Best practices for closing the loop with members
Following Up with Detractors: A Clear Best Practice
In nearly any book or article you read about improving customer experience, the practice of contacting customers that have negative feedback is often highlighted as a best practice. In customer experience programs that utilize the Net Promoter methodology, this process of following up with detractors, or customers who indicate they are not likely to recommend a company, is no exception. “Closing the loop,” as it is often called, with detractors gives a company the opportunity to:
- right perceived wrongs
- convert detractors to passives (or even promoters)
- clarify comments and gain a deeper understanding
- do root cause analysis
While Closing the Loop with detractors is a best practice for credit unions as well, our industry is unique in that credit unions typically have only a small percentage of members who are considered detractors.
Unlike other industries where detractors may make up a large segment of the overall consumers, credit unions have the opportunity to delve deeper and find out more about what our promoters and passive members want as well.
Establishing Your Own Closed Loop Process
Member Loyalty Group encourages our credit union participants to think about “closing the loop” as more than just following up with detractors. Following up with your detractors should be one component of a larger closed loop strategy.
At its most basic level, Closing the Loop is intended to let the member know that you have read their feedback and you’re taking action on it.
The goal of the follow up is always one of two things to: repair a relationship or strengthen it.
When credit unions view Closing the Loop in this broader context, there are many more possibilities than simply calling members who would not recommend you.
Credit unions can start to develop their strategy by carefully considering what should trigger or initiate the closed loop process. The most common trigger is a likelihood to recommend score of 6 or below, classifying that member as a Detractor. Other survey scores could also be used to trigger this process, for example low ratings on a key service indicator or comments about a specific concern or issue. The possibilities are vast.
More on Closing the Loop
Read more about best practices for Closing the Loop with members by requesting a complimentary copy of our new report.
You can also learn more about Member Loyalty Group’s Voice of the Member programs by visiting www.memberloyaltygroup.com or contacting us at info@memberloyaltygroup.com.
