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Customer Feedback Automation in 2024

A recent report shows that ~55% of consumers in the US state that most businesses should improve their customer service.1 In the current customer-focused business environment, improving customer service without hearing the voice of customers is almost impossible. Companies conduct feedback surveys using customer survey software to understand customer needs. However, for businesses with a large customer base, collecting feedback and analyzing it in detail using traditional methods can be challenging. This is where customer feedback automation comes into play.

This article informs businesses about automating the process of collecting customer feedback and guides decision-makers in leveraging automated feedback systems in their customer feedback analysis.

What is customer feedback automation?

The use of AI in customer services is rising (see Figure 1), as it is estimated to be the 3rd most commonly adopted AI application in 2022. Automation of customer feedback is the process of gathering data from various sources, including email, surveys, social media, and online reviews, and analyzing it with machine learning algorithms to find customer trends and sentiments.

Source: McKinsey

Figure 2. Top applications of AI in business operations

Businesses can streamline the collection and analysis of consumer feedback using automation technologies, saving time and effort while gaining actionable insights.

Top 3 benefits of automated customer feedback collection

1- Improve response times

In the current fast-paced business environment, fast results are critical. Automated solutions for collecting customer feedback allow businesses to quickly identify and proactively address customer concerns before they escalate. This allows businesses to

  • Close the feedback loop
  • Reach out to customers before they leave
  • Provide a better customer experience

Businesses can also increase customer loyalty by demonstrating that they are responsive to customer feedback and committed to improving the customer experience using automated customer feedback tools. Overall, automated customer feedback is a must-have for companies looking to increase customer satisfaction, reduce churn, and drive business success.

2- Customize the survey forms

Businesses can use automated feedback tools to test survey formats and questions to determine the most effective ones. Businesses can use this to improve survey response rates and collect more actionable feedback data by increasing customer engagement.

Consider a scenario in which a healthcare professional wants to gather patient views regarding their visit to the hospital. With customer feedback automation, the healthcare provider can gather feedback using several channels, including email, text messaging, and online surveys.

The healthcare provider can design unique customer feedback survey forms for each patient group with this insight. The healthcare practitioner may, for instance, design distinct surveys with specialized questions for individuals who have had a certain kind of medical operation.

The healthcare practitioner can also collect feedback to tailor the survey’s content based on the patients’ preferences or previous encounters. The survey can be customized to include questions about a particular feature of the patient experience, for instance, if that patient has previously provided feedback.

3- Catch problems in data easily

Customer feedback automation can assist in making it simple to identify flaws in data. Automatic feedback solutions can immediately spot problems or trends in feedback data, such as a dramatic increase in negative comments or a change in customer sentiment.

For instance, when there is a sudden rise in negative feedback about a particular product or service, a firm that uses automated feedback collection techniques to monitor social media may be notified. This may inform the company of a potential problem that requires critical intervention, which helps close the customer feedback loop.

Top 4 use cases of customer feedback automation

1- Sentiment analysis

What is Sentiment Analysis? | Twilio | www.twilio.com

Source: Engati

Figure 3. Simplified algorithm of sentiment analysis

Sentiment analysis is the practice of classifying a customer’s level of satisfaction as either positive, negative, or neutral based on their feedback. Businesses can quickly spot patterns and trends in consumer sentiment, such as recurrent complaints or areas of appreciation, using automated feedback tools to analyze sentiment and get valuable customer insights.

Automated feedback solutions can also provide real-time monitoring of customer sentiment, enabling firms to rapidly address unfavorable criticism and stop any problems from worsening. This is especially helpful for analyzing user feedback on social media.

Learn more about social media sentiment analysis through our comprehensive article.

If you are looking for a sentiment analysis service, check out our benchmark study where we investigate vendors.

2- Trend analysis

Businesses can identify trends in customer behavior through customer feedback automation. A restaurant, for example, can use feedback collection automation to track customer feedback over time and identify changes in menu item popularity or service quality.

An automated customer feedback system also assists businesses in identifying emerging issues before they become widespread. Businesses can quickly identify areas for improvement and take proactive steps to address customer concerns by analyzing feedback data in real-time.

3- Categorization

The A.C.A.F Customer Feedback Framework | by Tassio Batista | Medium

Source: Medium

Figure 4. Categorization as one of the essential steps in the customer feedback loop

Businesses can better understand customer preferences by categorizing feedback and identifying recurring themes or concerns. 

For instance, a retail company can gather automated feedback to classify consumer reviews according to product categories, such as:

  • Clothing
  • Electronics
  • Household products.

This can assist the company in determining which goods perform well and which ones need to be improved.

4- Data visualization

Customer feedback automation tools can give businesses several options for visually presenting customer feedback data, such as graphs, charts, and heatmaps. A heatmap, for example (see Figure 5), can be used to visualize customer feedback data on a geographic map, allowing businesses to see where feedback is coming from and identify areas for improvement. Businesses can also get help from survey analysis tools to analyze and visualize customer feedback.

Source: Medallia

Figure 5. Example of a hypothetical customer heat map of their net promoter score (NPT)

For those interested, here is our article on the top 45 data visualization tools.

Contact us if you have further concerns regarding how to automate customer feedback collection:

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Cem Dilmegani
Principal Analyst
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Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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