Customer Feedback: Why is it Important?

Every business would like to believe their products are only launched to the market when they’re absolutely perfect.

After all, they’ve spent lots of time (and resources) on getting each product ready for customer use, with the goal of ensuring its ongoing success.

Nobody wants bad reviews to flood in from their first few sales, causing their reputation to flop. This is a difficult financial situation to be in – one that would only keep spiralling.

However, if all products were truly perfect and without flaws, retailers wouldn’t have an average return rate of 16.6%. If even a small portion of this statistic is because a customer wasn’t happy with what they received, there’s an issue present that needs to be addressed. 

How? By using customer feedback. 

What is customer feedback and why is it important?

What is Customer Feedback?

Customer feedback is a report provided by your consumers after they’ve made a purchase. It would detail their experience with a product or service and provide insight on whether or not they are satisfied with what you’ve provided.

Customer feedback can come in many forms, such as a complaint that’s sent directly to your business or a particularly useful review on Google that describes exactly what your customer does and doesn’t like. Most commonly, it is collected through private and anonymous surveys.

Why is Customer Feedback Important?

It’s not easy to understand your customers’ thought processes. In fact, it’s probably one of the hardest parts of running a business. 

So… instead of guessing, why not ask?

When you facilitate customer feedback, you give yourself an opportunity to identify issues across your organization. 

  1. Reduce complaints and return rates.
  2. Eradicate bad customer experiences.
  3. Increase positive word of mouth.
  4. Satisfy customers and generate repeat purchases.

Why Should You Seek Customer Feedback?

Positive and negative customer feedback can both be used to make your business more efficient. 

For example, if you discovered that one marketing strategy worked particularly well and resonated with your audience, you might decide to replicate that again. On the other hand, if you found out that Ella in Customer Services isn’t treating your customers appropriately, you could start providing more training.

Ultimately, actively seeking customer feedback increases your total stakeholder insights, letting you make improvements to your products and services. Then, you can deliver an exceptional sales experience, increase customer retention, and boost sales and revenue.

How to Obtain Customer Feedback

Luckily, today’s digital world makes generating customer feedback easy. 

You likely already have a following on social media (no matter how small it is) and an email list that you can make use of, especially in the post-purchase stage of the buying journey.

1. Email Responses

“What did you think about our product?”

We’ve all received an email with that subject line shortly after we’ve made a purchase. Why? Because it’s one of the easiest ways businesses can obtain customer feedback… and it can be completely automated. 

Less work for you.

  1. Write an email inviting feedback.
  2. Email a customer one week after their purchase.
  3. Send a follow-up 2-3 weeks later.

Pretty soon, you’ll be able to generate some responses.

2. Social Media Reviews

“We’d love for you to leave a review.”

All over Facebook and Instagram, businesses are desperately trying to encourage their customers to help them build social proof and increase their visibility through testimonials. 

However, you can also use this to stimulate customer feedback. But, be careful, as the response is a little more public. Your audience will be able to judge how you respond to criticism.

3. In-Person

Focus groups have been used by businesses since the 1940s to obtain customer feedback, and they are still incredibly useful today. 

What’s more? Instead of needing to stuff everyone into the same room at the same time, simply host a Zoom call and you can connect with an international audience to evaluate a variety of perspectives on your products and services.

4. Surveys

“If you complete this survey, you’ll be entered into a prize draw!”

Conducting a survey is a perfect option for any business that wants to collect accurate and detailed customer feedback. You can ask specific questions that you desperately need the answer to and receive clear guidance on areas for improvement.

5. Sponsorships

Influencers across the world help sell thousands of products every single day. 

Some of them are even paid to give their honest opinions on a product and publish their review online. 

For a business trying to demonstrate product value to a wider audience, this is a particularly useful approach for customer feedback. One that has multiple benefits. 

6. eCommerce Sites

“We see you’ve already purchased this item. Would you like to leave a review?”

This is a message directly pulled from Amazon, which appears when a customer is looking at an item they’ve bought in the past. If they are considering buying it again, then they might seize the opportunity to leave a review… perhaps mentioning what they’d like to see the seller do in the future. 

For instance, they might request more packaging be used as what they arrived slightly dented, but was otherwise perfect.

7. Websites and Mobile Applications

The average conversion rate for a pop-up advert is 3.09%, and many have high interactions; making this a unique but interesting tool for:

  1. Catching the attention of your audience.
  2. Make them feel valued as they provide their opinion.
  3.  Collecting customer feedback.

They can be used to prompt a review that, if positive, you can publish on your social media or, if negative, you can use to improve user engagement and experiences.

Customer Feedback Examples

Customer feedback can be both qualitative and quantitative. Both can be equally useful.

If you’re unsure whether your products or services can be improved (or need to be), then your first step could be to implement a simple review scale like this customer feedback example sent from Booking.com, which only takes 5 seconds to fill out:

Customer feedback example 1.

If Kingsford Riverside Inn realized they were continuously getting low ratings but weren’t sure why they might decide to invest further in obtaining detailed customer feedback. Then, they could address the issue.

Alternatively, for more comprehensive results, follow Hubspot’s customer feedback example and create a form that collects multiple types of data. This could be used on your website or sent via email, giving you the opportunity to respond.

Customer feedback example 2.

Why is Customer Feedback Important? – FAQs

Do you have a better understanding of what customer feedback is and how to obtain it? 

Are you ready to get started with collecting your own? Brilliant. 

Before you go, use these FAQs to guide your approach.

  • Should I respond to negative customer feedback?

Yes, but it’s very important that you remain professional when you reply. You might be able to save your relationship with an upset customer, solve the issue, and demonstrate that you care about your wider audience.

  • What is the purpose of customer feedback?

You can use customer feedback to tackle weaknesses in your organization and improve overall experiences, leading to more satisfied customers. You can also use it as a form of social proof to further your marketing efforts.

  • What are the benefits of collecting customer feedback?

You can start to understand how your customers think and feel, adjusting your sales approach accordingly to generate new sales and boost loyalty. On top of that, you can directly address issues your users face.

Guiding Customer Experiences through Userlane

Is it your goal to do whatever possible to deliver exceptional customer experiences?

Do you use a range of software platforms, like custom mobile applications, that first-time users might need a little extra guidance with?

If so, consider embracing digital transformation with Userlane.

Our Digital Adoption Platforms are designed to address the unique challenges that your stakeholders face when navigating unfamiliar software, reducing frustration across the board.

For more information on how you can move your company to the future, reach out to our team today

 

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