7 Ways to Use Customer Feedback to Improve Your Brand and CX
⏱ Reading Time: 5 minutes
To gain customer feedback nowadays seems like an easy task. But what comes before, in terms of what questions do you want to ask and after, in ways of feedback interpretations is challenging. Will companies use feedback to improve their products and services? Or to improve customer experience? To measure customer satisfaction? After answering these questions, depending on the received feedback, companies will have a clear goal in which direction to go.
🚀 Read Customer Experience Guide: How to Put your Customers First? 🚀
Whitney Wood, managing partner of the Phelon Group says: “Every day, companies solicit feedback from customers, yet only a few translate that feedback into meaning. An even smaller fraction of companies actually take action or close the loop with the customer, to let them know their voice was heard.”
Brands that don’t take customer feedback seriously can have problems with their reputation, as the negative word is spreading faster than the positive one. And negative reviews result in losing customers, and finally – lower profit.
In this blog we’ll find out how to use customer feedback to improve your brand and CX.
Benefits of Customer Feedback
1. Use Customer Feedback for Product Development
Forrester’s research says: “74% of customer experience professionals in the US and Europe said they are able to generate new product ideas from customer feedback.”
Information that brands collect from their customers can help to develop a product that customers really need and is the answer to their pain points. To upgrade a product or develop a new one according to the customer’s needs, you need to be asking your target audience the right set of questions. Companies can discover new opportunities by asking the right questions such as:
- New features that could help your product differentiate from competitors
- Improvements that could improve product usability
- Suggestions from customers for correlative products
- Opening new markets
For example, Paldesk previously launched a feature – easy popup, as a response to customer’s feedback. During the two month campaign, we asked our customers about the features they would like to see in the next Paldesk release. Paldesk is the only live chat that provides easy popup as part of omnichannel communication.
Picture 1. Paldesk Easy Pop-up module
2. Use Customer Feedback to Create Better Customer Experience
The success of a company lies in seamless and positive customer experience. The most effective method to provide a seamless customer experience at every touchpoint is simply to ask customers for feedback. To find out what they like about your products or services or what should be improved. Note that customers nowadays don’t buy products simply because the products are good. It goes beyond that. The unique experiences and value you provide are what keeps them loyal.
Related: Customer Journey Mapping 101: The Purpose, Benefits and Positive Outcomes
3. Use Customer Feedback to Turn Customers into Advocates
Hiver said it well: “Imagine the world where most of your new customers came from business referrals. This can be achieved only when you know who your advocates are.”
And that is the real goal, isn’t it? After collecting feedback in one place, it will be easy to identify customers that are satisfied with your products and services. To nurture them, and eventually turn them into brand advocates. Note that customers don’t become advocates without reason. They need to feel appreciated. So start with small incentives, such as thank you notes, discounts, freebies and many more. It will certainly make a difference.
4. Use Customer Feedback as Proof on the Website
Customer reviews are nowadays a more reliable source then advertisements, for instance. Brands who ensure that opinions and reviews are easily accessible to visitors are on the right path to gain new customers. Because when visitors have direct insight into other customers’ reviews, it encourages them to become customers.
Picture 2. Paldesk customer feedback example
5. Use Customer Feedback to Motivate Your Team
Customer feedback, positive or negative, can help to inspire employees. If the feedback is positive and refers to a certain feature, for instance, let it be heard by an employee who developed that feature. Because that feedback can inspire the employee to put all their effort to build another great feature customers will love.
If the feedback is negative, and refers to a certain feature, for instance, let it also be heard by an employee who developed that feature. Negative feedback can inspire the employee to give the best he can to improve that feature and fulfill customer needs.
It is about sharing feedback with employees that can help to come up with new ideas. And those ideas, for example, can help in product improvement areas and lead to business growth.
6. Use Customer Feedback to Measure Customer Satisfaction
We can all agree that satisfied customers are going to recommend brands they are happy with. That exact feedback is the most genuine way to get new customers. So in order to keep customers satisfied, brands are measuring customer satisfaction with the feedback they receive. There a few ways to measure customer satisfaction, and we strongly advise NPS.
Paldesk defined it well: “NPS aims to measure how willing a customer is to recommend a brand’s product or services to other people. This is used to gauge customer satisfaction with the belief that when customers are very satisfied with a brand, they wouldn’t hesitate to recommend their products or services to people.”
Bain’s Net Promoter system divides the customers into three categories:
- The Promoters – score 9-10 (customers are loyal and have positive experiences)
- The Passives – score 7 -8 (customers are neutral)
- The Detractors – score 1-6 (customers are dissatisfied with products and services)
Picture 3. Net promoter score
The higher Net Promoter Score is, the healthier the business seems to be.
7. Use Customer Feedback to Improve Customer Retention
Collecting customer feedback through surveys, feedback form, live chat or online customer reviews can help brands to faster evaluate if customers are pleased. That feedback is crucial because it can help to address specific customers’ complaints and increase future retention rates.
So, by listening to customers and solving their problems right away, you can show customers how valuable they are to your business and improve customer retention.
Customer feedback proves to be a useful source of information for brands. To continue making customers happy, it is crucial to ask for their feedback, as they are the ones who use your products and services. Have in mind that every brand is replaceable, so if you don’t aim to meet their expectations and provide unique customer experiences, they will find a brand that will.
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