Archive for March 24th, 2007

Analysis of Customer Feedback Methods - UFONE & Others

This guest post was originally published by Osama Hashmi in his Green & White blog, and it is being cross-posted here.

Companies in Pakistan are beginning to recognize the strategic importance of curbing customer churn. As a result, some of the leading companies are implementing interesting and new ways of getting Customer Feedback to get some data on customer experiences.While this discussion should generally be a market research conducted over hundreds of companies, lets analyze three approaches.

Disclaimer: This may not be the apples to apples comparison you expect, because I am not counting traditional approaches such as help lines, ticketing systems, etc. What I am analyzing are “innovative” new ways of getting customer insight that the three firms are using.

UFone’s Approach to Customer Feedback

You walk into their store to pay the bill or get something done — that transaction is entered into their POS / CRM / Billing / ERP system.

One day later Ufone sends you an SMS hoping your experience was well, and asking a simple question: “Was your experience satisfactory? Send reply ‘yes’ or ‘no’ “.

Simple, and to the point.

Ufone Analysis
UFone’s approach is good in that it is a dead-simple feedback form — a Yes / No vote is easy enough that people might reply, and is also enough to form a very simplistic model of using that feedback to improve operations.

The costs of this approach, however, is that Ufone will not know why people
are not satisfied, and for this they will have to work closely with the
Line or Business Center managers as well as sort through reports of
customer service staff. Even then, they will skewed data — in today’s
customer experience world, skewed data can be hazardous to a company’s
health.

The other major issue with UFone’s approach is that it is an
interruption based approach. If I get an SMS at an odd time, I wouldn’t
care if the SMS says “thank you for visiting our store”, it interrupted
me and hence has a chance to put me off.

Especially because UFone keeps sending an SMS every day until you give
up and reply! (It does that to me anyway — maybe they wanted me to
write about them).

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