Using Voice of the Customer Feedback to Increase Revenues
Case Study #1 – Fast Casual Restaurant Chain
The Challenge:
"Proving" to skeptical franchisees that real-time customer satisfaction feedback and voice of the customer programs provide a positive ROI (return on investment) at the store level.
The Client:
A very large fast casual restaurant chain
Situation:
As is the case with almost all large, franchised organizations, 10-15% of this client's franchisees expressed skepticism that Mindshare (or any other customer feedback methodology) could actually improve their business and improve their revenues and profits.
Action:
Mindshare's customer feedback technology was installed to allow our client to get immediate daily input directly from their customers. The point-of-sale receipt for each customer included an offer to call a toll-free number or visit a web site. Customers called the number; answered a few questions via their telephone or computer keypad, and received a redemption code, validating the offer for a free gift.
Management received Mindshare reports via scheduled email, or could log on to the internet 24/7 to review up-to-the-minute results. Review of the reports followed, with specific actions prescribed.
In order to measure the success of the Mindshare system, about 300 locations began using Mindshare and approximately 550 stores acted as a "control," or baseline to compare against. Sales results for each location were collected for analysis.
Results:
The test was conducted over a six-month period, and then again, over an additional six-month period. Results were strong, clear, and conclusive. After normalizing for pre-existing differences in store performances before the pilot, the net incremental sales growth was 2.4% higher PER MONTH for participating stores. (This result is after netting incremental revenue gains against the incremental Mindshare costs, and the cost of the redeemed incentives.)
In addition, service lapses, identified through Mindshare reporting system were followed up with a personal phone call to the customer from the store location. The promptness of the follow-through helped recover many at-risk customers, and the substantial life-time value they represent in future purchases and referrals
The linkage between improved customer satisfaction and improved financial performance was very clear and very compelling. All franchisees are now participating in the Mindshare program.
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Mindshare helps companies improve operational excellence, foster consumer satisfaction, build customer loyalty, and support employee retention. Our industry experts guide clients in building comprehensive Enterprise Feedback Management (EFM) solutions. Mindshare's proprietary survey technology captures the voice of the customer in real-time and immediately transforms it into actionable intelligence through powerful and incisive reporting. As a hosted system, Mindshare is affordable and flexible, providing automated surveys and reports tailored to each client’s specific needs. The reports are web-accessible 24/7 or by scheduled email delivery. Mindshare serves more than 25 different industries including travel, hospitality, restaurant, financial, salon, automotive, and retail. Clients range from small regional chains to large multinational corporations. For information, visit www.mshare.net or contact us:
| CONTACTS: | Richard Hanks John Sperry |
(801) 743-7580 (801) 743-7567 |
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