‘Customer feedback is important’, ‘You can’t afford not to listen to your customers’, ‘Companies that listen to their customers grow faster’ – I’m pretty sure you heard such phrases many times. Customer feedback sure is important but such claims often lack explanation. You’re likely to hear that it’s vital because it helps you make more money or cut marketing expenses. But how exactly does it work and why is customer feedback really crucial for your business and its growth?
Read along to find out the seven reasons why creating a customer feedback strategy and listening to your customers’ feedback is important for your business.
1. It points out aspects of your product that need improvement.
You know your product by heart. Its every feature and application has been thought through and discussed by you and your team thousands of times. Unfortunately, that is why you might not see its imperfections.
It is important to know what suits the customers well, what was their least favorite aspect of it, and why. Showing that you truly listen to your customers’ opinions sells better than anything. After all, the product is made for them, so it should be as close to what they desire as possible.
2. Listening to customer feedback makes customers feel involved and important.
Nothing shows your customers that they are important better than asking for their opinion and acting accordingly. When asked for an opinion on a product or experience, your customers feel valued and treated almost as a part of the creative team. By asking your customers to provide feedback you make them believe that their opinion is truly valued.
When the customers feel listened to, they begin to have positive connotations with your brand and direct their good experience back at you, which in turn could lead to more sales in the future. One caveat: you must actually use collected opinions to make decisions and communicate them to your customers, otherwise they will feel neglected.
3. Good feedback generates personal recommendations.
Word of mouth advertising is very successful, especially in inbound marketing where the customer comes to you, not the other way around. Referrals are the most effective, free way of advertising. The study conducted by Kellerfay for the RewardStream, revealed that personal recommendations are the top motivation for purchase decisions, not just while finalizing the sale, but at every step of the purchase cycle.
This was true for ten different areas of trade, such as, for instance, traveling, banking and apparel. While other factors that influence customer’s decision like advertising or price comparison websites, influence their decision only at one stage of decision making, recommendations were extremely important throughout the purchase process.
As the authors state: ‘Over 8-in-10 purchases influenced by a recommendation are influenced by people talking face-to-face.’ That means that on average, only 2% of people who turn to your company because of a recommendation, will do so due to what they have read on social media.
Face-to-face recommendations usually come from friends or family, and can be even more convincing than those of experts in a given field. If you want to gain customers through recommendations, make sure that customer feedback is positive.
4. It helps you convince the customers to come back for more.
Every store can sell a product to a given person once. That does not mean that the customer will come back. While you can polish the aspects such as quality, price and advertising of your product by observing the competition and market, there are some things that only a customer is going to point out.
Feedback may reflect on the factors that you did not take into account before, such as free shipping, safe packing, polite and available customer service consultants, user-friendly website. Although at first you might not get just positive reviews, that unique customer insight will help you understand the concept of customer’s desired approach and result in happy, repeat customers.
5. Even bad feedback can be used to sell the product.
Especially nowadays, when competition is just two clicks away, it is absolutely indispensable to tackle any problems and/or misunderstandings immediately. Unhappy customers who provide feedback should be seen as a chance. These buyers could just write a bad review on your social media profile, or even worse, leave an anonymous comment on a forum. Instead, they have decided to contact you and share the unhappy experience, expecting that you do something about it. Such feedback should be valued even more than the perfectly happy one.
It’s important to create an action plan to tackle the unsatisfied customers’ feedback in the first place. Contact the customer, address the issue, provide the exact date when you will contact them again, if the issue is more complex, and make sure that you compensate them for the unhappy experience. Without such plan, things can go badly when you receive negative feedback.
You do not necessarily have to give them a free product, but even a 5% discount at your store will make this overall difficult experience, look much more positive for the customer. Chances are, the new client will give you another shot and a regular will treat it as a small mistake that should be forgotten.
Read more about handling negative feedback: https://www.salesreadinessgroup.com/blog/how-to-best-respond-to-positive-and-negative-customer-feedback
6. Feedback helps you acquire new customers.
What is the first thing you do when you look up a company whose product you’d like to buy? Reading opinions. As we already mentioned, personal recommendations are more effective than online reviews, however that doesn’t mean that the latter should be underestimated.
According to data collected by Invesp, 90% of customers read online reviews before visiting a business website and 88% of customers trust these opinions almost as if they were personal recommendations. If you care about the quality of the online reviews, better keep your finger on the pulse. Ask your customers and website visitors about their opinion and react before it appears on the Internet.
Infographic by- Invesp
7. Listening to customer feedback helps you build loyalty for the brand.
Actively asking for feedback from clients and responding to their opinions create a sort of relationship that makes the purchase process more personal. The customers begin to perceive your company as a business created by friendly people who truly care about their experience. Maintaining relationships with clients pays off. Instead of being just a company who sells quality products, you become their favorite company.
As you see, collecting and analyzing customer feedback is important as it helps you not only get to know your customers better, but also increase their engagement and loyalty, as well as acquire new customers. So it turns out customer feedback is quite important, isn’t it?