Have you heard the saying: “Plans are worthless, but planning is essential”? Same applies to financial planning and budgeting: even if it isn’t 100% right, you can’t go without it. Therefore, continue reading to find out what are the steps towards successful budgeting for customer feedback in 2019:
1.Is budgeting necessary?
As some managers might not be too familiar with the role of customer feedback in the success of their company, they might not be too eager to assign big budgets to it. Here are some facts to convince them otherwise:
- According to a study conducted by SaaS Capital, companies which take advantage of Customer Feedback and Customer Success experience a 40% increase in revenue and a 50% faster growth
- According to PWC, 73% of all clients point to customer experience as an important factor in their purchasing decisions.
- 67% of customers mention bad experiences as a reason for churn, but only 1 out of 26 unhappy customers complain (ThinkJar, 2017)
2. What is your Customer Feedback Management stage?
The next step is deciding on your budgeting is to assess your customer feedback management stage. Do you already have experience with it and you are looking to take it to the next level? Or are you just now starting to optimise your customer reviews? Depending on your stage of development, you might require different funding. For example, if you are just starting now, it might be wise to invest in a customer feedback management tool. This will help you streamline the process and get tangible results, such as improved churn rates and higher revenues.
3. Define your goals
Defining your specific goals can go a long way to help you get the best out of your customer feedback budget. Some of the most common goals include:
- Reduce customer churn rates
- Standardize processes
- Increase revenues
- Improve the company’s image and brand
- Gain more loyal, repeat customers
4. List your planned expenses
The next step is to create the budget itself. List your planned expenses and think about which ones will bring you the biggest returns. For example, getting a customer feedback management tool can have a higher ROI, as it serves as a tool for consolidating all your reviews, it provides analysis reports and it is a survey tool. Use your budgeting plan to show your managers how a focus on customer feedback can actually save you other expenses, for example in marketing and branding.