Research Project 1 Kyle Duran Discuss Customer Ratings Systems
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Running head: CUSTOMER RATINGS SYSTEMS
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Discuss Customer Ratings Systems
Kyle Duran
Central Texas College
CUSTOMER RATINGS SYSTEMS
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Abstract
Customer software products and rating systems have become crucial tools in the business and logistics world to monitor customer satisfaction through well-graded customer feedback. The customer rating systems have a precise and accurate mechanism through which they gauge and grade customer feedbacks on a given scale, which corresponds to the degree or extent of customer experience regarding the brand or business. Improvement in how customer feedback is generated, collected, and captured has facilitated the fast advancements in technology level. Various channels and platforms have been made available for various customer feedbacks disposal. The various convenient channels and platforms used include the comments on social media, emails, making phone calls directly to the company, online reviews, ratings, usability tests, focused group discussions, customer experience and satisfaction surveys, customer roundtables, and interviews, among others. Customer rating systems are dependent on various scales, such as the ordinal scale, interval scale, numeric rating scale, comparative rating scale, and graphic rating scale.
Keywords:
Customer Rating System, Channels, Platforms, Scales, Insight, Business Strategy
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Discuss Customer Ratings Systems
Effective management of customer feedback is a prerequisite for the deliverance of stellar
customer satisfaction and experiences. Every business is esteemed to making successful interactions with its customers through positive customer ratings. In this regard, customer software products and rating systems have become crucial tools in the business and logistics world to help monitor customer satisfaction through well-graded customer feedback (
Rosenblat, A., Levy, K. E., Barocas, S., & Hwang, T., 2017). Irrespective of the business size, customer ratings toward the business affect business strategies to implement to effectively win the customers' trust, taste, and preferences. Customer rating systems gauge and grade customer feedbacks on a given scale, which corresponds to the degree or extent of customer experience regarding the brand or business (
Reid & Smith, 2015). This paper will discuss the various customer rating systems used in grading or evaluating customers' feedback. Various types of rating scales used in customer ratings will also be proposed.
Literature Review
Customer feedback entails the information generated by the company’s or business’s customers (
Rosenblat et al., 2017). This information is composed of their thoughts, experiences when using a product, levels of satisfaction, feelings about the company, products, brands, or services. Following the current advancement in technological levels there has been a corresponding improvement in how customer feedback is generated, collected, and captured. Various channels and platforms have been made available for various customer feedbacks disposal. The various convenient channels and platforms used include the comments on social media, emails, making of phone calls directly to the company, online reviews and ratings,
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usability tests, focused group discussions, customer experience, and satisfaction surveys, customer roundtables, and interviews, among others.
Customer ratings systems and software are useful to business organizations and companies. These customer feedback ratings help the organization, directly from the frontline employees to the C-suite, to better understand their customers (
Engler, T. H., Winter, P., & Schulz, M., 2015). This improved understanding would help the companies and business organizations improve their customers' loyalty and satisfaction by implementing specific and goal-oriented interventions that promote regaining of the business's trust. Most of the customer rating systems take the form of software application or product. These rating systems help the businesses and companies manage what their customers may be complaining of or their suggestions and views in the form of feedback in the various feedback channels and platforms (
Rosenblat et al., 2017). Therefore, the customer rating systems are useful to the company because they enable the companies to gain well informed and data-driven insights. This is essential information when aiming at enhancing the overall customer relations, satisfaction, and experiences.
The nature and variance in the products and services produced and offered by various companies and businesses affect the modern customer rating systems' key features. The software applications or products that are currently in use entails customer experiences analytics, customer feedback and survey collection, review generation, review requests, multi-platform feedbacks, listening in social media, monitoring of feedback responses, customer voice programs, and multi-platform feedback systems. These customer rating system characteristic features enable capturing customer feedback from a wide array of perspectives, depending on
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various products, brands, and services produced and offered by various companies and businesses.
Feedback response and monitoring coupled with social media listening are vital features of the customer rating system. Customers are always prone to making their views and suggestions even without an inquiry from the business or the company they have engaged with. Reid and Smith (2015) assert that most customer rating systems are vigilant in monitoring the online reviews, star ratings, and comments in social media, among others. Monitoring of this customer feedback makes the customer rating system a major functional unit, as far as customer feedback is concerned. Some customer rating systems enable their customers to respond to well-
structured external and internal feedback through online reviews and survey responses.
Customer experience analytics are other key features of the customer rating systems. This
feature goes beyond mere feedback collection to offer an intensive analysis of the customers' feedback information. The company or business organization will monitor the hidden patterns and trends in customer satisfaction through the connection of specific dots after analyzing the data and information on customer feedback (
Nunkoo, R., Teeroovengadum, V., Ringle, C. M., & Sunnassee, V., 2020).
Analysis of the textual information and unstructured data gives the business an evidence-
based and well-informed insight on where and when to improve their performance, as far as meeting customer satisfaction is concerned. The business organizations are thus empowered to offer consistent and reputable customer experiences through enhanced visualization of the entire customer ratings and comments (
Reid & Smith, 2015).
Feedback collection through the creation and distribution of relevant surveys is another facet of the customer rating system that promotes qualitative customer feedback. The creation
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and distribution of well-structured surveys help in capturing and storing customer feedback. Another common feature is the ability to sync survey requests with the customers’ relationship management. According to Engler et al (2015), this enables the business organization to contact its new customers and immediately enroll them for the survey. Utilization of the Net Promoter Score (NPS) as a major survey methodology by the customer rating systems has enabled well-
thought and informed decisions regarding the provision of consistent customer satisfaction. The feature has enhanced the capturing of thumb ratings, star ratings, number of likes, and emojis. Voice of the customer is another advanced program in customer rating systems. The program helps companies and businesses reap the advantages of acting, listening, and responding
to the customer's suggestions. The customers will recommend their areas of interest regarding a brand, service, product, and business location, among other key areas they deem worth their feedback. Businesses or companies widely use the program to contact market researchers when planning on enhancing customer understanding and providing better and higher quality customer satisfaction.
Characteristics of a Good Customer Rating System
Customer feedback is a major factor that can easily tarnish or brighten the image of a business organization or a company in the public when immediate and timely intervention is taken or not taken (
Chen, P. Y., Hong, Y., & Liu, Y., 2018). This is dependent on the nature of the
customer feedback, that is, either positive or negative feedback. The customers’ feedback is noted to move fast in the current digital landscape. Therefore, it is important for the customer rating that is being relied on by the company to provide timely alerts of any high-impact or considerate customer experiences.
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Customer rating systems vary greatly in their mode of operation and data presentation. Some rating systems focus on conducting surveyance of the customer relations, while others are designed exclusively to monitor customer feedback or involvement in social media listening. It is
of paramount importance for a company to choose the most valuable and best scalable and versatile systems. Such an authentic system would help a company capture, manage, and connect
various customer feedback across all possible channels, platforms, and touchpoints.
Customer rating systems are judged based on the amount of information and data that they can collect and the nature of insight that they offer based on the underlying customer feedback (
Rosenblat et al., 2017). Therefore, a company or business organization needs to go for a system capable of generating truly actionable acumens after an intensive evaluation of the customers' feedback. Besides the significance of using a robust technology when carrying out data collection on customer experiences, its ability to bring out a true picture of the customer population’s experiences is paramount.
Customer rating systems should empower the whole business organization or company. The program should involve all the business organization's departments, from leadership and product development to customer support and marketing (
Engler et al., 2015). This aspect is essential since all the stakeholders and the organization's or the company's employees influence the generated customer feedback. In this regard, the system selected for the evaluation and analysis of the customer experiences should be able to engage the entire company or business. Rating of customer feedback is done and evaluated by use of rating scales. Some of the commonly used rating scales include the ordinal scale, interval scale, numeric rating scale, comparative rating scale, and graphic rating scale. With the majority being used in evaluating online surveys, these rating scales help various companies and business organizations realize
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their performance rate and consequently identify areas that require attention and development. Moreover, the rating scale helps assess how well an organization is performing compared with its
competitors. Conclusion
In conclusion, the customer rating systems are significant tools and components that every business or company should vitalize. It gives a clear impression of the business's performance upon evaluation of the customer feedback. Customer feedback is an important facet in which a company can enhance its public relations, besides advertisement. An efficient and comprehensive customer rating system would enhance the business's operations by creating significant insight that would help the business organization take appropriate interventions based on the customer rating outcomes on the rating scale.
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References
Chen, P. Y., Hong, Y., & Liu, Y. (2018). The value of multidimensional rating systems: Evidence from a natural experiment and randomized experiments.
Management Science
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. Engler, T. H., Winter, P., & Schulz, M. (2015). Understanding online product ratings: A customer
satisfaction model.
Journal of Retailing and Consumer Services
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, 113-120. https://www.sciencedirect.com/science/article/pii/S0969698915300138
. Nunkoo, R., Teeroovengadum, V., Ringle, C. M., & Sunnassee, V. (2020). Service quality and customer satisfaction: The moderating effects of hotel star rating.
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, 102414. https://patents.google.com/patent/US20150317676A1/en
. Reid, J. L., & Smith, J. D. (2015).
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. Rosenblat, A., Levy, K. E., Barocas, S., & Hwang, T. (2017). Discriminating tastes: Uber's customer ratings as vehicles for workplace discrimination.
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.
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