The importance of Customer Feedback Management
Successful products tend to be the most innovative. However, between 30% and 45% of new products fail to deliver a financial return. Two of the top reasons for failure are a lack of market fit and not understanding the customer needs. The most creative and innovative products still need to solve a problem for their target audience, and without a defined customer need, failure becomes inevitable.
Businesses will spend a lot of time and money on how to foster innovation from within, but that approach can miss the true source. In nearly every case, the best place to look for an idea to improving your products is customer feedback. Customers are the ones using the product most often and best placed to tell you how to improve it or what strategic direction you might want to take.
In an exponentially growing digital ecosystem, customers have countless options when it comes to purchasing decisions. If organisations want to stay ahead of the competition, listening to customers and solving their problems is vital.
This article discusses why customer feedback management leads to better products and how Remlus helps businesses get the insights they need.
What is Customer Feedback Management?
Customer feedback management takes feedback from your customers and uses it to inform better business strategies. Tools like Remlus help to centralise the feedback and assists businesses in categorising and prioritising it effectively. Typically, there are four steps in a customer feedback management process, all of which can be controlled using the Remlus platform.
First, you need to ask customers for product and service suggestions. The answers are stored in a structured database so they can be labelled and prioritised within your roadmap. When asking for feedback, avoid leading questions that imply an answer, as you may find they don’t give the responses you need. For example, instead of asking, “Is the product too big?” you would ask, “How do you feel about the size of the product?” The first question triggers a yes/no answer, whereas the second will generate open, honest, and actionable customer feedback.
2. Analysis (Categorize)
The second step is to derive actionable insights from the answers that the customers have provided. Using the Remlus tools, you can see which feedback receives the most votes and those that are trending amongst the customer base. Open feedback is challenging to analyse manually but the categorisation available in Remlus creates and in-depth insight into customer needs.
Once you know what your customers need, you can come up with a logical list of actions and start to create a development roadmap. People within the company can act upon customer feedback rather than relying on “gut feel” and assumption.
4. Follow up
Respond to people who provided feedback on the status of their requests. Remlus shows the status of each customer feedback item to state whether it is open, planned, in progress, rejected or complete. Ensure customers know the reason for your decisions if the feedback is rejected.
The process is often referred to as a Customer Feedback Loop.
Feedback can range from anything such as opinions, to feature requests, bugs, walkthroughs, usability issues and complaints. However, although businesses might review customer feedback, they don’t always manage it in an efficient way to drive their strategy forward.
Efficient Customer Feedback Management
There are several business benefits to having an efficient customer feedback management platform.
Capture customer feedback about your product
When launching a new product, you probably have an idea of the customer needs from initial research into the market. However, it is only when customers start to use the product and experience the advantages and disadvantages , that you know if it genuinely solves a problem. Furthermore, needs evolve over time and they might start to expect something different.
Capturing customer feedback about your products provides insight into what works well and what doesn’t work so well, allowing you to make the customer experience incrementally better.
Plan and prioritise your roadmap
The Remlus platform will show you the product feedback items that are trending and your customers desire the most. Using that information, businesses can plan and prioritise their development roadmap, without basing decisions on loose guesses as to what the customer wants next. Taking the suggestions on board means you can consider where to allocate your budget for the highest possible return on investment.
Understand the needs of your customers
Although you might think you understand what your customer needs, the truth can be quite different. Products built on assumptions run the risk of failure, and customer feedback offers genuine, honest answers as to what the customer wants. Their opinions will ensure that the end product meets expectations, solves problems, and satisfies their needs. 76% of customers expect companies to understand their needs, and without customer feedback, you make that more challenging than it needs to be.
Analyse customer feedback faster
21st-century businesses will be operating across multiple channels where customers can provide feedback. That might include social media, telephone calls, emails, reviews and blog comments. Analysing that customer feedback manually is time-consuming and resource-heavy. Remlus stores all of that information in a central repository, categorising and prioritising it automatically. Marketing and development teams can focus on the product roadmap rather than spending time reviewing the data.
Furthermore, in the world of customer service, 31% expect a business to respond in one hour or less to their request. Although the timeframe for feedback might be slightly higher, this statistic goes to show that customers want businesses to listen to them quickly. A feedback management platform ensures you can do so.
Make the strategic decisions easier
Deciding the best way to develop your products can be a challenge for any business. Sometimes, customers will come up with innovative ideas such as new features or functionality improvements that may not have come up during the internal development phases. You can confidently move your business strategy in the right direction by knowing what you’re doing will have a direct impact on the end-users.
Build lasting relationships with your customers
A satisfied customer will stay loyal to your business. There is plenty of competition out there for unhappy customers to find a solution elsewhere. Customer and product feedback will help to determine if people are satisfied with your offering and detect areas where you may need to improve. Feedback provides a place for dissatisfied customers to tell you how they feel and a chance for you to fix the problem and demonstrate how you listen to them.
According to Kolsky, 72% of customers will share a positive experience with six or more people. However, 13% of unhappy customers will share their experience with 15 or more people. Ensuring you take customer feedback on board to avoid negative customer interactions is pivotal.
Identify early adopters of your product
Early adopters of your product are most likely to be the ones that advocate it. Creating a perfect service for those customers helps to build a loyal customer base that recommends your offering to others. By understanding the early adopters, you can gain valuable insight into your target market.
In addition, in times of social media, consumers trust the opinions of other consumers more than they do brands and businesses. If you are looking for a new restaurant, you will probably search for what other customers think. If you create a positive impression with the early adopters, it can have a knock-on effect when targeting prospects through word-of-mouth.
Engage with your customers
Remlus provides customers with updates on their suggestion and feedback. As such, you can engage them with a constant feedback loop on any issues and solutions. Engaging customers can be challenging, but with feedback, you will interact with them on specific issues that are relevant to their needs.
Clarify the product use cases
Businesses launch products with an expected use case in mind. For example, the mouthwash brand Listerine was originally promoted as an anti-septic. The product did not become successful until it re-branded itself as a cure for bad breath, rising from $115,000 revenue to over $8 million revenue in the seven years after the change of strategy.
Product feedback helps you to understand the actual product use cases which may be different to the intended purpose. In turn, you can align your development and marketing strategies based on the customer use cases.
Remlus can help you realise all of these benefits through customer feedback management. The platform collects and manages customer feedback about your products to better understand customer needs and prioritise your business roadmap. For businesses looking to enhance existing products or launch new products, the Remlus tools make getting feedback simpler and easier.
Try Remlus for free today and get started on your customer feedback management journey.