For example, McDonalds could gather feedback on Burger King, comparing store performance by region. Though customers will have a natural tendency to complain through instant feedback, there should also be some compliments. Good customers can also help you find problems. Many of the great technology companies, like Yahoo and Microsoft, use their lead customers to help create new products and test them. Having an instant feedback infrastructure will make it easier for these customers to help you.
Feedback can be a great motivator or a great demoralizer.
But you must find a way to take it in. Professor James Heskett of Harvard Business School has shown that for each complaint you receive, there are 20 unreported problems. It is often painful to look at this data, but denying it will not make the troubles go away. Remember that we are entering the age of the scarce and scarred customer. Technology has also made businesses more productive, which means they can give the customer more for the same dollar.