The Importance of Feedback

Consumer insights on customer feedback

Based on a recent report Kyle LaMalfa of Allegiance, “The Positive Economics of Consumer Engagement” (http://bit.ly/mN9ZFg) “feedback response” is one of four economic ways to measure customer engagement.

The value of feedback is multifaceted.

When a customer or prospect provides feedback, they are indicating a desire to have a relationship with the company.  They are taking the time to let you know what’s on their mind and what’s on their mind is invaluable to you as a company — especially as a marketer.

When companies listen and respond to their customers’ feedback, customers have more confidence in the company and feel valued.  That’s why it’s important to respond in a timely and accurate manner.

Active listening helps address customer concerns before they become major problems, which in turn helps to strengthen customer engagement.

Customers that know companies are listening will provide more and higher quality feedback.  And the more customers provide feedback, the better companies will understand the need and concerns of their customers.

This is consistent with what I have found conducting in-depth one-on-one interviews.  The first few minutes of an interview are fairly rote and the answers provided somewhat expected; however, once the respondent see that I am truly interested in what they have to say, they go into more detail about what they do or do not like about the product or service being discussed and ultimately help me see their emotional connection to the brand.

Based on research from Gartner, only four percent of dissatisfied customers provide feedback.  If your customer-facing employees can convince customers that you really are concerned about their feedback, you can increase the percent that give you feedback.

Ultimately you want to create a dialogue with your customers.  This dialogue will build trust and loyalty and over time convert occasional customers to regular customers, regular customers to loyal customers and loyal customers to “raving fans.”

“Raving fans” are particularly valuable because they will be your best marketers.

What are you doing to garner more feedback from your customers?

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About Insights From Analytics

Integrated marketing professional who generates insights from analytics to increase revenue. Daily blog now resides at www.insightsfromanalytics.com/blog.
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