Without using Customer Feedback no company can know what are they doing right and what are they doing wrong. Customer Feedback doesn’t have to be a hard thing to manage. Continue reading to find out why it is not as difficult as you think:
1. Why manage Customer Feedback?
Having a loyal base of customers who keep coming back to your company is substantially more valuable than having a strong sales or marketing team. This is why collecting and managing customer feedback is crucial for the success of any company! Thus, you can better understand your customers and find out what they like and dislike about your products and services. In addition, you can also find out how to attract new customers and to increase your word-of-mouth.
2. How to use a Customer Feedback Loop?
Customer Feedback Loop is an improvement strategy, where customers’ suggestions and feedback drive the change. The starting point of the Customer Feedback Loop is to start collecting customer feedback. After the data is collected, the next step is to analyze it. When using a customer feedback tool, this becomes even easier. The third and final step is to apply the changes. Start with the issues which are critical and never forget to inform your customers about the changes and fixes you have done. If you want to learn more about customer feedback loops, click here.
3. How to use Net Promoter Score?
Net Promoter Score (NPS) is another term which tends to intimidate people who are just starting to manage their customer feedback, but it is actually not as complicated as it sounds! The question used to determine NPS is:
“On a scale of zero to 10, with 10 being highest, what’s the likelihood that you would recommend us (our company) to a friend or colleague?”
Based on their answer, customers are then divided into 3 categories: Detractors (those who are likely to discourage others to buy from you), Passives (those who are not likely to actively encourage others to buy from you) and Promoters (those who are likely to encourage others to buy from you).
The actual score is then calculated by taking the percentage of responders who are promoters and then subtracting the percentage of customers who are detractors. Passive responders are not used in this final calculation. This will generate a score ranging from -100 to 100, which is your Net Promoter Score.
Having a positive NPS means that you have more customers organically recommending your company than people discouraging others from buying from you. Thus, you can identify how much of your profits come from healthy, sustainable relationships, and how much is at risk of churning.
4. Who is taking care of your customer reviews?
Once a company sees the value in collecting customer feedback, the next step is to decide how to manage the process. What many marketers find out is that collecting customer feedback is only the first step. Equally as important are the next stages of analyzing and responding to the reviews, as well as taking actions based on them.
The easiest way to do so is to use a customer reputation management tool. The reason why you need one is that it will help your team tremendously to save time and effort manually replying to the reviews, as well as analyzing the data and creating reports. Furthermore, by using a reputation management tool you can easily create reports and graphs where you can see what the trends are.
In conclusion, don’t be overwhelmed by your customer feedback. It is not as difficult as you think! If you understand the basics we outlined above, you are ready to start!