In my last blog post, ‘Customer Feedback: The Key to Creating More Value’, I dispelled some of the myths about collecting customer feedback. I also promised that in my next post, this one, I would tell you how and why, if you listen to customer feedback, it can show you where and how to gain a competitive advantage, and improve customer loyalty and engagement. So, here I go:

While there are several great examples that come to mind on how companies are using customer feedback to gain a competitive advantage, since there isn’t enough room in this blog post for all of them, I’ll just share one. (So as not to make this blog a promotional piece, I picked a neutral one).

In the book ‘What Customer Really Want’, author Scott McKain tells a great story about how a coach bus company that transports music stars across the nation to their concerts (i.e. clients either lease or purchase its buses), was originally planning to improve the interior of its buses because it believed that if it did, its customers would be willing to pay more, and the company would make more money.

However, in the midst of picking out fabric, flooring, etc., the company realized that it had never asked its customers what they thought about its plans. So, the company did. To the company’s surprise, it found out that while its customers did want nice interiors, the single most important factor to them in selecting a coach company was the bus driver! (i.e. Someone who could get these music stars to their destination safe, especially if they had to drive through the night. And, someone who would also serve as a good ambassador for the band with fans).

The company immediately launched a driver education program to teach its drivers how to communicate more effectively with customers, and how to retain and grow customer relationships. The company also changed its reward system so that drivers were compensated according to how well they served the customer, and how well they cultivated long-term relationships with them. Once the company did that, it moved from fourth in the marketplace to first, and grew from 28 to 56 coaches.

My point is if you want to grow your revenues and increase your customer retention, customer loyalty and engagement, you have to ask your customers for feedback. It’s the only way to find out what they really want, where and how your company can improve, and yes, even make more money and gain a competitive advantage.

Kimberly Mathie, MarComm Manager, Allegiance