Customer feedback: it’s a scary thing. It’s where you find out whether your product really is as good as you think it is. In fact, it can be such a scary thing for entrepreneurs that many of them don’t want to face the music. They’d rather their businesses carried on humming along at 60 percent of their potential, just to avoid bad news from their customers.
We all know that feedback is essential. We need it to measure customer satisfaction and to improve our products and services. But there are a bunch of other reasons that you might not have thought of yourself of why feedback is so important.
Feedback Helps Identify Customer Advocates
A lot of businesses are scared to ask anything of their customers for fear that they might overload them with work and sour the relationship. But often you’ll have some clients who love your product so much that they’ll do anything to see it succeed.
Feedback helps you to find out who these people are. Often they’re the ones that give you five-star ratings in your surveys and wax lyrical about their quality of your product and the fantastic service you provided.
Smart businesses leverage these people. They ask them to write in-depth testimonials about their experience with the company, and they get them to pass on referrals, often offering a commission to boot. Having customer advocates is becoming more and more important. Search engines are now taking customer reviews into account when ranking businesses, and most consumers look for company reviews before purchasing a product. Use advocates wisely to dominate the internet.
Feedback Allows You To Make Smarter Business Decisions
Papa Murphy’s is the fifth largest pizza restaurant chain in the US. As a result, they are looking for ways to up their game and muscle their way into the top three. Currently, they’re asking their customers how they can improve their service which you can read now.
It turns out that the restaurant’s products are actually quite complex. Customers have to make many decisions before ordering a pizza, and so Papa Murphy’s is looking for how to offer customers better ways to order that are more convenient.
What the chain is trying to avoid here is making decisions about their product based on hunches. They don’t want to be in a position where senior management is just taking its best guess at the direction in which they should take the business. Instead, they want a data-driven approach, based on hard numbers. Through this method, they’re able to find out things like how customers prefer to order and which areas of their food their customers feel that they need to focus on the most.
For example, should the chain concentrate on improving the freshness of their ingredients, or should they improve the appearance of their food? The answers to these questions won’t just affect the products themselves; they’ll also determine how those products are marketed.
Feedback Improves Customer Retention
Why bother with a feedback survey? One of the reasons is so that you can retain customers. Customers will only put up with something that they don’t like about your service for so long – such as a slow website or a rude member of staff. As a result, surveys can be a life saver, giving you information about how to improve your services for your existing customers that clients would not voluntarily offer themselves.
Feedback Enables You To Create Better Customer Experiences
Over the last few years, businesses have moved away from the concept of providing a “service” to providing an experience. It’s a more holistic approach that aims to fully immerse customers in the business, changing the nature of what’s on offer entirely.
Companies like LG do this really well. At this year’s Consumer Electronics Show, the principle of customer experience was in action, for all to see. The electronics and display company showcased a bunch of new products, and with each product, their focus was on how to make people’s lives better.
Take their smart fridge, for instance. It allows customers to order food that they are running out of simply by speaking to the refrigerator door. The fridge has an inbuilt Alexa chatbot from Amazon that can understand what they say, place an order for food that they are missing, pay for it automatically, and have it delivered by the relevant courier.
LG built this product based on the feedback they got from customers who didn’t want to have to go to the effort of driving all the way to the store and sit in traffic, just to get the stuff that they wanted.