Successful businesses identify key performance indicators (KPIs) to measure improvements. They do this to focus on what needs improving by identifying current performance. For example, your choice your place of study will use the results from previous satisfaction measures as a benchmark ( a standard to compare things against) to evaluate the successfulness of planned improvements based on complaints and feedback.

We know it is important to identify customer complaints in order to target improvements. When corrected, the smallest problems can result in significant impact. Consider the factors below.

• Major complaints often take longer to put right

• Simple or small problems can often become quick wins.

• What appears to be a small problem might be significant when repeatedly complained about.

• Complaints cost businesses money and reputation.

Citigroup identified that, on the vast majority of occasions, customers mistakenly  contacted the wrong help line with a simple question. Citigroup decided that the quickest and simplest remedy was to give contact centre staff a crib sheet of responses to th emost frequently asked questions. In 2007, Tesco were faced with complaints about contaminated fuel. They apologised publicly and promised to pay for repairs to damage caused by it.

Staff Turnover is reduced if businesses find out what their employees (their internal customers) like about them and what they can do to improve their job satisfaction. Businesses that collect customer service data also use the results to monitor employee performance. Some firms reward employees with bonuses, while others might pay their staff large bonuses but little if any salary.. Either way, businesses set targets for employee performance and use them to inform training plans which are usually discussed at annual employee appraisals and half-yearly reviews.

Appraisals are usually valued by employees as this is their time to reflect on their progress and achievements and any additional training they might need. Opportunities for further progression within the business might also be discussed, providing employees with goals. A productivity increases as employees remain motivated and loyal to the business.

Loyal customers bring repeat business and retaining customers is the most cost effective and efficient way to run a business. Many businesses provide loyalty cards, a progression from very early loyalty systems such as Green Shield Stamps, which began in the late 1950s. By collecting stamps, which were issued by retailers, customers could save up for unrelated products. Although withdrawn in the early 1990s, other systems exist today such as Nectar Cards, Airmiles and Avios points.

These methods vary in the rewards they offer and other associated services, such as credit and payment facilities. Some airlines also subsribe to loyalty schemes where customers can earn points towards future travel, gifts or activities. These systems also provide retailers with intelligence about their customers. By reviewing customer feedback and , particularly for online retailers, reviewing customer lists, businesses can make sure that they are doing all they can to ensure that customers return to their business.