The Importance of Customer Feedback With Examples

Asking about the importance of customer feedback is like talking about toothbrush without toothpaste.


Customer feedback is an important aspect of running a business that often gets overlooked.

With a primary vision in focus, it is easy to stray away from aligning your product offering with what your customers truly want. Resulting in an offering with a poor market fit that doesn’t truly solve a problem.

The best option to counter this is through obtaining quality and honest customer feedback – let’s explore this more in-depth.

Without further ado, I’ll cover the importance of customer feedback and what are its true benefits.

But first, who am I to talk about this topic? Why should you trust me?

I’m Baptiste, heading customer success and growth at Feedier. I don’t have 30 years of experience in 50 companies, but I do have 2 years more (as of 2019) hands-on experience dealing with feedback matters every day.

Our product is all about Feedback. We help companies collect valuable Feedback through gamified and highly-engaging forms. I talk and research every day.

Good, so, can you shed some light on the topic, you asked?

I absolutely can.

What Is a Feedback?

We hear this term gets thrown around a lot – but do we know what it truly means?

Definition of Feedback

Feedback is helpful information and criticism that pertains to a certain action between two, or more, actors.

Business feedback refers to the process of acquiring a customer’s opinion about a company, product, or service.

It is meant at improving, innovating.

Finding out what your clients think is the only way that you can 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 customers is the best way to propel your brand forward.

No, collecting customer feedback is not another short-term growth hack, customer feedback is what takes your business to a new level.

Maybe you’re asking yourself “how to collect feedbacks ?”.
And at that time Feedier is right here for you to collect feedbacks with a gamification system like rewards for example.

Get a feedier demo

Feedback and Review, What is the Difference?

Great question.

They are two completely different things. Reviews are meant at giving you social proof, credibility. But don’t give you any actual Feedback on how or what you should improve.

Review and Feedback
Customer reviews for Domino’s Pizza on Google

Why Feedback is so Important?

There are 5 main reasons why you would want to collect feedback.

  1. Understand your customers
  2. Improve your products
  3. Engage your customers
  4. Get testimonials, reviews, referrals
  5. Benchmark and get better

The end goal is to create a Feedback loop. Improving, testing, and asking for Feedback again.

Customer feedback loop: listen, analyze and act by Feedier
Customer feedback loop: listen, analyze and act by Feedier

Importance of Customer Feedback With Statistics

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.

But one angry customer can lead to 26 other angry customers.

If the customers are not satisfied, 13% of them will tell 15 or even more people that they are unhappy.

If the customers are not satisfied, 13% of them will tell 15 or even more people that they are unhappy.

On the other hand, 72% of customers will share a positive experience with 6 or more people.

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).

Importance of Customer Feedback

Benefits of Customer Feedback

The 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?

According to Jordan Vellutini, managing director of Westline Electrical Services Ltd., “ensuring direct feedback from each and every client has allowed the company to not only sufficiently increase word-to-moth 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 share to, later on, use as grounds for further business improvements”.

Collect Actionable Feedback

Stay ahead of the game and collect actionable feedback from your customers.

Learn New Opportunities

By avoiding to listen to your customers, you are missing out on a lot of opportunities. Whether this is about fixing these customers’ issues or retaining them.

These are also valuable opportunities to learn and make sure it doesn’t happen in the future.

Build Customer Loyalty And Reduce Churn

It is also known that 13% of unhappy customers will share their disappointments with more than 20 people.

Instead, aim to satisfy all your customers in the future so as to gain a positive reputation and more loyal customers.

And how do you do that?

You listen to their feedback.

Aim to satisfy all your customers in the future so as to gain a positive reputation and more loyal customers.

Aim to satisfy all your customers in the future so as to gain a positive reputation and more loyal customers.

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.

This is going to pay-off and reduce the amount of lost business, or churn rate.

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 Referral And Build Reputation

Besides helping you retain customers, feedback also brings you new business.

Thanks to the feedback you receive, you are able to make your customers happy. They thrive with you.

This nudges them to refer new customers and build a positive brand reputation for you.

They talk about all the benefits of your brand.

Happy customers bring new business
Happy customers bring new business

In a nutshell, customer feedback is more important than ever. Stop hoping that your customers will give you their feedback.

Be proactive, create a customer-feedback friendly company.

A more positive customer experience leads to a better reputation, and ultimately, an increase in profits.

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 overtime. Hence, muster things up and correlate the data with what you are doing or changing internally.

The more you listen to your customers, the better they will be. Or, in other words, the more loyal they will be to your brand, and therefore, increase their likeliness of being customer advocates.

Improve 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 is 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:

What To Do With Customer Feedback?

Showing your customers that you value their voice and inputs means that you have to take action.

Act 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.

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, learn how to turn your dissatisfied customers into your best fans, learn from that feedback?

"Do you believe most brands take action on feedback provided by their customers?" - by Statista
Do you believe most brands take action on feedback provided by their customers?” – by Statista

Customer Care Examples

Customer feedback holds all the key to your company success.

Yes, we have said that already.

But what are some real-life examples?

The Case of Eventbrite

This is the story of Julia Hartz, Eventbrite’s CEO.

She managed to listen and turned the user feedback into a key learning piece of her journey.

In a recent Masters of Scale podcast episode, Julia talks about the importance of customer feedback. She demonstrates that all customer feedback holds all 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 form, observed user-behavior and drew conclusion.

She also analyzed the different use-cases and where the customers are 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 your trajectory, while keeping you on target. 

Reid Hoffman – founder of LinkedIn

You can listen to the full episode below.

How To Ask for Feedback From Customers?

We have covered the importance of customer feedback.

The different methods to collect

We will now talk about one of the most effective methods to get customer feedback: using customer feedback survey.

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.

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 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.

As feedback forms are my specialties, I’ll zero in on them.

How to Create a Good Feedback Survey?

Creating a good customer survey is not easy.

First, what is wrong with the usual online surveys?

They are boring.

I don’t have anything against Jabra, nor do I want to blame them.

But no way I’d fill their survey.

Bad survey design example
Bad survey design example

I have better use of my time. The format and design are refraining. It’s no longer 1999, participants expect good design and quality.

They want the survey to be short and know how long it would take.

In a nutshell, you’d want your survey to be answered by your target participants for it to provide real value to your business.

Here are 5 tips on how to make the ultimate survey:

1. Define Your Goals

In order for your customer survey to be effective, you have to know what it wants to accomplish. Have a defined goal before doing anything else. Write down what you want to know from your customers and start from there.

2. Ask Less and Clear Questions

Every question you include should help you get closer to the goal you drafted in tip #1.

Ask less, straightforward and specific questions.

Select one question type for the whole survey. You won’t want the participants becoming confused at the varying question types.

As a rule of thumb, avoid text-questions and prefer choices or Likert scale for instance. Smiley questions are even better.

Smiley question in Feedier

3. Keep It Short

Ideally, the survey should only include five to ten questions.

As mentioned above, customers have a very short attention span.

If you bombard them with dozens of questions, there’s a high chance that your completion rates will drop significantly.

There is another common issue: brands ask for the information they already know. Avoid that at all costs.

In the example below, McDonald’s ask for pieces oof information they already know. They could simply link up my feedback (unique QR code and/or unique link) to my date, time and restaurant.

There is another missed opportunity: I was not provided with any incentive whatsoever. A discount on my next meal would have double the chances of me leaving feedback, plus I’d be more likely to come back anyway.

Example of enriched Feedback by McDonald's
Example of enriched Feedback by McDonald’s

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 up your survey engagement, and get more responses.

The example above was a great use-case for such incentive. We cover this topic in a separate article.

Offer a survey incentive

In 2018, 85% said they’d spend more time on an app or software because of gamification elements. Making feedback fun sounds like a good idea.

Aside from boosting up your response rate, you are offering value to the respondent.

There are other gamification elements you can explore, such as respondents ranking, loyalty points, dynamic and fun content, etc.

4. Test your Feedback Form

Before your survey goes live, make sure to proofread it to ensure that it is free of any errors.

Nothing looks more unprofessional than misspellings and wrong grammar not only in your customer survey but in EVERYTHING that you decide to publish.

So, take time to review everything before you put it out on the internet for lots of eyes to see.

Make sure to test on several devices.

5. Find The Right Touchpoint

There are no one-size-fits-all when it comes to finding the right channel.

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. Why would you ask on the phone if people own a phone?

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.

  1. You don’t want to come across as spam or irrelevant message
  2. You optimize for a better response rate
How to collect feedback

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.

Text-message feedback in Feedier

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.

Wrap Up

So, convinced about the importance of customer feedback?

Are you going to stop waiting for your customer to give their feedback and start genuinely show them that you care about their input?

It will ultimately contribute to your overall reputation, and turn your promoters into customer advocates.

Are you going to stop waiting for your customer to give their feedback and start genuinely show them that you care about their input? It will ultimately contribute to your overall reputation, and 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.

Start Your Customer Feedback Process

Using an attractive and flexible tool such as Feedier, you will get your feedback campaign up and running in 10 minutes.

Why feedback is important

Baptiste Debever

Co-Founder and Head of Growth at Feedier. French Entrepreneur, customer feedback specialist, passionate about startups and innovations.

This Post Has 12 Comments

  1. Ethan Hansen

    I found it interesting how you mentioned how user insights can be vital to produce a better product and have overall happier customers. My son is thinking about starting a business that sells wholesale laundry detergent and bleach in bulk but doesn’t know how he can gauge feedback and interest. I will keep this in mind as we search for a user insight program that can help him adapt his startup to be the best it can be!

    1. Baptiste Debever

      Hi Ethan,
      Glad you find that interesting.

      Let us know if you need any further help, or if your son does!

      Cheers, Baptiste.

  2. Thomas Peterson

    I like that you mentioned direct feedback from your clients can improve the quality and efficiency of how you perform your services. I have been looking for ways to help my customers get the service they need. I would love to try 360 Degree Feedback Surveys and see how they help me.

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      Thanks for that Karan!

  5. There is always a room for improvement, getting feedback with stats is very helpful to identify the lacking space and resolve customer issues. It also helps to stop the spreading of negative reviews.

    1. Florian Marette

      Of course, feedback are helpful for your business and to understand your customers.
      Try Feedier to have a brand new vision of feedback forms thanks to gamification.

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    1. Florian Marette

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