Published On: Thu, Aug 6th, 2015

Grow Profit From Customer Feedback

Customer feedback is overlooked by many businesses worldwide, it is a term that describes the process of getting a customer’s feedback on the service that they have received. Customer feedback is important, every business needs to know if they are providing a good service at a reasonable price, they also need to know if the customer was happy with how the transaction took place and the professionalism of the staff.

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Customer feedback gives an insight into the customer experience and offers business owners the chance to change and modify certain things within their company to make the experience much more pleasant, after all, your customer base is very important.

The following are the top six reasons why customer feedback is important to your business.

  • It can help improve your product or services

Every business owner stands by their products and services 100% and believe in them which is fine, but other people might not agree and may have opinions about how things can be improved, listening to your customer is the only way to guarantee you create a product or service that people will actually want to buy. If you have not created a service or product yet then feedback is commonly used to gather information off people passing in the streets as to whether they would use the service or product and if they think it is a good idea or not, they will also tell you why.

  • It can offer the best way to measure the satisfaction of customers

Measuring the satisfaction of your customers will determine whether what you are offering meets or surpasses the customers expectations. For example, customer feedback forms are used in the hospitality industry in hotels, on the forms they usually ask questions such as:

  • Did you sleep well?
  • How would you rate the cost of the room out of 10, please state your reasons why?
  • Were the facilities in the room adequate?

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Questions such as these will tell you whether things need to be added or tweaked to provide a better service, feedback forms can be done in a number of ways such as email, telephone, forms left at your business premises or sent out to the customer via post.

  • Provide actionable insights to create better experiences

Improving customer experience should be any businesses number one priority, after all, if you have no customers, you have no business. The process of gaining new customers and keeping old ones are is getting much harder as competition in all industries is rife. Offering something different and giving an amazing experience will keep the customer coming back for more, also offering something different will set you apart from the competition and build more customer base. To help create an amazing experience you need to ask the customer what they want, use the insights to create consistent and personalized experiences, the more personalized you can make it for them, the better it will be, everybody wants to be treated differently.

  • Help improve customer retention

Feedback offers a direction line of communication so you can determine if they are not happy with the product or service before you lose their business altogether. A happy customer is a retained customer and also a loyal one. Obtaining feedback and asking for it regularly will ensure you keep your finger on the pulse, if you lose track and let things slip the customer and probably many others will start looking at other options and will eventually leave you, cancel the service and go with a competitor.

  • Feedback can be used to make better business decisions

Business decisions are made by using data, especially feedback data, a lot of this comes from market research which is asking people in the street what they think of a certain product or a service and if they would use it or not, business decisions are not made on hunches. A lot of times marketers and business owners make big calls off inaccurate data put in front of them, most of this inaccurate data will come from what the researchers find online and much of this can be outdated, again, this is why feedback from real people needs to be carried out as it is fresh and up to date data.

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If a large percent of people prefer a certain product over another or a service over another then go with the higher percent.

  • Identify the customer advocates

Customer advocates are your best marketing campaigns, they offer massive value at very little to no cost at all. How do you identify advocates? By feedback! When you gather the feedback the advocates are the ones which mark you high scores. Contact these customers and build stronger, beneficial relationships. Do not be afraid to ask for testimonials or referrals, more often than not these advocates will be more than happy to help you out.