The importance of Customer Feedback has grown even more with the advent of advanced social media tools that have magnified the voice of every single individual. In order to compete and lead the market you need to learn what customers think about your company’s products or services. Here are some of the top reasons you need customer feedback.
A lot of companies want to find actionable data on which they can act in order to improve their image or achieve better sales volumes. Customer feedback helps in acquiring new business and increasing customer retention rates. The feedback is utilized to take required corrections in organizational processes. Some organizations even change their management style or decentralize authority because of the feedback received from customers. The information collected helps in creating better customer service experiences.
There are many USPs (Unique Selling Propositions) or differentiating factors based on which a company distinguishes itself from its competitors. However, some of the customers may not use your service or product because of what you consider as your USP. Customer feedback may help you unearth some other reasons why customers opt for your company’s products or services that you do not know or consider important. If you are able to find new ways of distinguishing your product, you will be able to create more powerful marketing campaigns and stand out from the competition.
The retention of customers is an important part of the overall business growth philosophy. All business organizations nowadays want to retain customers for longer terms to maximize Customer Lifetime Value. An unhappy customer would let you know what is wrong with your product or service and you can make the required adjustments before every other client starts complaining. Therefore, customer feedback enables organizations to identify issues and fix them to retain customers.
Product or Service Development
When companies are looking to improve their product or service, customer feedback is an excellent starting point. Customers will let you know which features of your product or service are worth the effort. There are different effective tools developed for collecting customer feedback on products or services offered. Customer surveys provide an excellent way to get first-hand information about the user experience in a highly structured manner. Some companies are also working on the idea of providing online feedback forms alongside products for instant customer verdict. Live Chat Service can also be used by companies on their websites and Facebook pages to gather instant feedback from customers.
Smart companies incentivize customers through different prizes and discounts to participate in customer feedback exercises. You need to be smart in your approach towards collection of customer feedback by making it a fun activity instead of a laborious exercise to which customers can hardly relate.