Gaining customer feedback is probably one of the best things a company can do! Why then so few companies use and optimize customer feedback loops? Feedback loops can be a very strong tool in your arsenal for increasing your customer satisfaction levels and customer retention. Continue reading to find out how to get the most out of it:
1. What is a feedback loop?
Interestingly, a study showed that 80% of companies believe they are customer-centric, while only 8% of customers agree (Bain & Company). This shows a dissonance between what companies consider to be customer friendly and what their clients actually expect. Asking once for feedback is not enough! Constant interaction between customers and companies is required. This is where customer feedback loops come into play!
“Feedback loops provide people with information about their actions in real time, then give them a chance to change those actions, pushing them toward better behaviors.”
As mentioned in our previous article “How to use Customer Feedback Loop to improve your business?”, customer feedback is a strategy where customers’ suggestions and feedback drive the change. The feedback received by the customers is implemented by the company. Then, those changes have a new impact on the customers, who give new feedback and then the loop gets repeated over again.
2. Why is a feedback loop important?
Did you know that 79% of customers would repurchase from a company if they had a good experience with them, while 89% would buy from the competitor if they were dissatisfied? Therefore, having quality customer experience can make or break your company! But how do you know that your customers consider as “good” or “quality” customer experience if you don’t ask them?
Customer feedback loop gives you the ability to constantly innovate based on your customers’ suggestions and wishes. It should, therefore, be a crucial part of your product development, marketing, customer service and sales departments.
3. How to optimize customer feedback loops?
It is important to ask for feedback, any chance you get. For example, send a feedback form or a link to an online survey along with your welcome email, purchase confirmation, contact with customer support, after a certain period of time, etc. You can also collect customer feedback from live chat or newsletter subscription. In addition, have pop-up feedback forms on your website, where you ask only one or two quick questions so that you can collect feedback even from non-buyers.
In conclusion, by constantly asking for, collecting and analysing your customers’ feedback, you can better understand their purchasing behaviour. When you optimize your customer feedback loop, you will also gain more online reviews, which will ultimately lead to higher sales and brand awareness.