The Business Benefits of Customer Feedback in 60 Seconds.

Guy Letts
Business benefits of customer feedback

Another happy customer.

If you’re someone who instinctively makes the link between customer satisfaction and business success then this won’t be a surprise. But sometimes a colleague will ask you to justify the Return on Investment (ROI), or maybe you’ve just forgotten quite how many are the business benefits of customer feedback.

Either way, if you need a spur to take action and finally get customer feedback working properly for your business then this is for you.

Oh, and did you spot how I just moved the goalposts a little, from ‘business benefits of customer satisfaction’ to ‘business benefits of customer feedback’? Long story short – customer feedback is the single most effective way to improve customer satisfaction.

The Business Benefits of Customer Feedback.

Customer feedback (done right) benefits your business, your customers and your team. Here’s how it gives everyone a stake in improving customer satisfaction and making your business more successful:

  1. More repeat business. “We want customers to welcome our offers and promotions, not trash them.  We understand it’s their money, and they choose who they spend it with. So if we make sure they are happy with us, not mad with us, our marketing will never fall on deaf ears.”
  2. More new customers. “Word of mouth recommendations bring new customers in for free and they make our business grow. We want customers to recommend us wholeheartedly so we need to check there are no frustrations.”
  3. Fewer lost customers. “We don’t ever want to be surprised that we’ve lost a customer. So we need to find any issues and fix them straight away. That will mark us out as dramatically better than nearly every other company they deal with.”
  4. Loyalty. “When we ask customers face to face how things are going they always say ‘fine’ even if that’s not what they’re thinking, because they don’t want an awkward conversation. Despite our best intentions even small niggles can build up and make them vulnerable to a pitch from a competitor. So we’ll make it clear we welcome candid feedback, and we’ll make it fantastically easy for them.”
  5. Increased sales conversions. “Publishing the comments we receive as feedback, case studies and testimonials is evidence that we’re great to do business with. It increases buyer confidence.”
  6. Beat your competitors.  “How can we clinch competitive bids? If we have cast-iron proof that our customers rate us highly it makes us the obvious choice because the prospect will not feel like they’re taking a risk.”
  7. Stronger reputation. “Only by asking can we find out whether our customers are happy to recommend us. If it’s good news, we can learn from it, celebrate, and thank them. If it’s not so good, we can fix it.”
  8. Cross-sell & up-sell opportunities.  “Some of the best sales opportunities come when customers are happiest with us. That could be just after we’ve helped them solve a problem. By checking that they’re completely satisfied we can find these brilliant sales opportunities.”
  9. Morale and motivation.  “We get a real boost when a customer gives us praise.  It gives us confidence that our business is on the right track, peace of mind that another customer is secure, and every time it happens someone in the business will feel like a hero.”
  10. Improved skills.  “When we get verbatim comments from customers there’s nowhere to hide.  All the training courses in the world are no substitute for lessons learnt through personal experience.  Sometimes it can feel raw when a tough comment arrives, but providing we learn from it and put things right, we’ll never make that mistake again.  And somehow it’s easier to hear it from a customer than from a colleague because you know there’s no agenda.”

Further Reading.

Financial benefits of customer feedback. Get my e-book on growing revenue through customer satisfaction. Read how I went from a project called ‘Hunt the Missing Million’ to beating budget year after year.

Case studies. Learn how King of Shaves increase sales and Swiftpage increase contract renewals.

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  • Chris Kenber Business Coach

    Excellent post. Short, yet to the point

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