7 Reasons Why Customer Feedback Is Important To Your Business

If you found this article, you probably run your own business or deal with customers and want to know why collecting their opinions may be necessary. At the outset, you need to know that Startquestion is a tool for collecting customer feedback using online surveys. On our platform, you can listen to the customer’s voice and analyze it, making changes in the company based on it. Thanks to our tool, you can conduct both relationship and transactional surveys. However, we also understand that, in some cases, surveys will not be ideal for all of you.

Therefore, being experts in collecting feedback, we tried to gather reliable reasons for you to do so in this article. Perhaps you will choose online surveys for this purpose, or perhaps opt for other solutions – this is your decision, and we want to provide you with as much information as possible to make it as easy as possible.

Can your customers tell you something important?

If you run your own business, I know you do your best to please your customers, satisfy their needs, and keep them loyal to your brand. But how can you be sure that your efforts bring desired results? If you do not try to find out what your clients think about your service, you will never be able to give them the best customer experience. Their opinions about their experience with your brand are helpful information that you can use to adjust your business to fit their needs more accurately.

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There are plenty of ways to leverage customer feedback and profit from it. In this entry, I will explain why collecting customer feedback, whether prompted or unprompted, is crucial in managing customer satisfaction and loyalty, customer retention, improving products and services, and in many more areas of your business. Sit comfortably and continue reading to discover the benefits of customer feedback.

What is customer feedback?

Customer feedback is information clients provide about whether they are satisfied or dissatisfied with a product or service and about their general experience with a company. Customer opinion is a resource for improving customer experience and adjusting your actions to their needs. This information can be collected with surveys (prompted feedback). Still, you can also find opinions and reviews your clients post online (unprompted feedback) and collect them using Internet monitoring tools. Both sources are essential to get a complete picture of how your clients perceive your brand.

Top-performing companies understand the critical role that customer feedback plays in business. They consistently listen to the voice of their clients. They search for opinions their clients publish on social media and reviews they provide on websites designed for gathering feedback (e.g., TripAdvisor). They deliberately ask for feedback using distinct kinds of surveys. To stay ahead of the competition, you should never stop listening to customer feedback, whether positive or negative, prompted or unprompted. If you are looking to hire customer service executives to help your business stay ahead of the competition, you might want to consider using the customer service test to find the most qualified candidates.

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Check How to Measure Customer Satisfaction

Good customer service is extremely important. In order to maintain it, it’s necessary to constantly measure the level of satisfaction.

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Here are the top seven reasons why customer feedback is essential in business.

1. Customer feedback helps improve products and services

When you introduce a new product, brand, or service to the market, you probably have an idea about customer needs. Market research you conduct before introduction gives you an idea if potential customers would be willing to buy it, and they can also give you tips on improving it. However, only after your customers use your product or service can you learn about all the advantages, flaws, and their actual experience. On top of that, their needs and expectations evolve with time.

Customer feedback is an insight into what is working well about your product or service and what should be done to improve the experience. You might have the best expertise in the industry in which your company operates, but your professional knowledge will never be more valuable to business performance than customer insights. Their opinions help you ensure that the end product will actually meet their expectations, solve their problems, and fulfill their needs. Lastly, gathering and incorporating customer insights is essential for maintaining a high CSI, which directly measures how well your company’s products or services align with customer desires and ultimately determines long-term success in the market.

2. Customer feedback helps you measure customer satisfaction

Customer satisfaction and loyalty are crucial factors determining a company’s financial performance. It is directly linked to many benefits, such as increased market share, lower costs, or higher revenue. Many studies confirmed the close connection between customer satisfaction and business performance. Therefore, there is no doubt that you want to ensure your clients are happy with your products and services. Naturally, the best way to determine if you meet they expect to get their opinions. Using rating-based questions, you can easily estimate the level of satisfaction and consequently predict your company’s financial condition in the future.

One of the most accurate methodologies that have helped many companies measure, manage and improve customer satisfaction is NPS (Net Promoter Score). The metric is based on a straightforward question that investigates how likely a customer would recommend a brand to a friend. Response options for the loyalty questions are based on a 0–10 point rating scale, with 0 representing extraordinarily negative and 10 representing extremely positive. This methodology is simple and universal so every business can apply it in customer satisfaction management.

3. Collecting customer feedback shows you value their opinions

By asking your clients for feedback, you communicate that their opinion is important to you. You involve them in shaping your business, so they feel more attached to your company. Listening to their voice helps you create stronger relations with them. This is the best way to gain valuable brand ambassadors who will spread positive word-of-mouth for you. And I am sure you are aware that their recommendations is probably the most effective and, at the same time, the cheapest way to acquire new customers and become more trustworthy in the eyes of your current and potential clients.

People always appreciate it when you ask them if they are happy (or unhappy) with your service. It shows you value their opinion and that you are here for them, not vice versa. They feel your primary business goal is to solve their problems and fulfil their needs, not to get their money. It puts a customer in the central position of your company, and this is the right way to run a business.

4. Customer feedback helps you create the best customer experience

Today’s marketing is heavily based on people’s experiences with products, services, and brands. They do not buy Apple products just because they are good. They want to demonstrate their status and affiliation to a particular group. They do not buy Nike clothes because they are durable. They buy the courage to extend their boundaries. Therefore, clients will stay loyal to your brand if you focus on providing the best customer experience at every touchpoint. And naturally, the most effective way to give them a fantastic experience is to ask them what they like about your service and what should be improved.

5. Customer feedback helps to improve customer retention

A satisfied customer will stay with you. An unhappy customer will eventually find a better alternative to your business and leave. Customer feedback benefits are significant. It helps you determine if your clients are satisfied with your service and detect areas where you should improve. Thanks to asking for opinions regularly, you can always keep a finger on the pulse. Each time a dissatisfied customer expresses his disappointment, you can immediately react and find a solution to fix an issue. This is a perfect moment to win a client back and even increase his level of loyalty. In many cases, an unhappy customer who encountered a problem with your service but you got it fixed straightaway demonstrates more considerable devotion to your brand than a customer who has never been disappointed with your service.

6. Customer feedback is a reliable source of information to other consumers

In the times of social media, consumers do not trust commercials or expert advice so much. Opinions provided by other customers who have already used a product or service are the more reliable sources of information these days. When you look for accommodation in a city you visit or want to find a nice new restaurant to have dinner with friends, you read reviews beforehand. When you want to buy new shoes, you ask for your opinion on Facebook or go to a trustworthy blog to read a review. Many companies today incorporate review systems in their services and products. Think of Uber or AirBnb. They all do their best to ensure that poor service will be detected and excluded from their business.

Customer feedback is as essential to your business as to other customers, so you should make sure that both you and your clients have easy access to opinions and reviews.

7. Customer feedback gives you data that helps make business decisions

There is no place for business decisions based on loose guesses in a highly competitive market. Successful business owners gather and manage distinct kind of data that helps them develop future strategies. This way, they can adjust their products and services to fit customer needs.

Customer feedback is one of the most reliable sources of tangible data that can further be used in taking business decisions. Customer insights will help you understand clients and their needs more profoundly. Take their suggestions into consideration, and thanks to that, find out where you should allocate your money to get the highest return on investment. You might discover that, for instance, further product development is not necessary in your case; but instead, you should focus on promoting your brand to get bigger exposure. Customer feedback is a valuable source of such data, but you must learn how to listen to it and how to translate it into actionable takeaways for your business.



If you want to stay on top of things, you should put your customers in the center of your business and treat their feedback as the most valuable source for information in your company. They are the ones who use your products and services, so they know best what could be improved to make them even happier.

Never ignore their voice. If you fail to meet their expectations, they will find other companies which will do it better than you. Use customer feedback at all corporate levels and across all departments in your company. Insights will help you develop your products, improve customer service, and manage customer satisfaction.

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Net Promoter Score Survey for Product

Every company needs a way to gain knowledge about what their users and customers think about their products and offer. The best tool to listen to the users and customers is the product feedback survey. Online research will help You create exactly this kind of products which your potential customers need and want.

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Thanks to customer feedback, you can ensure that your clients will stay with you, be loyal to your brand and, consequently, spread positive word-of-mouth for you. Having devoted brand ambassadors is gold your company needs to grow!

Remember that customer feedback is everywhere. Learn how to collect it using different tools and resources. Run surveys in different forms and search for reviews your clients post on the Internet. Do not underestimate any comment about your products and services, and always be responsive. Your clients will appreciate you value their opinion. It is key for developing strong relations with your audience.

The customer’s voice is priceless for your business, so never stop listening!

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Urszula Kamburov-Niepewna
Ula is a Content Manager with extensive experience in journalism and SEO copywriting. She is a specialist in creating content in HR and Marketing research, Customer Experience, and User Experience. She has been associated with Startquestion for five years and currently leads the Content Marketing team there. After work, Ula is an obsessive reader, a huge Harry Potter fan, and a traveler who grabs every opportunity to see a little bit of the world and taste (usually more than a little) good food.