You carried out detailed market research, found out what the market lacks, and imbibed this into your product. You and your team are sure that you’ve created a masterpiece that will take over the market. You treat your customers excellently and are offering the best service possible. But the product isn’t doing as great as you’d expected.
What then could be wrong? Could it be that you know your product too well and it’s impossible for you to see the flaws? Why not try the customers’ perspective? There’s only one way to find out if your strategies are working, customer feedback.
Customer feedback is the information customers give you about your products, services, and any other dealing with your organization. No matter how detailed a feasibility study is, it doesn’t come close to the direct feedback users of your product give you. They bought your product in the first place, which should count for something. Direct feedback from your customers will help to shape your service and ultimately improve sales.
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Why Is Customer Feedback Important for my Business?
No matter how unique your service or product is, if people don’t need it, then it is considered useless. Customer feedback helps you create products customized to the needs of the consumers. Then you can deliver better services and improve the quality of your product. Remember, the success of your business is not based on the excellence of your product but the perception.
Some other reasons customer feedback is important include:
1. It Guides you on Decision Making
In a highly competitive market, one wrong decision can make you lose your foothold. Customer feedback can help you gauge whether to create a new product or promote an existing product. You can determine with high accuracy which product to continue with and which isn’t doing well. With such valuable data, you can decide on future strategies and where to invest for the highest potential return.
2. It Can Influence Change on your Products or Services
The needs and desires of customers change from time to time. And so, a market analysis done before a product is designed might not be enough to drive sales one year after launch. However, customer feedback will help you find out if there’s any recurring issue with a product. Or if there’s something specific they aren’t satisfied with.
3. Helps you Measure Customer Satisfaction
You’d surely need to know if your customers are happy with your product and loyal to you. Research shows that customer satisfaction increases profit margin, return on equity, and business performance. Measuring customer satisfaction helps you see what your customers love and the reservations about your product. The Net Promoter Score is one suitable tool to measure customer satisfaction and loyalty.
4. Gain Insight on How Customers View your Products
It is not enough to have data from customers’ feedback, your ability to interpret it and deduce relevant insight is critical. With the use of customer relationship management software or CRM software, you can track customer feedback. You will also gain insights into how they view your products and their satisfaction ratings. This insight will help you improve on future campaigns and endeavors.
5. Shows Customers you Value their Feedback
Collecting feedback from customers is one way to improve loyalty. Feedback shows customers that you care about them and value their partnership business with you. It gives them a sense of belonging and makes them feel more attached to your company. By doing this, you automatically improve mind share and word-of-mouth advertising.
6. Helps You Improve Customer Satisfaction
Collecting and tracking customers’ feedback helps determine which system needs to change. However, it is not enough to track these changes, and it only makes a difference when you implement the suggestions you receive. When there is a flaw in your service or product, genuinely take interest and rectify the problem. Your approach determines the outcome of the situation.
7. Allows you to Compare with Competitors
Customer feedback helps you also rate how your product or service performs against a competitor’s. Your customers will often mention what you’re doing wrong and what others are doing right. This will help you determine where your products fall short and how to correct them. When you implement these changes, you will have improved your product and outsmart your competitors.
Make the Most of Customer Feedback
Personal recommendations are the driving force of your business. A customer who gives you excellent feedback in a survey will be more than willing to recommend your service to another friend. So do everything to get those positive reviews.
However, when a customer takes their time to contact you with negative feedback rather than give a bad rating online, take your time to create an action plan to fix it. Contact the customer, track the issue with CRM software, fix the problem, and compensate for the unpleasant experience.