An analysis of the effects of frequent and detailed feedback regarding customer satisfaction produced an unexpected outcome for a Spain-based firm. The firm created a bonus program that rewarded its contractors for favorable customer-satisfaction scores. To test the best way to offer feedback on the bonus program, the firm gave some contractors detailed reports on customer satisfaction, while others received only a summary report. Then, the contractors were further divided according to whether they received frequent reports or only occasional reports. All contractors improved their operations, but the standout firms were those that received occasional detailed reports. Although the firm expected frequent feedback to be the most effective approach, it appears that it’s possible to pile on too much information too often, causing the recipient to make the wrong decision-making adjustments.

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