Australian SMEs often focus heavily on acquiring new customers, but retaining existing ones is demonstrably more cost-effective. In fact, increasing customer retention rates by just 5% can increase profits by 25% to 95%. A cornerstone of any successful retention strategy is a robust customer feedback system. We’ve seen firsthand what works – and what doesn’t – with businesses across the country.
Simply asking “how are we doing?” isn’t enough. Effective systems need to be targeted, timely, and actionable. Here are a few approaches we recommend:
- Post-Purchase Surveys: These are crucial. Send a short, focused survey immediately after a purchase or service delivery. Keep it brief – ideally under five questions – and concentrate on the specific experience. Net Promoter Score (NPS) questions (“How likely are you to recommend us?”) are valuable for gauging overall sentiment, but always include open-ended questions allowing customers to elaborate.
- Customer Effort Score (CES): This measures how easy it is for customers to do business with you. A high CES indicates friction points that drive customers away. Asking “How much effort did you personally have to put forth to handle your request?” provides direct insight into areas for improvement.
- Feedback Forms on Your Website: Make it easy for customers to provide feedback at any time, not just after a transaction. A prominent, accessible form demonstrates you value their opinions. Consider using a simple star-rating system alongside a text box for comments.
- Social Listening: Don’t underestimate the power of monitoring social media channels. Tools can track mentions of your brand, allowing you to respond to both positive and negative feedback publicly (where appropriate) and privately. This shows you’re actively engaged and care about what customers are saying.
Collecting feedback is only half the battle. The real value comes from analysing the data and implementing changes. Look for patterns and trends – are multiple customers complaining about the same issue? Prioritise addressing these pain points. Closing the loop is also vital. Acknowledge feedback, explain any actions taken, and thank customers for their input. This demonstrates you’re listening and committed to improving their experience.
Investing in these systems now will pay dividends in increased customer loyalty and, ultimately, a stronger bottom line. To get started, we suggest identifying one key customer touchpoint and implementing a post-purchase survey focused on that specific interaction. Regularly review the results and make data-driven improvements.
