A significant proportion of brands collect feedback, but fail to act on it, according to a new report by Qualtrics, which noted that failing to act on insights and address negative experiences have an adverse impact on customer loyalty.
According to the “State of Customer Feedback” report, 42% of consumers say brands collect feedback but fail to act on it. This is based on a survey of 500 consumers.
Around four out of five (84%) consumers say they are less likely to buy again when negative feedback remains unresolved. When resolved, however, 54 percent of respondents say they are more likely to purchase again.
In Singapore, it was found that less than half of customer feedback (48%) is being actioned. Another 42 percent says the feedback was acknowledged but not acted upon, while 10 percent says feedback were ignored completely.
The speed at which customers expect responses vary depending on the feedback channel used. Overall, 80 percent of consumers want feedback within 24 hours - with just under two-thirds (62%) saying it is received within this timeframe.
Social media has emerged as a popular tool for customers to provide feedback, with LinkedIn and Instagram are the most likely feedback channels in which brands are deemed most likely to respond within a 24-hour time frame.
In addition, email is the preferred option among consumers for sharing positive (39%) and negative (40%) feedback. Online reviews are also a popular platform for positive feedback, with 28 percent opting for this platform. When it comes to sharing negative feedback, phones are the preferred platform after email (18%).
“Organizations can engage with customers on their terms, interact with them when and where it suits them, and get straight to the issues that matter using dynamic data collection tools that adapt intelligently to feedback in real-time,” suggested Foo Mao Gen, Head of Southeast Asia, Qualtrics, who suggested that companies leverage the feedback to deliver a better experience in the future.
This article was first published on Questex Asia Ltd, on 18 April 2019. Information is correct at the time of publication.