Customer feedback isn’t just about gauging satisfaction, but it’s also about recognizing its potential to drive business growth. Together, businesses and customers co-author a narrative of success and satisfaction.
But for that winning collaboration to happen, you need a system in place.
As with establishing any framework, a customer feedback system can pose challenges, especially for those unfamiliar with it. So, in this blog, we help you understand:
- What Is Customer Feedback?
- The Importance of Encouraging Feedback From Customers
- What Is an Online Customer Feedback System?
- The ACAF Customer Feedback Management Process Loop: Ask, Categorize, Act, Follow Up
- Why You Need Customer Feedback Management Systems
- A Reliable Customer Feedback Management Solution
Let’s start with the question, what is customer feedback? Right after, we’ll look at its benefits.
First, What Is Customer Feedback?
Customer feedback encompasses any input (thoughts, viewpoints, satisfaction levels or opinions) your customers share regarding your product, service or brand.
Gathering this feedback demonstrates to customers that you highly regard their viewpoints and patronage, showcasing your proactive approach to enhancing their overall experience.
Nowadays, customers have the ability to provide their feedback, solicited and unsolicited, using a variety of platforms. The types of feedback can come as or through the following:
- Online reviews and ratings
- Customer satisfaction surveys
- Social media comments
- Customer interviews
- Usability tests
- Feedback survey cards
- SMS, emails and phone calls
The Importance of Encouraging Feedback From Customers
Seeking feedback from customers offers several advantages, such as:
- Understand your customers: Seeking feedback allows you to delve into the minds of your customers. You not only comprehend what they like about your offerings but also identify pain points or areas that need improvement.
- Improve your offerings: By listening to your customers’ suggestions and critiques, you gain invaluable insights into how to refine your offerings in a way that directly addresses customer needs and preferences.
- Show commitment to transparency: Actively seeking and acting upon feedback shows customers that their opinions matter and that you’re dedicated to meeting their expectations.
- Elevate customer experience until post-purchase: The customer journey doesn’t end at the point of purchase. Engaging with your customers post-purchase ensures that customers have a positive experience throughout.
- Get more social proof for future customers: By incorporating feedback into your marketing messaging, you establish social proof. Potential customers are more likely to trust your business when they see real evidence of satisfied customers, making them more inclined to engage with your offerings.
Knowing its importance, the next thing you have to figure out is what to do with customer feedback once it starts coming in. How do you manage customer feedback?
This is where customer feedback management systems come into play.
Now, What Is an Online Customer Feedback System?
Customer feedback systems comprise tools and processes designed to gather, structure and analyze customer feedback, aiming to derive actionable insights.
Typically, online customer feedback systems encompass various channels, such as review campaigns, in-app surveys, website questionnaires, feedback emails or social listening. The feedback could be sought through requests or spontaneously provided by customers.
Customer feedback systems serve multiple functions, enabling your team to gain deeper insights into crucial metrics and assess customer satisfaction. Though the customer feedback management process may differ based on business requirements, most of these systems share several essential features.
Common components found in customer feedback management software today include:
- Generation of feedback across multiple platforms
- Collection of feedback through surveys
- Monitoring of brand mentions and feedback
- Managing customer feedback by category
- Responding to online feedback
- Customer sentiment analysis
- Social media listening
Some customer feedback management software also includes video testimonial collection service.
The ACAF Customer Feedback Management Process Loop: Ask, Categorize, Act, Follow Up
Customer feedback systems operate on various principles, with the Ask, Categorize, Act, Follow Up (ACAF) customer feedback loop emerging as one of the most tried and true methodologies. To help you streamline and figure out what to do with customer feedback, this loop consists of four key stages:
1. Ask for Customer Feedback
Collection of customer feedback can be accomplished through channels such as email surveys, social media interactions or dedicated surveys on your website. The key is to pose pertinent questions, allowing customers ample space to provide detailed insights.
Sample questions could be:
- On a scale of 1-5, how satisfied are you with the product or service?
- If you encountered any issues, how satisfied are you with the resolution process?
- Are there any additional products or services you would like us to offer in the future?
- On a scale of 1-5, how likely are you to recommend our brand to others?
2. Categorize Customer Feedback
After receiving feedback, categorize it systematically to discern the appropriate course of action. For instance, if multiple suggestions revolve around improving a specific feature, it signals a need for enhancement. Categorization generally falls into three groups:
- Positive: Positive feedback serves as valuable social proof that can be prominently displayed across various channels, providing potential customers with compelling information.
- Negative: Insights with potential for future improvement, covering complaints, change requests and enhancement ideas.
- Neutral: Comments that neither guide nor hinder decision-making, including general compliments or vague complaints, often from individuals outside the target audience.
If fitting, before these general categories, you can first sort and manage customer feedback into specific areas such as product development, customer support, potential partnerships and logistics for a more detailed analysis.
3. Act on the Feedback
Having categorized the feedback, it’s time to take action. Depending on the nature of the feedback, actions could involve feature removal or redesign in response to customer complaints or suggestions.
You want to delegate specific roles to team members for crafting solutions to the issues highlighted in the feedback. Some customer feedback management software allows you to assign feedback to specific staff members.
4. Follow Up With the Customer
You should have already responded to your customer and acknowledged their feedback before following up. Once you’ve started acting on the feedback, ensure that you keep your customers engaged by providing updates on how their input has shaped these changes.
And whether positive or negative (as long as it is authentic and genuine), a crucial step in managing customer feedback is to thank customers for the time they spared to leave you feedback.
Why You Need Customer Feedback Management Systems
Since one key aspect of customer feedback systems is generation or collection, you essentially get the benefits mentioned above. Another reason why managing customer feedback systematically is beneficial is because of what automation can bring.
Automation streamlines processes, enhances efficiency and reduces reliance on human resources, providing a seamless and productive workflow to manage customer feedback.
It doesn’t mean you forgo human touch; it just means you and your team have more time to work on other business areas with the time you spare.
Enquiring a customer feedback company will give you more information on what a system can specifically benefit your business and its needs.
In Need of a Reliable Customer Feedback Management Solution?
Look no further.
Rize Reviews can help.
A robust customer feedback management solution is the cornerstone of having meaningful relationships with your clientele. It goes beyond merely collecting feedback; it empowers you to understand customer sentiments, preferences and pain points.
With an effective system in place, you not only glean valuable insights but also demonstrate a proactive commitment to enhancing the customer experience.
Rize Reviews is a customer feedback company that can help your business embrace an online customer feedback system with ease. Reach out to our team for a free demo.