7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (2024)

If you found this article, you probably run your own business or deal with customers and want to know why collecting their opinions may be necessary. At the outset, you need to know that Startquestion is a tool for collecting customer feedback using online surveys. On our platform, you can listen to the customer’s voice and analyze it, making changes in the company based on it. Thanks to our tool, you can conduct both relationship and transactional surveys. However, we also understand that, in some cases, surveys will not be ideal for all of you.

Therefore, being experts in collecting feedback, we tried to gather reliable reasons for you to do so in this article. Perhaps you will choose online surveys for this purpose, or perhaps opt for other solutions – this is your decision, and we want to provide you with as much information as possible to make it as easy as possible.

Can your customers tell you something important?

If you run your own business, I know you do your best to please your customers, satisfy their needs, and keep them loyal to your brand. But how can you be sure that your efforts bring desired results? If you do not try to find out what your clients think about your service, you will never be able to give them the best customer experience. Their opinions about their experience with your brand are helpful information that you can use to adjust your business to fit their needs more accurately.

Try Ready-To-Use Customer Feedback Survey Templates:

  • Patient Satisfaction Survey
  • Satisfaction and Service Quality Survey
  • Customer Needs Survey
  • Product Feedback Survey (NPS)
  • Customer Satisfaction
  • Net Promoter® Score (NPS) Survey

Click here for more CX Survey Examples & use it in your research

There are plenty of ways to leverage customer feedback and profit from it. In this entry, I will explain why collecting customer feedback, whether prompted or unprompted, is crucial in managing customer satisfaction and loyalty, customer retention, improving products and services, and in many more areas of your business. Sit comfortably and continue reading to discover the benefits of customer feedback.

What is customer feedback?

Customer feedback is information clients provide about whether they are satisfied or dissatisfied with a product or service and about their general experience with a company. Customer opinion is a resource for improving customer experience and adjusting your actions to their needs. This information can be collected with surveys (prompted feedback). Still, you can also find opinions and reviews your clients post online (unprompted feedback) and collect them using Internet monitoring tools. Both sources are essential to get a complete picture of how your clients perceive your brand.

Top-performing companies understand the critical role that customer feedback plays in business. They consistently listen to the voice of their clients. They search for opinions their clients publish on social media and reviews they provide on websites designed for gathering feedback (e.g., TripAdvisor). They deliberately ask for feedback using distinct kinds of surveys. To stay ahead of the competition, you should never stop listening to customer feedback, whether positive or negative, prompted or unprompted. If you are looking to hire customer service executives to help your business stay ahead of the competition, you might want to consider using the customer service test to find the most qualified candidates.

Blog Customer Experience

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (8)

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (9)

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (10)

Check How to Measure Customer Satisfaction

Good customer service is extremely important. In order to maintain it, it’s necessary to constantly measure the level of satisfaction.

Use this template All templates

Here are the top seven reasons why customer feedback is essential in business.

1. Customer feedback helps improve products andservices

When you introduce a new product, brand, or service to the market, you probably have an idea about customer needs. Market research you conduct before introduction gives you an idea if potential customers would be willing to buy it, and they can also give you tips on improving it. However, only after your customers use your product or service can you learn about all the advantages, flaws, and their actual experience. On top of that, their needs and expectations evolve with time.

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (13)

Customer feedback is an insight into what is working well about your product or service and what should be done to improve the experience. You might have the best expertise in the industry in which your company operates, but your professional knowledge will never be more valuable to business performance than customer insights. Their opinions help you ensure that the end product will actually meet their expectations, solve their problems and fulfil their needs.

Ready-to-use examples of customer surveys

  • Net Promoter Score (NPS) Survey
  • Service satisfaction survey (relationship NPS)
  • Product satisfaction survey (relationship NPS)

See more templates

2. Customer feedback helps you measure customer satisfaction

Customer satisfaction and loyalty are crucial factors determining a company’s financial performance. It is directly linked to many benefits, such as increased market share, lower costs, or higher revenue. Many studies confirmed the close connection between customer satisfaction and business performance. Therefore, there is no doubt that you want to ensure your clients are happy with your products and services. Naturally, the best way to determine if you meet they expect to get their opinions. Using rating-based questions, you can easily estimate the level of satisfaction and consequently predict your company’s financial condition in the future.

One of the most accurate methodologies that have helped many companies measure, manage and improve customer satisfaction is NPS (Net Promoter Score). The metric is based on a straightforward question that investigates how likely a customer would recommend a brand to a friend. Response options for the loyalty questions are based on a 0–10 point rating scale, with 0 representing extraordinarily negative and 10 representing extremely positive. This methodology is simple and universal so every business can apply it in customer satisfaction management.

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (14)
3. Collecting customer feedback shows you value theiropinions

By asking your clients for feedback, you communicate that their opinion is important to you. You involve them in shaping your business, so they feel more attached to your company. Listening to their voice helps you create stronger relations with them. This is the best way to gain valuable brand ambassadors who will spread positive word-of-mouth for you. And I am sure you are aware that their recommendations is probably the most effective and, at the same time, the cheapest way to acquire new customers and become more trustworthy in the eyes of your current and potential clients.

People always appreciate it when you ask them if they are happy (or unhappy) with your service. It shows you value their opinion and that you are here for them, not vice versa. They feel your primary business goal is to solve their problems and fulfil their needs, not to get their money. It puts a customer in the central position of your company, and this is the right way to run a business.

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (15)
4. Customer feedback helps you create the best customer experience

Today’s marketing is heavily based on people’s experiences with products, services, and brands. They do not buy Apple products just because they are good. They want to demonstrate their status and affiliation to a particular group. They do not buy Nike clothes because they are durable. They buy the courage to extend their boundaries. Therefore, clients will stay loyal to your brand if you focus on providing the best customer experience at every touchpoint. And naturally, the most effective way to give them a fantastic experience is to ask them what they like about your service and what should be improved.

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (16)
5. Customer feedback helps to improve customer retention

A satisfied customer will stay with you. An unhappy customer will eventually find a better alternative to your business and leave. Customer feedback benefits are significant. It helps you determine if your clients are satisfied with your service and detect areas where you should improve. Thanks to asking for opinions regularly, you can always keep a finger on the pulse. Each time a dissatisfied customer expresses his disappointment, you can immediately react and find a solution to fix an issue. This is a perfect moment to win a client back and even increase his level of loyalty. In many cases, an unhappy customer who encountered a problem with your service but you got it fixed straightaway demonstrates more considerable devotion to your brand than a customer who has never been disappointed with your service.

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6. Customer feedback is a reliable source of information to other consumers

In the times of social media, consumers do not trust commercials or expert advice so much. Opinions provided by other customers who have already used a product or service are the more reliable sources of information these days. When you look for accommodation in a city you visit or want to find a nice new restaurant to have dinner with friends, you read reviews beforehand. When you want to buy new shoes, you ask for your opinion on Facebook or go to a trustworthy blog to read a review. Many companies today incorporate review systems in their services and products. Think of Uber or AirBnb. They all do their best to ensure that poor service will be detected and excluded from their business.

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Customer feedback is as essential to your business as to other customers, so you should make sure that both you and your clients have easy access to opinions and reviews.

7. Customer feedback gives you data that helps taking business decisions

There is no place for business decisions based on loose guesses in a highly competitive market. Successful business owners gather and manage distinct kind of data that helps them develop future strategies. This way, they can adjust their products and services to fit customer needs.

Customer feedback is one of the most reliable sources of tangible data that can further be used in taking business decisions. Customer insights will help you understand clients and their needs more profoundly. Take their suggestions into consideration, and thanks to that, find out where you should allocate your money to get the highest return on investment. You might discover that, for instance, further product development is not necessary in your case; but instead, you should focus on promoting your brand to get bigger exposure. Customer feedback is a valuable source of such data, but you must learn how to listen to it and how to translate it into actionable takeaways for your business.

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (19)

If you want to stay on top of things, you should put your customers in the center of your business and treat their feedback as the most valuable source for information in your company. They are the ones who use your products and services, so they know best what could be improved to make them even happier.

Never ignore their voice. If you fail to meet their expectations, they will find other companies which will do it better than you. Use customer feedback at all corporate levels and across all departments in your company. Insights will help you develop your products, improve customer service, and manage customer satisfaction.

Blog Customer Experience

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (21)

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (22)

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (23)

Net Promoter Score Survey for Product

Every company needs a way to gain knowledge about what their users and customers think about their products and offer. The best tool to listen to the users and customers is theproduct feedback survey. Online research will help You create exactly this kind of products which your potential customers need and want.

Use this template All templates

Thanks to customer feedback, you can ensure that your clients will stay with you, be loyal to your brand and, consequently, spread positive word-of-mouth for you. Having devoted brand ambassadors is gold your company needs to grow!

Remember that customer feedback is everywhere. Learn how to collect it using different tools and resources. Run surveys in different forms and search for reviews your clients post on the Internet. Do not underestimate any comment about your products and services, and always be responsive. Your clients will appreciate you value their opinion. It is key for developing strong relations with your audience.

The customer’s voice is priceless for your business, so never stop listening!

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7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms (2024)

FAQs

7 Reasons Why Customer Feedback Is Important To Your Business - Startquestion - create online surveys and forms? ›

Customer feedback gives you insight into customer satisfaction levels. Customer satisfaction is how happy customers are with your products, services, and any interaction with your business. It's an important metric as it helps you address customer issues, prevent churn, and build a base of loyal customers.

Why customer feedback is important for the business? ›

Customer feedback gives you insight into customer satisfaction levels. Customer satisfaction is how happy customers are with your products, services, and any interaction with your business. It's an important metric as it helps you address customer issues, prevent churn, and build a base of loyal customers.

Why is feedback important in online business? ›

Feedback is a powerful guide that can give your leadership team insights that chart a path forward for every part of a company — from product through UX and customer support. That's especially important when it comes to customer satisfaction.

Why are customer feedback surveys important? ›

Customer satisfaction surveys are a potent and valuable tool in your brand's fight to win customer hearts and loyalty. With the feedback they provide, you can improve your product, your service, and the overall customer experience — leading to higher revenue and more loyal customers.

What are the benefits of customer feedback? ›

Customer feedback helps improve your product by helping you understand what you need to update or improve, and which features are the most popular among different customer types. It also helps you identify potential issues early on, so you can fix them before they turn into bigger problems.

What are examples of customer feedback? ›

How would you feel if you could no longer use this product/feature?” This customer feedback example stands out because it helps companies figure out if: they're still in the right market. the product still solves a relevant problem.

What is the purpose of feedback? ›

The purpose of giving feedback is to improve the situation or the person's performance. You won't accomplish that by being harsh, critical or offensive. You'll likely get much more from people when your approach is positive and focused on improvement.

How does feedback impact business? ›

As the amount of feedback exchanged increases, it provides managers with insights into how their leadership skills. It also gives employees insights into their work from the people they work most closely with. And positive feedback has proven to have a positive impact on your business outcomes.

Why is online feedback good? ›

They serve as recommendations to potential customers who may be deciding between several similar products. Positive online reviews can be the deciding factor that leads some shoppers to purchase your product. One way to increase an average rating for a product or service is to collect more reviews.

What are the benefits of feedback in online learning? ›

Feedback should inform students about their understanding of concepts, identify where their performance is strong or weak, and show what they should do to further their knowledge (Ambrose et al., p. 137).

What is customer feedback through surveys? ›

Customer feedback surveys are questionnaires that let you collect information on how your customers feel about their experience with your company. This might be regarding a specific product or service, or their overall perception of your brand. These surveys normally include closed-ended and open-ended questions.

How can customer feedback improve performance? ›

Customer feedback can help you convince the customers to come back for more. Negative feedback can be used to sell the product as customers should be seen as a chance to improve the product. Customer Feedback helps you acquire new customers. Listening to customer feedback helps you build brand loyalty.

What is the power of customer feedback? ›

Customers will defect to competitors even if your product is great but your service is not up to the expectations. Use the feedback to improve the service and to make them feel heard. Offering excellent customer service is an investment in your company since it enhances customer lifetime value.

What is 1 example of positive feedback? ›

A clear positive feedback example is when your employee finishes a difficult task. Show how proud you are that they pulled through and delivered great results. “I wanted to congratulate you on your determination to finish this project. It was hard, and you had to put in a lot of effort and time.

What are 2 examples of positive feedback? ›

Positive feedback examples for teammates
  • A teammate helped figure out a tough problem. Things were going well on this project. ...
  • A teammate went above and beyond to deliver work. ...
  • A teammate needs a boost in morale. ...
  • A teammate contributed to company culture in a positive way.

What are the 4 types of feedback? ›

There are four types of constructive feedback:
  • Negative feedback – corrective comments about past behaviour. ...
  • Positive feedback – affirming comments about past behaviour. ...
  • Negative feed-forward – corrective comments about future performance. ...
  • Positive feed-forward – affirming comments about future behaviour.
Feb 9, 2023

What is the value of feedback? ›

Positive feedback increases productivity, corporate culture, brand strength and overall retention, with employees reporting feelings of loyalty to their organisation and satisfaction in their work.

What are the three functions of feedback? ›

The three forms of feedback: appreciation, coaching and evaluation.

What is positive feedback in business? ›

What is positive feedback? On the surface, positive feedback is a simple concept. Giving positive feedback at work means telling someone they did a good job, exceeded expectations, or produced great results — that they exhibited good workplace behavior.

What is good feedback in business? ›

At its core, feedback isn't just about advice, praise, or evaluation. "Effective feedback requires that a person has a goal, takes action to achieve the goal, and receives goal-related information about his or her actions." explains author Grant Wiggin.

What makes feedback great? ›

Good feedback is fair, honest and clear. The feedback wording, the mark and the aspects of the work the feedback refers to, need to be aligned or consistent.

Which feedback is better and why? ›

According to this theoretical approach, positive feedback increases people's confidence that they are able to pursue their goals, leading people to expect successful goal attainment. Negative feedback, in contrast, undermines people's confidence in their ability to pursue their goals and their expectations of success."

How is feedback used to improve learning? ›

Broadly defined, feedback is “information given to students about their performance that guides future behavior” (Ambrose et al., 2010, p. 125). Feedback can help set a path for students, directing their attention to areas for growth and improvement, and connecting them with future learning opportunities.

What is meaningful feedback? ›

Routine feedback is better than none, but meaningful feedback -- the kind that helps individuals learn, grow, and do their jobs better -- is how you improve productivity and performance.

Does feedback improve learning? ›

Key findings. 1. Providing feedback is a well-evidenced and has a high impact on learning outcomes. Effective feedback tends to focus on the task, subject and self-regulation strategies: it provides specific information on how to improve.

How can customer feedback be used to improve service? ›

4 Ways Customer Feedback Can Improve Your Business
  1. Update your product or service. All feedback should be recorded and saved. ...
  2. Share social listening feedback internally. ...
  3. Improve your employee training process. ...
  4. Follow up and relay improvements to customers.
Feb 2, 2020

What are the benefits of a satisfied customer to the organization? ›

A deeply satisfied customer means a lower churn rate, higher retention, and an increase in brand loyalty.

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