“Listening to feedback makes customers feel more appreciated and part of the value creation process.” – Ray Poynter
Customers are the reason that companies exist and thrive. It would then be reasonable to assume that what they say matters and it is the responsibility of every company to collect customer feedback in a systematic and consistent manner. Post collecting, analysing and effectively using this feedback would enable a company to improve customer service, product quality, the manner in which they connect with customers, the daily company operations and a number of aspects in the business that would lead to enhanced customer satisfaction and loyalty. Customer satisfaction and loyalty must be the main reason to collect feedback from customers.
Customer feedback is instantaneous and highly noticeable in ‘real world’ stores. They would extend compliments on things that they like and express their displeasure about others. Such direct customer feedback would help a company to make changes where required and maintain the quality of things customers appreciate. Traditionally run stores received and managed the customer feedback in this simple fashion and it worked well. However, collecting feedback from customers is not as simple for larger businesses, especially the companies with online businesses. Companies now must invest time and effort in using a plethora of methods like comment forms, customer advisory boards, discussion groups, customer events, feedback surveys and a host of other techniques to know what their customers say. As mentioned, simply collecting customer feedback does not give a company its competitive edge – the benefit from such data can be derived by taking suitable and swift action on the feedback. How a company uses the feedback would be the difference between success and failure.
Companies solicit customer feedback all the time and yet most are unable to use it to advantage or even find any meaning in it. Some of the companies that do find ways to utilize this feedback often forget to close the loop with customers by letting them know that their feedback was heard, used and what it was used for. Not doing so discourages customers from providing feedback the next time a company approaches them with such a request. Managing customer feedback well could translate to a meaningful dialogue between the company and its customers and could become the main reason for the success of both parties. When customers perceive changes because of their feedback, they would be more willing and cooperative to share insights in the future as well. Customer feedback is perhaps the best way for customers to express their on-going interest in maintaining a relationship and doing business with a company. Statistics reveal that most customers never both with feedback to the company – they would much rather just walk away and post their negative experiences on sites for all to see. For companies, incorporating changes suggested via customer feedback is the best way to reward customers that make the effort to provide comments.
However, before using the many techniques available for gaining such feedback, companies must first understand why they need to collect customer feedback and what they plan to do with it upon receipt. They must be committed to acting upon the feedback received, even if it is critical and harsh. Jumping on to the customer feedback bandwagon should not be a knee-jerk reaction and must not be undertaken simply because everyone is doing it or because it is a best practice within customer service. While your company may want to improve, using customer feedback to benchmark its own service against those of other companies could prove to be a colossal waste of time.
The main aim of soliciting customer feedback should be to keep the lines of communication open between your company and its customers. This is especially true, as mentioned, for online businesses where face-to-face interactions are very limited. A company must always be in touch with the feelings of its customers – how they perceive the company and its offerings, why they would continue to buy, what would make them stop buying and other such things that the customer would communicate via their feedback. Customer feedback when collected in a timely fashion can provide vital indications of things that could potentially go wrong and make amends before they do. When customers share their views and opinions, their primary reason for doing so is for a company to hear them, respect them for their ideas and incorporate those ideas into the overall strategy and plan for the company. Companies that listen and respond to customer feedback will find themselves in a powerful position of customer trust and preference.
As will all aspects of customer service, asking for customer feedback too must be according to the convenience of customers. Timing and frequency of such requests is crucial in order to optimize the advantage of this exercise. For instance, asking a new customer for feedback as soon as they buy a product may backfire. Instead, a company must make some follow up calls to the customer to ascertain if they need any help and allow the customer enough time to use the product. Post some time lapse, soliciting feedback would elicit a response that would possibly be helpful and precise. Soliciting feedback only from new customers is not prudent either. In fact, loyal and long-standing customers could provide extremely helpful insights as to why they chose your company, why they continue to patronize it and what would be the compelling reasons that would make them leave – are some vital clues into the ‘health’ and performance of the company as seen by customers.
Does your company solicit customer feedback and if so what are some of the benefits that your company, its representatives and even customers have seen? By actively seeking and incorporating customer feedback, customers can perceive a positive impact, which in turn encourages them to speak well of the company. This word of mouth is more powerful than any other form of advertising and would result many more customers for the company, thereby increasing revenue and profits for the company. In addition, satisfied customers are more than willing to provide glowing testimonials for a company. As mentioned earlier, a very large percentage of online shoppers check customer reviews before making any purchases and hence the written testimonials go a long way in gaining more customers for a company.
Customers, as we know, want to feel important and valued. Soliciting and then incorporating their feedback is a great way to show them that they are important for any company. They are sure to return with more business repeatedly, which in turn leads to a feeling of warmth and loyalty towards the company. Loyal customers are one of the most valuable assets of a company and the more there are, the more formidable position a company gains in the market. It is simple – acknowledge every word of your customers and they will reward you with tangible benefits. The other part of loyalty is that your company will be able to hold on to its customers for long. It is a well-known fact that it is extremely hard and costly to attract new customers as opposed to retaining the current ones. Hence, customer retention is another great benefit of listening to customer feedback.
Soliciting customer feedback must not be an exercise that a company does ‘if and when’ they have time. In addition, this should not be seen as an additional work that can be outsourced to some third party, who would not have any real interest in asking for and collecting the data. Customer feedback is invaluable and provides insights into the mind-set of customers especially in terms of how they view your company and its products. It would help a company understand customer expectations and proactively put in place strategies to exceed them consistently. Formula for success?!
