What Is Customer Feedback? (Benefits and Ways to Collect It)

By Indeed Editorial Team

Published 16 November 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Customer reviews indicate a company's client's experiences with the products or services. A business can use this feedback to determine changes that may improve service delivery and focus on meeting customer demands. Understanding how to collect client feedback and knowing the important questions to ask can help you set up effective feedback systems that may benefit an organisation. In this article, we define customer feedback, explain its significance and benefits to a business and outline ways to collect it.

What is customer feedback?

Customer feedback or a customer review refers to a client's input after using a product or service and their general experience with a company. Feedback can either show satisfaction or dissatisfaction. Hospitals, businesses, schools and other institutions may use client feedback to improve service delivery. It's important for business leaders to know the importance of client feedback. It can help them satisfy the customer's needs, ensuring customer loyalty in the long term.

Collecting client feedback data helps sustain a better business environment, increasing productivity in the workplace. Accepting constructive criticism is a key trait for business leaders and brand managers to possess. Knowing how to handle criticism is important in ensuring company and personal growth.

Related: What Is Continuous Improvement? (Plus 12 Key Metrics)

Benefits of collecting customer feedback

Client feedback is important in guiding a business towards growth. This feedback helps you determine the customer's constantly changing demands, which are key to the success of a business or brand. Knowing how to respond to feedback and implement changes to a product or service is important. Here are reasons detailing why client feedback is important to a business:

Increase market sales

You can use feedback to improve the market sales of the goods and services the organisation produces. Consider getting feedback on the most effective marketing strategies from the clients to determine how you can improve marketing campaigns. This can help you decide which marketing strategies work for the different goods and services you produce. Some products do better with online marketing and others with word-of-mouth marketing, making it important to identify the best strategy.

Related: What Is a Market Development Strategy? (Definition and Tips)

Enhances the quality of services and products

When introducing a new product or service to the market, you can get a general idea of what customers are looking for by conducting market research. You can use positive feedback to guide you on the details or elements to retain in a product. You can use client feedback to improve the quality of the goods and services to ensure customer satisfaction. It can also help you identify imperfections and develop solutions to overcome them.

Related: The Difference between Quality Control and Quality Assurance

Improves business decisions

Data collected from client feedback is a reliable source of information that helps make business decisions. This is a key part of determining a company's financial performance. Client feedback can also offer information about the organisation's reputation and provide insight into how customers respond to a company's services. This can help you make informed decisions towards improving the organisation's marketing strategies.

Related: Decision-Making Skills: Definition and Examples for Leaders

Informs other customers about a product

Client feedback is a reliable source of information about a product and its functionality for other customers. Many customers may look for previous client reviews when thinking about making a purchase. A positive review of a product can increase its sales, while a negative review can decrease a company's sales. Such reviews can give clients a clear understanding of the product, allowing them to decide whether purchasing it would be beneficial.

Shows customers you value their opinions

Asking customers how they feel about a product or service shows you care about their input or judgement on a product. Seeking their feedback on the company's products and services can give them a sense of ownership of the final product. This can help you more accurately satisfy their demands, leading to happy customers.

Promotes customer retention

Responding to feedback by modifying a product or service to fit clients' desires shows and assures them you care about their opinions. This can help build a solid customer relationship. Customer satisfaction can encourage return clients. It can also help build the brand's reputation, offering access to partnerships and more lucrative opportunities. Loyal customers can also generate business for the company through referrals and word-of-mouth marketing.

Related: What Does a Customer Experience Manager Do? With Salary

Motivates your team

Both positive and negative feedback can motivate your team. Relaying such feedback can inspire team members and show them you appreciate their efforts. It can also keep the team on track towards achieving the company's objectives.

Related: 5 Constructive Feedback Examples for Colleagues (Plus Tips)

Measures company performance

You can use client feedback as a metric to assess the company's performance. It can give you an idea of clients' reception to the company's services and inform you of their satisfaction level. This can help you determine whether the organisation is on track to meeting its customer satisfaction goals. Using rating-based questions can help you estimate the level of customer satisfaction.

Related: Top 47 Performance Review Phrases by Skills (With Examples)

Ways to collect feedback from customers

Devising ways to collect effective feedback helps brands and businesses improve areas that may boost their revenue. The different methods of collecting this feedback may include the following:

Product reviews

Many websites offer product reviews, which are important for local and global businesses to enhance customer interactions. Potential clients can see product reviews before buying a product to decide whether it's beneficial. Such reviews offer an impartial opinion about the products, giving a more accurate description.

Direct contact with customers

After selling the product or service to customers, you can call, email or text them after a while to get reviews about the products. Client follow-up can help build the brand's reputation and showcase professionalism. You can ask the clients to specify what follow-up channels they prefer.

Surveys

You can use various survey platforms to create business survey forms. Consider using online or physical surveys. Surveys can also help you discover unmet customer needs. Client feedback can validate changes you make to the products while showing you their satisfaction level.

Related: 5 Constructive Feedback Examples for Colleagues (Plus Tips)

Customer interviews

You can call customers for interviews to get their feedback on the organisation's services. Face-to-face interviews can help you form customer relationships, allowing them to give honest reviews. Vouchers and small gifts as incentives may encourage customers to take part in the interviews.

Related: What Is Customer Focus? (Plus How to Improve and Benefits)

Customer feedback forms

You can give out these forms at the point of service or after service as printed paper or online. They mainly comprise open-ended questions that are short, simple and straightforward. They can include yes or no, rating and multiple-choice questions. Simple questions can encourage customers to fill out the forms.

Social media

Collecting feedback from social media can include online polls, direct comments or mentions on various social media pages. You can check these comments and note the feedback. You can do damage control for the negative reviews to save the organisation's reputation.

Online polls can allow public participation, giving a more extensive customer reach. They offer a quantitative method of analysing client feedback. You can use them to determine the major and minor issues that customers face, allowing you to classify them based on urgency.

Related: What Does a Social Media Manager Do? (With Specialisations)

12 customer feedback example questions

Knowing which questions to ask when collecting client feedback is important. Asking the right questions may help you understand where the products and services require improvement. The following are some sample questions you can ask when collecting feedback from customers:

  1. How did you find our services?

  2. What rating can you give our services on a scale of one to ten?

  3. What is the main reason for your score?

  4. Are you satisfied with our products and services?

  5. Did our staff answer your questions?

  6. Are our products priced fairly?

  7. Can you recommend our products or services to people?

  8. What feature do you suggest our company improve?

  9. Are you likely to shop with us again?

  10. How can our company improve your customer experience?

  11. What did you enjoy most about your experience?

  12. Did our services meet your needs?

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