Importance of Customer Feedback in Business | Tips & Example

Customer feedback can be a secret weapon for your business. When you listen and change according to what your customers want, you’re not just making better products, you’re also telling them you care.

75% of customers^[1] are likely to return if their feedback is handled effectively. However, 73% stated that they would move to a competitor after having two negative experiences. That's a big margin of error, isn't it? Customer feedback is not mere information; it is a direction for enhancing your productivity.

In this blog, we will understand how positive and negative client feedback is used as a foundation for building trust and reliability. We will also discuss how citing client feedback can boost the credibility of your business. Let's start.

How Positive Customer Feedback Builds Trust?

Everyone loves positive client feedback. They also act as a powerful tool in building trust with potential customers. When you're planning to buy something online, don't you check out what others are saying? That’s where the importance of feedback comes in.

When a company displays extensive testimonials or case studies, they are stating, "These customers loved us, and you might too!" Acknowledging real life experiences from customers can be an effective way to understand them better. Many businesses use this marketing tactic, be it a quote on a billboard or a video testimonial online- whatever suits your brand.

Moreover, genuine, thorough feedback shows that your focus extends beyond sales, and are trying to develop long-term relationships.

How to Use Negative Customer Feedback to Build Trust?

Acknowledging and acting on your error conveys the sense that you are willing to be candid throughout the process. Did you know that 45% of consumers^[2] are more likely to visit a firm that responds to negative feedback and promises to work on it?

For example, an online store confessed to customers by posting a public message saying sorry about delayed delivery. The key is explaining the situation to the buyer and offering a discount. And the outcome could be a satisfied customer, an updated review, and praise for the collaborative approach.

Therefore, the importance of customer feedback goes beyond just collecting opinions. Using that feedback to improve and show your commitment is equally necessary. They way you handle criticism can build more trust than a perfect record ever could.

Building Transparency Through Customer Feedback

Consider client feedback channels to be a window into your firm. The more you open up, the more transparent you become. This develops trust and demonstrates accountability.

Companies like Airbnb and Amazon show all feedback, good and bad. This amount of transparency communicates, "We are confident in our product, but we are also open to improvement." They see that you are committed to improving yourself rather than simply looking nice. Customer feedback is also about building a culture of trust that converts customers into loyal ones, which is priceless in today’s market.

8 Actionable Tips for Soliciting Customer Feedback

86% of customers^[3] are willing to pay more for a better experience, and 93% will be repeat customers when satisfied with a service. The trick? Ask, listen, and improve. Here are some practical tips you can start with:

1. Keep it simple: Short surveys are more likely to be completed easily. Ask focused questions that get to the heart of what you want to know.

2. Importance of timing: It’s better to ask for client feedback right after a purchase or interaction when their experience is fresh.

3. Mix it up: Send a message on email and through social media platforms so that you're talking to the customers where they spend their time.

4. Make it easy: Use tools such as SurveyMonkey or Google Forms to create friendly surveys.

5. Get personal: Respond to consumer feedback with a proper answer. This shows you are listening.

6. Incentivise carefully: Small rewards like discounts or gift cards can boost the response rate, but it must not skew customers’ input.

7. Use social media: Use polls or ask questions in posts and stories to get faster insights and better engagement.

8. Automate wisely: Tools like Zendesk or Intercom can help manage client feedback, but you must maintain the personal touch.

Examples of Customer Feedback Importance to Enhance Credibility

Displaying client feedback is an effective strategy to increase credibility. Think of your website as a digital marketplace, because it’s where potential customers can learn about what you offer.

You can also enhance your impact by showcasing client testimonials and case studies on social media platforms. This word-of-mouth marketing will help you in the long run. Here are some examples to understand how some brands utilise client feedback:

• Apple’s Customer-centric Approach

Apple frequently uses customer photography shot on an iPhone in its ads. It is a subtle way of indicating that their products allow people to be their authentic selves, or even become better photographers! The intention is to bring out the real value of their product through the eyes of the customers.

• Amazon’s Focus on Customer Reviews

Amazon, on the other hand, trusts consumer reviews to help you make purchasing decisions. But it’s not about the review star ratings alone. Significant reviews-good or bad, give secure bidding confidence to potential buyers. This transparency also leads to increased sales and higher consumer loyalty.

Summing Up

Customer feedback isn't just great to have. It is critical for your business if you are looking to develop trust and growth. Now we know the importance of customer feedback, how it increases credibility, demonstrates transparency, and even converts negatives into positives.

So, start small but start now. Ask your next customer how you did. Set up a simple survey or respond to that review you've been avoiding. In any case, make it genuine. Each customer feedback is a chance to grow and communicate.

To communicate and open up to your customers better more effectively, connect with GrowthJockey today. Discover how open feedback can make a huge difference in your business growth. Your customers are eager to be heard. Are you prepared to listen?

Customer Feedback FAQs

1. How do I get honest feedback from my customers?

Short surveys, quick polls, and direct questions right after purchase are excellent ways to gather honest customer feedback. With these strategies, you are more likely to receive relevant and valuable answers. Including a discount or exclusive content can motivate customers to contribute more to improving your products and services.

2. How often should I ask for feedback?

Collect your customer feedback often—be it at the point of sale, through a customer care call, or at any other significant touchpoint in the consumer journey. However, avoid overloading customers with too many requests, as this might irk them. Customers are also less likely to respond and may even consider cancelling your services if they feel there are too many demands from you to provide adequate feedback.

3. What am I supposed to do if I get negative feedback?

Avoid being nervous when customers complain, and refrain from complaining. Instead, be prompt in your responses. Acknowledge the problem and try to offer an effective solution that indicates you are there to solve it. Such proactiveness rebuilds trust with customers and shows that you took their concerns seriously to ensure satisfaction.

4. Can customer feedback really turn a bad situation around?

Absolutely. Keeping negative feedback transparent and handling it carefully shows you are human and looking for ways to improve. Let them know you take their issues seriously and are open to making changes. This can turn a bad experience into a good one, which might give you even stronger customer loyalty and a more dedicated fan base.

1. 75% of customers - Link ↑
2. 45% of consumers - Link ↑
3. 86% of customers - Link ↑