Feedback, Opinions, and Concerns: The Backbone of CX Research
By July Ramos Corona
As someone who is not only new to the business world, but more specifically marketing, it’s fascinating to see the role of marketing research and how companies track brand effectiveness. After reading Quirks’ ‘Don’t Leave Customers Out: Why Their Feedback Still Matters in CX Research’ it was interesting to note how customer data has made it easier to create engaging customer experiences. I had always assumed companies used quantitative research like surveys to get customer feedback but didn’t realize the breadth and number of tools available. This article discusses how certain brands are trying to replace traditional CX and brand tracking surveys and instead are leaning towards predictive databases that specialize in tracking and analyzing customer interactions.
The article states, “88% of customers believe the service they receive is as or more important than the products a company offers.” Although I think this statistic is important, since joining a marketing research firm, there are more factors that come into play when looking at overall success. Companies also need to know a customer’s lifetime value, forecast churn, and anticipate the next-best offers. When consider the massive amount of data companies analyze, some see using predictive databases solutions as the most efficient way to handle the job. While recently attending an industry conference, the author mentioned a keynote speaker stated that by 2030, “only 1% of customer data will come from surveys and the customer experience survey industry will be dead.” However, the authors claim this conclusion is misguided. Although the author agrees direct consumer feedback may be reduced over time, it does not take away the importance the data holds. With nearly 10% of company revenues at risk due to bad customers experiences, I would also have to agree these experiences are worth noting.
As I kept reading, I felt brands weren’t thinking thoroughly about their customers and was confused on why they wouldn’t keep moving forward with traditional CX research only. Many customers can have different experiences based on how they think they should be treated. The issue with customer surveys is they are subject to various biases based on customers’ own beliefs and actions. This isn’t the only issue CX research faces. With the survey system, companies have limitations and can be unfocused on what a company is looking for. “Survey scores are rarely linked back to financial impact, so it is difficult to justify investments based on expected business values,” states one of the authors.
As a newbie, it didn’t occur to me that companies would want to justify the money spent on surveying. A company wants to see profit, and when that research isn’t really getting you anywhere, it might be time to change the way you gather data. Should companies move onto a new way of collecting customer analytics? It’s tricky because solely focusing on an automated database might disregard direct feedback which can have a huge impact on a brand. As stated before, if a company obtains customers feedback on their experiences, they might be risking losing more than they gain. However, if they do nothing to get customer feedback, then how will they grow?
The authors state these two methods of collecting data should be viewed as complementary rather than choosing between two different systems, and I agree. Converging predictive database with survey-based measurements will provide the most comprehensive results on customer experiences.
What are your thoughts? Can companies keep moving forward without necessarily noting the feedback of their customers? If so, how far can you go until you need those opinions?