5 Ways Customer Feedback Can Help Your Small Business

11 May, 2017 / Comments: Comments Off on 5 Ways Customer Feedback Can Help Your Small Business / By

As a small business owner, you have a lot on your plate. Between developing business strategies, implementing marketing techniques, orders and other tasks, it’s easy for other things to fall by the wayside. One area that is commonly overlooked is customer feedback. Customer feedback has the ability to give you the highest return on investment. Here are five ways it can help your small business.


You Can Improve Your Products and Services

Customer feedback is a valuable tool all throughout the developmental phases of your products and services. This way, you are guaranteed to have a product on your shelf, or have a service available that people are going to want to buy. You can’t achieve this without listening to your customers. Today’s business world is highly competitive. If you are able to create a balance between customer feedback and product development, you will be able to gain the strong competitive advantages as many of the most innovative companies out there.


Your Customers Feel Truly Valued

A good business revolves around its customers. Feedback is your direct line of communication with them. By asking your customers for their feedback on a product or service they have purchased, you can make them feel truly valued. They feel more like a person and that they are important. As a result, you are much more likely to retain your customers. You can ensure their loyalty, and that they will continue to come back to you time and time again.


Improves Your Reputation

These days, your customer feedback doesn’t just come to you. With the rise of social media, customer feedback is all over the internet. Finding out what your customers liked, and didn’t like, can be an opportunity to greatly improve your reputation. If they liked the product they bought, reach out to them and thank them. If they didn’t like the product they bought or the service they received, work with them to fix the situation. These are the things that customers will mention in their feedback. And with a better reputation, it is going to be much easier for you to acquire new customers.


Allows You to Identify Areas of Satisfaction

By asking for, and paying attention to customer feedback, you are better able to identify areas of true customer satisfaction. You can learn if your products or services actually meet, or even exceed, expectations. By tracking satisfaction over time, you learn what areas your customers are most happy with. This can then help you to create new sales opportunities that can help you to improve your business. These opportunities would not be possible if you did not pay attention to what your customers have to say.

At the same time, customer feedback can also help you to determine areas where customers are dissatisfied. With this, you can make the necessary changes, and turn that dissatisfaction into satisfaction.


Increases Employee Morale

When a customer makes a complaint, it can really make your employees feel terrible. However, good feedback can make your employees feel great, and that what they are doing makes a difference. It can help them to feel truly connected to the business. This can give your employees a real morale boost. They are happier at work. This can give them the motivation to keep up the good work each and every day.

Even bad feedback can be helpful in increasing employee morale. While it may not feel good to hear at the time, bad feedback can be used as a learning opportunity. Hearing what went wrong can help employees understand how to improve. Alos, by taking the time to improve, good feedback will soon follow.

There is no such thing as too much customer feedback; the more you receive, the better your business can be. With insight from the people buying your products and services, you can really help your business to grow and flourish.


William Mahnic
William Mahnic is a Finance Professor at Case Western University and has spent more than 20 years in the finance industry before becoming a professor. Mahnic has appeared as a commentator on both TV and radio talk shows including NPR, Crain's Cleveland Business, WKYC 3 and The Washington Post. He has been interviewed in BusinessWeek, Wall Street Journal and The Los Angeles Times.

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