Feedback Optimisation Guide

By Beka Ventham | Content Marketing

Aug 03

Feedback helps our businesses improve and grow. 

Without feedback we are pushing in one direction while our customers may be struggling against us the other way, which would leave us with reduced customer satisfaction and less eager customers.

This should be such an integral part of our business model that we want to help you really get to grips with:

  •  what feedback is
  •  what a feedback loop is
  •  how to ask for the best feedback
  •  how to build customer lifetime value 
  •  the overall benefits for your business.

What is feedback?

Customer feedback is the information you get about how your solution helped your customers. This is the most authentic way to learn more about how to improve your offerings.

Jeff Bezo, the CEO of Amazon has this to say: “We see our customers as an invited guest to a party and we are the hosts. It’s our job everyday to make every aspect of the customer experience a little better”

If your guest comes up to you and says that the punch is a little weak or there aren’t enough vegetarian options, you would take that feedback and try to improve upon those things so that that person's expectations weren’t just met but exceeded.

It’s the same with business. 

Customer opinion offers us a resource to improve customer experience. Even at the top of our game there is room for improvement. Feedback gives us that insight to be even better than we were before.

What is a feedback loop?

A feedback loop is using feedback continuously to improve. 

For example you sell a product to a client and you ask them for feedback. They give you constructive feedback which you then use to optimise their nurture, up-sell or cross sell. They purchase again and offer further feedback which you use again to improve customer experience and so it goes.

Let’s look at a restaurant. Imagine you are the head chef and you get feedback from a customer that their steak was tough. Now every chef knows that the tenderness of the steak depends on the breed, cut and age but you can’t go challenge your customer on that so you offer a compensation or a fresh steak.

What does the chef do with this feedback? They can review it, test some other steaks from the same delivery and then potentially consider a different breed, cut or age to improve the consistency of quality for future customers. 

The feedback loop can also be very instrumental in building customer loyalty because customers love feeling important, so if they know their comments are being taken on board and that things will be changed the next time they purchase something, or come for a meal they are bound to invest more time and money with your business. 

How to ask for feedback

Asking for feedback is something that some business owners can be a little hesitant about. They’ve made the sale and they’re pleased. They don’t want to push their luck by asking for a testimonial.

If you aren’t asking for feedback you are starving your business of the oxygen it needs to grow. 

Brian Halligan, CEO of Hubspot says: “Feedback is the breakfast of champions”.

It doesn’t matter whether you’re sitting down to a plate of positive or negative feedback because both will help you better your customers experience overall. 

Asking for feedback can be done in various ways and it’s important we make it as easy as we can for our customers so that we can extract the most useful information.

Analytics have changed how we gather data but ultimately what we really want is our customers opinions. We want to know why they purchased the product, why they needed it, how they benefited them and what we can do to make it an even better solution for them.

Here are four ways we think work pretty damn well:

  1. Surveys
  2. Testimonial questions
  3. Ask them what they thought
  4. Behaviour tracking

Surveys for feedback

Surveys can be really focused. You can extract the exact information you’re looking for with well crafted questions. A quick and painless way for your customers to give you feedback.

Testimonial questions

Testimonials need to be substantial. ‘They’re great’ isn’t as effective as a testimonial that includes measurable results, felt benefits and genuine application. We have a great blog here that will help you get worthy feedback in your testimonials!

Just ask them

What did you think?

Seems simple but sometimes over complicating it just makes it hazy and unhelpful. So just ask them when you follow up - pile some good value on and then ask them to give you a quick line about how to be even better.

Behaviour tracking for feedback

Understanding what your customers are clicking, where they are spending most of their time and which emails they are opening will help you build a picture of what they’re interested in, which will show you the best way to optimise your user experience.

Free Strategy

If you need a more strategic approach to building your customer loyalty with feedback as well as other methods, book a free 30 minute consultation and walk away with a PDF packed with tips to build your business that you can start implementing right away.

How to build Customer Lifetime Value from your feedback loop

Customer lifetime value is the following:

The amount of time you retain a customer X (how much they spend with you in a period of time minus the cost of getting them/keeping them)

So how do we build customer lifetime value using our feedback loop?

Our customers feedback helps us to improve overall. When we get feedback we can implement it to help our customers choose to be customers for longer. 

The feedback loop increases retention.

Imagine you are selling fresh bread. Your customers’ feedback tells you that they want smaller loaves and it would be great if you delivered. 

If you then start baking smaller loaves AND offer a delivery service, those customers who were eager for those extras will buy from you for longer because not only are you giving them exactly what they want but you’re making it convenient for them too.

Thus increasing customer satisfaction and building your customer lifetime value. 

You can’t keep everyone happy but if 80% of your customers are asking for the same tweak it would be beneficial for their experience and your business to implement it.

Top benefits

We know that customer feedback helps us be better for our customers but what are the top benefits?

Improves your product

Fresh eyes are always critical. You know your product and you’ve created it for your customers but if they have a sticking point that you overlooked or misunderstood it can really help you elevate your product so it is more useful for your customers.

Referrals from feedback

People listen to other people and there is no stronger recommendation than from a happy customer. Word of mouth is old school but it’s trustworthy and effective. 

Even bad feedback is positive

If someone leaves you a less than desirable review, don’t panic. This is a perfect opportunity to take on board what they’ve said and also show your customers that you value them by doing what you can to turn it around. Offer a free strategy call so they get the most out of your solution or thank them and ask them to review a separate product for free - show them their opinion is valid.

Measurable results

Every business can build with data. Feedback gives us the unique opportunity to really get into our customers heads, once we’re there the world is our oyster. 

Using customer opinion to establish a baseline for their experience can really rejuvenate your offerings.

Give them some TLC

Customers want to feel special. 

If you take the time to not only hear them but then action their feedback, it will show them how much you value their role in your business and how much you want to make their experience the best it can possibly be. 

Retention

People quite like it when it feels like what they have to say is being heard and changes are being made to benefit their lives as much as possible. When businesses put this level of effort into their customers, they will repay them by choosing them again and again. 

In conclusion, optimising your feedback will grow your business. We have looked at what feedback is, what a feedback loop is and how to ask for feedback. This blog has also discussed how to use that feedback to build customer lifetime value and gone over the most important benefits for your business. 

How are you going to start listening to your customers and what they have to say?

Will you implement their input and improve their experience?

Free Strategy

If you need a more strategic approach to building your customer loyalty with feedback as well as other methods, book a free 30 minute consultation and walk away with a PDF packed with tips to build your business that you can start implementing right away.

Additional resources:

Leave a Comment:

Leave a Comment: