Effect Of Customer Feedback To Companies

Published Date: 02 Nov 2017

Customer is not satisfaction of productivity causing conditions between customer and productivity to confliction.

customer loyalty is working of customer in industry for satisfaction principal and for is his work this royalty is development his work industry and confidence his work of customer and is one important experienced customer for advancement in the future is working of customer. (Anderson E.W. et al, 1997)

According to Hallowell R. (1996), Feedbacks from the customer are related with the customer satifaction. The customer satisfaction will make the customer purchased products that make the company get profit from their customer that is be the service chain of Storbacka et al (1994) hypothesizes that

Customer satisfaction <--> customer loyalty <--> profitability.

The company must make the customer satisfaction to their customers in many ways and get new feedbacks from customer all the time for improving their business be better. Customers be impress with their products and return purchased that will impress the customer loyalty to their customer and the customer will advise products that they like to their friends. It makes lots of profit to the company.

According to Pizam, A. and Ellis, T. (1999), Customer satisfaction can measure about the customer feeling that they have served services from company. The company measure score and feeling of the customer by surveys and asking for comment. Comment is a one that the company can check about the feeling and satisfaction that is effecting to the growing of company.

Customer feedback can measure from the satisfaction or dissatisfaction of the customer that it is reflecting and affecting with the customer loyalty, and the growing of the business. The customer satisfaction connects with WOM or Word of mouth. WOM is a behavior of customer that if they are like or satisfied with some product, service, company, etc. they will tell others try to get a service from the business. If new customers that older customer told them to try products have satisfied with the company. It makes a company will be growing and make customer will be the customer loyalty of the company. They’ll support and be promoter the company. Else, if the customer dissatisfied with the business, the company can find a solution to improve their businesses be better. (Reichheld. F.F., 2003)

According to Susskind A.M. et al (2003), Customer orientation is the most importance for customer service providers that have to know what their customer’s need and expectations and they serve their right service to the customer for growing their customer satisfaction. The service providers who could find the customer need tried very hard to meet their customer want by offering multi choice to their customer. After that, they follow the result of it and identify which one will meet the customer satisfaction.

According to Susskind A.M. et al (2003), Customers Satisfaction is the main concern of people who do the business because it is the reaction from their customer who like or dislike your goods or service. The researches show that organizations spent a lot of money to deserve their customer satisfaction. Businesses which have high level of the customer orientation report that can grow their customer satisfaction in the high level too. Focusing on their customer and make them happy more often is simple important suggestion to organization which live on their customer behavior. It can lead the customer to be organization’s customer loyalty and they can get a lot of profit from this kind of customers.

Word Of Mouth is the customer’s behavior. They recommend your firm to others. If they say positive, it’s the best way to make new customer. The peer opinion is always the most influence to buying behavior. It is important to driving the firm performance by the customer voice.

customer loyalty is working of customer in industry for satisfaction principal and for is his work this royalty is development his work industry and confidence his work of customer and is one important experienced customer for advancement in the Future is working of customer.

Employees also are important for growing the customer satisfaction. The frontline employees who have to face the feedback from the customer directly and serve what the customers want is the most important position in the making customer satisfaction theory and they have to have supporter who could help them to do it on the best way. Employees who have coworker and supervisor supporting indicated that is key for serving customer satisfaction. The direct support from organization to their employees is very necessary from making the high level of customer satisfaction but the organization have to make the standards service to be high level before they will focus on front line employees because employees can focus on their customers’ needs which will produce the positive way of customer orientation if the standard service in the organization is in the high level and the help from organization to their employees work well (Susskind A.M. et al, 2003).

Customer feedback tools (NPS)

Net Promoter Score was made by Frederick Reichheld(2003) in his book "The Ultimate Question". It can make you easy to understand the loyalty of your customer by measuring how likely they recommend you to others. Reichheld has designed it in 11 scales (0-11) and separate customers into 3groups: Promoters, Passives, and Detractors. Promoters are the customers that recommend the brand to others. It’s important that the customer willingness to put their credit to offer brand to their friends and colleagues in a high level of trust, satisfaction, and loyalty.

WOM is a reference to the passing of information from person to person. It can measure the behavior of customer. Morgan and Rego (2006) had designed it to measure the satisfaction and behavior of customers. It can predict the performance of business because it is the value of customer loyalty. They had access to customer data WOM behavior for their firms by vary information such as business press and trade publications etc.

Net Promoter Scores was designed by Reichheld (2003). NPS can predict the revenue growth of the firms. It is designed to measure the effect of word-of-mouth. Now it is accepted by many firms.NPS use only a single question to survey their customer by asking how likely they would recommend the brand to others. It separates the customer into 11 scales (0-10) in 3 groups: Detractor, Passives, and Promoter. The proportion of who likely to recommend to others are the Promoters who will always support the brand and help the brand to advertise to others. NPS will offer the clear data to busy manager. It is easy to understand.

The beauty of NPS is that it’s a simple and systematic approach to track and quickly address customer concerns (Tom Quindlen).

The NPS customer loyalty feedback is one question survey on the Net Promoter Score principle the survey work by asking all customer to answer just one question to measure the responses and customer may include comment to illustrate their answer if they wish.

Net Promoter Scores are the business tool what can measure the customer satisfaction by asking a simple question how likely they would recommend your brand to others. It separates the customer by 11scales into 3 groups: Promoters 9-10, Passive 7-8, and Detractors 0-6. NPS are effective for measuring the customer loyalty. It can predict the future revenue growth of the firms. NPS is created by calculating the proportion of Detractors subtracted Promoters (Mark Ritson).

Net Promoter Score becomes the main tools for researching the customer feedback. Business has to understand the way to use NPS that it has to find the right customer target and ask them the right question at the right time. Business use NPS for knowing who is the most loyal customers of their company and plan the right strategy for earning the profit from them because the organization also find that growth, stock price and NPS are also move together and that is reason why organizations always use NPS to guide for earning the profit. It will help the business to focus on the right target that they can develop their goods or services that make their customer to be satisfy because the customers who are loyal for the business will earn a lot of money to that business. In many cases, the businesses could earn a lot of money from the customer by only focusing the loyal customer (Brooks L., 2009).

According to Reichheld F. (2006), Net Promoter Score started to ask just simple question. "How likely is it that you would recommend us to a friend or coworker?" The customer will answer the question by giving the score from one to ten and NPS will identify the customer satisfaction from the score in group. Customers who gave the company with nine to ten rating will be "the promoters" because they almost like the company and they usually recommend company to their friend. The second group who gave seven to eight rating will be "passively satisfied or passives" because the rate of repurchase from the company always lower than the promoter around fifty percent or more. The last one who gave one to six rating will be "detractors" who has the least rate of repurchase and they also be the negative recommend to the company by telling their friend never purchase from this company anymore.

The seven-point increasing in NPS also gives the one percentage point of growth rate. That is the reason to make the interesting of NPS in many organizations growing up. The organizations have to understand what customers’ needs and serve them with the right goods or service (Reichheld F., 2006).

The Net Promoter’s processes is ask to someone with simple question or easy to understand, and give a point with their answer. If the answer is positive a point will higher than negative answer. The NPS is a tools to measurement of customer satisfaction

The word of mouth is an important with firm if the firm needs to get a new customer and keep going on the business. The word-of-mouth metric must be designed in particular way to calculate a Net Promoter.

They have Data collection and Measurement by telephone to ask customer for information to measure the firm. They choose randomly a large group of buyer who qualify by purchase recently experience or the customer who used to received specific services from the firm, and asked what they think about with their firm or their product and service.

Finally, the basis to measure The Net Promoter and measure the firm Revenue Growth is asked the customer with a simple question to know what they thinking about the firm or their product and service. And if they asked the customer what they think about the firm, they can forecast Revenue Growth in the future because if the customer likes their product, they will buy more goods. If the customer satisfied in the firm, the firm’s Revenue Growth will increase. (Timothy L. K. et al, 2007)

NPS is one tools to survey the customer feedback, they use NPS to find or survey a customer loyalty. The customer loyalty is a basic of NPS. They find the way to build basis of satisfied customer because when the customer like their products, they will talk to other people such as people in their family friends or colleague. The positive word of mouth will bring a new customer. The firm wants to know what do you like or dislike in their firms, services firm or their product. If they can improve positive word of mouth (the customer who talks a good thing with their firm or their product) their firm will get money from a new customer who believes in word of mouth of their friend or colleague.

The NPS should not only be measured but questionnaire should be integrated in the business to close the customer feedback. A questionnaire is simple and easy to understand (Jasper S, 2009.)

According to (Reichheld. F.F., 2003). NPS or Net promoter scores is a metric that measure about the customer satisfaction. It can measure about satisfaction of products, services and it can predict the company growth. The NPS score has a level to measure and question to ask to their customer or their target. "How likely is it that you would recommend [company, products, services] to your friend or colleague?" is a question that the company will survey and ask for answer. That answer is be a level and correct to be statistics that it is easy to calculate the numeric of satisfied people.

According to Pfughoeft K.A. (2010), NPS or Net promoter scores is a metric to measure about the customer satisfaction that it can predict to the growth of the company. NPS has a question for ask the information from customers. The question has scale for get a score and brings scores to calculate the customer satisfaction and customer loyalty of the company. Because it is only one question but can ask in many segment of customers. There is save time. The result of NPS can predict about the growth of the company that it can compare with other companies and plans the strategy to manage the business go success. The results can show about the profit of operations and disadvantage of the company. The company can be change and improve there operations or management. Or use it to be the motivation to drive the organization changed and improve the business.

Failure of Customer feedback metric tools (Failure of NPS)

According to Reichheld F.F. (2003), The NPS is metric that is easy to correct the information and calculate. But if they get false information from their customer such as asking the question with new customer who have never used and gotten services from the providers. New customers will give guess for the answer. The result will be wrong that is affected to the business cannot predicted the growing of the company and the strategy plans of the company plan to manage their business will be mistake.

According to Pfughoeft K.A. (2010), The NPS is a metric that is easy to use to predict to growth of the company. But it has a limit in the question. Results will be mistake if use it in wrong segment. Such as they asked in the customer loyalty group, Results will be wrong. They must choose right question to right their group.

According to Lawrie J. el at (2007), Many company use the NPS (net promoter score) measure the growth of the companies. But Only the NPS is not enough to predict about the growth. Its have many various attribute that exclude to predict. Market sharing, customer satisfaction, management of the company are attribute of the prediction. The NPS metric has predicted only lasted the information the compare with the present information and didn’t tell about how to solve the problem or getting successful with the business next. In market sharing, the NPS isn’t accurate to predict about it. The customer can satisfied with the product, service of the company from value for money. Such as If the customer get profit from some company, they will interest and satisfied with company. It’s shown that the advocacy is also driven by value for money. The NPS is measuring about the repeated purchases too, but didn’t mean that the company will grow. Maybe, repeated purchasing is from the customer want to buy the product because it’s cheap. The customer will satisfied with the cheapest product on the shelves. But anyone didn’t know that the customer will recommend that their friends to buy the products which Recommendation product of the customer to other peoples are the NPS measuring method. However, The NPS measuring should be right type to measure because the measuring will be wrong and be collapse. They should include other metric with the NPS to measure the company growth. The NPS is not only one solution or question to predict the future of the company or the growth of them.

NPS measure by asking only a single question. But in reality, to make a survey we must use more question to delve into the customer behavior. We must use the complex question. It should be better if we use the several question. I think it is better than a single question. (Shirman Group Client Brief, 2007)

It has too many metrics for giving the information to the organizations that use it for making the strategy but which one is the right metrics for the organization because many of organizations used the NPS as their main metric for guiding their strategy but NPS isn’t the right answer for every organization because NPS worked well in some organization but it is never useful for some organization too. Organization who isn’t careful to choose the metric for their place will fail with their strategy and that’s why NPS also failed too because organization didn’t use it in the right place and it will make the bad things more than good things for that organization. So businesses have to be careful to use NPS and they have to understand what exactly it is before using NPS in their place (Brooks L., 2009).

How to apply the NPS with organization.

According to Jasper S. (2009), At Philips, in the online context, the brand image is not necessarily based on objective performance but is rather subjective, color for the views’ customer offline brand.

The consistent image is necessary, if the firm can put image’s product to their heart’s customer they will be successful.

The core of NPS system’ Phillips is build a solid loyalty customer, If the customer trusts in Phillip and their product, they will answered the real answer from they think in questionnaire of Phillip, and Phillip will receive the real information from their customer and that will told Phillips what they must to focus to fix or how to develop their product to make a positive thinking with the customer.

GE corporate use NPS to help enhance the customer experience. They improve the customer-facing to take the short time. (Tom Quindlen)

Conceptual frame work useful in resolving this contradictory viewpoint is developed. The framework serves, in turn, as a basis for developing a theoretical model relating customer satisfaction and productivity (Anderson E.W. et al, 1997)

Hospitality enterprise is a one business that really wants feedback of the customer to improve their services. Their customer feedback can measure from comments that their get from complaint of the customer. It shows about the feeling of customer will be satisfied or dissatisfied that is showing will be return to use their service again. Such as, the hotel will get comments from their customer that complaint about foods, beverages, rooms or services that they have gotten and expected from the hotel. The customer will think and repeat about their past experience that they have gotten services from hotels and will be back to use the hotel service if they are satisfied with their services and will advise to their friends to use the hotel service. Vavra (1997) study found the customer satisfaction measurement (CSM) should be providing information and enabling communication with customers. Perhaps the primary reason for taking the time to measure customer satisfaction is to collect information, either regarding what customers say that needs to be done differently or to assess how well an organization is currently meeting its customer needs. The company should get right information from their customer and should have lots of way to communicate to sending information from customers to business units. The company will survey by asking about needing, satisfaction, well-being, foods, accommodations, etc. That it helps the hospitality enterprise will manage their business to right direction. They will repair their service, gives promotions or the best quality services to their customer that it makes an impression to the customer. But in the other hand, the hospitality service will be changed and applied to relate with customer culture too. (Pizam, A. and Ellis, T., 1999)

Measuring the customer satisfaction is a method to measure about satisfaction of customer that they feel with the company. Example, the case studied of the bank. They are survey their customers with a customer satisfaction questionnaire that make on scale. It’s simply and save time. And if the surveying has lot of details such as satisfaction with service or satisfaction with price, they will get more information because the satisfaction can vary by the value of the things that the customer will get it. Measuring of customer loyalty can measure with the customer who has long-term relationship with the bank. How many times that the customer get services of the bank. Such as, the customer opens an account with only their satisfied bank. Measuring of customer satisfaction and customer loyalty can predict about profit of their operations. There are related because the customer who satisfied with services, they will use more service of the bank and advise to their friends to use the bank services. It can make a customer satisfaction and customer loyalty to their customers that make more profits to the company. (Hallowell R., 1996)