Customer Feedback Tools: A Quick Guide

Think about the daily tools you use to run your business. Maybe you have a website or rely on Google Analytics to track your website's performance. These days, there are tools for virtually every aspect of a business, including customer feedback.

We at SmartSurvey offer a customer feedback solution that lets you gather valuable insights from your customers to improve your products and services. But we're just one of many options out there.

We've put together this quick guide to help you make an informed decision about which tool is right for you. It will help you understand customer feedback tools, why they're important, and how to choose the best one for your business.

Types of customer feedback tools

There is more than one type of customer feedback tool, and each one serves a unique purpose. Understanding the different types available can help you choose the right tool for your business.

You may use one or more of the following:

Survey platforms

We may be biased, but we believe one of the best ways to gather customer feedback is through surveys. They allow you to ask specific questions and get detailed answers, making it easy to understand your customers' likes, dislikes, and preferences.

Our software offers a wide choice of survey templates for various industries and purposes. So, it's easy to create customised surveys tailored to your business needs. You can embed them across your online presence, and we make it easy to analyse the results.

There are surveys for:

• Net Promoter Score (NPS)
• Customer effort score (CES)
• Customer service
• Post-purchase feedback
• Product feedback
• And much more!

Live chat and messaging apps

Live chat and messaging apps allow customers to communicate with your business in real-time. They can share their thoughts, ask questions, or report issues as they use your product or service.

This real-time feedback can be incredibly valuable. For example, a customer struggling to find a specific feature on your website can quickly message you for help. This solves their immediate problem and alerts you to a potential user experience issue you can address.

Email feedback systems

Email is one of the oldest and most widely used forms of digital communication. Businesses can use email feedback systems to gather customer feedback through targeted surveys or simple email replies.

This tool may not be as immediate as live chat or messaging apps, but it can be a good option for businesses that want to collect more detailed feedback or reach a larger audience. Plus, many people are comfortable with email, making it a familiar and non-intrusive way to ask for feedback.

Social listening tools

Social listening tools are slightly different. Instead of actively seeking feedback, they allow businesses to monitor and analyse what is being said about their brand on social media.

You're watching your customers in their natural habitat, so they are not pressured to respond. However, it does require an established presence on social media platforms. If you're a start-up and barely get any mentions yet, you may want to wait before investing in this type of tool.

Review and rating platforms

Finally, review and rating platforms offer a more manual approach to gathering feedback. These are websites or apps where customers can leave ratings and reviews for businesses.

Think of platforms like Google Reviews, Yelp, or TripAdvisor. These can be especially powerful for businesses in the service industry, as positive reviews and ratings can greatly influence potential customers.

Monitor these platforms for customer feedback and respond appropriately. That advice is good, whether addressing negative reviews or showing appreciation for positive ones. Remember, this type of feedback is also public, so it can have a strong impact on your online reputation—which can be either a good thing or a bad thing!

Key features to look for in customer feedback tools

Regardless of the type of feedback tool you decide to use, there are certain key features that you should look for. After all, you don't want to add more to your plate and end up with an overwhelming amount of data to sift through.

Here are some important features to consider:

• Customisation: Ability to tailor surveys, questions, branding, etc. to your business's specific needs
• Automation: Workflows that automatically distribute surveys and analyse results to save you time
• Integration: Connects with your existing platforms like email, CRM, analytics, and more
• Reporting and analytics: Provides visual, easy-to-understand feedback analysis with actionable insights
• Multi-channel data collection: Gathers feedback from different sources (email, web, mobile app, etc.) for a complete view

Benefits of using customer feedback tools

As you'll see when you start researching the right tools, most of the ones with advanced features come with a price tag. Yet, consider these benefits to see if it's worth the investment:

Improved customer loyalty

They say it costs 5-7 times more to attract a new customer than to keep an existing one. Customer feedback tools can help you identify what your customers love about your business and what might be driving them away.

For example, you might discover through a survey that customers love your product but find your checkout process frustrating. Armed with this knowledge, you can improve your checkout process and keep those customers coming back.

Better product development

Using customer feedback in market research is a great way to gain insights into their needs and preferences. Feedback tools can help collect valuable product ideas and identify areas for improvement.

This feedback directly informs product enhancements and innovations. For instance, if multiple customers suggest a new feature for your product, you can prioritise developing that feature in your next update.

Enhanced customer experience

Remember, customers go through an entire journey with your brand. From first discovering your company to making a purchase and using support services. At every step of this customer journey, there's an opportunity for friction and disappointment. Feedback tools can help identify these pain points and improve your customer experience management.

These tools help you gather insights at every touchpoint. This insight allows you to provide a seamless and personalised experience for each customer. For example, you might use a post-purchase survey to determine how smooth the buying process was. Or a customer service feedback form to see how satisfied people are with your support team.

Data-driven decision-making

Finally, guesswork can only get you so far in business. At a certain point, you have to rely on data or risk making costly mistakes.

Feedback tools provide valuable data and insights for business decisions, from product development to marketing strategies. They're not only more likely to work, but they also reduce the time you spend second-guessing and doubting yourself.

Data-driven organisations are 23 times more likely to acquire customers than those relying on gut instinct alone.

For instance, if your feedback data shows that customers in a certain age group are delighted with your product, you might decide to focus your marketing efforts on that demographic.

How to choose the right customer feedback tool for your business

Like any other business tool you'll buy, there's a process to choosing the right option. There is no one-size-fits-all. Every business has different needs and priorities, so it's best to consider your specific requirements when selecting a customer feedback tool.

Here are the steps to follow:

1. Identify your goals: Are you looking to improve product features, boost customer service, or gain market insights? Set SMART goals.
2. Consider your audience: Select tools based on customer demographics, communication preferences, and platforms they engage with.
3. Evaluate ease of use: Ensure the tool is intuitive for the business team and customers. Plus, it should have features such as customizability and easy data analysis, so you don't need more than one tool.
4. Weigh budget and scalability: Consider cost factors, whether for a start-up or a large enterprise. Remember, there's always a trade-off, and upgrading plans should be easy when you scale.
5. Test vendor support and reliability: Having robust customer support and reliable software performance is crucial. The best way to evaluate it is to test it by sending questions to the support team and seeing how long it takes to get back.

Wrapping up

Customer feedback is a goldmine of information to help your business grow and improve. With the right tools and strategies, you can tap into this valuable resource and use it to make your customers happier, your products better, and your business more successful.

Remember, the goal isn't just to collect feedback but to listen, understand, and act on what your customers are telling you. It's about building a dialogue with your customers and showing them that their opinions matter.

Key takeaways

Customer feedback is crucial for business success: Understanding and prioritising customer feedback is essential in today's competitive market. It helps businesses identify areas for improvement, create exceptional customer experiences, and stay ahead of competitors. Research shows that 86% of buyers are willing to pay more for a better customer experience, highlighting the importance of gathering and acting on feedback.

Different types of feedback tools serve unique purposes: Customer feedback tools come in various forms, such as surveys, live chat, email systems, social listening tools, and review platforms. Each serves a unique purpose, providing businesses with the flexibility to choose the right tool based on their needs. Surveys, for instance, allow detailed questions, while live chat provides real-time feedback. Understanding these options helps in selecting the most effective tool for customer feedback collection.

Key features to look for in a feedback tool: When choosing a feedback tool, several key features are vital: customisation options, automation for distributing surveys and analysing results, integration with existing business platforms, robust reporting and analytics capabilities, and multi-channel data collection. These features ensure that the tool is user-friendly and provides actionable insights without overwhelming the business with excessive data.

Benefits of using customer feedback tools: Feedback tools provide several advantages, such as improved customer loyalty by understanding customer likes and dislikes, better product development through valuable insights, and enhanced customer experience by identifying friction points in the customer journey. Moreover, they enable data-driven decision-making, significantly reducing guesswork and increasing the effectiveness of business strategies.

Steps to select the right feedback tool for your business: Selecting a feedback tool requires a structured approach. Begin by identifying specific business goals, such as improving product features or customer service. Consider your target audience's communication preferences and evaluate the tool's ease of use for both the business and customers. Weigh the budget and scalability options, and finally, test the vendor’s support and reliability to ensure robust customer support.

Feedback collection is only the first step; acting on it is key: The ultimate goal of gathering feedback is not just collection but understanding and acting on customer insights. Building a dialogue with customers shows them that their opinions matter, leading to stronger customer relationships and business growth. It’s vital for businesses to use feedback tools to create actionable strategies that improve products and services based on customer needs.