The full benefits of Customer Experience initiatives, such as the effects on staff productivity, are not always fully visible to leadership teams. It can be difficult to appreciate exactly how superior customer experiences will generate value or save time across the business. For many organizations that collect in-stay customer feedback, the challenge to communicate ROI is ongoing.
Responding immediately to customers can save you an hour a week
Most business managers already prioritize speed in resolving customer issues. The real challenge lies in timely service recovery when service teams are only notified of the problem after the customer has already left. Businesses that incorporate real-time feedback tools can dramatically decrease the overall amount of time spent remediating poor customer experiences. This is because when staff members are notified about the issue in real-time when the customer is still on-site, instead of through post-visit reviews and feedback, they can react faster.
A Forrester study shows that hotel operations managers who use real-time feedback avoid the need to contact the customer via phone or email (as well as avoiding the need to contact the next customer occupying the same room where an issue was reported). Over a year, the study shows time savings adding up to an average of 49 hours for a single hotel property.
Reducing cost of service recovery
A 2018 report from NewVoiceMedia found that 67% of customers are willing to switch brands because of a dissatisfying customer experience. The cost of poor customer service can be expensive, as businesses lose both the customers’ loyalty as well as potential new customers. Because of this, companies are now increasing their spend on service recovery to compensate unhappy customers after they leave. However, research shows that more than 60% of customers are not satisfied when businesses offer them something of monetary value to remediate their poor experiences, such as a refund or credit. As such, companies must not rely on post-stay monetary compensation as a guaranteed approach to service recovery, since this might not fully resolve customers’ dissatisfaction.
According to a Forrester study, businesses that collect real-time customer feedback can reduce service recovery expenses by reducing the amount of financial compensation offered to customers who had bad experiences. The study showed that hotel staff members could take service actions to reduce the impact of the negative experience, such as offering a late check out, rather than having to compensate with vouchers, amenities or a discount off the accommodation, compensation which amounted to $25,237 for a single hotel property in one year.
Ultimately, the impact of real-time customer feedback not only benefits customers but also business’ bottom lines. Read the full Total Economic Impact study from Forrester to learn more.