Increase Effectiveness of Your “Closed-Loop” Programs

By: Shorit Ghosh

March 18, 2020

Tags:
Clarabridge Analytics
Contact Center
Customer Experience
Customer Feedback Management

Leading customer-focused organizations have started to actively implement “closed-loop” programs (also known as service recovery programs) across all their channels (social media, surveys, phone calls, emails, messages and chats). The benefits of effectively implementing such a program are well documented—companies with a robust closed-loop program have average NPS scores that are 10+ points higher than companies that do not have such a program. Robust service recovery also results in higher revenue as well as reduced churn because customers feel they are being heard.

As you start up your closed-loop program, consider setting some measurable objectives to evaluate success. A few examples include:

1. Number of customers reached out to per month
Of course you may think “the more the better,” but you may want to start the program small and expand as you measure effectiveness and establish rules of engagement. You also want to be intelligent about which customers to prioritize by focusing on customer segments that will have the highest impact. Combine data from your CRM systems, with interaction data from your feedback channels and other profile information available to you to set up an outreach roadmap.

2. Amount of time taken to respond to customers
While contacting a customer as soon as possible should be the ultimate goal, it’s important to be prepared when talking to the customer. Who reaches out to the customer, what they say when in contact with the customer, and follow up actions post contact should be well understood. Also the channel of feedback matters—closing the loop on social media needs to happen as soon as possible even if it is just acknowledging the customer frustration and asking for more details. Other channels like surveys and phone calls can have a longer customer contact time but ideally it’s within 24-48 hours.

3. Overall value of the closed-loop program
While this may be the hardest to measure, it’s arguably the most important metric to evaluate the effectiveness of the program. You should be able to correlate the actions taken by your service recovery efforts to increased satisfaction (NPS, CSAT, etc.) and ultimately to better financial metrics (reduced rate of churn or increased Customer Lifetime Value). Being able to demonstrate such positive correlation will help expand the scope of your service recovery program.

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About the Author:
Shorit Ghosh is the Vice President of North America Services at Clarabridge. Shorit manages a team of consulting managers, business consultants and technical architects to help his customers improve their own customer experience, increase revenue, and reduce cost and churn.