Why is Customer Feedback Important for Your Business?

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Importance Of Business

Collecting customer feedback can get overwhelming because of the sheer volume of possibilities. With so many customers and ways to connect with them – it’s challenging to decide where to start from.

This is crystal clear – if you take a proactive approach to collect your customer’s feedback, you never stray away from the needs of your buyers. With this, you will be aware of their changing needs. However, most people confuse feedback and reviews this. Let’s see what the difference is.

Let’s answer all of your questions one by one.

Feedback VS Review

Feedback is getting your customers’ opinions on your services or products, while reviews give online social proof of your services or products.

Both these things can improve your business increase both online and offline presence.

Let’s consider the example of a cell phone repair shop. These businesses use repair shop software to streamline processes and give a good customer experience. To see whether such software is working or not, they will need to get feedback from the customers. It will tell them whether their new addition is working or not.

On the other hand, a review will involve the entire customer experience.

So we can say that feedback is on the buying experience, whereas review is of the item/service they’re purchased.

Why is Feedback Important?

There are many reasons you should want to collect feedback for your business. Let’s explore those reasons.

1. To make customers feel they are valued

Asking for customer’s opinions will make them feel valued. Keep in mind that all the feedback you receive will not be positive. You need to welcome negative feedback as well.

67% of buyers want to see a mix of both negative and positive reviews. If you ask for your customer’s opinion, they will feel more attached to your business. It will ultimately strengthen your relationship and make irreplaceable brand ambassadors too. This is where word-of-mouth marketing will come into play. Making this an easy and cheap way to get new customers.

2.To improve your product or service

One of the most prominent and essential reasons for taking feedback is getting to know how people feel about your business. Although the quantity of negative feedback will be more, these are the people you should be thanking.

Some people might like one product but not the other. If you make it a habit to listen to your customers, you will have a pulse for working and what is not working. Once you get to know your weaknesses, you can change them and acquire more clients to increase revenue.

When you consider your customers’ feedback, you end up creating a product that only meets the expectations and solves problems. You can make the changes according to the needs of the people. Once that happens it can elevate the whole customer experience making you talk of the town.

3.To measure customer satisfaction.

Customer satisfaction influences your business’s financial success. Their satisfaction is associated with increased market share, lower costs, higher revenue, and customer satisfaction.

Many studies have shown a clear connection between company performance and customer satisfaction. So, there is no doubt that you should be tracking what your customers feel about your products/services.

One effective methodology that companies use today is the net promoter score. It will ask your customers one question to see how likely they will recommend your company to their friends. You can record the response on a scale of 0-10. 0 means no, and 10 means absolutely yes. It is a simple and quick way to see your customer’s thoughts.

  1. To prove that you are listening

Negative feedback can be pretty daunting, and you might be concerned about how to address that. Particularly in the current digital era, negativity online can snowball into something bigger than essential.

However, you should not view this negative feedback as a disaster instead as an opportunity. Customers will use all mediums to tell you how they feel about your product or service in hopes that you will help them.

You might not know it yet, but they are helping you evolve your business. Their anger can be more valuable than someone else’s joy. According to G2 and Heinz marketing research, around 72% of customers say that negative feedback has given them insight and depth into their product. It can enable them to decide to either purchase the product/service or leave it.

This is where you have to play your part. Devise a plan to make sure you fix the problems of all unhappy customers. Always own your mistakes and try to fix them. It might entice them to go back and change the review or add in it.

5. To provide a source of information to other customers.

In today’s world, where social media drives everything, it is hard to trust a brand. Customers are more likely to trust their family and friends than a chatbot or advertisement. However, customers can now access reviews instantly. Feedback from people who have already bought and used the product can be seen as a credible source than a brand initiative. So, try to lean into reviews.

For example, when someone wants to purchase a computer, they will go online and look at reviews to see which one fits their requirements. But when a customer wants to choose a restaurant, they will go to sites like Yelp to give people a low down before they even see the menu.

Many businesses have incorporated a review system in their processes to collect feedback. Through this, they get an instant insight into their customers’ feelings and what ideas they have on improvements. Plus, making your customer’s voice a focal point of your business will do wonders for your business.

So, keep the strategies mentioned above in mind and try to get as much reviews/feedback for your business. And start acting on this feedback and reviews instantly. Remember, customers, don’t like it when you don’t respond. Don’t forget to reply to them immediately and tell them that you are working on whatever they have asked for.

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