Over 80% of customers said they would switch products or service providers after a bad experience with the business.
To avoid this to happen at your business, it’s important to actively listen to customers and analyze their feedback so you can correct big issues that are causing customers away.
Here are the top seven reasons why customer feedback is important in business.
1. Customer feedback helps improve products and services
When you initially introduce a new product, brand, or service to market you probably have an idea about customer needs. Market research that you conduct before introduction gives you an idea if potential customers would be willing to buy it and also they can give you some tips on how you could improve it. However, only after your customers use your product or service you can learn about all the advantages, flaws, and their actual experience. On top of that, their needs and expectations evolve with time.
2. Customer feedback helps you measure customer satisfaction
Customer satisfaction and loyalty is a crucial factor that determines a company’s financial performance. It is directly linked to many benefits, such as increased market share, lower costs, or higher revenue. Many studies confirmed the close connection between customer satisfaction and business performance. Therefore, there is no doubt that you want to make sure your clients are happy with your products and services. Naturally, the best way to find out if you meet their expectation is to get their opinions.
3. Collecting customer feedback shows you value their opinions
By asking your clients for feedback you communicate that their opinion is important to you. You involve them in shaping your business so they feel more attached to your company. Listening to their voice helps you create stronger relations with them. This is the best way to gain valuable brand ambassadors who will spread positive word-of-mouth for you. And I am sure you are aware that their recommendations is probably the most effective and, at the same time, the cheapest way to acquire new customers and become more trustworthy in the eyes of your current and potential clients.
4. Customer feedback helps you create the best customer experience
Today’s marketing is heavily based on experiences people have with products, services, and brands. They do not buy Apple products just because they are good. They want to demonstrate their status and affiliation to a particular group. They do not buy Nike clothes because they are durable. They buy courage to extend their boundaries. Therefore, if you focus on providing the best customer experience at every touchpoint clients will stay loyal to your brand. And naturally, the most effective way to give them an amazing experience is asking them what they like about your service and what should be improved.
5. Customer feedback helps to improve customer retention
A satisfied customer will stay with you. An unhappy customer will eventually find a better alternative to your business and leave. Customer feedback benefits are significant. It helps you determine if your clients are satisfied with your service and detect areas where you should improve.
6. Customer feedback is a reliable source for information to other consumers
Opinions provided by other customers who have already used a product or service are more reliable source for information these days.
7. Customer feedback gives you data that helps taking business decisions
There is no place for business decisions based on loose guesses on a highly competitive market. Successful business owners gather and manage distinct kind of data that helps them develop future strategies. Only in this way they are able to adjust their products and services to perfectly fit customer needs.
Customer feedback is one of the most reliable sources for tangible data that further can be used in taking business decisions. Customer insights will help you understand clients and their needs more profoundly.
How to Collect Feedback from Customers
1. Online Feedback Form
Historically, businesses have used paper comment cards for customers to complete and put into the Suggestion Boxes.
With the development of the technology and internet, the feedback of the customers can be collected via online form. The customers can access to the form via Smart Phone, Tablet, Laptop and Computer devices.
The new way of feedback collection provides convenience for the customers to share their feedback and for you as the business owner to access the feedback in real-time.
2. Customer Surveys
If you want feedback from your customers, you can’t make it complicated. Keep questions short and simple, and don’t make your surveys too long either. There’s a thing called “respondent fatigue,” in which survey participants become tired of the survey task and therefore the quality of their answers decreases. So, be sure to keep your customer feedback surveys short by including only the most important questions.
3. Focus Groups
By definition a focus group is designed to provide exploratory rather than conclusive research data so you can understand not only what your customers think, but also how and why they think the way they do.
Focus groups are typically interactive group settings, held in a neutral place where your customers can feel comfortable telling you what they really think and are facilitated by a trained moderator. They’re a great way to hear firsthand feedback from your customers and they also have enough flexibility that you can make changes on the fly or deep dive into interesting things that come up over the course of the conversation.