It is crucial for any business to understand the customer behavior, their needs, expectations and pain points. These are crucial components of the customer experience and the customer experience is the backbone of the success. The products and services are easier to replicate, however, the customer experience is something no other competitor can copy. Hence the customer experience not only help satisfying customers but it also help building a unique brand identity and help achieving higher loyalty.
The modern customer feedback system is one of the most valuable source of business intelligence data which can help businesses take informed decisions and align their strategies with customers. In highly competitive markets such as in Dubai, Sharjah, Abu Dhabi and other regions of UAE the customer-centric businesses tend to perform much better comparing to traditional business models.
The personalized experience or personalized service is when a business care enough to acquire deep understanding of customers and cater to their exclusive and individual needs. Whether it is personalized interaction at customer service center, or via digital channels or personalized services, a business must first know what the customers need only then you can customize the customer interaction to ensure higher customer satisfaction. In this blog we will discuss the role of customer feedback in personalized user experience and how a customer feedback system can be a game changer for your business.
The Role of Customer Feedback in Personalizing User Experience
Why Customer Feedback is Essential for Businesses?
The customer feedback is the opinion, suggestion, information, insights your customers have about your business. The customer feedback is essential for businesses as it tells what customers thinks and feel about your products, services and interaction they have with your business through any channel or medium. This provides business leaders and managers a deeper insights which help them take better decisions. Informed decision lead to effective polices and efficient strategies which are the key to long term success and growth. Here are 6 Reasons Why Customer Feedback Is Important to Your Business:
- Improve Products and Services: The customer feedback helps analyzing existing products and services as well as it also help in development and planning of new products and services. Businesses can also evaluate new products and services with customer feedback.
- Measure Customer Satisfaction: The customer satisfaction and customer loyalty are two crucial factors that contributes to a business’s financial success and growth. Hence it is crucial to accurately monitor and measure customer satisfaction.
- Strengthen Customer Relationship: The customer feedback helps businesses build a strong bond with customers. When the customer opinion is listened they feel more valued and important hence it strengthen the customer relationship and increase loyalty.
- Elevate Customer Experience: One of the most crucial aspect of customer feedback, and in fact we can say that the primary objective of the feedback is to elevate customer experience. Better products, services, interaction, and customer journey all improve customer experience.
- Increase Customer Retention: The customer feedback helps aligning businesses with their customers’ needs, which elevate customer experience and raise their satisfaction. The customer satisfaction helps retaining the customers.
- Informed Business Decisions: The customer feedback data help businesses take informed decisions. The customer feedback provides insight on customer trends, needs, expectations and pain points which help making more impactful and accurate business decisions.
The customer feedback data is extremely important for business success. However, most of the time either businesses doesn’t collect right feedback data or failed to utilize correct channels and tools which often results in incomplete or inaccurate feedback data. The best is to utilize a professional customer feedback system and follow the industry standards and best practices to get better results.
See Also: Your Guide to an Effective Customer Feedback System
Why Customer Feedback is Essential for Businesses?
What is a Customer Feedback System?
A customer feedback system is a combination of software applications and strategies, it is a complete framework of software tools, data collection and management tools, data analysis methodologies, and strategies. A typical customer feedback system usually incorporate multiple channels to collect customer feedback data in various forms and types. Businesses can ask customers to provide feedback or the customers voluntarily provide it or share their suggestions. It is important to understand that there are different types of feedbacks which have their own objectives and goals.
The customer feedback system is a systematic approach and strategy actively implemented by businesses and organizations to systematically collect and leverage customer feedback for improvements. These improvements could be about internal businesses processes, customer related workflows, products, services, staff performance and various other aspects such as marketing, branding, payment processes, etc. In today’s modern world, where the digital technologies are dominating our both personal and professional lives, it is crucial to maintain performance and efficiency in every business process. The customer feedback systems are exclusively designed application to make feedback processes more efficiency, impactful and convenient.
See Also: Key Features of a Customer Feedback System
What is a Customer Feedback System?
What is the Role of Customer Feedback System in Personalizing User Experience?
Think of coffee, you go to a restaurant daily for coffee, the owner or server knows very well what you want, each time when you go there they serve you the right coffee, however, think of another restaurant where you always have to explain what you want. Which one is better? The one who knows your personal needs and cater to them is the one you would always want to go. The same is the case with businesses, customers always wants to go to the businesses and brands who somehow understand their needs and make their services aligned with their needs. The personalized customer experience can be a game changer for the businesses, and it helps them increase customer retention.
In order to personalize the customer experience businesses needs ways to understand what customers wants, how they feel, what their expectations are, and what challenges they face. The customer feedback is one of the best tool to acquire this insight with higher accuracy and efficiency. Furthermore the customer feedback systems provide data analytical tools which help producing actionable reports. These reports improve decisions and help management take accurate and informed decisions. These decisions further help aligning with customers’ needs, and help delivering personalized customer experience.
See Also: Why Your Business Needs a Customer Feedback System?
What is the Role of Customer Feedback System in Personalizing User Experience?
Multichannel and Omnichannel Customer Feedback
A modern customer feedback system comes with a powerful software solution. Furthermore with the rise of digital communication channels there are several way to communicate with customers such as email, SMS, website, mobile applications, interactive kiosks, and the traditional customer service counters. The important thing to understand is that each channel could have different objectives and goals. However, the omnichannel customer feedback is more about consistent customer experience, hence businesses utilize multiple channels but with a single objective and goal.
Typically in multichannel feedback, multiple different surveys and questionnaires are designed for multiple channels, most of the times the objective is also different to target different audience groups. However, the omnichannel feedback is sharing a single survey or questionnaire at multiple channels to reach out to maximum audience groups but with a single objective. Both are widely used and both feedback methods have different applications and benefits. It is crucial for any customer feedback system to be able to acquire high quality data both in terms of accuracy and quantity.
See Also: What is Multichannel Customer Feedback and Why it is so Important?
Multichannel and Omnichannel Customer Feedback
Customer Profiling and Targeted Audience
The modern day customer feedback systems support integration with multiple channels and they also support a multitude of customer feedback types. Which makes them superior and more effective than traditional feedback methods. Now when it comes to personalized customer experience, there are various factors which help personalizing the customer experience. First of all the customer feedback system allow businesses to target specific customer groups and it also offer tools to send personalized questionnaires to different customer groups. Businesses tend to profile customers based on various factors which align with business objectives and needs.
For example, if a business is selling TV and AC then what feedback they want about AC is totally irrelevant to TVs, and vice versa. This specific case is about product improvement however, this applies to every other feedback types as well. For example, if the businesses wants to capture CES (customer effort score) and they are offering two channels, one is digital self-service and the other is traditional service counters. Now these two have totally different customer experience and the customers who are utilizing these two channels have different needs, expectations and challenges. Hence the questionnaire for these two would be totally different. All these types of customer feedback challenges can effectively addressed using a modernized digital customer feedback system.
See Also: Overcoming Challenges in Customer Feedback Collection and Management
Customer Profiling and Targeted Audience
Feedback Data Categorization
The customer feedback system comes with a very powerful software aided with in-built smart algorithms and analytical tools. The customer feedback system can capture feedback data from various channels and sources. Furthermore the feedback can also be categorized in various categories such as reliable, unreliable, urgent, inconclusive, top priority, etc. It entirely depends on the business policy. For example, there are certain feedbacks which are indicating a major problem which is causing customer churn, hence that needs to be addressed on priority bases. All such feedbacks can automatically be categorized and relevant teams, management can be informed with automated alerts.
Similarly there are certain feedbacks which are not urgent but are indicating a trend, for example, during a product research survey, the customers are always liking a particular features, and whereas there is a feature no one ever commented about, this shows a trend. The customer feedback system can automatically identify these trends. Moreover the businesses always have customized needs, for example, there was an IT outage during a particular time period and the management is interested in listening to the feedbacks during that time frame. The customer feedback system allow picking up the feedback data for a certain time period and so on and so forth. All these data categorization add up to the visibility and help management effectively monitor and leverage the feedback data the way they want.
See Also: 5 Types of Customer Feedback
Feedback Data Categorization
Taking Action on Customer Feedback and Closing the Feedback Loop
The final and most important step in any customer feedback management process is taking action on the data. In the modern competitive markets like Dubai, Sharjah, Abu Dhabi and other regions of UAE, businesses knows very well that the customer feedback is not just an annual drive, but in fact it is a regular and ongoing process. Whether it is social listening, surveys or specialized questionnaires for specialized objectives, the customer feedback process never ends. In some forms or ways it keeps going on throughout the year. However, there are some feedback types which require instant action, some might require strategic changes or some might demand long-term policy enhancements.
The final and most impactful step of customer feedback management process is taking actions. The customer feedback system comes with in-built analytical tools and specialized reporting tools which help management perform complex analysis in automated and semi-automated ways. Moreover the management can produce customized reports as per their needs. For example, if you want to analyze the staff performance for the past month or week, you should be able to download only those specific KPIs in the report. Similarly if you want NPS Score, CSAT or CES you should be able to do that. The modern customer feedback systems also provide behavioral analysis and more contextual analysis to improve the feedback quality.
See Also: 5 Best Practices for Designing Effective Customer Feedback Surveys
Taking Action on Customer Feedback and Closing the Feedback Loop
The native tools and features of a modern customer feedback system offer convenience, efficiency and robustness in the customer feedback management process. These tools can effectively reduce the cost, by automating various processes and workflows, effectively mining staff efforts and reducing the manual work to literally none. Furthermore businesses can set various alerts and protocols, which enable them to take timely actions to minimize the effect of any disruption or change in normal operation. Similarly if the customers report something which is costing sales or causing customer churn, the customer feedback system identify such feedbacks and alert the concerning authorities.
The automation not only enhance efficiency and performance but it also help businesses take informed and timely decisions, addressing to customers’ problems and challenges which are undermining customer experience. Moreover, the customer feedback system also have an extraordinary features which is closing the feedback loop. Closing the feedback loop means informing customers about what action has been taken in the light of their feedback. When the customers know that their opinion is heard, they feel valued and when they are told that actions are been taken upon their concerns, they feel more connected to the brand. This establishes more trust and raise customer loyalty which is essential for a long term success.
See Also: The Ultimate Guide to Execute a Customer Feedback Campaign
Closing the feedback loop means informing customers about what action has been taken in the light of their feedback.
Fostering Customer-Centric Organizational Culture
Businesses are now transitioning into more customer-centric models to ensure higher customer satisfaction. A customer-centric organizational culture puts customers as top priority at every business decisions and strategy. When the customers are at the heart of every business decision and policy the businesses become effectively more aligned with customers’ personalized needs. The customer-centric organizational culture starts with understanding the customer needs, desires, expectations, and pain points. A modern day digital customer feedback system is the ultimate tool to help businesses evaluate their decisions based on direct customer feedbacks.
The ultimate objective of fostering a customer-centric organizational culture is to align your business to generate value for the customers. The customer feedback data provides in-depth insights to various aspects of customer needs, which help businesses train their staff accordingly and modifying their internal processes, or even developing new products and services that can deliver more value and elevated customer experience to ensure higher customer satisfaction. The customer feedback itself is a continuous process hence it can continuously fuel your improvement drive by providing latest insights and required information to make improvements.
See Also: 11 Customer Feedback Examples for Business Success
Fostering Customer-Centric Organizational Culture
Conclusion
In today’s competitive and rapidly evolving market landscapes the customer feedback is not just a strategy to deliver personalized customer experience but it has become absolutely essential to ensure a long-term and sustainable business success. Businesses can continuously collect customer feedback data to make regular adjustments and enhancements to their products, services, and customer experience. This can significantly improve business performance and enable them to deliver value to customers for better and satisfactory experience. Elevating customer experience is crucial for any business, as this is the only thing no other competitor can copy, hence it can be used as a great competitive advantage.
When it comes to customer experience the personalized customer experience tend to deliver higher customer satisfaction. When businesses effectively understand the customer needs, they are able to cater to those specific needs, which obviously enhance customer experience and increase customer happiness. When the businesses cater to individual customer needs, the customers feel more valued and connected with the brand which also increase loyalty and help businesses achieve long-term and sustainable success. The customer feedback plays crucial role in delivering personalized customer experience as it provides in-depth insight to customer’s needs, behavior, market trends, customer’s expectations, and their pain points. Businesses can base their decisions on the feedback data to align with customer needs.
A modern digital customer feedback system help businesses efficiently and effectively collect customer feedback data with minimum cost and maximum accuracy. The customer feedback system automates customer feedback data collection with ability to integrate multiple channels and running multiple feedback campaigns in parallel. It also help effectively target different customer profiles and audience groups and help businesses achieve their goals with every survey and feedback campaign. In this blog we have briefly discussed the role of customer feedback in personalizing user experience. If you want to learn more about the subject or if you want us to design a bespoke customer feedback system for your organization, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.