8 reasons why customer feedback is important to collect and analyse

  • Customer feedback is extremely important for all businesses. Budgets and resources are being allocated to getting access to quality data that can "closing the loop" on customer feedback.

  • This allows senior executives to plan strategies based on insights, that deliver growth and capture market share as organisations look to rebound post-pandemic.

Feedback can be collected via a variety of channels these days – from online communities, email outreach and surveys.

Below are 8 reasons why you should focus on collecting customer feedback effectively.


1. Relationships Customer feedback allows a brand or business to show care to customers by connecting with them and allowing them to share their experiences. By getting their feedback you also develop empathy for the customer as you understand them better. It helps build brand equity and reinforces your brand values.


2. Trust Customer feedback when done well can allow unfavorable responses to be mitigate negative impact, it allows for intervention and dialogue proving an opportunity to close the loop and win customer’s trust back.


3. Brand connect

Brands that “listen” have high popularity amongst their customer base. Great customer service, strong product quality and great handling of feedback result in strong brand performance


4. Customer insights

Customer feedback is a great tool to understand customer behavior, not just their likes and dislikes. It can help you understand their drives their purchases, their profiles, and their value systems.


5. Warning Customer feedback can help you fix something that’s slipping through the cracks before it becomes an enormous problem. It can help you restrict problems, issues and challenges within a division or location before they gain prominence organization wide or regionally/ globally.


6. KPI management

Customer feedback can be built into the KPIs of divisions, employees, and regions. It is a valuable tool to drive transparency and highlight what’s working well and share that knowledge across the organization. It also helps provide data for KPI metrics.


7. Team development Employee feedback enables managers to ensure career progression and development within teams. It also allows the organization to improve in areas where feedback is negative.


8. Ideation

Customer feedback is great for ideation, both for CX and product development. Data analytics can often define trends geographically or in patterns of behaviour.


Customer feedback can be collected at various touchpoints, after a purchase or service, through check-ins, email check-ins or via social communities. Feedback can be collected via a variety of channels these days – from online communities, social groups, email outreach and surveys.

All of them are effective – what’s important is to ensure that customer feedback is a long term program in your organization that customer satisfaction over an extended period to deliver value.


There is agreement that survey data does not meet all the CX needs within organisations, but it helps predict customer demand and thus is an essential tool for market research.


According to a survey by McKinsey of more than 260 customer experience heads in the United States, 93% of respondents stated that a survey-based research model (such as customer satisfaction score and customer effort score) is a fundamental tool for measuring CX. The data also suggested that a large proportion of leaders (85%) were dissatisfied with how their company was measuring CX. Less than 6 per cent thought that their CX measurement process enabled strategic and tactical decision-making. The challenges they encountered are:

- Limited access to quality data

- Majority of data is still unstructured making it difficult to draw insights

- Uncertainty about performance drivers, and

- Unclear link to financial value


But once the mechanism to collect customer data and feedback can be streamlined, it provides great ammunition to drive business growth.

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