Whether you loathe it or love it, customer feedback can help create a better customer profile and lead to strategies that are conducive to better revenue generation.
Solicited and unsolicited customer feedback along with an understanding of customers’ motivation helps add value to a business. However, feedback and understanding alone will not result in better outcomes for your business. A data-driven approach to business development, in contrast, provides a proven methodology to create experiences that your customers seek.
To do this, a business must identify:
- The types of data that matter most
- The best means to obtain accurate and actionable customer information in a timely manner
For most businesses, seven types of data can easily be acquired. Each of these can be used to define the best ways to serve customers, improve margins, increase business leads, and increase engagement.
Loyalty metrics can be determined via the Net Promoter Score (NPS) and helps a business gain a picture of how customers perceive the value of a product or service. It also opens doors to conversations that can help a business discover and address issues proactively.
While the NPS captures data on how likely a customer is to recommend your product or service to a friend, you don’t really know why. But by adding another question to the NPS or running a survey, you can get a better picture of what your customers love and their motivations. This can then be used to create better experiences and acquire new customers.
Detractors and Passives
Thanks to the NPS, you can identify customers who fall into the detractor and passive categories. They are the ones who are most likely to transition to a competitor. However, with the data you have, you can predict churn like a psychic in three steps. You can also reach out to them specifically and follow up to woo them back.
Knowing where your customers are located can help refine your advertising targeting strategy. Using available data obtained via transactions, account setup, or surveys can help you improve the results of your dollar spend on advertising and marketing.
Having customer information to be able to contact them in a cost-effective and non-spammy way is essential to the success of a business. After all, maintaining a two-way conversation with your customers boosts customer loyalty, enhances brand recall, and can help gain incremental business.
If you have well-defined customer profiles and can track their transactions at the point of sale, then you can begin to identify opportunities based on preferences and dislikes. This in turn can help you manage inventory better and optimize services and site navigation.
Another type of customer feedback that can play a crucial role for any business is sales feedback. Yet many businesses don’t seek it. Asking customers as well as those who didn’t buy about the barriers to purchase or the motivations that got them to the buying stage can help improve your sales process and messaging.
If you use systems and processes like we do at Baremetrics, then keeping track of all this customer feedback can be a lot of manual work. You would be better off with more time to act on the feedback.
We recognized this at Baremetrics and have automated the customer feedback process. Check out the post to learn more about the tools and process we use.