Customer feedback- an essential component of successfully operating a company, although it is often neglected.
Your current customers are a huge asset to your business, especially after the Covid-19 pandemic that can make it hard for leads to come by.
It’s more important than ever to maintain a strong relationship with your existing customers so they stay loyal to your business.
That’s why we are raising the importance of customer feedback
If your firm has a lot on its plate, it’s not uncommon to lose sight of what your consumers really want. Thus, a product with a poor match for the market can be created and will not really answer a problem.
The best option to counter this is through obtaining quality and honest customer feedback – let’s explore this more in-depth.
What is Feedback?
We hear this term get thrown around a lot – but do we know what it truly means?
Feedback is constructive information and criticism, whether good or negative, on a particular activity between two or more people.
Business feedback refers to the process of acquiring a customer’s opinion about a company, product, or service.
It is meant for improving, innovating, succeeding.
Finding out what your clients think is the only way to give them the best customer experience. You can use this information to adjust how you do business and satisfy your clients’ needs more effectively.
In turn, improving their loyalty and overall success with your company. Listening to your clients is the most effective strategy to grow your brand.
Also, when we talk about customer feedback, that means listening to the Voice of Customer, and we’ve made a short video to help you understand.
Feedback and Review, is there a difference?
Reviews are meant to give you social proof, credibility. They don’t give you any actual Feedback on how or what you should improve.
Why is Customer Feedback important?
5 main reasons that explains the importance of customer feedback:
- Understand your customers’ actions
- Improve your products
- Engage with your customers
- Reduce churn and improve retention
- Benchmark and get better
The end goal is to create a Feedback loop. Improving, testing, and asking for Feedback again.
Don’t just take our word for it
Customer experience is so important because a customer review, that spreads and goes viral, can make or break your business.
It is said that one happy customer can lead to nine referrals and one angry customer can lead to 26 other angry customers.
If the customers are not satisfied, 13% of them will tell 15 or more people that they are unhappy.Tweet
- 67% of customers mention bad experiences as a reason for churn, but only 1 out of 26 unhappy customers complain.
- 97% of potential buyers have admitted that online reviews influence their decision to make a purchase or walk away.
And finally, what about unhappy customers?
- 96% of unhappy customers don’t complain, 91% of those will simply leave and never come back (source).
Benefits of Customer Feedback
Customer feedback not only propels your business to a new level, but it also helps you uncover unexpected opportunities.
So, what are the different benefits?
Ensuring direct feedback from each and every client has allowed the company to not only sufficiently increase word-to-mouth recommendations but also improve the quality and efficiency of how and what services they carry. Now the electrical company strives to hear what each customer has to say and later on, use as grounds for further business improvements.According to Jordan Vellutini, managing director of Westline Electrical Services Ltd.,
Build Customer Loyalty and reduce Churn
72% of customers will share a positive experience with 6 people or more.
Instead of aiming to satisfy all your customers, aim at customers that give you 90% of your business.
And how do you do that? You listen to them by asking for their feedback.
Aim to satisfy your main customers in the future so as to gain a positive reputation in your field.Tweet
It is much cheaper to keep an existing customer than it is to earn a new one. In fact, it can be five times more expensive to attract a new customer than to keep an existing one.
Stay best friends with your loyal customers, as they are extremely valuable. Once you know why your happy customers stay and why some leave, you can take the right measures to keep the right customers.Agi from Thematic
Get more referrals and build reputation
Besides helping you retain customers, feedback also opens the road to new business opportunities.
Thanks to the Feedback you receive, you are able to make your customers advocates of your brand. They thrive with you. This nudges them to refer new customers and build a positive brand reputation for you.
In short, client input is more crucial than ever. Stop expecting that your clients will provide feedback. Be proactive, establish an atmosphere, and solicit input from your clients at multiple touchpoints throughout their journey.
A more positive customer experience leads to a better reputation, and ultimately, an increase in profits.
Make better data-driven decisions
By proactively listening to the voice of your customers, and measuring their satisfaction, you are able to get an overview of your performances over time.
The more you listen to your customers, the better you’ll understand their needs and the more loyal they will be to your brand. This will eventually increase the likeliness of turning them into advocates.
Improve the overall Customer Experience
Receiving customer feedback is absolutely crucial to improving the customer experience and increasing your ROI and customer retention rate.
A slight improvement in Customer Experience has the ability to produce an increase of $823 million over 3 years for companies with $1 billion in annual revenue.
No matter your stage, this simply goes to show how improving the customer experience can lead to an astonishing increase in profit.
With this said, businesses who care about improving each and every aspect of the customer experience are bound for success.
In order to do this however, businesses must first learn from customers in what way their experience can be enhanced. This information can only be obtained through enticing and engaging customer surveys.
So how do I get customers to answer our surveys?
It’s simple, really. Customers just want three things:
- To voice their opinions in an easy-to-share format.
- Not have to endure long, irrelevant questions
- To have their feedback listened to and acted on.
Most effective method to get Customer Feedback
We have covered the importance of customer feedback.
We will now talk about one of the most effective methods to get customer feedback: using customer feedback surveys.
Don’t get me wrong, it is only effective when done right.
Customer surveys identify your customer’s level of satisfaction with an existing product. It is also an outlet for your clients to express their opinions, share insights and voice out their expectations for your products and services.
Did you know that the average person gets distracted in just 8 seconds?
This means that you only have 8 seconds to convince customers to actually answer your survey before they lose interest and redirect their attention elsewhere.
If this doesn’t worry you, then your business is destined for stagnancy, or worse, failure.
How do you create a good Feedback Survey?
First, what is wrong with the traditional online surveys?
They are boring.
Customers want to know how long the survey will take and how much time it will take to complete.
If you really want your survey to be useful for your company, you should have your target audience fill out the survey, and then you can use the data you have to contextualize the results.
Here are 5 tips on how to make the ultimate survey:
1. Define Your Goals
Having a clear goal for your customer survey is essential to its success. Before you do anything else, have a clear objective of what you want to accomplish. Start by writing out what you want to learn from your consumers.
2. Keep it short
The ideal number of questions for a survey is five to 10.
Use a variety of question types to break up the monotony of a lengthy survey.
Customers have a limited attention span, as was mentioned before.
If you ask them a lot of questions, you’ll likely see a decrease in your completion rates.
In addition, businesses often request information that they already possess. At all costs, keep away from it.
3. Add context to your survey
We call this ‘Context Attributes’ and it’s the data that you already hold on the customer that’s relevant for your KPIs.
For example, McDonald’s asks for some information they already know. They could have simply linked up my feedback (with a unique QR code or an email campaign) to my date, time and restaurant.
There is another missed opportunity: I was not provided with any incentive whatsoever. A discount on the next meal would have doubled the chances of customers leaving feedback, plus they’ll be more likely to return.
3. Offer an Incentive
Although this is not always relevant, depending on your use-case, offering a survey incentive is a good way to boost your survey engagement, and get more responses.
The example above was a great use-case for such incentives. We cover this topic in a separate article.
In 2018, 85% of workers in a study said they’d spend more time on an app or software because of gamification elements. Making giving feedback fun is an easy win.
Aside from boosting up your response rate, you are offering value to the respondent.
4. Test your Feedback Form
Before your survey goes live, make sure to proofread it to ensure that it is free of any errors.
Misspellings and grammatical errors damage the professionalism of your customer survey and whatever else you chose to share.
This means that you should spend some time going through your work before posting it online for the world to see.
Be careful to run the tests on as many devices as possible.
5. Find the right Touchpoints
There is no one-size-fits-all when it comes to finding the right channel.
What’s particularly amazing is this recent telephone survey: a company wanted to find out, on average, how many phones each household owned. When the results were tallied, the firm was amazed that not a single household claimed to have no phone. What a masterpiece.The Art of Thinking Clearly (book) – Rolf Dobelli
This quote depicts the picture for me.
You’re phoning people, so by definition, they have at least one phone. The results are already skewed.
It is very important to find the right channel.
- You don’t want to come across as spam or an irrelevant message
- You optimize for a better response rate
Publish it to your website, include it in your emails and post it on your social media profiles.
Make sure to tell everyone what the survey is for and explain briefly why it is important that they give honest answers.
It is also recommended that you include a completion time at the beginning of the survey. The ideal completion time for a survey is 3 to 5 minutes.
How to make the most out of Customer Feedback?
Showing your customers that you value their voice and input means that you need to take action on your results.
First, if you have a lot of feedback, it’s important to get a clear and holistic view of all your data.
We created a free resource for you to know how to organize all your feedback. Or you can watch our video about the topic.
Acting on Customer Feedback
The whole purpose of customer surveys is to get customer feedback on how to improve your business. Don’t just collect the data and do nothing. When you respond to your customers’ feedback through your actions, this will make them feel that they are valued.
Do this proactively by setting up alerts to be triggered when there is a low satisfaction level, or gather your feedback together and measure the results against your KPIs to make customer-focused business decisions.
Customer feedback is perhaps the most neglected of services among businesses.
Only 52% of customers are confident about brands acting on their feedback.
This must be fixed. You have to actually listen and act, learn how to turn your dissatisfied customers into your best fans.
The Case of Eventbrite
This is the story of Julia Hartz, Eventbrite’s CEO.
In a recent Masters of Scale podcast episode, Julia talks about the importance of customer feedback. She demonstrates that customer feedback holds the secrets to your success.
Julia managed to extrapolate user feedback, and act quickly in order to turn those inputs into a growth opportunity.
The key was to not only talk to the customers but also get their opinion. She created customer feedback forms, observed user-behaviors and drew
She also analyzed the different use-cases and analyzed where customers were coming from.
And it worked! They grew from a simple ticketing app to a full-service platform for event creators.
I believe customer feedback is the coiled spring that catapults your company forward. It will continually adjust yourReid Hoffman – founder of LinkedIn
trajectory,while keeping you on target.
Will you stop waiting to get feedback and start showing businesses the importance of customer feedback?
It will ultimately contribute to building a strong brand image and will help you turn your promoters into customer advocates.
By being proactive and effectively listening to their inputs, you will be able to drastically improve your business in the long run.
If you’re wondering “but, where do I go to collect feedback?”, Feedier is the answer for you. Get valuable insights for your different department and take action on the feedback in real-time.
Make the most out of Business Experience today