Customer feedback is the information provided by clients about a product or service or about the general experience they had with the concerned company. This information reveals if they are satisfied or dissatisfied with it. Through this medium, customers share their opinions and suggestions with the company. Customer feedback is said to be an asset for improving business. This is because when companies act on their customers' feedback, it enhances their experience, which in turn increases customer satisfaction. Satisfied customers act as a mirror to reflect the company's actions and behavior. They also increase the profits of the concerned company. Customer satisfaction is therefore a very important aspects in marketing
. On the other hand it also helps in the self assessment of a company.
To stay ahead of competition, a company should never stop listening to their customers’ feedback, whether it is positive or negative. Top performing companies understand the important role customer feedback plays in business. They consistently listen to the voice of customer
and yield enviable output. Brian Halligan, CEO of HubSpot said “Feedback is the breakfast of champions.”
Customer Feedback to Improve a Business
Companies can tap customer feedback in many ways to improve their business. With the help of customer feedback, they can :
1. Update product or service in real time
An effective Customer Feedback mechanism allows a company to
- listen to their customers
- know their needs
- customize and optimize their products and services
- maximize their profits during this process
If a company is falling out of line of its customer’s needs then an effective customer feedback mechanism can prevent the same. By assessing customer feedback, a company becomes dynamic with respect to the needs of its current customers. It might even attract new customers by following the same process.
2. Take key business decisions
Measuring customer feedback shows customer satisfaction as well as gives a sneak peek into the future by judging what could work for the company. This balances communication with clients while measuring satisfaction against overarching growth objectives. Companies should gather and manage data that helps them develop future strategies. Only in this way they can customise their products and services to fit customer needs.
Customer feedback is one of the most reliable sources to collect tangible data that further can be used while taking business decisions. Customer insights help in understanding the clients along with their needs more profoundly. Taking their suggestions into consideration allows the investors to allocate their money where they can get the highest return. Customer feedback is valuable source for such data, but one must learn how to listen to it and how to translate it into actionable takeaways for their business.
3. Measure customer satisfaction and improve customers experience
is an assessment of how well a company’s product or service fared in the consumer market. Many studies confirm a close connection between customer satisfaction and business performance. This is primarily because capturing it is the best way to find out if the concerned company is meeting their customers’ expectations. Many techniques are available in the market to gauge customer satisfaction. Satisfied customers are more loyal, buy more and add significantly to the company’s revenue. Further, they contribute in growing a business faster than sales or marketing. The concerned authorities can choose the most appropriate indicator of customer satisfaction
according to their needs. Customer feedback also helps in determining if the clients are satisfied with the companies' service and detect the areas where they can improve.
4. Improve employee training process
The concerned authorities can record and save all feedback. After listening to the voice of the customer, one can predict what is important to teach while training new employees. After analyzing the customer feedback, the development team can make changes to make the product or services better, more efficient and inline with their customers' needs.
5. Show the customers that the company values their opinions
Asking clients for feedback sends a message that their opinions matter and can make a difference. When they know that they are involved in the key business decisions, they get attached to the company. This is the best way to gain valuable brand ambassadors who will spread positive word-of-mouth. Their recommendations can become the most effective and the cheapest way to acquire new customers.
6. To increase customer retention.
Their intention to buy again reflects the customers’ experience with the company. The higher the customer retention, the greater is the consumers’ trust in the company. Repeat customers is a sign of customer satisfaction. Apart from that, satisfied customers also act as brand ambassadors of the company as well as their advocates. They help in acquiring new customers which is becoming an increasingly difficult task.
7. Promotional Tactic.
Opinions provided by other customers who have already used a product or service are more reliable source for information these days. Especially since the advent of social media and increasing trust deficit in advertisement, the companies have outsourced this job to their customers. This is why many companies now incorporate review system for their products and services. All successful companies try their best to ensure that poor service will be detected and excluded from their business.
- The survey should not be too long.
- Administering customer pulse survey once a week or once in two weeks will suffice. On the other hand a half yearly or quarterly overall satisfaction survey should supplement the former.
- Target people who are already familiar with the brand. This will result in better response rates. Some studies reveal its success rates can be as high as 65%.
- Recurring customer complaint on the same subject in a feedback is an indication of a missing a key element. The concerned authorities should make amendments.
- Use targeted media like newsletters, personal emails, or point-of-sale reminders to spread the word to your customers.
- The concerned company should not cease to administer surveys after implementing these changes once. This activity has to be recurring in nature in order to achieve structured growth. And finally,
- Customer feedback is as important to the concerned companies as to other customers. The concerned authorities should make sure that both they and their clients have an easy access to customer feedback.
Posted in Analytics, Customer Feedback, Customer Satisfaction, Survey Questions, Surveys
Tagged advantages of online surveys, customer feedback, customer feedback online, customer feedback online survey, customer satisfaction, customer satisfaction measurement