5 Innovative Market Research Techniques to Understand Consumer Behavior


How Customer Feedback Surveys increase Competitiveness1
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With the digital transformation and the new business paradigm, a customer-focused approach, backed with customer data and satisfaction metrics, is the focus of the evolving business model. In today’s competitive landscape, companies leverage ways to listen to their customer’s needs and opinions and incorporate feedback into their process. 

One way to gather real-time, accurate, and global feedback is by using survey tools to utilize CX surveys and capture customer’s insight into their experience and satisfaction. 

Companies use customer feedback surveys to gather information from customers on their happiness or satisfaction levels with the goal of using this information to improve CX (customer experience).

Beyond stimulating improvement in existing business, feedback surveys can also help identify new avenues for growth. A lot of large companies rely on customer feedback to remain competitive within their industries. 

Within this article, we will look at five different companies that have used customer feedback to effectively improve CX and we will also go through a few useful customer satisfaction metrics that are measured through surveys. 

Importance of customer feedback surveys in business growth

Customer feedback gives you insight into the gap between customer expectations and what you deliver. It enables you to uncover what customers think about your services, products, brand, and their experience with your brand. 

Let’s look at some factors that explain why customer feedback surveys are important. 

1. It puts customers in the center

Your brand can become customer-centric when it puts customers at its center, and that’s what a CX survey helps you do. With an online survey tool, you can design branded surveys and share them with targeted customers at moments that matter and on their preferred channels. This personalized approach helps you demonstrate how valuable their opinion is to you and builds trust. 

2. It helps you know your customers

Gathering insights directly from customers enables you to learn more about their needs, wants, and expectations. The data you gather from individual customers is more valuable than a generalized buyer persona. 

Using customer feedback surveys, you can understand who they are, how they use your products/services, and how satisfied they are with any interaction or experience with the brand. The surveys give you a robust tool to know whether your customers are happy or not. 

3. It helps identify areas of improvements

A criticism of a product/service may seem disheartening, but it also helps you identify what needs improvement. Negative feedback from customers is important to evolve and innovate your products constantly. 

Customer feedback also ensures that you are not making changes based on assumptions but on customer data. So, when customers tell you about a pain point in your customer service process, you build a plan to improve the service based on the feelings of your customers. 

4. It helps anticipate needs

76% of customers expect brands to understand their needs. And you can gain a competitive advantage by using customer feedback surveys to discover their needs. 

By identifying patterns in customer preferences and demands, you can gain a deeper understanding of what they anticipate. This can help you stay ahead of the competition by developing products/services that meet customers’ needs. 

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5. It helps identify dissatisfied customers and engage them

Capturing customer insights in real time helps you identify potential detractors. This allows you to initiate a conversation with dissatisfied customers and use the opportunity to improve the relationship. Their feedback enables you to identify the cause of possible churn and decline in satisfied customers. 

Starting a conversation with unhappy customers can demonstrate your commitment to delivering a quality experience. It can help cultivate trust and increase loyalty as a result of customers receiving special attention and services. 

6. It helps improve brand reputation

Taking customer feedback seriously can drastically improve the brand’s reputation with the customers/ This can help you stand out among the competition as a trustworthy brand and attract new customers. 

53% of customers believe that brands disregard customer feedback. The data tells us how much competitive advantage a brand can gain by simply responding to/resolving customer feedback. 

How to gather feedback from customers?

Let’s look at a few different types of customer feedback surveys and the purpose of each one of them. 

1. CSAT Surveys: 

Customer Satisfaction Surveys, or CSAT surveys, are used to gauge levels of customer satisfaction at different touchpoints. It asks customers to rate their satisfaction levels using a five-point Likert scale, from unsatisfied to satisfied, or a ten-point numeric scale. This is a valuable metric to identify pain points within the customer journey and to measure short-term customer satisfaction. 

2. NPS Surveys: 

NPS surveys, or Net Promoter Score Surveys, are used to gauge levels of long-term customer loyalty by asking customers how likely they are to recommend the company’s products/services to others. This metric can even be used to predict churn rate and to find out which customers have the potential to turn into loyal consumers with an extra boost. 

3. CES Surveys: 

Customer Effort Score Surveys, or CES surveys, are used to understand how much effort customers have to put into interacting with an organization. Customer effort can be very indicative of customer satisfaction, as customers who have to put in a lot of effort to interact with your brand will be less satisfied with their experience. CES survey results are a powerful predictor of future purchase behavior. 

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Companies that use customer feedback to effectively improve CX

1. Apple

Apple has consistently ranked well in different customer satisfaction rankings in the past few years. This can be credited to the fact that they rely on customer knowledge for innovation and improvement. They constantly remind customers that they welcome feedback. 

Feedback surveys are sent to customers immediately after a purchase is made, allowing Apple to obtain quick and accurate feedback while the interaction is still fresh in the mind of the customer. An especially prominent metric for Apple is Net Promoter Score, a metric that reflects long-term customer loyalty. 

2. Hyatt

Hyatt is a well-known multinational hotel franchiser. They consistently deliver great customer experience across their hotels worldwide by building their brand around customer feedback. The two ways in which they collect feedback are through social media and through feedback forms on their website.

3. Uber

Uber is another top company that relies on customer feedback to remain competitive. Uber drivers are known to care about their ratings, as bad customer ratings will get them in trouble with their employers and will affect their salaries. The real-time feedback they receive allows them to correct customer pain points proactively and helps them ensure that only the best drivers stay on the road. 

4. Timberland 

Timberland is very popular in the fashion industry because of the footwear they sell. The brand prioritizes customer feedback by encouraging customers to provide feedback on their website. Once customers click on the customer feedback button, they are redirected to a page that asks them a range of questions, including those that allow them to calculate their NPS score and their CSAT score. 

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Customer feedback surveys are a robust tool for companies to listen to their customers directly. With customer data, you can identify areas of improvement, anticipate their needs, build customer loyalty, and meet their expectations.  

To gather customer data without the interference of MR firms, leverage online survey tools. The platform makes it easy to design surveys, distribute them, and gather and analyze the data. You can gather feedback at any time and take action in real time

FAQs on Customer Feedback Surveys?

1. What is the difference between NPS and CSAT?

CSAT, or Customer Satisfaction Score, is a measure of customer satisfaction and short-term customer loyalty. NPS, or Net Promoter Score, is a measure of long-term customer loyalty. 

2. Why is customer satisfaction important?

Studies show that one in three customers will leave a brand after just one bad experience. This is why it is important to continually track satisfaction levels so that pain points can be identified and addressed proactively. 

3. What are some useful customer satisfaction surveys?

The following surveys can be used to gauge levels of customer satisfaction and loyalty:

  • Net Promoter Score (NPS) Survey 
  • Customer Effort Score (CES) Survey 
  • Customer Satisfaction Score (CSAT) Survey

4. Why is customer feedback important?

Customer feedback allows companies to improve customer experience by identifying customer expectations and pain points. It helps companies ensure lower customer churn and a higher customer lifetime value (CLV).

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This post is also available in French.