosen customer engagement platform.

Benefits of Using a Customer Engagement Platform

Customer engagement platforms can be extremely valuable for organizations focused on delivering a positive customer experience. By providing the tools necessary for effective communication, personalization, and analytics, these platforms enable businesses to build stronger relationships with their customers. Here are some expected benefits of using an omnichannel customer engagement platform:

More Valuable Customer Interactions

Customer engagement platforms will lead to more productive interactions with your customers. When you can engage with customers across different platforms and see where those customers have contacted you and what they have said, you are more equipped to help them with their inquiries.

Improved Customer Loyalty

Customer engagement platforms increase customer loyalty by making the customer experience engaging and consistent throughout the whole customer journey. Research shows that loyal customers are 64% more likely to make more frequent purchases from your business than regular customers.

Higher Customer Retention

Organizations that are engagement leaders, companies that are trailblazing omnichannel engagement and providing a personalized customer experience, have a higher retention rate than companies that do not have mature customer engagement programs. Engagement leaders have a retention rate of 77%, whereas non-engagement leaders have a retention rate of just 43%. By succeeding in customer engagement, you have a better chance of keeping your customers coming back.

Competitive Advantage

While most companies claim to be customer-obsessed, a recent study showed that only 15% are actually customer-obsessed, meaning their business is focused on growing by delivering value to their customers. One key factor in becoming a truly customer-obsessed company is using a customer engagement platform. When you reach customer-obsessed status, you set yourself apart from the competition and stand out in the market.

Higher Profit Margins

Most organizations that prioritize customer engagement reported higher margins than those that do not. An omnichannel strategy plays a crucial role in this success. It ensures that customers can seamlessly transition between different platforms and communication channels during their journey—whether they start by browsing on a mobile app, switch to a desktop, and later engage via social media.

Best Customer Engagement Platforms

Customer engagement platforms are critical in helping businesses build long-lasting relationships with their customers by streamlining communications, enhancing experiences, and providing actionable insights. Here are five of the best customer engagement platforms available:

1. InMoment

InMoment is the best customer engagement platform for organizations looking for the premier solution for their customer experience initiatives. G2 ranks InMoment the highest of the available platforms, with a rating of 4.7 out of 5 stars. InMoment has also been recognized for having the fastest ROI time, the best support, and the easiest to use.

InMoment excels at offering a platform that connects customer data from every channel into one easily accessible location and offers consulting services from in-house industry experts. InMoment’s advanced analytics and AI-powered tools allow businesses to track customer sentiment, identify trends, and personalize interactions across the customer journey. This makes it a top choice for companies looking to improve customer loyalty, satisfaction, and overall experience.

2. Sprinklr

Sprinklr is a customer experience management platform specializing in social media, emails, and messaging apps. These integrations allow users to communicate directly with customers via comments and direct messages. This platform is used primarily by small businesses looking to scale their customer engagement efforts.

3. Zendesk

Zendesk is a customer service and engagement platform best suited for businesses looking for a highly customizable solution. One of the most notable benefits of Zendesk is that it can be used immediately upon purchase and can be customized for a business at a later date. This solution is ideal for businesses wanting to improve their ticketing systems while maintaining personalized customer interactions.

4. Hubspot

The Hubspot customer engagement platform is differentiated by its inbound marketing capabilities, which makes it an excellent choice for organizations looking to bring marketing, sales, and customer service under one roof. HubSpot offers robust tools for automating communication, creating personalized email campaigns, and tracking customer interactions throughout the entire lifecycle. It’s user-friendly and scalable, making it suitable for businesses of all sizes.

5. Klayvio

Klayvio is a customer engagement platform that is tailored to e-commerce businesses. It excels in creating personalized, data-driven email and SMS marketing campaigns that boost customer retention and drive conversions. Klaviyo integrates seamlessly with e-commerce platforms like Shopify and BigCommerce, allowing businesses to segment customers based on behavior, purchase history, and more. This solution is ideal for businesses looking to improve their direct-to-consumer engagement efforts with targeted communication.

Omnichannel Customer Engagement Platform Use Cases

It may be easier to understand the functionality of customer engagement platforms by seeing how they work in real-world scenarios. Here are some examples of omnichannel customer engagement platforms being used to engage with customers proactively:

Retail: Retailers use customer engagement platforms to send personalized promotions, manage customer messages, and improve post-purchase support. These customer engagement strategies lead to increased customer satisfaction and repeat business.
Financial Services: Banks and financial institutions use customer engagement platforms to manage customer support, offer individualized financial advice, and ensure that customer inquiries are handled securely on different channels.
Healthcare: Healthcare providers can use digital customer engagement platforms to manage patient feedback, send appointment reminders, and deliver personalized information such as a care plan.
Hospitality: Using a customer engagement platform, hotels and restaurants can streamline reservations, respond to guest messages, and manage personalized offers.
E-commerce: E-commerce companies use customer engagement platforms to manage customer service, send personalized product recommendations, and automate follow-ups after purchases.

Key Features in a Customer Engagement Platform

Not all customer engagement platforms are built the same. Some are more geared towards marketers and sales teams, while others focus on customer support. Regardless of your use case for an omnichannel customer engagement platform, here are some key features to look for:

Omnichannel Communication

The most important feature of a customer engagement platform is effective omnichannel communication. Customer engagement platforms are built on the premise that you can interact with your customers wherever they are. Omnichannel communication means more than just being present on multiple platforms; it’s about integrating those platforms into one unified interface to build an omnichannel customer experience. This allows businesses to manage all customer interactions from a single dashboard, which can streamline workflows and ensure that no customer inquiry or engagement falls through the cracks.

With the InMoment XI Platform, you can handle all your customer data in one place. The InMoment platform is not only built to connect data from everywhere, it also contains purpose-built tools to ensure that you collect the highest quality and most actionable data.

Omnichannel communication summarizing feedback from reviews, web chats, and phone calls.

Customer Segmentation

While some may think that customer engagement platforms are only for communication with individual customers, you also want to be able to communicate with specific segments of your customer base. Advanced segmentation allows businesses to tailor their messaging and engagement strategies based on customer preferences, behavior, or demographics.

For example, a retail store may realize that they are experiencing high customer churn with consumers ages 18-24. As a result of this, they will want to post a targeted message for those consumers across multiple channels and be ready to answer any comments or questions.

Analytics and Reporting

Customer engagement analytics can help you analyze metrics such as customer interactions, campaign performance, and engagement levels to refine your engagement strategies and see what you are having the most success with.

With InMoment, you can create your own customer experience dashboard that only shows you the most important metrics to your business. Similarly, you can also create reports that can be shared outside of the platform to stakeholders within your organization so that they can have a clear understanding of your customer engagement efforts.

Customizable CX reports and dashboards that can be created in the InMoment platform.

Automation Tools

Automation tools are crucial for quick and proactive customer engagement. Automated responses, workflow triggers, and chatbots help streamline operations and ensure quick customer service.

InMoment’s XI platform gives you an advantage over the competition by offering automated alerts based on customer sentiment or business action, meaning that your organization never misses an opportunity to recover a customer or drive a customer further down the funnel.

Customer experience improvement alerts created with AI.

Integration Capabilities

Another key factor of a successful customer engagement platform is its ability to integrate with the systems your organization is already using. The platform should integrate with other key business tools, such as CRM systems, marketing automation platforms, and sales tools, to provide a unified customer view.

InMoment’s CX integrations allow you to connect your customer engagement platform with every software you are currently utilizing. The integration of your entire tech stack into one place allows you to never miss an important piece of the puzzle and gets you on track to increasing acquisition, retention, and more.

Digital Customer Engagement Platform Trends

As customer needs and preferences continue to evolve, so too will customer engagement platforms. To stay ahead of the curve, businesses must remain aware of the latest trends shaping these platforms and their capabilities. Adapting to these changes will ensure that customer communication remains effective, personalized, and secure. Here are some key trends in customer engagement platforms to keep in mind as you evaluate current and future partners:

1. AI-Powered Engagement

A majority of organizations already use AI in their customer-focused activities such as chatbots, recommendation engines, and more. Over 70% of marketers agree that AI helps them create more personalized content and customer experiences. As AI technology becomes more sophisticated, we can expect further advancements like natural language processing (NLP) to enable even more meaningful and human-like interactions with customers.

The majority of businesses that currently use AI plan to increase their investment in AI-powered tools in the coming years. As AI continues to evolve, businesses leveraging these capabilities will have a significant edge in terms of efficiency, customer satisfaction, and engagement outcomes.

2. Hyper-Personalization

Consumers love personalized experiences, and that will not change anytime soon. The majority of consumers agree that they will pay more for personalization. In the future, customer engagement platforms will attempt to capitalize on that by becoming more advanced in their ability to deliver hyper-personalized content, offers, and experiences based on real-time data analysis.

Hyper-personalization goes beyond basic demographic, behavioral, or segmented targeting. It involves using AI and machine learning to predict customer needs, preferences, and behaviors, which allows businesses to deliver timely, context-aware messages and offers at each touchpoint.

For example, a retail digital customer engagement platform could automatically suggest products based on a customer’s browsing history, location, and purchase behavior, ensuring that each interaction feels personal and relevant.

3. Data Privacy Regulations

While consumers prefer personalized experiences, they are concerned about the use of their data. Consumers across every generation agree that protecting their data is the most significant driving factor of trust in a business. However, only 48% of consumers feel confident that brands are transparent about their data usage.

As a result, future successful customer engagement platforms will need to incorporate robust data privacy features. This includes adopting security measures such as encryption and secure storage, as well as providing more transparent privacy settings and data control options for customers. Responsible data handling will be key for the long-term success of any customer engagement platform.

Choose InMoment for Your Customer Engagement Platform

InMoment’s customer experience platform has been named a Leader in Gartner, IDC, and Forrester evaluative reports. The XI Platform is best-in-class at connecting data from everywhere to help you get a holistic view of every customer interaction. See what InMoment can do for you by scheduling a demo today!

References

Statista. Acceptable response time for customer service according to consumers in the United States as of June 2022. (https://www.statista.com/statistics/1338396/customer-service-response-time-usa/). Accessed 10/11/2024.

Mckinsey & Company. Winning in loyalty. (https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/winning-in-loyalty). Accessed 1014/2024.

Twilio. The State of Customer Engagement Report. (https://www.twilio.com/en-us/state-of-customer-engagement/report). Accessed 10/14/2024.

Forrester. The Omnichannel Difference. (https://emarsys.com/learn/white-papers/the-omnichannel-difference/). Accessed 10/14/2024.

PingIdentity. 2021 Consumer Survey: Brand Loyalty Earned at Login. (https://hub.pingidentity.com/surveys/3597-2021-consumer-survey-brand-loyalty-earned-at-login). Accessed 10/15/2024.

In this Post

What is a Customer Engagement Platform?The Importance of Customer Engagement Platforms Benefits of Using a Customer Engagement Platform Best Customer Engagement Platforms Omnichannel Customer Engagement Platform Use Cases Key Features in a Customer Engagement Platform Digital Customer Engagement Platform Trends Choose InMoment for Your Customer Engagement Platform

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Unlock Expert Guidance on Today’s CX Challenges & Opportunities

Updated October 24, 2024

Published October 24, 2024

Written by Mike Henry

Reading time 11 minutes

2025 Consumer Trends Report

Customer Experience in Banking: A Guide to Improve Trust & Satisfaction

In the current competitive landscape for banks, customer experience stands out as a crucial key advantage. Customer expectations and needs have evolved to demand faster and more efficient services. These requirements make it essential for banks to leverage the right tools and practices to deliver smooth and personalized experiences.

It’s no longer enough for banks and credit unions to simply provide financial services. Customers expect to walk into a branch and want to immediately feel valued. From personalized services tailored to their needs to a welcoming space where they can do more than just deposit their checks. Needless to say, providing a memorable customer experience in banking should be a top priority for all financial institutions.

What is Customer Experience in Banking?

Customer experience in banking refers to the thoughts, opinions, and feelings customers have about every interaction with your financial institution. From visiting your physical branch to paying an electricity bill through your app, each interaction with a touchpoint contributes to a customer’s perception of your business. Without managing this customer experience properly, you risk losing clients, failing to acquire new ones, and creating a negative public image for your brand.

Importance of Customer Experience in Banking

We are currently living through times of financial worry. More than 65% of customers express pessimism over the economic outlook for the coming year. This shift in perspective is causing people to reconsider their financial needs and banking relationships.

In fact, 15% of survey respondents said they are open to a new banking relationship, while 20% are already considering changing banks. Here are a few reasons why customer experience in banking is an even bigger competitive advantage than ever before:

It helps build trust during uncertain times. In a period of financial anxiety, customers are looking for institutions they can trust. Your bank can present itself as a reliable option by demonstrating a commitment to making their customer journey smooth and personalized.
It is a proven way of retaining customers. With many customers considering switching banks, a positive customer experience can be the deciding factor in retaining them. Consistently providing exceptional service can strengthen loyalty and reduce the likelihood of customers looking elsewhere.
It helps you attract new clients. With 15% of customers open to forging new banking relationships, consider offering a memorable customer experience. This gives your bank a significant edge in acquiring these prospects.
It enhances the customer lifetime value for your bank. Happy customers are more likely to use multiple products and services from the same bank. Focus on customer experience, to improve cross-selling opportunities. As a result, this can increase the overall value of each client relationship.
It enables you to boost your brand reputation. Customers who have a great experience with your bank are more likely to recommend it to others. The positive online reviews you receive as a result of your CX strategy will be beneficial to your financial services reputation management efforts.

How to Improve Customer Experience in Banking?

Improving the customer experience in banking relies on a complete understanding of customer behaviors and expectations. Explore key practices to consider for improving CX across different types of banking. Discover how to improve services in branch, commercial, digital, retail, and credit unions.

1. Customer experience in branch banking

You need to re-think the concept of branch banking in order to leap ahead of the competition and improve customer experience across all your physical locations. The following approaches will help you make the most of your bank branch to boost customer satisfaction:

Create a “branch of the future” for your bank. Modern bank branches are transforming into consultation hubs. Focus less on routine transactions and more on offering expert financial guidance. Also, consider investing in self-service technologies such as interactive teller machines (ITMs) to handle basic transactions. Therefore, your staff can focus on offering personalized financial services.
Re-design your branches to encourage customer interactions. Move beyond traditional teller lines and adopt open, flexible spaces where customers can comfortably discuss their financial needs with advisors. For instance, the Capitol One Café demonstrates how including community spaces in your branch is a great way to make clients feel at ease and view your brand in a positive light.

2. Customer experience in commercial banking

Commercial banking clients usually seek complex financial services, including lines of credit and foreign exchange transactions. As a result, you will have to adopt a tailored approach to improve their experience. Focus on the following steps:

Assign dedicated relationship managers to clients. A great way to deliver a personalized and consistent service to a client is to have a relationship manager. This manager serves as the single point of contact for all their banking needs. From offering specific advice to identifying growth opportunities, these managers help foster trust and long-term partnerships.
Adopt a consultative approach. Unlike traditional banks that simply offer products, you can stand out by offering consultation as well. This approach adds another layer of value to your services. It also helps you better understand the financial profile of the customers you are serving.
Provide enhanced risk management and security. Needless to say, risk management is of utmost priority for commercial banking clients due to the nature of their transactions. Providing services like fraud detection, secure transaction platforms, and encryption will enable you to secure your customers’ data and transactions.
Offer industry-specific solutions and insights. Whether it’s agriculture, manufacturing, real estate, or healthcare, having a team of experts who are knowledgeable in that sector can significantly improve the customer experience. By providing industry-specific insights, whitepapers, or reports on market trends, you can establish yourself as an authoritative bank.

3. Customer experience in digital banking

There is a growing willingness among customers to embrace digital banking because of its convenience. Customers who regularly use a bank’s smartphone app or website report higher satisfaction levels on average compared to those who infrequently use digital channels. These best practices will help you improve the digital customer experience in banking:

Support digital transformation initiatives in your bank. Many customers are not yet fully comfortable with digital banking services. You can encourage digital adoption by offering in-branch or online tutorials. Your bank can also assign dedicated staff to onboard customers onto digital platforms to ensure a smooth transition.
Provide digital literacy resources to educate customers. Offer regular digital literacy classes or webinars to help customers become familiar with banking apps, online transactions, and cybersecurity practices. This approach will help customers take full advantage of your digital services, making it more likely for them to be satisfied as a result.
Invest in intuitive and user-friendly interfaces. If your banking app or website feels clunky or confusing to navigate, customers are unlikely to want to spend much time on it. With the help of an easy-to-understand digital interface, you can simplify user navigation and encourage higher levels of engagement with your service.
Digitize account openings and loan applications. Allow customers to open accounts, replace cards, or apply for loans entirely online. Offer step-by-step tutorials and on-call support for any questions. Completing their banking tasks from the comfort of their homes is not only convenient for customers, but it also saves time and paperwork.

4. Customer experience in retail banking

Retail banking focuses on the individual customer’s needs. The following steps can help improve CX in this area to enhance both satisfaction and loyalty:

Make it easier for customers to manage their accounts. From mobile apps to physical branches, each interaction channel for a customer should offer a frictionless and smooth experience. For instance, you can invest in a straightforward and user-friendly interface for your mobile app. This will make it easier for users to navigate.
Proactively communicate with customers. Keep customers in the loop with personalized messages about account activity, new products, or special offers. Regular communication helps build trust and keeps customers engaged with your services.
Encourage long-term relationships with rewards and initiatives. Introduce loyalty programs to reward long-term customers for their continued use of your banking services. By offering benefits like cashback offers, you can drive both customer satisfaction and loyalty. Moreover, these initiatives can also help encourage feedback to accomplish your customer experience management goals.

5. Customer experience in credit unions

Credit union members expect smoother interactions than ever before. Follow these steps to enhance their satisfaction levels:

Provide omnichannel customer support. Offer 24/7 customer service across multiple channels, including mobile apps, social media, chatbots, and live chat. This ensures that customers can get help on the platform of their choice, which improves accessibility and satisfaction.

Encourage personalized member services. By tailoring financial products to their members’ unique needs, credit unions can establish themselves as trustworthy advisors. They show they’re invested in delivering the best possible customer experience. For example, providing customized savings plans to members will elicit a more positive response from them. This is because the plans are relevant to their specific financial situation.

Leverage and emphasize community engagement. Credit unions can actively engage with their communities through events, sponsorships, and local initiatives. Hosting financial wellness workshops, supporting local businesses, or volunteering at community projects reinforces the credit union’s role as a trusted community partner.

Popular Customer Experience Trends in Banking

Some of the emerging CX trends in banking reflect the ever-increasing demand for faster, smoother, and more efficient customer journeys. It also highlights key differentiators for banks to help them thrive in a competitive landscape. Here is a look at the popular trends that are driving CX strategy for banks today:

1. Online and Mobile Banking

More customers prefer the self-service option of managing their finances on their own time. Mobile banking is one of the most important considerations for banks. However, building an app alone isn’t enough. The performance and reliability of digital products can impact customer satisfaction for better or worse.

The ideal mobile banking experience is one where the user can intuitively find what they are looking for. They can also quickly access customer support if need be. The app or website should support every aspect of a customer’s interaction, including opening an account and getting financial advice.

2. Artificial Intelligence (AI)

AI in customer experience can’t completely replace human experts. It can provide personalized recommendations and services at scale making it a must-have technology for modern banks. Machine learning algorithms, for example, can learn from individual customer behaviors. Based on their learning, they can recommend financial products and services that are tailored to each user profile.

Moreover, by handling repetitive analytical tasks, AI systems allow human agents to invest more of their time and energy into forging strong customer relationships by resolving more complex issues.

AI-powered feedback analysis can also help your bank capture meaningful insights from customer data to improve CX strategy. For instance, First National Bank partnered with InMoment to better analyze data across all touchpoints using a custom text analytics model. The insights provided opportunities for enhancing customer retention and satisfaction.

3. Personalized Customer Service

Personalization is quickly gaining significance for banks because of shifting customer expectations. 62% of consumers agree that personalized recommendations are better than general ones. This approach is crucial for driving loyalty.

AI-powered solutions like InMoment’s predictive customer analytics explore customer data to unveil actionable insights into customer behavior. These insights are then used to make personalized recommendations that engage and satisfy customers.

4. Proactive Communication

Instead of waiting for customers to reach out and seek help, proactive communication aims to stay one step ahead of them. This trend is also linked to a growing customer expectation for faster communication and issue resolution.

By analyzing customer feedback and activity across all touchpoints, it’s possible to predict their needs and next steps so that you can proactively help them. It’s important to manage the volume of feedback requests you send. Too many of those can cause survey fatigue and turn away your customers altogether!

Examples of Banks with the Best Customer Experience

The growing emphasis on improving CX in banking has made it essential to adopt the right trends and tools. The following financial institutions demonstrate how utilizing customer-centric strategies has empowered them to deliver excellent customer experience in banking:

Virgin Money: The British financial services brand launched its CX Success program with the help of InMoment in 2018. Since then, it has collected feedback from over 100,000 customers. This has empowered its workforce to act on enhancing customer satisfaction right away. As a result, it succeeded in reducing the targeted monthly complaint volume by 27%.
Chevron Federal Credit Union: The credit union partnered with InMoment to leverage the power of AI. This helped them provide friendly, personalized services to its members. With the help of advanced text analytics, Chevron FCU was able to capture actionable insights from open-ended survey responses and online comments to improve its CX efforts.
Metro Bank: The UK-based retail and commercial bank has successfully transformed its customer insight program. Part of the transformation enhanced retention and acquisition, along with improving key business metrics through its partnership with InMoment. Metro Bank leveraged AI tools like Active Listening™. This created a customer-centric culture that increased its revenue by 5%. They also grew their number of customer accounts to three million.
First National Bank: With the help of journey mapping and AI-powered feedback analysis, First National Bank unlocked opportunities for CX improvement across all touchpoints. It utilized InMoment’s custom text analytics model to accurately analyze customer data and determine how to cater to their unique needs and expectations.

Managing a Customer Experience Transformation in Banking

Understanding how to improve the customer experience for your clients is one thing, but putting it into practice is another challenge altogether. A successful CX transformation combines strategic implementation and continuous monitoring to make the most of customer feedback and insights. The following steps show how you can accomplish such a transformation:

1. Start by capturing customer insights.

The first step towards managing a customer experience transformation is to gather data and insights through meaningful customer survey questions. Customer feedback platforms like InMoment can help your bank deploy surveys and collect data from users to identify pain points and areas for improvement.

The analysis of this data yields insights that can help map out the entire customer journey. It can prioritize aspects of your business that need the most attention. This includes your mobile banking experience and your customer support teams.

2. Implement CX initiatives in phases.

A full-scale transformation can be overwhelming, so it’s essential to implement changes in phases. Banks can start by improving one touchpoint at a time based on the most high-priority issues and opportunities.

For instance, if your bank’s mobile app is lagging behind competitors in terms of user-friendliness, your first step should be to upgrade it to current industry standards. Moreover, each step should be evaluated with customer feedback to ensure it’s meeting expectations.

3. Focus on employee training to create a customer-obsessed culture.

Employees play a crucial role in delivering excellent customer service. They are either the first point of contact for customers or responsible for solving their specific pain points. You can boost your CX efforts by training the workforce to be customer-focused. Train your team on how to provide personalized services, manage online reputation with timely responses, and handle customer concerns with empathy.

4. Leverage technology for consistency and efficiency.

With customers preferring faster and more efficient service, it’s essential for banks to utilize technology to meet their growing expectations. AI-powered solutions, such as InMoment’s advanced analytics, can accelerate CX transformation by analyzing large volumes of customer feedback at scale. By handling repetitive analytical tasks for you, these tools allow your human agents to focus on building meaningful relationships with customers.

5. Continuously monitor and improve customer satisfaction through measurement.

Once the initial changes are in place, it’s crucial to continuously monitor customer satisfaction and make adjustments as needed. This is where it can help to keep an eye on customer sentiment and opinions on social media.

InMoment’s brand reputation management tools help track customer sentiment in real time and identify new areas for improvement. This analysis will enable you to create a feedback loop with customers to ensure you are continuously meeting their evolving needs.

How Banks are Using Customer Data for Personalized Experiences?

AI-powered systems have enabled personalization for businesses across various industries, including financial services. The ability to process volumes of customer data to quickly capture trends and insights has transformed the way banks service their clients.

Learning from customer behavior enables banks to provide tailored services to customers, including:

Personalized financial product recommendations like loans, credit cards, or investment options based on analysis of the customer’s spending habits and financial goals.

Customized offers such as personalized discounts, cash-back rewards, or special interest rates based on individual customer profiles.

Targeted financial advice in the form of budgeting tips or investment strategies tailored to the customer’s financial portfolio and goals.

Community spaces in physical bank branches designed to cater to customers’ lifestyles and work-related needs, like remote work, business meetings, or lounging.

Custom notifications and alerts for spending activity or fraud detection based on real-time monitoring of individual customer accounts.

For instance, Virgin Money allows its customers to access lounges. This is a space where they can meet with others, work, or simply relax, all while fulfilling their banking needs. This service, alongside its effective use of customer insights through its partnership with InMoment, has positioned the bank to stand out against competitors. Many people view it as a brand capable of delivering personalized experiences that make customers feel valued and heard.

In fact, after launching its customer success program, Virgin Money’s response rates grew by 13%. Its relationship NPS (a metric that focuses on long-term relationships between customers and businesses) doubled year-on-year.

Therefore, banks can better anticipate customer needs and build deeper relationships by investing in personalization and data-driven approaches.

How Banks Should Measure Customer Experience?

Banks should measure customer experience by identifying key performance indicators (KPIs) that reflect customer engagement and satisfaction. Here are some of the most common customer experience KPIs and methods used in this process:

Net Promoter Score (NPS): NPS is commonly used by banks to measure customer loyalty and the likelihood of customers recommending the bank to others. A high NPS score indicates strong customer satisfaction and brand advocacy.
Customer Satisfaction Score (CSAT): CSAT measures how satisfied customers are with specific interactions or experiences. Banks can use CSAT scores to gain insights into customer experiences at key touchpoints like branch visits, customer support, or digital transactions.
Customer Effort Score (CES): CES evaluates how easy it is for customers to complete banking tasks, such as paying a bill online or filling out a loan application form. A lower effort score typically translates into higher satisfaction, as customers appreciate frictionless and smooth experiences.

Along with looking at these KPIs, banks can also rely on feedback forms and surveys to gain a deeper understanding of customer sentiment. The main goal should be to create customer feedback loops that allow banks to monitor behaviors and make informed decisions. This way banks can further improve their CX strategy.

How to Select the Right CX Software to Manage Banking Experience

Choosing the right CX software is essential for effectively managing and improving customer experiences in banking. Here are a few features to look for when investing in the right platform to boost your CX efforts:

Omnichannel data collection: Your CX software should be able to capture customer feedback from various touchpoints. Touchpoints can be in-branch experiences, mobile apps, websites, and customer support interactions. This provides a holistic view of the customer journey and ensures you don’t overlook any aspect of the customer experience.
Real-time feedback and analytics: Software that provides real-time data collection and analytics empowers your bank to address customer concerns immediately, track evolving trends, and make timely adjustments to improve service.
Personalization: The ability to personalize services based on customer data is critical for driving loyalty and retention in this age. The software should help banks offer tailored advice and recommendations by analyzing customer behavior and preferences.
Integrations: A good CX platform should easily integrate with your bank’s existing systems. These integrations can include your customer relationship management (CRM) and marketing automation. This ensures that customer data is accessible and actionable across departments, which encourages consistent service delivery.
Actionable reporting and insights: The software should offer comprehensive reporting tools that provide actionable insights. Clear, easy-to-understand reports will help your bank quickly identify trends, pain points, and opportunities for improvement.

Transform Your Banking Experience with InMoment

Customers have growing expectations from their banks. Data suggests that they won’t hesitate to switch allegiances if their needs aren’t met. With the help of InMoment’s CX platform, your bank can rise above the competition by delivering personalized and seamless customer experiences.

Our award-winning AI and reputation management tools will empower you to consistently track and enhance your customers’ perceptions of your brand. Schedule a demo today to revolutionize your financial services and boost key business metrics.

References

McKinsey & Company. Five ways to drive experience-led growth in banking (https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/five-ways-to-drive-experience-led-growth-in-banking). Accessed 10/14/2024.

Zendesk. 35 customer experience statistics to know for 2024 (https://www.zendesk.com/blog/customer-experience-statistics). Accessed 10/16/2024.

In this Post

What is Customer Experience in Banking?How to Improve Customer Experience in Banking?Popular Customer Experience Trends in Banking Examples of Banks with the Best Customer Experience Managing a Customer Experience Transformation in Banking How Banks Should Measure Customer Experience?How to Select the Right CX Software to Manage Banking Experience

Watch the Video – Get More Out of Your CX Program

Watch this demo video to see how InMoment’s award-winning AI tech does the heavy lifting on analysis so you can spend more time lifting CX results.

Unlock Expert Guidance on Today’s CX Challenges & Opportunities

Updated October 23, 2024

Published October 23, 2024

Written by Barbara Wharton

Reading time 17 minutes

2025 Consumer Trends Report

Online Reputation Management for Doctors: Attract New Patients & Boost Your Practice

Your online reputation as a doctor plays a crucial role in attracting new patients and building trust. Managing reviews, maintaining accurate listings, and engaging with patients online are key strategies to ensure a positive digital presence and continued practice growth.

Your online reputation as a doctor can influence how patients perceive you before they even step foot in your office. We’ve all been there—checking reviews, browsing social media profiles, and searching Google to find the right healthcare provider. It’s no different for your patients. A well-managed online presence isn’t just about avoiding bad reviews; it’s about proactively building trust and attracting new patients.

But how do you stay on top of it all when your focus is on patient care?

What is Online Reputation Management for Doctors?

Online reputation management for doctors is the process of monitoring and controlling what patients see when they search for you or your practice online. It includes managing patient reviews, ensuring the accuracy of your online listings, engaging with patients on social media, and maintaining high visibility in search results.

In a nutshell, reputation management is about shaping the narrative around your practice. A well-executed strategy helps you promote positive reviews, address negative feedback in a constructive way, and ensure that potential patients see you as a trusted and reliable healthcare provider.

Why is doctor reputation management so important?

Your online presence can influence whether patients choose your practice over the competition. With an estimated 94% of healthcare patients saying they use online reviews as a first step in choosing a doctor, having a solid strategy for managing your digital reputation can significantly impact your success.

What are the Key Factors that Shape a Doctor’s Online Reputation?

Several factors come together to form a doctor’s online reputation, and understanding these elements can help you actively shape how you’re perceived online. Let’s break them down:

Patient Reviews: Online reviews are a critical component of your reputation. Patients often rely on reviews when selecting a healthcare provider, and negative comments can significantly affect a doctor’s ability to attract new patients. The key is not just to collect positive reviews but also to respond appropriately to negative ones.
Accurate Online Listings: Ensuring that your practice’s contact details, office hours, and services are correct on platforms like Google, Healthgrades, or Yelp is essential. Inconsistent or outdated information can confuse potential patients and harm your credibility.
Social Media Presence: While not every doctor is active on social media, having a presence where you can engage with patients and share health-related information builds trust. Patients appreciate transparency and accessibility, and social media offers a direct line of communication.
Search Engine Visibility: When someone searches for a doctor in your specialty, how often does your name come up? Optimizing your website and listings for local SEO ensures you’re easy to find when patients are researching their options.

Each of these factors plays a role in how current and future patients view your practice online, so it’s important to maintain them.

Why Is Doctor Review Management So Important?

If there’s one thing that can make or break your online reputation, it’s patient reviews. Doctor review management involves monitoring, collecting, and responding to reviews across platforms like Google, Facebook, Yelp, Healthgrades, and other healthcare-specific sites.

So why is this so important? Because today’s patients trust online reviews almost as much as personal recommendations. When a patient leaves a review, it becomes part of your digital footprint. Good reviews act as endorsements for your practice, but bad reviews can raise red flags for prospective patients.

What makes review management essential is how you handle these reviews—particularly the negative ones. When done correctly, responding to patient concerns in a thoughtful and timely manner shows that you care about their experience. This can help diffuse the impact of a negative review and even turn a frustrated patient into a loyal one.

Failing to engage with reviews, on the other hand, can signal to patients that their feedback doesn’t matter. This can not only damage your online reputation but also affect patient retention and satisfaction.

What Are the Benefits of Doctor Reputation Management?

Investing in reputation management for doctors offers a variety of benefits that can directly impact your practice’s growth, patient retention, and overall success. Let’s look at some of the key advantages:

Attracting New Patients: A strong online reputation helps you stand out from the competition. Patients searching for a new healthcare provider will often choose the one with the most positive reviews and well-maintained online presence.
Building Patient Trust: Trust is essential in healthcare. A doctor with a reputation for responding to patient concerns and maintaining professionalism online will inspire confidence in prospective patients.
Improving Patient Retention: Reputation management isn’t just about attracting new patients—it’s also about keeping the ones you have. When patients see that their feedback is taken seriously, they’re more likely to stay loyal to your practice.
Enhancing Professional Credibility: Your online reputation can establish you as a leading provider in your field. A combination of positive reviews, accurate listings, and patient engagement builds your credibility both with patients and within the medical community.
Competitive Edge: Effectively managing your online reputation offers valuable insights into patient experiences, helping you identify opportunities to improve the customer experience in healthcare services you provide.

By focusing on these benefits, you can strengthen your practice’s foundation and continue to grow your patient base in a sustainable way.

How to Manage Your Doctor Reputation: Tips for Success

Managing your online reputation doesn’t have to be complicated. Here are some straightforward tips to help you stay on top of it:

Respond to All Reviews: Acknowledge both positive and negative reviews. For positive ones, thank the patient for their feedback. For negative reviews, respond professionally, address the issue, and offer to discuss it privately.
Keep Your Listings Updated: Ensure that your practice information is accurate across all platforms. This includes your address, phone number, office hours, and services offered. Inconsistent details can hurt your credibility.
Ask for Reviews: Don’t be afraid to ask satisfied patients to leave reviews. Happy patients are often willing to share their positive experiences but might need a gentle reminder.
Engage on Social Media: While it’s not necessary to be constantly active, responding to patient comments or questions on social media shows that you’re accessible and care about your patients outside of the exam room.
Monitor Regularly: Make sure you’re regularly checking review sites, social media, and your business listings for new feedback. Staying on top of what’s being said about you online is essential for proactive management.
Use Data: Use analytics tools to track patient sentiment and monitor trends in your reviews. This can help you identify areas where your practice is excelling or where improvements might be needed.

Features to Look for in Doctor Reputation Management Software

Choosing the right reputation management software can streamline the entire process and make it much more manageable. Here are some features to consider when selecting a tool:

Real-Time Review Monitoring: Look for software that tracks reviews from multiple platforms in real-time, so you never miss a new review.
Automated Review Requests: A tool that can automatically prompt satisfied patients to leave reviews can help you build a steady stream of positive feedback.
Response Automation: Some platforms offer response templates or AI-driven tools that help you quickly and professionally address reviews.
Analytics & Reporting: Software that provides insights into review trends, patient sentiment, and overall performance can help you adjust your strategy accordingly.
Listings Management: Ensure the tool helps you keep your practice’s information consistent across online directories. This reduces the risk of patients finding outdated or incorrect details about your practice.

By using the right software, you can make reputation management a seamless part of your practice’s daily operations, freeing up more time for patient care.

REPORT

2024 Healthcare Online Reputation Benchmarks Report

InMoment’s 2024 Healthcare Reputation Benchmarks Report offers an in-depth look at the current state of online reviews for medical practices and how these reviews reflect the patient experiences people expect. The benchmarks serve as a valuable resource for healthcare providers aiming to assess their online reputation, set goals, make informed decisions, and enhance the overall patient experience.

Get the Report

Improve Online Reputation Management for Doctors with InMoment

At InMoment, we know just how critical it is for doctors to maintain a strong, positive online presence. That’s why we’ve developed advanced reputation management solutions designed specifically for healthcare providers. Our tools allow you to monitor patient feedback, respond to reviews, and optimize your online listings—all while saving you time.

With InMoment, you’ll get access to everything you need to manage your reputation effectively, from automated review requests to detailed analytics on patient sentiment. Let us help you strengthen your practice’s reputation, attract new patients, and continue delivering the exceptional care your patients expect.

Ready to take control of your online reputation? Get started today with a reputation demo.

In this Post

What is Online Reputation Management for Doctors?Why Is Doctor Review Management So Important?What Are the Benefits of Doctor Reputation Management?How to Manage Your Doctor Reputation: Tips for Success Features to Look for in Doctor Reputation Management Software

Watch The Video – Make Online Reputation Your Acquisition Strategy

97% of consumers scope out online reviews before making a decision – watch this video to see how InMoment’s solution grows your business through online reputation management.

Updated October 22, 2024

Published October 22, 2024

Written by Cori Lindsey

Reading time 7 minutes

2025 Reputation Industry Benchmark Report

We analyzed 31 million reviews from 226,500 business locations to uncover the key trends separating industry leaders from those falling behind. Want to see where you stand?

How Social Media Monitoring Can Impact Your Business

What is Social Media Monitoring?

Social Media Monitoring vs Social Listening

Why Is Social Media Monitoring Important

Benefits of Social Media Monitoring

Enhanced Brand Awareness

Improved Customer Engagement

Effective Crisis Management

Competitive Analysis

Informed Market Research

Who Should Use Social Media Monitoring

1. Marketing and Brand Managers

2. Customer Service Teams

3. Public Relations (PR) Professionals

4. Sales Teams

5. Product Development Teams

Key Metrics for Social Media Monitoring

Brand Mentions

Customer Sentiment

Engagement Metrics

Topic and Keyword Trends

Tools for Social Media Monitoring

1. InMoment

2. Sprout Social

3. Mention

4. Brandwatch

5. Agorapulse

Key Features for Social Media Monitoring Platforms

Real-Time Alerts

Sentiment Analysis

Cross-Platform integration

Competitive Analysis

Reporting and Analytics

How to Implement A Social Media Monitoring Strategy

Step 1: Define Your Goals

Step 2: Identify Key Metrics

Step 3: Choose the Right Tools

Step 4: Set Up Alerts and Track Keywords

Step 5: Establish a Response Protocol

Step 6: Analyze and Report on Insights

Common Challenges in Social Media Monitoring

Information Overload

Detecting Nuanced Sentiment

Cross-Platform Consistency

Start Social Media Monitoring with InMoment

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Unlock Expert Guidance on Today’s CX Challenges & Opportunities

Unlock Expert Guidance on Today’s CX Challenges & Opportunities

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2025 Consumer Trends Report

2025 Consumer Trends Report

Thank you

How Customer Experience Automation Can Improve Business Performance

What is Customer Experience Automation?

Why is Customer Experience Automation Important?

Benefits of Customer Experience Automation

Enhanced Efficiency

Scalability

Improved Personalization

Data-Driven Insights

The Four Pillars of Customer Experience Automation

1. Orchestration

2. Segmentation

3. Personalization

4. Automation

Who Uses Customer Experience Automation

Marketing Teams

Sales Teams

Customer Support Teams

Product Teams

Operations Teams

How to Use Customer Experience Automation

1. Map and Examine the Customer Journey

2. Integrate Data

3. Create Segments and Triggers

4. Personalize at Scale

5. Monitor and Optimize

Customer Experience Automation Examples