How Customer Feedback Impacts A Business

How Customer Feedback Impacts a Business

What Is Customer Feedback?

In definition, customer feedback is the information provided by the customers after experiencing using your product or availing a specific service. The purpose of customer feedback is to acquire and receive information that can be used to assess the quality of the production, operation, and the overall system of the business. It can be used for improvement to the weak aspects of the website and business. Companies gather this type of information through survey forms, emails, SMS, or anything where the customers can comment, file a complaint, or report an issue.

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Why Is Customer Feedback Important?

The same goes for online reviews and recommendations, customer feedback can be equated with these two concepts. With customer feedback, businesses will have a deeper understanding of the quality of their product or service as the information provided by the customers. How can you assess the production and operation of your business if there’s no customer feedback?

Not only that, customer feedback is highly influential to the purchasing decision of the new customers. If they see positive feedback and satisfied comments, they are more likely encouraged to buy from your business. It is also a platform for customers to voice out their concerns and issues as this could make them feel involved and valued. It can generate new potential leads, loyal customers, and receive personal recommendations. The most highlighted part of customer feedback is its ability to establish a good online reputation and build brand awareness.

How to Collect Customer Feedback?

As mentioned earlier, customer feedback is a vital information for improvement, and collecting such information is highly significant. This could potentially redefine your strategy into something more penetrable and timelier to cater to the different preferences of the customer. Here are some of the distinct methods in collecting customer feedback.

1. Implementing Survey Forms

By far, survey forms are found on almost every website in this industry and have been widely used by most businesses. A survey form has the ability to narrow the feedback of the customers with various options to choose categorized based on experience and quality. There are two prominent types of survey forms that have been proven effective in acquiring information from the customers, namely;

  • Prospects Survey

Prospects Survey is a type of survey form that focuses mainly on the attributes of the target customers like personal information, demographics, buying motivations, preferences, desires, and behaviour. It is a great tool to use for knowing more about your target customers and what you could do to provide their ever-changing taste and standard.

  • Existing Customer Survey

Existing Customer Survey can be broken down into three types, namely; Customer Satisfaction Score (CSAT), Customer Effort Score (CES), and Net Promoter Score (NPS).

Customer Satisfaction Score is designed to measure customer satisfaction in regards to the process, products or services, and support team. It is a form of a survey that has a typical linear scale- ranking the experience of the customers on a scale of 1-5 or 1-10. This kind of survey is mostly sent after a transaction has been made by a customer service representative.

On the other hand, Customer Effort Score specifically measures user experience and engagement in a form of words- scaling from very easy to very difficult. The difference between the two aforementioned terms is that CSAT is based on numbers to rate the experience of the customers, while CES is based on words.

The last type of existing customer survey is the Net Promoter Score. This type of survey form measures customer loyalty. It is a determinant factor that also measures the effectiveness of your conversational marketing strategy as a form of customer service. It is scaled based on numbers from 1 to 10.  NPS survey is categorized into three parts- detractors, passives, and promoters.

  • 0-6: These are the detractors who are most likely to leave a negative comment.
  • 7-8: These are the passives that are satisfied with your service but lack the action to recommend it to others.
  • 9-10: These are the promoters who love and promote your brand to other people.

2. One-To-One Outreach Survey

To be honest, doing an online survey is a hassle and is mostly favoured based on the feedback you want to hear, not providing information based on their experience with your brand. It’s also very time-consuming and annoying to the side of the customers.

To mitigate this scenario, it is best to do one-on-one outreach as a form of gathering customer feedback that can be done through phone calls, chatbots, and appointments with the customers. With this, the feedback that will be gathered from the customers has more insight and substance compared to the typical online surveys.

3. Using website feedback boxes

Feedback boxes can be likened to the suggestion boxes found at the countertop of a retail store or restaurant. This type of survey form allows business owners to collect feedback and sentiments effectively and wisely done. It can be done in various ways, such as using exit pop-up ads, slide-out forms, live chats, and a chatbot. However, it’s not recommended to ask for feedbacks anytime while the customer is busy finding an item and engaging the website. To effectively gather information from them, make sure to ask for feedback at the right moment. For example:

  • When a customer is spending a ton of time on a product page but hasn’t taken any other action.
  • If someone is on the FAQ or knowledge base page.
  • If a customer abandoned their cart.
  • If they are about to exit your site.

If you notice someone has spent 10 minutes on a product page or reading a Help Desk article about how to use one of your more technical products, it might make sense to assist the customer for either live chat or a chatbot to know what he/she really wants.

4. Examining User Activities

Examining user activities means observing and monitoring the behaviour of the customers without asking them to finish a survey, take a call, or fill in a feedback form. It can be used to increase conversion leads as the information that will be gathered is the sole of customer engagement.

For example, online technology platforms like Full Story and Hotjar allows business owners to follow the steps of the customers around the site.

5. Monitoring Social Media Activities

By far, social media platforms have the biggest engagement and interaction with customers. Managing your social media accounts helps you understand the different preferences of the customer in regards to trusting your business brand. Social media platforms such as Facebook, Instagram, TikTok, Twitter, YouTube, and so much more.

Monitoring the comments, shares, and tagged posts by the customer to your business brand. By this, it would be easier to gather insights and feedbacks from the customers.

Benefits Of Gathering Customer Feedback

Not only it’s used as an instrument for improvement, but it also offers great benefits for the overall aspects of the business. Customers like to be heard and every time you improve the quality of your products and service, the more they are encouraged to repurchase.

Some of the predominant benefits of customer feedback are lowered customer acquisition cost, an increase in conversion rate, and gaining loyal customers. But it’s more than that; the next part of this discussion is mainly talking about the perks of gathering customer feedback.

1. Improves Customer Service & Experience

Aside from the worth of conversational marketing, collecting customer feedback also has the ability in improving your customer service and user experience. By doing such, it helps you measure the experiences of the customers- using your product or availing a specific service from your business that is used to analyse performance to assess what areas need improvement and strengthening.

2. Establishes More Loyal & Satisfied Customers

As you continue to improve your customer service and user experience by extracting information from customer feedback, the more they are interested in connecting with your business and recommending it to their friends and family. They are the promoters who are likely to give a 9 or 10 score in regards to their experience using your products or service.

For example, customers who posted their items or deliveries on their social media accounts and promoting it to others using their respective platforms. It means that the customers are satisfied with the quality and the transaction, so the greater chance they will convert themselves into loyal customers.

3. Strengthen Product Development

Obviously, the main purpose of collecting customer feedback is to know the experience of the customers while using your product or service. So, it’s basically saying that the more you collect this type of information, the more you can strengthen the development to create quality products.

4. Demonstrates Value & Care

Listening to your customers demonstrates value and care. This means that if the customers have something to say about your business and you listen, it gives them a sense of appreciation that you took the time to listen to what they have to say. The more you practice this kind of behaviour with your customers, the more positive customers you can generate, thus increasing the customer’s retention rates.

5. Lowers Customer Acquisition Cost

If you clearly understand the behaviour and preferences of your customers, the easier it is to generate purchases and close deals. There will be not much of a need to use digital ads in convincing the customer because you already have the idea of what to provide, and they also have the idea of what you offer.

6. Increase Sales Conversions

Focusing on collecting customer feedbacks to improve customer service can increase your conversion rate by 3% to 4%.

7. Offers Competition Advancement

As the competition becoming more intense, the competitors in your industry have always something to offer to the customers. But the most crucial factor that can give you a boost in the competition is customer service and user experience. By collecting customer feedback, it wouldn’t only increase your conversion rate or sales, it can highly influence the purchasing decision of the customers as to see positive reviews and feedbacks from old customers.

Collecting Customer Feedback

1. Using Automation Tools For One-Central Feedback

Doing automation allows the business owners to collect feedback in one place where other members of the company know where to extract the customer feedback. With this, you can see the author of the feedbacks, its attachments, and the status of the feedback, thus creating a customer feedback loop.

2. Translating Customer Feedbacks Into Valuable Stories & Concrete Actions

One way to effectively make use of customer feedback is to create stories and plan for action. The more you receive feedback, the easier it is to create stories as a blueprint in making an action. It’s a strategic way of counterattacking the current emotions of the customers, then offering something that can change their emotions into something more beneficial.

3. Filtering Feedbacks That Have Direct Impact On The Business

Not all feedback will be used to improve the business, half of them are very essential, while the other half only contributes to a certain degree. In filtering feedback, make sure that it has the following attributes:

  • Impact – the severity of the feedback that can change the whole strategy of the marketing plan.
  • Confidence – on a scale of 1-10, how confident are the feedback that will help solve the existing problems in the business?
  • Usefulness – weighing the substance of the feedback, how useful is it in changing the plan?

4. Assigning KPIs

Having more customers means that you have to deal with a massive number of feedback you receive depending on your timeline. It’s also getting difficult to manage all the feedback and losing focus on strengthening the weak aspects of the business. That’s why it is important to assign the team members to a specific task to ensure quality response and service.

5. Analyzing Results

After responding to feedback, it’s important to revisit the implementation of the plan to assess whether the customers are satisfied or not.

  • Are the customers happy and satisfied? 
  • Are they making repurchases?
  • Is the conversion rate on your eCommerce store improving?
  • Are you seeing more positive mentions on social media?


As the marketing industry continues to grow, customers nowadays have different ways of motivation, influence, and purchasing behaviors. It’s more preferable to trust online reviews, recommendations, and public feedback posts rather than digital ads. Collecting customer feedback and responding to this type of information is one of the effective ways to assess the quality of your product or service, your performance in the industry, and how you handle different types of customers. It is used as an instrument to grow and improve the overall aspect of the business for the greater good of the customers.

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