5 Main Reasons Why Customer Feedback is Important Leverage in Small Businesses

When running a small business or start-up, it is quite important to satisfy your customers. You will try to fulfill their needs, and thus keep them loyal to your brand. Here the main metric for you is customer feedback.

But why it is that important? Well, this is how you can be sure of the positive results of your efforts. Customer feedback is the core factor that determines customer’s needs and tastes. Particularly, it is important when a business introduces a new product or service, so a typical startup type small company. How you can give the end-user the best customer experience,   without finding what your client actually thinks about your service or product? Their references and feedback is helpful information that you can use to adjust your business to fit their needs more precisely.

WHAT IS CUSTOMER FEEDBACK?

Customer feedback or review is information coming from your customers whether they are satisfied or dissatisfied with your product or service and about the general experience that they had with your company. Customer’s opinions and comments/complaints are an important resource for improving customer experience and addressing their needs and wants. This information can be collected from a customer using different ways, both in oral and written forms. To be more specific, there can be used all the possible online channels, social media accounts, written surveys, online forms, emails or even phone calls from the customer to the company. Nowadays, such innovative solutions as QR code labels on a product or company brochure could allow your customers to provide the feedback in a fast and simple way.   Every successful company, whether it is a newly established startup or reputable brand understands the importance of customer feedback and its role in their business.  They consistently listen to the voice of their customer and perform their actions accordingly. In some cases, companies encourage their customers for the feedback provided on time or filling in specific surveys, by making special offers for them.

1. CUSTOMER FEEDBACK HELPS YOU TO IMPROVE THE PRODUCT AND SERVICE

Well, when you initially enter the market with a new service or product you probably have at least a basic understanding of your target customer’s needs. Before introducing your brand or product, you do some market research to see if your potential customer would be willing to buy or use it.

This primary research can also give some tips on how to improve the product you are going to offer. Nevertheless, only after using your product or service customer could give you a true overview of the advantages or disadvantages and their actual experience. Besides that, their expectations and needs may evolve with time.

Check out how Icelandic microbrewery company increased its sales by using our QR codes

2. CUSTOMER’S OPINION MATTER!

By asking your customers to provide you feedback, you show them that you value their opinion and you care about what they think of your product or service. To be more precise, you care about what they have to say and the fact that you are treating them as such, makes them feel important and involved in your product’s development. Making people feel more attached to what you are doing and thus to your company is crucial in shaping customer satisfaction. Listening to their voice helps you create stronger relations with them. And we all know that their recommendations are probably one of the most effective and cheapest tools to acquire new customers, make more sales and result in customer retention. People’s psychology built in that way, they always appreciate when you ask them whether they are happy or unhappy with the service you are offering. It shows you value their opinion; they feel your primary business goal is to solve their problems and fulfill their needs, not just earn money from them. Customer-centric approach is proven to be the right way to run and grow the business by many different companies.

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3. IT IS ALL ABOUT CUSTOMER SATISFACTION AND LOYALTY

Loyalty and Customer satisfaction is quite a crucial factor that determines company’s overall performance, including economic. Therefore, there is no doubt that it’s important to make your customers happy with the products and services you are offering. The best and organic way to find out if you meet their expectation is to get their opinions via using different methods and channels. Using these, you can easily estimate the level of their satisfaction and predict your company’s future economic situation as well.

Customer feedback also helps businesses figure out their weaknesses and strengths from the perspective of consumers. Being on the other side of a business often makes it difficult to discover problems, however, when you ask your customer for feedback, you are obtaining an outside perspective of the situation. In that case, a person looking is usually better able to note your flaws than you are.

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4. IT HELPS YOU TO FOLLOW THE MARKET TRENDS

Customer feedback can also be valuable in assessing market trends. In order to achieve success in your business, it is important to gather and manage distinct kinds of data from your customers, which also helps you to develop future strategies. This is the only way to adjust your products and services to perfectly fit customers current needs. It is important to get the customer’s opinions and detect certain technological trends among consumers. In other words, it is important to consider all the popular trends among the customers and keep your business accordingly.

5. LAST BUT NOT LEAST, CUSTOMER RETENTION

And again, it comes to satisfaction. A satisfied customer will most probably stay with you, while unhappy customers will eventually find a better alternative to your business and just leave. You may have heard it before: it is much cheaper to retain customers than to earn new ones. According to the data from Harvard Business School, increasing customer retention by just 5% can lead to a 25-95% increase in revenue. As it is already mentioned, customer feedback helps to determine if your clients are satisfied with your service or product and detect areas where you should improve. By regularly asking for their opinions you can control the process and decrease the chance of being abandoned by unhappy customers. You can immediately react to each case where a customer expresses any form of dissatisfaction and find the best solution to fix an issue. This is the perfect chance to win a client back and even increase his/her loyalty level. In most of the cases, one unhappy customer left face to face with the problem, which means tens of potential cases with rumor and bad reputation, and vice versa.

HOW CAN SOFTBRIK HELP YOU TO COLLECT CUSTOMER FEEDBACK?

Have you ever imagined that with the help of artificial intelligence your company will be able to get instant customer’s voice feedback? Sounds something unreal? Well, with the help of Trust Brik your customer can give you both text and voice-based feedback on your product or service by scanning the QR code attached to your item.

Do not miss an opportunity to benefit from our feature.

To request a demo of the Softbrik platform please click here or drop a note to aa@softbrik.com.





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