7 Top Benefits of Customer Feedback You Should Know

by Josephine Remo on Dec 23, 2024 |

Are you wondering what the true benefits of customer feedback are and why you should collect it?

You might hear about the importance of customer feedback all the time but feel unsure about how it can actually help your business. Perhaps you’re not entirely convinced of its value, or maybe you’re just uncertain about how to put it to good use.

Well, you’re in the right place! I’ve spent years gathering and analyzing customer feedback, and I’m here to highlight why it’s such a crucial asset for any business.

Let’s dive in and discover how exactly customer feedback can benefit you.

Why Is Customer Feedback So Important?

The benefits of Customer Feedback - Why's it's important

I get this question a lot, and the answer is simple: feedback gives you valuable insights directly from the people who use your products or services.

Knowing what your customers think and feel can decide whether your business thrives or struggles to keep up.

By paying attention to customer feedback, you can make smart decisions, build stronger relationships with your customers, and stay ahead of your competitors.

Let’s look at how why customer feedback is so important.

1. It Lets You Pinpoint Areas for Improvement

Trying to improve your product without any feedback is like shooting in the dark, isn’t it?

Without knowing what your customers like or dislike, you’re just guessing about what needs fixing or enhancing. By listening to what your customers say, you can adjust your product to suit your target audience better.

When you act on feedback, customers will see you making real progress with products that meet their needs and wishes.

Even if you know your product really well—and you’ve probably talked endlessly about every feature with your team—it’s easy to miss areas for improvement.

Fresh perspectives, like those from customer feedback, help you see things through a new set of very important eyes.

2. Positive Customer Feedback Generates Positive Reviews

We’ve all heard the saying: the best publicity is word of mouth—and the best part? It’s free!

When your customers have great experiences, they’re likely to share them, creating a ripple effect that can bring more business your way.

According to research conducted by Dixa, a whopping 93% of customers read online reviews before making a purchase. Meanwhile, 47% are inclined to spread the word about a positive experience, while an incredible 95% will shout about a negative one.

That’s a lot!

In my experience, satisfied customers play an essential role as brand advocates. They tell around three friends about their good experiences, helping your brand grow naturally through word of mouth.

Conversely, unhappy customers tell people about their dissatisfaction, emphasizing the importance of keeping customers happy.

3. You Want to Hear Negative Feedback First

Nobody likes to see negative reviews about their products or services floating around on the internet.

Wouldn’t it be awesome if you could hear any dissatisfaction directly from your customers before it becomes a negative review?

Capturing this feedback early gives you a golden opportunity to improve the situation for dissatisfied customers and prevent similar negative experiences for others.

By addressing concerns promptly and effectively, you can transform a potentially damaging situation into a positive experience.

4. Listening to Your Customers Make Them Feel Important

This concept aligns perfectly with the idea of catching negative feedback early.

When you listen to your customers—especially when they share their negative experiences—they feel valued and understood.

Turning a negative experience into a positive one not only satisfies that particular customer but can also nurture brand loyalty. It’s a win-win situation where the customer knows their voice matters, and you get the chance to improve your offerings.

Customers who feel heard and appreciated are more likely to stick around. They even advocate your brand to others, creating a robust and loyal customer base that’s invaluable for sustainable growth.

The Benefits of Customer Feedback

Online surveys - customer feedback

Now that you have a really solid understanding of why customer feedback is so important let’s move on to the heart of this guide.

Next, I’ll cover the 7 most important benefits of customer feedback that you should know about.

1. Lets You Improve Your Products and Services

Offering exactly what people need is really important for a successful business.

This idea works for all kinds of businesses, whether you’re in eCommerce, services, or SaaS (Software as a Service).

For eCommerce, it’s about having the right products in stock.

For SaaS companies, it’s about having the right features and maybe some extra services.

Think about it—wouldn’t it be risky to add new features or stock new products without knowing if your customers actually want them?

That’s why it’s so important to talk to both current and potential customers to understand their needs.

Sometimes, customer feedback can teach you surprising things.

If several customers mention the same issue or give the same suggestion, it’s a sign that you might need to change something.

2. Helps You Measure Customer Satisfaction

Customer satisfaction is about how happy your customers are with your products, services, and interactions with your business.

It’s important because it helps you understand what you’re doing right and where you can improve. When you know how satisfied your customers are, you can fix issues, keep them from leaving, and build loyalty.

One of the best ways to measure this is through customer satisfaction surveys. These surveys tell you exactly how your customers feel.

Regularly checking in on customer satisfaction helps ensure that your customers are happy and your business is on the right track.

If you find areas that need work, you can make changes to improve the customer experience.

I recommend you read 20 Customer Satisfaction Survey Examples & Templates to learn more.

3. You Get to Know Your Customers Better

While market research and buyer persona studies provide valuable insights, the most meaningful information comes directly from your customers.

Your customers can share their feedback on how they directly interact with your products and services and what they expect from your business. This deeper understanding allows you to tailor your marketing strategies and refine your products to better meet their needs.

When you know your customers well, you can create experiences that truly resonate with them.

4. Increases Customer Experience

A great customer experience is key to building strong relationships with your customers. One of the best ways to enhance this experience is by leveraging customer feedback.

By understanding these insights, you can make changes that create a more enjoyable and seamless customer experience.

Whether it’s simplifying a process, adding new features, or improving customer service, acting on feedback shows that you value your customers’ opinions and are committed to meeting their needs.

5. Helps Increase Customer Retention

Customer feedback is a powerful tool for increasing customer retention.

When you actively listen to your customers and make improvements based on their suggestions, you show them that their opinions matter and give them what they want.

This builds trust and strengthens your relationship with them, making them more likely to stick around. Plus, if you’re giving them the perfect product, why would they choose a competitor?

6. Helps You Attract New Customers

Customer feedback doesn’t just help you keep existing customers; it also helps bring in new ones.

Positive feedback and reviews act as a testimonial for your business, showcasing what you do well and why others should give you a try.

We’ve already learned that potential customers often look for reviews and ratings before making a purchase decision.

So, by ensuring your current customers are satisfied and sharing their positive experiences, you create a wave of word-of-mouth marketing that attracts new customers.

Additionally, when you address and improve based on feedback, you can develop products and services that appeal to a broader audience.

7. Increases Revenue

Ultimately, all the benefits of customer feedback combine to positively impact your revenue.

By improving your products and services based on feedback, you enhance customer satisfaction and retention, which leads to more repeat purchases.

Happy customers also tend to spend more, especially when they receive personalized experiences tailored to their needs.

Moreover, attracting new customers through positive reviews and word-of-mouth can expand your customer base.

All these factors contribute to a healthier bottom line and allow you to grow your business.

How to Collect Customer Feedback

Now that you know how valuable customer feedback is, let’s discuss ways to gather it. Many tools and methods are available to help you collect feedback effectively.

For WordPress users, a standout option is the UserFeedback plugin.

UserFeedback is a fantastic tool for creating customer feedback surveys without requiring any coding skills.

Its easy-to-use interface and powerful features make it simple to design surveys that collect honest and helpful feedback from your audience.

Here’s why UserFeedback is a top choice:

Unlimited Surveys and Responses: Create as many surveys as you need, with no limit on responses.
Ready-Made Templates: Start quickly with pre-made survey templates if you’re unsure what to ask.
Adaptive Questioning: Use conditional logic to ask questions based on previous answers.
Flexible Launch Options: Decide when and where surveys appear on your site.
Analytics Integration: Connect with Google Analytics through MonsterInsights for detailed reporting.
Advanced Targeting: Tailor surveys to specific devices and schedule them for optimal times.
Robust Integrations: Link with other tools and email marketing platforms through Uncanny Automator.

Get started with UserFeedback today and see how it can help you gather invaluable feedback from your customers!

That wraps up my guide on the benefits of customer feedback. I hope you liked it and found it insightful.

Maybe you’d also like to read:

And don’t forget to follow us on X and Facebook to learn more about collecting user feedback online.

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UserFeedback reserves the right at any time, and without cost, charge or liability, to terminate this Agreement at its sole discretion for any reason, including, but not limited to, a failure to comply with the terms of this Agreement. In addition, UserFeedback may, in its sole discretion, at any time, temporarily or permanently suspend access to your account, Subscription or Services for any violation or suspected violation of this Agreement. UserFeedback also reserves the right to deny access to anyone, including, but not limited to those users who use proxy servers and/or IP addresses residing in certain geographical areas outside of Canada and the United States. UserFeedback reserves the right to terminate any portion of the Site at any time, for any reason, with or without notice.

Automatic Renewal

Unless you notify MonsterInsights, LLC before the end of the applicable subscription period that you want to cancel your renewal, your subscription will automatically renew and you authorize us to collect the then-applicable annual or monthly subscription for such Renewal using any credit card or other payment medium we have on record for you. A subscription can be cancelled at any time in the My Account and Billing section of your dashboard.

Refund Policy

The UserFeedback no-risk money back guarantee offers that, if at any time within the first 14 days of opening your paid Account you decide that UserFeedback is not for you, then just let our awesome support team know (we make it easy!).

We will stop your Subscription and issue you a refund. Your request for a cancellation must be received within 24 business hours of the 14 days of the date and time of opening your paid Account. While some refunds may be instant, refund credit can take up to 5 - 10 business days to show up in your credit card statement.

If adequate notice is not received and your credit card is subsequently charged, you will not receive a refund.

Free trial accounts and renewals are not eligible for refunds.

Discount Policy

On occasion, UserFeedback may offer purchase incentives in the form of subscription discount codes. Discount codes are applied on an introductory basis, meaning that are only applied for the first term of the subscription selected. Discount codes do not perpetuate with the life of the subscription. After your initial term has passed, subscriptions will be charged the regular price.

Agreement to Governing Law and Jurisdiction

If there is any dispute between you and UserFeedback about or involving this Agreement, the Site or the Services, you hereby agree that the dispute shall be governed by and construed in accordance with the laws of the state of Florida, without regard to its conflict of law provisions. You hereby agree to submit to the exclusive jurisdiction of the courts in West Palm Beach, Palm Beach County, Florida, with respect to any claim, proceeding or action relating to or otherwise arising out of this Agreement, the Site or the Services, howsoever arising, provided always that UserFeedback may seek and obtain injunctive relief in any jurisdiction.

Severability

If any portion of this Agreement is deemed unlawful, void or unenforceable by any arbitrator or court of competent jurisdiction, this Agreement as a whole shall not be deemed unlawful, void or unenforceable, but only that portion of this Agreement that is unlawful, void or unenforceable shall be stricken from this Agreement.

Legal Remedies

You agree that this Agreement is specifically enforceable by injunctive relief and other equitable remedies without proof of monetary damages.

You agree that if UserFeedback does not exercise or enforce any legal right or remedy which is contained in the Agreement (or which UserFeedback has the benefit of under any applicable law), this will not be taken to be a formal waiver of UserFeedback’s rights and that those rights or remedies will still be available to UserFeedback.

Surviving Provisions

The sections of “Submission of Content”, “Intellectual Property Rights”, “Confidential Information”, “Disclaimer of Warranties”, “Third Party Sites and Content”, “Limitation of Liability/Exclusion of Consequential and Related Damages”, “Indemnity” and “Agreement to Governing Law and Jurisdiction”, “Severability”, “Legal Remedies”, and any other provisions that by their nature are intended to survive will survive any actual or purported termination of your account or termination or expiration of this Agreement and shall continue in full force and effect.

Manner of Giving Notice

Except as otherwise specified in this Agreement, all notices, permissions and approvals hereunder shall be in writing and shall be deemed to have been given upon: (i) personal delivery, (ii) the second business day after mailing, (iii) the second business day after sending by confirmed facsimile, or (iv) the first business day after sending by email. Billing-related notices to you shall be addressed to the relevant billing contact designated by you. All other notices to you shall be addressed to the relevant contact designated by you.

Miscellaneous
NPS is a registered trademark, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.

For any questions, feel free to reach out at 561-408-1057

Privacy Policy

Your privacy is very important to us. At UserFeedback we have a few fundamental principles that we follow:

We don’t ask you for personal information unless we truly need it. (We can’t stand services that ask you for things like your gender or income level for no apparent reason.)
We don’t share your personal information with anyone except to comply with the law, develop our products, or protect our rights.
We don’t store personal information on our servers unless required for the on-going operation of our site.

Monster Insights LLC (“UserFeedback”) operates several websites including UserFeedback.com. It is UserFeedback’s policy to respect your privacy regarding any information we may collect while operating our websites.

Website Visitors

Like most website operators, UserFeedback collects non-personally-identifying information of the sort that web browsers and servers typically make available, such as the browser type, language preference, referring site, and the date and time of each visitor request. UserFeedback’s purpose in collecting non-personally identifying information is to better understand how UserFeedback’s visitors use its website. From time to time, UserFeedback may release non-personally-identifying information in the aggregate, e.g., by publishing a report on trends in the usage of its website.

UserFeedback also collects potentially personally-identifying information like Internet Protocol (IP) addresses for logged in users and for users leaving comments on our blogs. UserFeedback only discloses logged in user and commenter IP addresses under the same circumstances that it uses and discloses personally-identifying information as described below, except that blog commenter IP addresses are visible and disclosed to the administrators of the blog where the comment was left.

Gathering of Personally-Identifying Information

Certain visitors to UserFeedback’s websites choose to interact with UserFeedback in ways that require UserFeedback to gather personally-identifying information. The amount and type of information that UserFeedback gathers depends on the nature of the interaction. For example, we ask visitors who comment on our blog to provide a username and email address. Those who wish to receive UserFeedback updates via email, we collect their emails. In each case, UserFeedback collects such information only insofar as is necessary or appropriate to fulfill the purpose of the visitor’s interaction with UserFeedback. UserFeedback does not disclose personally-identifying information other than as described below. And visitors can always refuse to supply personally-identifying information, with the caveat that it may prevent them from engaging in certain website-related activities.

Aggregated Statistics

UserFeedback may collect statistics about the behavior of visitors to its websites. For instance, UserFeedback may monitor the most popular pages on the UserFeedback.com site or use spam screened by the Akismet service and/or Google reCAPTCHA to help identify spam. UserFeedback may display this information publicly or provide it to others. However, UserFeedback does not disclose personally-identifying information other than as described below.

Protection of Certain Personally-Identifying Information

UserFeedback discloses potentially personally-identifying and personally-identifying information only to those of its employees, contractors and affiliated organizations that (i) need to know that information in order to process it on UserFeedback’s behalf or to provide services available at UserFeedback’s websites, and (ii) that have agreed not to disclose it to others. Some of those employees, contractors and affiliated organizations may be located outside of your home country; by using UserFeedback’s websites, you consent to the transfer of such information to them. UserFeedback will not rent or sell potentially personally-identifying and personally-identifying information to anyone. Other than to its employees, contractors and affiliated organizations, as described above, UserFeedback discloses potentially personally-identifying and personally-identifying information only in response to a subpoena, court order or other governmental request, or when UserFeedback believes in good faith that disclosure is reasonably necessary to protect the property or rights of UserFeedback, third parties or the public at large. If you are a registered user of an UserFeedback website and have supplied your email address, UserFeedback may occasionally send you an email to tell you about new features, solicit your feedback, or just keep you up to date with what’s going on with UserFeedback and our products. We primarily use our various product blogs to communicate this type of information, so we expect to keep this type of email to a minimum. If you send us a request (for example via a support email or via one of our feedback mechanisms), we reserve the right to publish it in order to help us clarify or respond to your request or to help us support other users. UserFeedback takes all measures reasonably necessary to protect against the unauthorized access, use, alteration or destruction of potentially personally-identifying and personally-identifying information.

Cookies

A cookie is a string of information that a website stores on a visitor’s computer, and that the visitor’s browser provides to the website each time the visitor returns. UserFeedback uses cookies to help UserFeedback identify and track visitors, their usage of UserFeedback website, and their website access preferences. UserFeedback visitors who do not wish to have cookies placed on their computers should set their browsers to refuse cookies before using UserFeedback’s websites, with the drawback that certain features of UserFeedback’s websites may not function properly without the aid of cookies.

Business Transfers

If UserFeedback, or substantially all of its assets were acquired, or in the unlikely event that UserFeedback goes out of business or enters bankruptcy, user information would be one of the assets that is transferred or acquired by a third party. You acknowledge that such transfers may occur, and that any acquirer of UserFeedback may continue to use your personal information as set forth in this policy.

Ads

Ads appearing on any of our websites may be delivered to users by advertising partners, who may set cookies. These cookies allow the ad server to recognize your computer each time they send you an online advertisement to compile information about you or others who use your computer. This information allows ad networks to, among other things, deliver targeted advertisements that they believe will be of most interest to you. This Privacy Policy covers the use of cookies by UserFeedback and does not cover the use of cookies by any advertisers.

Comments

Comments and other content submitted to Akismet anti-spam service and/or Google reCAPTCHA are saved on our servers unless they were marked as false positives, in which case we store them long enough to use them to improve the service to avoid future false positives.

Privacy Policy Changes

Although most changes are likely to be minor, UserFeedback may change its Privacy Policy from time to time, and in UserFeedback’s sole discretion. UserFeedback encourages visitors to frequently check this page for any changes to its Privacy Policy. Your continued use of this site after any change in this Privacy Policy will constitute your acceptance of such change.