There are 10 reasons why customer feedback is important to your business
Feedback may be defined as information about reactions to a product, a person’s performance of a task, etc. which is used as a basis for improvement.
In other words, feedback is a process in which the effect or output of an action is ‘returned’ to modify the next action.
Helps you to understand the market
Feedback from customers can help you to understand the market.
For example, it can help you to understand the trends in your industry.
Furthermore, feedback from customers will let you know things that you can do differently to stand out from the crowd.
Furthermore, do not forget that you can only excel in your business if you know your market in great details.
Most importantly, it will also help you to make better decisions that can move your business from where is now to where you want it to be.
This is because you will be making decisions based on info from the field where the action is.
Feedback can help to fight competition
Feedback from your customers can enable you to fight competition.
This is because business is war and the common enemy is competition.
Consequently, equipping yourself with trending info in your industry can help you to fight competition and put you on top of your game.
Most importantly, remember that to beat your competitors, you must know more than them.
It can help you to track prices
You need to collect feedback from customers to enable you track prices in the market.
For instance, customers are always on the move, looking for better deals.
Sometimes, they are in a better position than you to know about changes in prices.
Therefore, if you are up to date with trending prices you will be able to :
- Adapt to the changes
- And fix your prices at competitive levels.
Feedback helps you to reduce customer complaints
Feedback from customers can help you to minimize customer service issues.
For example, you can use customer feedback to improve on the quality of your customer service.
If response from the field suggests that you train and retrain customer services personnel on the front desk, why not?
Consequently, exceptional customer service can help you to:
- Keep your existing customers
- Attract new customers
- Boost your sales
- Make more profits
- Grow your business
Furthermore, you should receive all feedback with open mind.
More often than not, negative feedback will be more than positive feedback.
And it is the negative feedback that you need to improve upon. It should be of concern to you.
In any case, you should bear in mind that it is only customers who still like to do business with you that will find time to give you feedback.
Often times, unsatisfied customers will simply walk away without a word.
As Bill Gate was once quoted as saying “your most angry customers are your greatest sources of learning”.
It follows, therefore, that every feedback, whether negative or positive, should be given the attention it deserves.
Provide better quality products
Feedback from your customers can help you to provide quality products.
For example, if you receive negative feedback from your customers about the poor performance of your product, you will certainly strive to improve the quality of that product.
When your customers eventually notice that the quality of your product has improved, they will come back to you.
They will stay with you both in good and rough times.
Beyond that, customers can also give you referrals and recommendations.
Better still, if you can get your customers to give your product a 5-star.
In a way, a product with 5-star rating tend to sell itself!
Furthermore, you should realize that your products are the reason why you are in business.
Feedback will enable you to know what customers need
Feedback will enable you to know exactly what your customers need.
Knowing exactly what your customers are asking for is a smart way of telling you to put your money on items your customers need instead of investing your money on stock you cannot sell.
Furthermore, it will enable you to avoid tying down your money in “dead” stocks; stocks nobody wants to put his money.
Most importantly, remember that when your sales improve, your profits will also increase. And that is cool for you.
Land business opportunities
If you put in place an effective system of collecting feedback, some of your loyal customers might even tell you some products you can add to your offerings.
This is why you must, at all times, respond promptly to any concerns raised by your customers.
Most importantly, you should respect criticisms, suggestions and opinions expressed by your customers because customers have ways of seeing what you many not be able to see.
Feedback Helps to assess ease of doing business
Every customer wants to make his purchases promptly, without wasting time.
Most customers want to do business in a clean and delightful environment.
They like beautiful sights because it tends to add to their satisfaction and user experience.
Furthermore, no customer wants to encounter a rude, inefficient customer service personnel.
Therefore, to guard against the above lapses, you need to put in place an effective feedback collection system.
Helps to identify your strengths
Feedback from your customers can help you to identify your strengths.
Moreover, when you know your strengths, you can use them as your unique selling point [USP].
When you know your strength, you can tap more into them and move your business even forward.
Therefore, you can use your unique selling point to optimize your sales and grow your business.
Identify areas of dissatisfaction
From the response you receive from your customers, you will be able to know the areas where your customers experience dissatisfaction.
When you know this, it is your responsibility to:
- Go back to the drawing board
- Address areas of concerns to your customers
- Relaunch the improved version
By Samuel Ijenhi
B. Sc. Accounting [University of Benin]
Benin City, Nigeria.
Founder: Ijenhi Business Solutions