Customer Feedback - Why Is It Critical For A Business's Success?

Business owners are constantly keeping an eye out for opportunities to increase their business’s success and profitability, but often overlook one very easy, free way; Customer Feedback.

Shaping Your Product/Service

Customer feedback is probably one of the best ways to make your business successful. This of it like this; through negative feedback, you can shape your product/service into something you know the market will love.

Most people think that bad feedback comes from people they have never even done business with, or with some of their ‘bad’ clients, so they decide to ignore it. This is, in fact, a complete myth; most of the negative feedback you will get will be from some of your most loyal customers. Not because they want to put you down; because they want to remain your best customers.

Think of it like this; your ‘bad’ customers, if they encounter a problem of flaw with your product/service, they will simply move on to the next company who will solve this problem for them. Whereas for a loyal customer, they want to tell you about the problem, hoping that you will fix it and they can remain customers of yours.

In fact, according to industry research carried out by customer experience research consultancy Technical Assistance Research Programs Inc., customers that complain to you, and then see the problem solved, are up to 8% more loyal than those who didn’t even have a problem in the first place. (Increasing Customer Satisfaction, U.S Consumer Information Center, Pueblo, CO, 1986)

Think of it like this; customer feedback is a free way to conduct market research. Your clients will tell you how they want their product/service. They will tell you about any problems they have; although you may have to prompt them to do so; perhaps through a quiz of survey.
Free Marketing

Well, who would say no to some free marketing?! Quite a few businesses actually, so it seems! Customer feedback, when it is good, can be used in a multitude of ways, the obvious one being testimonials.

Everytime you get some good feedback, you should ask the client if you can use it as a testimonial on your website, leaflets, sales letters; anything which you send to a prospective client. Likewise, when you get bad feedback, you should act upon it immediately, because it really will result in not only your product/service getting better, but perhaps some more business!

Think about it; if you had a problem with a company that you bought from, and you complained about the problem then it got solved, how much more likely would you be to talk about that than just receiving a product and there being absolutely no flaws to it?

Now I’m not saying make a flawed product deliberately, but always listen to your customer’s feedback; no matter how irate they are when they shout it at you!!

What about your experiences? Have you got any experiences where Feedback has improved your business? Or have you got any more ways feedback could improve a business? Leave a comment below.