Why Voice of the Customer is Vital for Commercial Survival
Since the advent of the Global Banking Crisis the economic landscape has changed almost beyond recognition. Market volatility has become the norm with an ever increasing trend of price sensitive customers who have far lower levels of loyalty and are less tolerant of poor customer service.
Recent research underlines that customers now expect companies to act on their feedback; doing nothing only exacerbates negativity, increasing customer churn in times where customer service and retention are key to any business’ success. Leading academics Emmet Murphy and Mark Murphy, underlined the commercial importance of ensuring a business acts on customer feedback stating “… a 2% increase in customer retention has the same effect on profits as cutting costs by 10%”.
It is now accepted that exceptional customer service must be adopted as standard practice. According to Kerry Bodine of Forrester Research, “In 2011 customer service will start to be recognized as a critical part of the customer experience ecosystem. Executives will stop treating customer service as a cost centre and will instead leverage it as a high-touch loyalty driver and, wherever possible, a revenue generator. We’ll also see customer service employees gain stature in organizations as a resource for prized customer insights.”