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How to Use Customer Feedback to Gain Competitive Advantage

There are 2 problems in the market right now that create a great opportunity.

  1. Businesses face fierce competition.
  2. Customers are frustrated with poor levels of service.

This creates both a challenge: how do you stand out?

And an opportunity: make your clients or customers happy.

Put these two together…and you can stand out by making your clients happy.

(Why everyone isn’t doing this is beyond me…but they’re not…so here’s your chance 😉 )

The fastest and easiest way to do this?

Gather feedback. Then use it to make your business better.

While hearing feedback may be difficult at times, it’s worth the effort.

Feedback provides insight into customer preferences, pain points, and areas for improvement.

It also gives you an opportunity to “make things right” and rehab the relationship if a client or customer is unhappy. (And really? Wouldn’t you rather they tell you, instead of complaining to their friends or on social media?)

Yet, despite its importance, many businesses hesitate to actively seek feedback from their customers.

Why?

Why Businesses Avoid Asking for Feedback

Fear of Negative Feedback

Nobody likes hearing bad news – and business owners often fear that asking for feedback will unearth negative comments or criticism.

But – constructive criticism presents an opportunity for growth and improvement. You can’t fix what you don’t know about.

And – feedback can also be positive.

Thinking “they already know”

Many businesses assume they already know what their customers want.

It’s much easier to just keep doing what you’re doing, especially if things seem to be going well.

But this kind of complacency often translates into missed opportunities.

Not enough time (aka: not a high enough priority)

Collecting and analyzing feedback is another project competing for limited time and resources.

When you don’t want to hear negative feedback – and think you already know what your customers want – it’s easy to put this on the backburner.

But here’s a question for you…

Consider feedback from your customers’ perspective.

Wouldn’t you like to get asked for your input once in a while?

Wouldn’t you like someone to ask you what you want and then give it to you?

Would you keep coming back?

Would you tell your friends?

Me too!

How to Get Good Feedback

If you want to gather meaningful insights from feedback, you have to ask the right questions.

Here are some to consider:

  • Overall Satisfaction: How satisfied are you with our product/service?
  • Customer Experience: How would you rate your experience with our company?
  • Product/Service Quality: What aspects of our product/service do you find most valuable? What could we do even better?
  • Customer Service: How would you rate the level of customer service you received?
  • Suggestions for Improvement: What changes or additions would you like to see in our product/service?
  • Likelihood to Recommend: How likely are you to recommend our product/service to others? This is also known as a Net Promoter Score, and it’s fantastic for identifying customers you should follow up with and those you should ask for testimonials.

Pro tip: also give them a space to enter general comments so that they can share whatever is on their minds. This might be a rant or complaint (which you can then address) – but feedback isn’t always negative! You may also get a spontaneous testimonial.

Action Steps

Make it easy for your customers to provide feedback (and ask for it on a regular basis)

You can do this through surveys, during customer interactions, or add it as a step in your fulfillment process.

Listen and respond

Don’t just take it and sit on it. First of all, thank them for their feedback.

If their feedback is really detailed or negative, or there’s something especially important about it, ask them if they want to talk to you about it.

Use the information

Collecting the feedback is just the first step – the real value lies in how you use that feedback to drive positive change in your business.

Analyze the feedback you’ve collected, identify recurring themes or patterns, and prioritize areas for improvement based on their level of impact.

Then put them into your next 90-day sprint and get them done!

The ROI on a Better Customer Experience

Improving your service by gathering feedback is a great way to pull 2 “make more money” levers in your business:

  • Repeat business – meaning more sales per customer – and along with that an increase in customer lifetime value.
  • Referrals and word-of-mouth marketing – leading to new business and additional sales – without having to invest in advertising.

And depending on the feedback and what you do with it – you may be able to pull a third lever by introducing a new product or service.

This is how you win.

Ready for a business that makes more money WITHOUT taking more of your time?

Let’s talk!

You can book a free consultation here: book a call with Dawn

Want to sell your business or get ready to sell? Start here.

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