5 Ways Customer Feedback Affects Your Revenue

Published on:
Fri Jun 12 2020
Customer Experience

Customer feedback is a powerful tool your business can’t live without. It provides crucial insights and guides your company to gain revenue.

When customers purchase your products or services, they may feel inclined to tell you about their experience. This can either come in the form of positive or negative feedback, both of which provide useful data. 

Here are five ways customer feedback affects your revenue.

Improve Products or Services

Feedback you receive from customers can show you how you can improve your products or services. You will learn what features customers love the most and which ones they do not like.

You can then take the feedback you receive and make changes that will benefit your customer base. This, in turn, helps your business grow.

Involve the Customers

Customer feedback involves the very people who buy your products or services. Their contributions are important to the future success of your business.

Requesting feedback from customers shows them you value their opinions. This positive experience results in more product purchases.

You can collect the feedback you receive and use that data when making important product decisions. Look at it as a form of communication between you and your customers. They present you with information that you then act upon in one way or another.

Generate Recommendations

Word-of-mouth goes a long way in business, especially where inbound marketing is concerned. Here, the customer comes to you after hearing about your products.

Think of referrals as the most effective form of advertising money does not buy. Customers who share their positive experiences with others will do so because they are satisfied with your products.

A great deal of feedback from customers is left online. This can come in the form of emails to your company, a feedback form on your website, social media, and more.

This type of feedback is very powerful because it is accessible to a great number of people. Often, customers will link to a company when leaving comments, which is an easy way to get more customers directly to your site. This is yet another way referrals happen.

Build Brand Loyalty

Feedback from customers can help build brand loyalty. A one-time purchase is never a guarantee the customer will return.

You can improve many aspects of your business such as advertising, price, and quality. However, some of the most valuable improvements will come directly from the customers themselves.

Customer feedback can prompt you to look at factors like safe packing, free shipping, and creating a user-friendly website. Making improvements based on what people want and need results in repeat business and in turn, brand loyalty.

Learn From Negative Feedback

Customers often leave feedback because they know they will likely get a response. Because most of it is left online, it is easy to address as a business owner.

Take this as an opportunity to quickly clear up misunderstandings or immediately solve problems. Unhappy customers can change their mind about your company when their problems are taken care of in a timely manner.

This negative feedback can be presented as a bad review on social media or a comment on a forum. The sooner you address it, the better your chances will be of turning the situation around.

Create an action plan for addressing dissatisfied customers. Contact the customer to discuss the issue. Provide solutions and keep the communication going where relevant.

Want to know what your customers are saying about your business? Learn more with the Dropthought customer feedback software.

We operate globally, working with small businesses, colleges, healthcare organizations, and large companies to gather feedback in various ways. 

We'll help you conduct analysis and gain direct feedback instantly. Improve customer engagement, enhance your social media marketing efforts, and gain more control over your business performance with Dropthought. Reach out to us to find out more.