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The Secrets To The Golden Rule of Customer Feedback Strategy

By Ardian
12 / 01 / 2021
customer feedback
Golden Rule of Customer Feedback Strategy. thumbs up. person smiling.

After all the effort, time, and money you have spent developing and marketing your product, your customer feedback strategy will help guide you through the next steps. As you know, product development is like playing chess. You have to be one step ahead of the game to give your customers the features they want. Sometimes before they even know what they want.

Let's take a look at how to create a successful customer feedback strategy for your business.

What is a customer feedback strategy?

A customer feedback strategy is the process of collecting feedback from people who use your product and then acting on that feedback. There are several ways to collect feedback. You can ask questions or monitor your behavior through surveys. Keep reading for our detailed guide on how to create your own customer feedback strategy.

Why do you need a customer feedback strategy?

A customer feedback strategy provides data and confidence to move your company in the right direction. Without it, users have to make assumptions about the desired function. It's also a great way to gather ideas for product improvement. Here you can figure out the best features to add depending on how long it took to build, whether your competitors have these features or what you need next.

Qualitative vs. Quantitative

There are two types of valuable data that are important to your customer feedback strategy: qualitative and quantitative.

Qualitative methods record customer comments and responses from focus groups, open survey questions, and social media comments. After collecting the data, look for response patterns and determine the most common topics. Analyzing qualitative data can be complex, but it provides a deeper understanding of the customer's needs and motivations.

Quantitative data records the number of clicks on an ad, the number of people who purchased an item from the ad, or the number of people who opened the latest newsletter. Quantitative data is useful for predicting what many customers will do based on the behavior of a small group.

Create customer feedback surveys

Customers are more likely to respond to surveys when they are very satisfied or very dissatisfied, so their responses are likely to be low and distorted. Customer satisfaction scores and Net Promoter Score are provided here. This is a quick way to gather customer feedback and increase the likelihood of customer engagement.

CSAT score (customer satisfaction)

The Customer Satisfaction Score (CSAT) measures customer satisfaction for one interaction (usually a customer service interaction). For example, customers can rate their satisfaction with customer service before they hang up or disconnect from online chat. Companies can also follow up with text messages asking for an assessment of their experience.

CSAT score is an important metric to keep track of, but it's not perfect. For example, customers may report less than perfect scores in their customer service experience because they are usually reluctant to offer perfect scores. Knowing your CSAT score will help you get an overall picture of your customer satisfaction, but it's up to you to dig deep.

NPS (Net Promoter Score)

The Net Promoter Score (NPS) is another quantitative approach that provides general satisfaction data for a company or product. The NPS is tabulated by asking the customer, "How much would you recommend our company to a friend or colleague?" Then, subtract the percentage you don't want to recommend your company from the percentage you can recommend the company (promoter).

This question is useful because customers are more likely to answer one question and generate computable data. However, customer responses can vary depending on how they felt at any given time, how they felt about their last interaction with the company, and how their cultural background influenced their responses.

Implementing Customer Feedback Result

After all those effort of making customer feedback strategy, it’s time to implement it through the Feature Priority Matrix. We don't have an infinite supply of time, money and resources to make all of the changes that we indicate require feedback from our customers. It also complicates the decision by competing opinions from the product development team and management.

Creating a functional priority matrix allows you to make the best decisions for your company and reach consensus among all decision makers. Place user demand on the x-axis and complexity on the y-axis. You will have the next four quadrants listed in the order you need to apply your ideas in that quadrant.

user demand - complexity to build

  • High User Demand / Low Complexity (quadrant I) - easy for you and your customers to reach. It is easy to produce and has a big impact on the customer experience.
  • High user demand / high complexity (quadrant II) - this feature is considered second. It is harder to produce than the previous quadrant, but still has a business impact.
  • Low User Request / Low Complexity (Quadrant III) -You may consider that later, but it's not a high priority feature. It might be easier to make, but it won't have a big impact on your business.
  • Low / high complexity user request (quadrant) - this feature should be considered last. Less impact and more difficult to develop.

Then you can create the same matrix, but you can change the X axis to "compete".

user demand - competition

Regardless of the approach you choose, developing a customer feedback strategy creates clarity and consensus in product development. Choose your method based on the data you want to collect and use the best tools to collect your data more easily. Then implement the change depending on which change has the greatest impact and which is the fastest in development. Finally, rest assured that we will prove that your process is responding to your needs!

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