How many times have you found out that a customer has moved on to pastures new, but too late for to be recovered?
In your own business I am sure you strive to please your customers, satisfy their needs, and keep them loyal to your brand. But how can you be sure that your efforts bring desired results? You see, there are always offers and clever telemarketers like us around to tempt them away.
If you encourage and ask for feedback, you will be more likely to retain even a disappointed customer.
What is customer feedback?
Information provided by clients about whether they are satisfied or dissatisfied with a product or service, as well as the overall experience they had with a company. Feedback provides a direct route for improving customer experience and keeping in touch with their needs.
If you want to stay ahead of competition you should never stop listening to customer feedback whether it is positive or negative, prompted or unprompted.
Here are 8 good reasons why customer feedback is important in business.
- Feedback helps improve products and services
When you initially introduce a new product, brand or service to market you probably have an idea about customer needs. Market research that you conduct before introduction gives you an idea if potential customers would be willing to buy it and also they can give you some tips on how you could improve it. However, only after your customers use your product or service you can learn about all the advantages, flaws and their actual experience. On top of that, their needs and expectations evolve with time.
Customer feedback tells you how you can make the experience better. You might have the best expertise in the industry in but your knowledge will never be more valuable than customer insights. Their opinions help you ensure that the end product will actually meet their expectations, solve their problems and meet their needs.
- It helps you predict financial performance
Customer satisfaction and loyalty is linked to financial performance. Naturally, the best way to find out if you meet their expectation is to get their opinions. Using rating-based questions you can easily estimate the level of satisfaction and how it compares with a previous month / quarter or annual average. Whether it goes up or down could predict your company’s financial condition in the future.
- Feedback shows you value their opinions
By asking your clients for feedback it reflect that their opinion is important to you. You involve them in shaping your business so they feel more attached to your company. Listening to their voice helps you create stronger relations with them. They become brand advocates who will spread positive word-of-mouth for you. At a time when reviews are all available on websites, having raving fans who are willing to talk about you positively is possible the cheapest way to acquire new customers and become more trustworthy in the eyes of your current and potential clients.
- Customer feedback helps you create the best customer experience
Today’s consumers no longer make a purchase decision purely on whether a product is good or bad. They make decisions based on every touch-point they have with a brand, product or service. Therefore, if you focus on providing the best customer experience at every touch-point clients will stay loyal to you. And naturally, the most effective way to give them amazing experience is asking them what they like about your service and what should be improved, and, importantly, reacting to feedback.
- A source for information to other consumers
Real comments or testimonials provided by other customers who have already used a product or service are more reliable source for information. When you look for an accommodation in a city you visit or you want to find a nice new restaurant to have dinner with friends you read reviews beforehand. Many companies today incorporate review system in their services and products. Think of Amazon, Uber, or AirBnb. They all do their best to ensure that poor service will be detected and excluded from their business. This is predicted to only increase.
Customer feedback is as important to your business as to other customers, so you should make sure that both you and your clients have an easy access to opinions and reviews.
- Opinions help with customer retention
Satisfied customer will stay with you and equally, unhappy customer will eventually find a better way to spend their money. Asking for opinions regularly you can always keep a finger on the pulse and as soon as an unhappy customer expresses disappointment you can immediately react and find a solution to fix an issue. This is a perfect moment to retain or win a client back and even increase their levels of loyalty. In many cases, an unhappy customer who encountered a problem with your service, but you got it fixed straightaway demonstrates bigger devotion to your brand that a customer who has never been disappointed with your service.
- Provides a mechanism for making business decisions
Customer feedback is one of the most reliable sources for helping consider where to make future investments. Consistent bench-marking will begin to show a pattern of where customers are most feeling dissatisfaction. You might discover that what you think is an important investment actually does not matter that much to a client.
- Effective sales strategy
Talking to customers about feedback gives you an opportunity to promote your services. Getting feedback has to always be your priority, but you could choose to promote an offer, or an additional service as a cross-selling opportunity as part of the feedback.