Data is only valuable when you use it


Share on LinkedIn

We all know that we need to collect customer feedback and use it to improve our processes to drive increased conversion rates, retention and loyalty.

Then why are so few of us doing so?

A recent article on MarketingWeb highlighted that close to 95% of large companies were collecting data, yet only 10% use the data to improve customer experience and 5% ever communicate back to customers on their feedback.

Why collect the data if you are not using it? Just to look good?

There are barriers to using customer feedback and data — change management, turf issues, politics and conflicting priorities often hamper our clients’ efforts to leveraging what they learn from customers. Yet the opportunity is significant, both in how using customer feedback changes the culture of the company as well as the business results.

What strategies have proven successful for you to “break through” and use customer feedback? And how do you measure results?

Leading industry analysts have highlighted “… a 2% increase in customer retention has the same effect on profits as cutting costs by 10%”.

Failure to capture customer insight and drive action will not only limit the business’s ability to grow commercially but leave it open to significant risk. Collecting the voice of the customer is pointless unless some action is taken in response to that voice. Whilst 95% of large companies collect customer feedback, only 10% use the information to drive improvement actions, and a lowly 5% of companies actually communicate back to their customers on their feedback.

“… a company with 500,000 customers that gives poor customer service, making no effort at customer retention, will have to find a new customer every two minutes of every day of every year just to stand still.”


Republished with author's permission from original post.

Mark Price
Mark Price is the managing partner and founder of LiftPoint Consulting (, a consulting firm that specializes in customer analysis and relationship marketing. He is responsible for leading client engagements, e-commerce and database marketing, and talent acquisition. Mark is also a RetailWire Brain Trust Panelist, a blogger at and a monthly contributor to the blog of the Minnesota Chapter of the American Marketing Association.


Please use comments to add value to the discussion. Maximum one link to an educational blog post or article. We will NOT PUBLISH brief comments like "good post," comments that mainly promote links, or comments with links to companies, products, or services.

Please enter your comment!
Please enter your name here