Why Customer Feedback Is Important?

Oct 10, 2022 - 8 min read
Why Customer Feedback Is Important?

The customer determines the course of a product or service. Every detail needs to be tailored to the customer's needs—from a service's price and marketing strategy to a product's color and shape. In fact, this is the reason behind the invention of the research industry. Businesses need tools to continuously ask their customers questions like, 

  • Would you buy this product, and why or why not?
  • How much are you willing to pay for this service?
  • Are you satisfied with the product?
  • Would you purchase the service again?

Traditionally, to answer these questions, we conduct field surveys, focus groups, and various other kinds of research methods to gain direct feedback. However, the internet has become an even more prominent and influential source of indirect feedback in the last decade. These days, customers have many channels through which they can contact businesses to express their satisfaction or dissatisfaction. Emails, surveys, review sites, social media, DMs, contact centers, comments sections, and the list goes on regarding the many ways customers can express their feedback. Considering all this unorganized data, manually processing each feedback would be unproductive and impossible for a business. At the end of the day, the goal of a company should be to utilize technology to classify and analyze all the chaotic customer feedback it receives from all of the channels mentioned earlier. 

Want to learn more about how Kimola Analytics, one of the easiest customer feedback analysis software, helps businesses discover what customers say about their experiences? You can sign up and create a 7 day free trial, no credit card information required.

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Why Should You Seek Customer Feedback?

There is a myriad of benefits that come with seeking feedback from customers. Here are 8 of them. 

Get To Know Your Consumers

First of all, the basic information you gain from customer feedback—like the age, ethnicity, or location of your customers—can help you supplement your buyer persona, which, in turn, can aid you in making informed decisions when it comes to marketing strategies. However, this benefit goes beyond the experiences of your current customer base. While direct feedback from customers may reveal what they consciously think of their journey, indirect feedback can disclose consumers' less conscious and more spontaneous behaviors. Research Technologies (ResTech), like customer feedback software, can listen to social media conversations and produce customer feedback sentiment analysis reports. Web analytics tools can determine when prospective customers abandoned their journey. ResTech can help you gain insights that even the customers aren’t aware of and reveal the fundamental pain points, motivating factors, and turn-offs for your customers and audiences

Go on to Kimola Analytics and create an audience now to learn more about your customers through Social Media Listening, Audience Lifestyle Analysis.

Let Your Customers Know You Are Listening

Customers like to be respected. The best and most practical way to show you're paying attention to their needs is to ask them for their opinion. Make them feel heard without pestering them. A timely response to their inquiry or complaint can be pivotal during a customer journey and reduce the stress they might be experiencing. In turn, the customer might not recall what was said exactly, but they will certainly remember the feeling of being heard. 

As one of the best customer feedback tools for text analysis, Kimola Cognitive can not only produce a sentiment analysis of customer feedback reports but also take measures to identify negative feedback for immediate response and crisis management.

Make Insightful Decisions

You must now act on what you’ve learned. Customer feedback analysis using machine learning can automate your insights so that you may make informed decisions based on frequent and reliable input. Such customer feedback data analysis is much more efficient and effective than the manual or traditional methods of gathering customer evaluations. For instance, you can reevaluate the customer journey you’ve designed according to a customer feedback analysis report that catalogs thousands of disorganized customer feedback from various sources. 

Enhance Products & Services

You’ve probably already done extensive market research regarding your competition. However, the actual needs of a customer base may be lost while brands focus on outdoing each other. An exceptional understanding of customer needs can help you edge out the competition. In this case, getting negative feedback is not necessarily all bad. A customer feedback text analysis tool can help you identify the most common issues customers are having with your product or service so that you can begin to fix the problems immediately. 

Improve Customer Experience

Customer experience is almost as significant as the product or service. Nowadays, most products and services within the same industry have competitive capabilities; thus, it is the experiences brands provide that make the actual difference. Recent studies have also shown that customer experience will be a more prominent determining factor than price and product! With a customer feedback analysis tool like social media listening, you can find out which aspects of the customer experience people enjoy or dislike. People who belong to a customer base often like to compare their experiences with different brands; thus, this would be an excellent opportunity to find your point-of-differentiation and point-of-parity as well.

You can even acquire data from customer feedback on Instagram with Kimola’s Airset Browser Extension!

Increase Customer Satisfaction

If you can listen to your customers, learn from their feedback and implement it in the experience, product, or service you provide, your customer satisfaction will increase. You can conduct regular CSAT score measurements not only to gain valuable customer feedback but also to monitor how the outcomes of your customer feedback analysis are impacting your business. Customer feedback analysis tools such as Kimola help you sort through your dataset of answers to reveal the results in an efficient and manageable manner.

Encourage Loyalty

Improving experiences, products, and services according to customer insights can encourage future purchases and establish loyalty. By measuring your customers’ Net Promoter Score (NPS), you can determine how happy they are with your services and see if they are comfortable enough to recommend you, which would help you foresee new customers on the horizon.

Gain New Customers

Through recommendations, positive website reviews, and customer service experiences, people will begin to see that your business prioritizes customers. Combining the above benefits will make it nearly impossible for you not to experience an influx of new customers. Overall, if you can implement, manage, and maintain a system of customer feedback analysis with a top-notch text analysis tool, you will eventually create a customer feedback loop.

How to Create a Customer Feedback Loop?

While trying to compete with the products and services of rival brands, many businesses lose sight of what is important—the customer! A healthy customer feedback loop keeps you in touch with the actual needs of your customer base. As the name suggests, the customer feedback loop is a continuous reciprocal interaction between a customer base and a business that aims to improve the service or product for the benefit of both sides involved. It is the most basic form of customer engagement and retention. And, -based on a research by Invesp Consulting- considering customer acquisition is five times more expensive than customer retention, we recommend you invest in a robust customer feedback loop that will decrease customer churn.

Once automated, this loop generates new product improvement ideas you can share with your CX, product, and marketing teams round the clock.  An easy-to-use customer feedback tool that utilizes the latest research technologies is a must to create an effective customer feedback loop. As one of the world’s best customer feedback software, Kimola can help you organize and understand your customer base.

1-Gather Feedback

Obviously, you first need information from customers to begin creating a customer feedback loop. And, as it is in any form of research, the more information, the merrier! So, you need not just to open up touchpoints and channels of interaction but also encourage customers to reach out with their opinions. Studies have shown that while people are becoming more inclined to share their negative feelings with a business, most customers won’t complain directly. You can reach out to customers to gain direct feedback through email marketing, surveys, focus groups, etc. Or, you can acquire indirect feedback through web analytics and social media listening. See how quick and easy it is to generate data sources for customer feedback with Kimola’s Airset Browser Extension! You can even acquire data from customer feedback on Instagram. 

Start using Kimola Cognitive’s Airset Browser Extension to gather reviews from different websites. 

👓 Read all about the extension here.

⚡️ Download The Airset Generator from Chrome Web Store.

📹 Watch tutorials hon Kimola's Youtube channel to scrape reviews from Amazon, Youtube, Instagram, Trustpilot etc.

2-Analyze the Data

The feedback you gain from customers is essentially data, and analyzing this data will help you pinpoint recurring issues with your product or service. With the help of a customer feedback data analysis tool, you can diagnose your pain points and identify where and why the problems are occurring. Watch our Introduction to Kimola Cognitive video to understand how to analyze and auto-classify customer feedback with a few clicks.

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3-Apply What You’ve Learned

Thus, going forth, you can make insightful decisions about your business plan, product improvements, and marketing strategies. Remember to share what you’ve learned with the necessary departments within your company in a constructive manner. Eventually, don’t forget to let your customers in on the newest changes and improvements so that they know you are listening.

4-Thank Your Customers

Customers appreciate appreciation. While you should be thanking your customers every step of the way, you must make sure to do so especially after they’ve given you vital feedback regarding your business.

When all is said and done, you can return to step 1 to repeat the process!

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