Customer feedback refers to his/her opinion about a company, product or a service. Never mix up market research and customer feedback since both are different. Market research means conducting a planned survey or asking certain questions to the limited number of customers. The research findings are based on the analysis of the data collected. But in case of feedback the company approaches each and every customer for their opinion regarding the product and service they are providing.
Customer feedback is crucial for every organization as it is quite helpful in ensuring the success of their business. Top performing companies are the ones who consistently listen to their clients. After all customer opinion is a helpful resource to improve customer experience. Customer success is everything when it comes to successful business. Let’s go through some of the advantages of customer feedback.
- You can improve your products and services
Market research helps you build a product based on consumer needs and expectations. But the actual experience of the customer as well as the flaws or positives of your product will be clear only after its usage. The companies need to gather this information regarding customer experience so that you can improve on your offerings from time to time. This is possible through customer feedback. Also the consumer needs changes over time so always try to collect correct customer feedback so that you can improve on your products and services.
- You can measure customer satisfaction
Satisfied customers make up the loyal customers. If your customers are happy you can be sure of building long term business relationship ensuring high performance for your business. And for this you will have to directly connect with your customers and understand their requirements from time to time. You need to know what they feel about your product and what they expect it to be like. For all this what you need to do is gather feedback from your customers.
The rating-based questions can help you estimate their level of satisfaction and using this you can predict your company’s financial condition in the future. One such methodology is NPS which has helped companies measure, manage and improve customer satisfaction. NPS metric is based on one simple question that enquires how likely it is that a customer would recommend a brand to a friend. There is a 0–10 point rating scale, with 0 representing extremely negative and 10 representing extremely positive.
- You are valuing your customer’s opinions
When you ask your customers for their feedback you are directly sending a message to them that their opinion is important for you. In a way you are involving them in shaping your business and this gives your customers a feeling of attachment. At the same time you are paving the way to build a strong relationship with them which ensures customer loyalty in the long run.
Your customers become your brand ambassadors spreading positive word-of-mouth for you. What can be more cheaper way of acquiring new customers!
- You can create the best customer experience
Today’s buyer relies heavily on user experiences with various brands. They are not buying Apple product or Nike clothes just because they are good or durable. They like to share their status and affiliation to others. So if you are able to know what they like the most and how do they want to see your product, you can easily improve on to your offerings. You will be able to provide them what they want thus creating the best customer experience and getting loyal customers.
- Helps you take business decisions
Business decisions can’t be based on mere guesses especially when you are playing in a highly competitive market. You need to build future strategies for which different kinds of data are collected and maintained. One such reliable source of data is customer feedback. The valuable opinion and insights you get from your customer help you allocate your money properly to get highest ROI.
There are different kinds of surveys done to gather customer feedback. One is prompted feedback where you directly ask for customer’s opinion by conducting surveys. Another is called unprompted feedback where you do not go to your customer directly but find their opinions and reviews posted online. You can use internet monitoring tools. You can use both ways to get the full picture of how your customers see your brand.