Customer experience is increasingly one of the hottest topics in e-commerce, and for good reason. Modern shoppers value the quality of the experiences they get from interacting with businesses through their touchpoints. It stimulates their purchasing decisions and their willingness to refer friends and family to brands. As a result, customers are quick to share their experiences on online platforms, inadvertently creating a gold mine of insights through their feedback. A HubSpot survey found that companies that prioritize customer experience 60% are more profitable than those that don't. That's why forward-thinking brands need to be proactive in creating positive experiences by taking on the task of feedback management.
WHAT IS CRM FEEDBACK MANAGEMENT?
CRM feedback management is the process of collecting, analyzing and processing customer feedback to improve customer experience and drive business growth. It is an essential part of Customer Relationship Management (CRM) that helps companies understand and address the needs, preferences and concerns of their customers. Customer surveys, social media, online reviews and customer service interactions are just a few sources of valuable feedback for ecommerce brands. Once collected, this feedback is analyzed to identify patterns and trends and to gain insight into areas where the business can improve.
A Forbes study found that 90% of customers are influenced by online reviews in their purchasing decisions. This statistic perfectly illustrates how important it is to monitor customer feedback today. This practice helps brands quickly resolve issues that impact customer experience and the way prospects perceive your brand. By doing this, companies can quickly generate more revenue while reducing customer churn. In addition, prioritizing customer feedback management helps companies create a positive brand image that is sure to attract more customers and partnerships. Therefore, e-commerce companies should invest in CRM and other software to master the practice of collecting customer feedback and analyzing responses to generate insights.
HOW CAN AI OPTIMIZE CRM FEEDBACK MANAGEMENT?
We live in the age of AI and every company is experimenting with applying the technology to all areas of their business, including customer feedback management. In fact, a report from Gartner shows that by 2025, AI will be a top investment priority for more than 80% of companies implementing customer feedback management programs. Statistics already show that those who implement AI to manage feedback are getting significant results. According to Forrester, companies that use AI to analyze customer feedback can resolve issues 3.5 times faster than those that don't.
But how exactly does AI help? Well, here are four ways AI makes the process of CRM feedback management faster and more efficient.
AUTOMATED FEEDBACK CATEGORISATION AND TAGGING
Automated feedback categorization and tagging is a key capability of AI-powered feedback management systems, helping to classify customer feedback based on specific topics or themes. AI-powered feedback management can use natural language processing (NLP) algorithms to automatically categorize customer feedback based on the language used and the specific topics mentioned. For example, if customer feedback mentions customer service quality issues, the AI can automatically tag it as “Customer Service Quality.”
This process can be especially helpful for organizations that receive large amounts of feedback through multiple channels, such as social media, email, and customer support tickets. By using AI to automate the categorization and tagging process, you can quickly and accurately identify trends and patterns in feedback and use the information to resolve customer relationship issues.
PRIORITIZE HIGH IMPACT FEEDBACK
Companies that receive large amounts of feedback need a system that helps rank responses based on importance. For example, a particular complaint that comes up repeatedly in customer feedback naturally has the highest priority. Likewise, it only makes sense to treat feedback from your most loyal and most spendable customers as a matter of urgency. Therefore, AI helps prioritize high-impact feedback by using machine learning algorithms to analyze and score customer feedback based on its potential impact on customer experience and satisfaction.
AI can identify common themes and trends in customer feedback using Natural Language Processing (NLP). This information can be used to prioritize feedback based on how often it occurs and the number of affected customers. In addition, AI can also use historical customer data, such as purchase history and customer service interactions, to prioritize feedback based on the customer's value to the company. For example, feedback from customers with a high value may be given a higher priority than feedback from customers with a lower value. This allows for a data-driven approach to feedback management, increasing the accuracy of insights generated and improving the results obtained.
REAL-TIME ANALYSIS OF FEEDBACK
For modern customers, speed is of the utmost importance. According to HubSpot, 90% expects customers to respond immediately when they contact a customer support company. Fortunately, AI can help you analyze customer feedback in real time, so you can quickly identify and respond to critical issues, regardless of the amount of feedback received. Then all identified issues can be quickly passed on to the right teams for rapid resolution. This gives customers the positive impression that their feedback matters, helping them to cultivate a sense of loyalty to the brand.
GENERATION OF PREDICTIVE INSIGHTS
One of the hallmarks of forward-thinking brands is the ability to identify and quickly resolve potential problems. AI can help brands by generating predictive insights from customer feedback. Using machine learning algorithms to analyze customer feedback data AI provide predictive insights into future customer behavior and preferences, enabling you to proactively address issues and improve the customer experience. For example, AI can identify patterns and trends that indicate customer churn, such as increased complaints. This information can be used to predict which customers are most at risk of churn and then make personalized recommendations on how to address their concerns and improve their experience.
In addition, AI can use predictive insights to identify areas for improvement in your products and services. By analyzing customer feedback data, AI can identify common issues or pain points that are negatively impacting the customer experience and then make recommendations on how to address those issues. For example, if a large number of customers provide negative feedback on a specific product feature, AI can identify it as an area for improvement and make recommendations on how to make changes that improve the customer experience.
Finally, customer feedback management is critical to business growth and customer satisfaction. That's why it's paramount that any brand looking to continuously improve the customer experience invests in AI-powered CRMtools. By harnessing the power of AI in the four ways mentioned above, brands will realize significant increases in customer acquisition and retention, brand loyalty and reputation, and most importantly, generate revenue.