Customer reviews: Young target groups want a “closed loop”

Customer reviews: Young target groups want a "closed loop"

A study by the market research institute Bonsai Research shows that younger consumers in particular are increasingly reacting angrily to review requests. Almost half of the teenagers and twentysomethings surveyed do not feel taken seriously without a “closed loop”. […]

Younger consumers want fast reactions from companies to their reviews; a so-called “closed loop”. This is shown by the results of a recent study by the market research institute Bonsai Research. However, only four out of ten respondents have experienced this seamless transition; therefore, only 48 percent of young consumers believe that their experiences are important to companies.

The majority of consumers (78 percent) occasionally evaluate companies and their offers, ten percent even always give feedback when asked to do so. However, customers complain that the companies hardly react to their reviews. 82 Percent would be happy if a reaction in the sense of the “closed loop” were introduced by companies.

Consumers receive inquiries from telephone providers, supermarkets or online shops, but many service companies have so far often worked without direct feedback from customers. Here, companies such as banks and energy suppliers are apparently giving away potential for improvement. Martin Siek, Head of Customer Experience at Bonsai Research, explains: “There would be plenty of occasions where an immediate evaluation would be exciting.“

Understand consumers’ intentions for reviews

Customer satisfaction plays a central role in evaluations. 73 Percent
consumers evaluate products or services when they are satisfied. In the event of dissatisfaction, just over half of them (52 percent) speak up. Consumers also evaluate companies if this is to their advantage; for example, if vouchers and other rewards are in prospect.

Siek emphasizes that customers feel a special need to evaluate companies when their experiences are particularly positive or negative. “Companies absolutely have to take this into account in order to correctly interpret customer feedback and react accordingly,” Siek advises companies that receive reviews.

According to the study, baby boomers and millennials still trust that they are valued by companies as consumers and that their feedback will be used for internal improvements, but the expert advises companies to be generally vigilant. “Collecting customer reviews and using them internally will no longer be enough in the future. Companies must also communicate to their customers that their feedback is valuable and is really being implemented noticeably,“ says the expert.

Bonsai Research, in cooperation with Bilendi, surveyed 1,063 people for the study in January 2022.

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