One of the best ways businesses can grow in this competitive era is by adapting to more customer-centric approaches.
Constructing sale strategies or marketing strategies and building products and services around the needs and expectations of customers not only keeps businesses up and running but also helps them grow in the long run.
This is exactly why regular customer feedback collection is important and necessary. Thanks to intelligent customer support software collecting and organizing customer feedback have now become a hassle-free process.
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What is Customer Feedback?
Customer feedback is nothing but, the information provided to the brand by the consumers regarding their expectations, their experiences with the brand’s customer service, their thoughts on products or services being provided, or if they’re dissatisfied or satisfied with the brand’s products and services.
A customer’s opinion can be a valuable resource for any business that wants to improve customer experience, the kind of products that they offer, or the kind of help desk assistance they provide.
It helps companies truly understand a customer’s perception of their products and their brand which in turn helps them build better and much more efficient business strategies.
Types of customer feedback
Collecting feedback from customers can be accomplished through various methods.
It can include surveys, follow-ups through phone calls, social media posts, during product returns, with support ticket spikes, customer reviews. Here are five major types of customer feedback that every business should collect-
- Feedback based on customer’s product or service satisfaction (product or service feedback)
- Feedback based on customers’ preferences regarding the brand’s products and services
- Feedback based on a customers perception of the brand ( product and brand health feedback)
- Feedback based on a customer experience with the brand’s help desk support assistance (Customer service feedback)
- Feedback based on customer experiences with sales agents (sales feedback)
7 Reasons Why Customer Feedback Is Important in Business
From providing valuable insights into customers’ expectations of the brand to helping businesses build better sales and marketing strategies, there are numerous reasons that support businesses to focus on regular customer feedback collection.
Here are seven major reasons why businesses should collect customer feedback-
1. Customer Feedback Helps Brands Improve Products and Services
While launching a new product or service brands tend to spend millions on market research that helps them understand the ideal customers’ wants and needs.
Only after getting hands-on experience with the products or services customers can judge and provide feedback based on their experience with the product.
This kind of feedback helps businesses identify any loopholes or shortcomings with the product itself. This will help brands build better products and services that satisfy customers.
2. Feedback Helps Businesses Know if Customers Are Satisfied
Good CSAT or customer satisfaction scores and customer brand loyalty are crucial factors that determine a company’s profitability. Increased customer satisfaction levels and brand loyalty rates indicate that customers are truly satisfied with the products and services being provided to them.
Such quantifiable indicators help businesses increase market share and gain profitability. In cases where customers provide feedback stating how satisfied they are, businesses can work on better strategies to make customers satisfied.
3. Shows How Much Brands Value Their Customers’ Opinions
Every time businesses send out customer feedback surveys or make follow-up phone calls to see if the customer is satisfied shows that the business truly cares.
Regular feedback collection is a strong indication of how much a brand cares about its customer’s needs and desires.
By collecting regular feedback businesses 10 to show that customers’ opinions and views about the brand or products are also being valued every time there is a decision being made.
4. Enables Businesses to Create Better Customer Experiences
With hundreds and thousands of options being available for the same kind of products, the only thing that now distinguishes one brand from the other is how brands treat their customers.
The best way to provide the most memorable customer experience is by asking customers what exactly they want and feedback does just that.
5. Feedback Helps Brands Improve Customer Retention Levels
If there is one thing that happy and satisfied customers do, it is sticking to a brand and staying loyal.
Customer feedback helps businesses understand if customers are truly satisfied or if they are still unsatisfied with customer service experiences or overall brand experiences.
Collecting feedback helps businesses identify satisfied customers and allows them to work towards making these customers feel heard and satisfied, leading to better customer retention levels.
6. Feedback Provides Businesses a Reliable Source of Data
In the era of social media customers no longer pay attention to advertisements. Consumers value feedback from other consumers who have already used the brand’s products or services.
Showcasing customer testimonials regarding brand products and services can be an excellent and reliable source of information for other leads or potential customers.
7. Helps Businesses Effectively Strategize
In this era of tough competition, businesses can no longer take the liberty to make dresses and take risks while making decisions.
Collecting customer feedback helps businesses make better decisions based on reliable data that comes directly from the end-users of the product or services.
It provides an insight into what exactly the customers want, what those buying patterns are, how products can be improved, etc.
Benefits of Collecting Customer Feedback
Regularly collecting customer feedback can help businesses in various ways. Customer feedback enables businesses to hear about customers’ first-hand experiences of their products or their brand.
This kind of data is not only reliable but also so much needed in this age of competitive markets.
Helps businesses create better products and services- Feedback helps brands understand where exactly their products are lacking excellence leading them to create better versions of the same product with the available data.
Helps businesses measure customer satisfaction- Feedback helps brands measure satisfaction levels and understand if the product has truly met the end-users interests and needs.
Enables brands to improve customer service team performance – collecting customer service feedback keeps businesses aware of agent performance and helps them make any necessary adjustments based on help desk agent efficiency.
Facilitates data-driven decision-making – Due to the reliable nature of the data collected from feedback, it can be used as reliable information to build better strategies.
According to a report by Microsoft, about 52% of people around the globe believe that companies need to take action on feedback provided by their customers. Regular collection of feedback can be a time-consuming process and also expensive one. In addition to this organizing, the collected feedback can be even more resource-consuming.
By investing in the right customer management technology like Kapture service CRM, businesses can automate feedback collection and save time. To know more about CRMs that help businesses with feedback collection click here for a demo.