Digital Marketing
Importance of Customer Feedback for A Business

Importance of Customer Feedback for A Business


  • Why is customer feedback important?
  • 7 top Customer feedback benefits
  • How to use and improve customer feedback?

Importance of Customer Feedback

You have a business and your customers grow and sustain it. Clients happy with your service will return back to you whenever they need your service and also spread a good word about it.

Every business dreams to have legions of happy and loyal customers but how does one find out if their customer is happy with the product or service? This is where customer feedback pops in and provides vital information regarding customer opinion.

So what is customer feedback? It is the voice of the customer in response to the service or product that you provide.

It is the cornerstone upon which the business will sustain long-term growth and is practically the core on which the business strategy grows.

To grow your business you need customer feedback, and one has to collect customer feedback to gain an insight into the customers’ needs.

The feedback will inform you if your products and services are optimized or need improvement based on which you can fix any shortcomings.

Why Customer Feedback Is Important?

customer giving feedback

Customer feedback is the fuel that drives the business towards growth. It is vital information that will make or break the entire business.

The happier your customers are the more likely they will remain loyal to the brand as well as attract new clients for you as well that is why customer feedback is important

Customer feedback boils down to customer satisfaction. The feedback informs how happy or unsatisfied the customers are with the products or services.

Thus through customer feedback, you’ll know what you are doing right and where you’re falling short.

Customers have problems and they seek solutions. If you can improve your products based on customer feedback then you have created an emotional connection.

This is not a fire and forget system for you will have to keep monitoring the feedback regularly and eventually you’ll have your finger on the customer’s pulse.

7 Interesting Customer Feedback Benefits

Customer feedback can be positive or negative, good or bad but it is nonetheless vital information regarding the business.

It has the potential to transform your company to become customer-centric and thereby reach greater growth and success.

Customer feedback benefits come from listening and understanding the customer feedback. It will put the customer in the center of your business decisions.

In any business, the customers are its life source and when decisions are taken based on the customer’s reactions, it will easily boost customer loyalty and also acquire new clients.

Customer feedback comes in different ways. It could be direct or indirect. Irrespective of the feedback being good or bad, on the whole, it can create many positive changes for the company.

There are numerous benefits of feedback and here are 7 top Customer feedback benefits

1. Understanding Customers Better

Customer feedback is literally the customer informing you about himself. The customer discloses their location, age, gender, and importantly their opinion concerning your products or services.

Customer feedback may be amassed via surveys, social media monitoring, web analytics, and many other methods.

Through the customer feedback, you will learn what excites and motivates the customer to purchase and what irritates them.

Based on the information you can apply necessary adjustments and provide an enjoyable experience to the customers. This in turn will improve customer loyalty.

2. Hearing Customers Is Building Relationships

Humans are social creatures and we like to talk, but especially love to be listened to. It is human nature and so customers most willingly want to share their opinions with the companies. Some studies show that more than 80% of respondents prefer to give brand feedback.

When a brand listens to the customers’ feedback the customer feels his worth acknowledged. Listening creates a relationship and a promise of making the customer’s future experience better.

Being heard provides satisfaction and value for the customer and is likely to continue doing business with the brand.

3. Achieving Customer Satisfaction

Is the customer happy? Customer satisfaction is an impartment measure that needs constant tracking. Keeping the customers happy will bolster customer loyalty leading to repeat business opportunities.

Without customer feedback you do not know if the customer is happy or satisfied and without that information, neither will the sales grow nor will the client list.

However, with feedback one can fix and improve the customer experience for the better.

4. Better Products and Services

Every customer likes a product but there is something one might not like as well. Gaining this information of likes and dislikes will provide an idea of what the customers are more inclined to buy.

Through product feedback from the customer, business owners can sift out any lack, lag, or something missing in the product.

This will then give rise to the chance of selling another product to fill the gap or create an altogether new one.

5. Customer Experience Enhanced

Patterns emerge when one listens to their customers consistently. Amidst the patterns, you’ll see how to further improve customer experience.

The advantage of customer feedback is that any concerns for improvement or tweaks can be isolated and handled individually.

6. Gain Customer Loyalty and New Customers:

Customer feedback tells you if your customer experience lacks something and has an adverse effect on customer loyalty.

This is vital because loyal customers seldom head to the competition and are more likely to recommend you to their near and dear ones.

So if the brand listens to its customer’s satisfaction then it will not only gain loyal customers but also get new customers through word of mouth.

7. Make Informed Business Decisions

Customer feedback will give hard data based on which you can make a well-informed business decision. The insights show the customers’ requirements and also the scope for product or service improvement.

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How to Use Customer Feedback?

thinking holding a question mark

Just gathering customer feedback is not enough and one must know how to use customer feedback. One must also know how to analyze it and take remedial measures if necessary.

The feedback could be qualitative or quantitative but there needs to be a system to categorize the data and bring out meaningful insights.

In other words, the big data collected needs to be divided into different categories to analyze the true implications area-wise.

Analyzed customer feedback can be used to improve customer experience, generate social influence, enhance product line and improve customer support.

1. Improve Customer Experience

Through Customer feedback, the brand can find out if the customer is happy and satisfied with the product or service.

In the case of information technology, it will also show if the clients like the UX. Based on their feedback, in either case, the brand and make tweaks wherever necessary and improve customer experience.

2. Generate Social Influence

People have an inclination to purchase something if they see others buying the product from the same brand. This is considered as social proof or social influence and can be generated using customer feedback.

Publishing customer testimonials in media, own website, or other places will inform the prospective customer why doing business with you is both beneficial and worth their while.

The feedback will also come directly or indirectly from online. It could be brand opinions on social media through comments on posts, or by direct message, or through online ratings and surveys. This is valuable data and gives an understanding of how your target audience views your brand.

3. Enhance Product Line

If you are listening to your customers then you are on the path of growth. As the business grows so will its line of products or services.

It is only logical then to introduce new products is based on customer feedback. This way the customers will remain loyal since the company is actively listening to their opinions and also delivering them.

4. Improve Customer Support:

Customer feedback will show how to improve the customer support mechanisms. Customers have questions and concerns and they need to be resolved at the earliest.

Be it an email, Whatsapp, or chatbot, the majority of the customers prefer their query be answered within five minutes or less.

Speed and accuracy is the name of the game here and will decide if you’ll retain the customer or not.

How to Improve Customer Feedback?

There are many ways to gather customer feedback including customer feedback surveys, online reviews, social media, or direct phone calls.

Some forms of feedback are useful while some may not. When a customer mentions the service was “OK”, it does not tell if it’s on the good side or the bad. The feedback does not give information to convert the “ok” into “superb”.

Therefore collecting helpful and constructive feedback is important since it will also show how to improve customer feedback. Here are some tips to improve customer feedback.

1. Don’t Wait, Reach Out

Left unto themselves, customers will give feedback only when something goes wrong or fantastically good. But that is only one side of the coin.

Standing on the middle ground is vital here. Become proactive and train the staff to request feedback directly. You can also add an unambiguous feedback questionnaire into the ordering process itself.

2. Questions Need to Be Short and Simple

For customers, answering a feedback questionnaire is voluntary, so making it easy encourages them to answer it.

The number of questions should be few and although providing MCQ is recommended an occasional open question and incite valuable suggestions.

3. Precise Questions

The questions in the feedback need to be such that they bring out helpful responses. Instead of asking “did you like our service?” ask “What can be improved in our service?”.

The prior might only give a “Yes or No” answer while the latter has the potential to generate a valuable comment.

4. Make It Online

In the 21st century, people exist more online than offline. Make it easy for all and put the feedback survey online.

Provide a link or an interactive email, where the customer can provide their feedback in a few clicks. This method simplifies the collection and processing of the feedback data as well.

Why Customer Feedback Is Important to Your Business?


Customer feedback is the crux that builds business empires. The importance of customer feedback in business is inescapable.

Know yourself or not, but know your customer very well. Customer feedback will tell you what the customers think about you and that is why customer feedback is important to your business.

It provides hard data on whether the customers are happy and satisfied with your product or service. It is the metric through which the customer will inform you on how the brand has affected them and if they will remain loyal to it or not.


In conclusion, any business without customer feedback is going nowhere. Not knowing the likes and dislikes of customers is like putting a store in the forest devoid of any humans. Occasional someone might turn up, but that’s about it.

Therefore to build a successful business with scope for further growth, the company must give great attention to seeking, gathering, analyzing, and implementing customer feedback.

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