• Mon. Jun 17th, 2024

The Power of Customer Feedback: Addressing Organizational and Data Paradoxes to Drive Growth

BySamantha Johnson

Mar 26, 2024
The Importance of Customer Science for CIOs

In today’s interconnected world, customer feedback has immense power. Companies can lose billions in market value or trillions in revenue due to poor service or unmet expectations. One example is Snapchat’s $1.3 billion loss in market value after a tweeted complaint from Kylie Jenner, while US companies lost $1.6 trillion in 2016 from customer switching due to poor service.

The journey towards customer science is filled with paradoxes, such as the organizational paradox of not having someone in the enterprise with the authority to ensure every interaction meets or exceeds expectations, despite the common saying that “Customer is King.” The roles of positions like the chief customer officer or chief experience officer are crucial in addressing this paradox. Glenn Laverty, former president and CEO at Ricoh Canada, resolved this paradox by tying every employee’s compensation to customer experience/satisfaction metrics.

Measuring and rewarding certain behaviors is essential in driving desired outcomes. For example, at Boeing, production throughput compensation metrics were prioritized over safety considerations, leading to unintended consequences. Customer science can help align everyone’s compensation with customer experience metrics in a calibrated and nuanced way.

Claes Fornell, founder of the American Customer Satisfaction Index, points out the data paradox in customer science. Despite the vast amount of customer data collected by organizations, they seem to know less about how to satisfy their customers. This disconnect between data collection and customer satisfaction needs to be addressed in order to truly understand and meet customer expectations.

In conclusion, failure to meet or exceed customer expectations can have significant impacts on a company’s bottom line and reputation. Organizations must address the organizational paradox of ensuring every interaction meets or exceeds expectations by tying employee compensation to customer experience/satisfaction metrics. Additionally, measuring and rewarding certain behaviors is crucial in driving desired outcomes, while addressing the data paradox will help organizations truly understand and meet their customers’ expectations.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

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