Feedback (© MacX / Fotolia.com)
In marketing, feedback refers to the information that comes directly from customers regarding their satisfaction or dissatisfaction with a product or service. Feedback allows businesses to keep track of their success. It also allows them to make any necessary improvements to increase their success. Customer feedback is vital for businesses, as it helps determine their success and find ways to improve their business.
Feedback from customers is crucial for a business. It helps business owners improve several aspects of their organization, including:
- The development of products and services
- Customer service
And much more! In short, customer feedback can help companies improve their success. Customers are the most important part of a business. They are the entire reason companies exist, and without them, organizations would fail. Since the customers are the individuals who spend money on the products and services that a company offers and interact with those products and services – as well as the business itself – the most, it’s important to seek and listen to the feedback that customers provide. Applying the insights that feedback provides can help to propel a business forward and increase its overall success.
Why Customer Feedback is Important
The most successful organizations have a firm understanding of how important customer feedback is. These companies encourage their customers to share their opinions and listen to what they have to say. Whether it’s positive feedback or negative, it’s important to make sure that you realize the importance of customer feedback and make use of it.
Here’s a look at some the biggest reasons why informational feedback from customers is so important:
- Improves products and services. The feedback that customers provide is an excellent way for companies to find out if customers are satisfied or dissatisfied with a product or service. Based on the feedback provide, businesses can then make efforts to improve what they offer, allowing for a better experience and ensure that the end product you deliver meets their expectations, fulfills their needs, or solves their problems. Improved products and services leads to greater success overall.
- A measure of customer satisfaction. The more satisfied your customers are, the more likely they will become loyal to your brand. Loyal customers allows for less spend on advertising, increased revenue, and improved market share. For a business to establish loyal customers, it has to ensure that their customers are satisfied. Case studies show that feedback is the most effective way for businesses to determine the satisfaction of their customers. One of the most precise methodologies that businesses use to measure customer satisfaction is Net Promoter Score (NPS), a metric that is based on asking customers whether or not they would refer a business to a friend. The responses to NPS can be used to determine customer satisfaction, and if satisfaction is low, companies can make efforts to improve satisfaction.
- Aids in making important business decisions. It’s important for businesses to collect pertinent data that will have a direct impact on their success. One of the most important forms of data a business can collect is the feedback from their customers. It is a highly reliable source of tangible data that can be used to make the most effective decisions. The insights of customers can help you gain a better understanding of the needs of your clients. Taking the suggestions they may through feedback will allow you to determine what efforts you need to make to improve their experience and boost your overall success.
These are just a few of the reasons why customer feedback is so important. As mentioned, the most successful organizations understand the importance of the feedback their customers provide. Warby Parker, a notable eyeglass provider, is an example of a company that understands the importance of customer feedback and loyal customers. The business focuses on delivering exceptional customer satisfaction and has been able to maintain a high NPS sore since it launched. Their customer retention and loyalty is also exceptionally high, which proves how important feedback is for the success of a business.
How to Attain Customer Feedback
Collecting feedback from your customers is a vital business strategy; however, before you set out to gather that information, it is important ask yourself the following questions to ensure that you are can collect information properly and use it in an effective way:
- What element of the experience of your customers are you hoping to improve? Customer service? The products and services you offer? Figure out what part of the customer journey would reap the most benefits from customer feedback.
- How will you use the data that you collect? Will you use it to improve your products and services? Are you going to use it to enhance customer experience? How will you put the information you gather to use?
- Which system or process for collecting customer feedback will work the best for your business?
Below, we address the final question and highlight some of the most effective ways to acquire feedback.
- Through emails. Use your email list to your advantage (if you don’t already have one, create one). Email is one of the most effective ways to deliver surveys and other questionnaires that ask customers for their feedback. When using email to collect customer feedback, make sure you are crafting compelling subject lines. For example, ask a specific question in your subject. Furthermore, make sure that you assure your customers that they will receive a speedy response and send follow-up emails to thank them for their feedback or to encourage them to share their insights.
- Monitor social media channels. Social media sites like Facebook and Twitter can be invaluable sources for customer feedback. Make sure you stay active on your social sites, ask questions, respond to inquiries, and stay abreast of the conversations your customers are having with one another – and with you.
- Request feedback on order confirmations. If you sell products online, an order confirmation page is a great way at collect feedback pertaining to the online shopping experience. Ask questions that address the ease of navigating your site, finding the products that customers were looking for, and whether or not shoppers were pleased with the options that were available.
- Give polls a try. Polls are easy for customers to use and can provide valuable insight about customers’ experiences for business owners. Polls can be conducted on your website, via email, on your blog, on social media platforms, and through newsletters. The information a poll provides can be used to identify trends that can be used to influence business decisions. For instance, a poll prior to the holiday season can give you insight into what customers are looking for and what they are most likely to buy.
Customer feedback provides vital data for business owners. It can be used to help improve the success of a business by ensuring clients are having the best experiences possible and have access to the products and services that they desire and that meet their needs.