Why customer feedback is important for business growth

Guy Letts, CEO of CustomerSure, customer feedback software specialists

“If you can’t measure it, you can’t improve it”

– Peter Drucker

No matter how confident you are in how you run your business, there will always be potential for improvement.

That’s why it is important to see customer feedback as a positive, as it allows you to recognise the need for, and make changes to your customers experience, which ultimately leads to business growth.

A recent report from IBM found that businesses who prioritise their customer’s experience drive 3x more revenue growth than those who don’t. Why? Because customer experience is the heart of the relationship between a business and its customers. When executed well, investing in your customer experience will deliver improved customer retention, enhanced reputation, increased loyalty and a greater confidence of customers to recommend to their peers.

Gathering feedback from your customers throughout their journey provides you with key insights on their experience. And having an external perspective on how your business operates will always highlight issues that your team internally might not have noticed.

As we’re looking to develop and enhance our own customer experience we recently chatted to Guy Letts, CEO of multi-award-winning customer feedback software CustomerSure and asked for his insights on why businesses should be prioritising customer feedback.

 

How important is customer feedback to businesses?

Customer feedback is one of the most reliable sources of quantifiable data that you can use when making key business decisions. Customer insights can help you understand your customers and their needs more profoundly. Take their suggestions into consideration, and thanks to that, find out where you should allocate your money to get the highest return on investment. Customer feedback is a valuable source of such data, but you must learn how to listen to it and how to translate it into actionable takeaways for your business.

 

What should businesses be doing with their customer feedback?

A lot of time can be spent developing customer feedback processes. Who to ask, when to ask, what questions, what survey method do we use, etc. There are certainly a few variables to consider and think through.

The feedback programme is discussed, weighed up, and surveys are produced and tested. Then after careful planning, customers are contacted and asked to provide their thoughts and feedback. And many of your customers will willingly provide this feedback. Great, you’ll get some useful information back, but that doesn’t solve all your problems.

We speak to lots of companies, of all sizes and across all sectors, B2B and B2C. And something we occasionally find during initial conversations is that the all-important feedback from customers, those pieces of praise or frustration, those nuggets of ideas, are locked away and only seen by a handful of eyes in departments such as customer experience, marketing, or customer service. Such a tragic waste.

Everyone in the organisation has an impact on customer experience one way or another, even back-office departments like Accounts. So, they’ll all benefit from being able to read verbatim comments from customers.

 

What are the benefits of sharing customer feedback internally?

Consider the different audiences within your organisation. The executive team, sales & account management, accounts & billing, customer service & support, marketing, logistics & deliveries, third party partners, etc. You’ll know the different departments or functions within your organisation which interact with customers.

Each has their own bearing on the customer experience, to a lesser or greater degree, so it is important the customer’s voice reaches them so they are aware of customer satisfaction generally, and to help them manage and make decisions which will shape processes, systems, and behaviours.

We work extensively with our clients on how best to share feedback across the organisation. Key areas to consider are frequency and relevance. A top line performance summary might be interesting and relevant to all departments, but more specific feedback needs to be delivered to areas where it is relevant, and action can be taken where appropriate.

 

In summary

Remember, the reason for collecting customer feedback is to help solve customers’ problems and make informed decisions which will ultimately increase customer satisfaction and loyalty. Make sure relevant insights find their way to different areas of the business on a regular basis and make discussing customer feedback an agenda item in department meetings so that actions can be taken.

If you commit to using your customer feedback to improve customer experience, you can ensure that your clients will be loyal to you and, consequently, spread positive word-of-mouth for you. Having devoted brand ambassadors is the gold that your company needs to grow!

 

How we can help

At 360 Growth Partners we don’t claim we have all the answers, but we have years of experience finding solutions.  We can add a different perspective, provide a listening ear, help build the plan and support you and your team. If you would like to know more about 360 Growth Partners and how we could support your business, then please get in touch and let’s start the conversation