Why feedback is important

However, only after your customers use your product or service you can learn about all the advantages, flaws and their actual experience.

On top of that, their needs and expectations evolve with time. Customer feedback is an insight into what is working well about your product or service and what should be done to make experience better. You might have the best expertise in the industry in which your company operates, but your professional knowledge will never be more valuable to business performance than customer insights.

Their opinions help you ensure that the end product will actually meet their expectations, solve their problems and fulfill their needs. See more templates. It is directly linked to many benefits, such as increased market share, lower costs, or higher revenue. Many studies confirmed close connection between customer satisfaction and business performance.

Therefore, there is no doubt that you want to make sure your clients are happy with your products and services. Naturally, the best way to find out if you meet their expectation is to get their opinions.

One of the most accurate methodologies that has helped many companies measure, manage and improve customer satisfaction is NPS. The metric is based on one simple question that investigates how likely it is that a customer would recommend a brand to a friend.

Response options for the loyalty questions are based on a 0—10 point rating scale, with 0 representing extremely negative and 10 representing extremely positive. This methodology is both simple and universal, so every business can apply it in customer satisfaction management. By asking your clients for feedback you communicate that their opinion is important to you.

You involve them in shaping your business so they feel more attached to your company. Listening to their voice helps you create stronger relations with them. This is the best way to gain valuable brand ambassadors who will spread positive word-of-mouth for you. And I am sure you are aware that their recommendations is probably the most effective and, at the same time, the cheapest way to acquire new customers and become more trustworthy in the eyes of your current and potential clients.

People always appreciate when you ask them if they are happy or unhappy with your service. It shows you actually value their opinion and that you are here for them, not the other way around. They feel that your primary business goal is to solve their problems and fulfill their needs, not to get their money. It puts a customer in the central position of your company and this is the right way to run a business. They do not buy Apple products just because they are good.

They want to demonstrate their status and affiliation to a particular group. If you want to coach someone to be able to take your place one day, they will need to understand how and where they should change their performance and behaviour in order to step into your shoes. Home Topics Authors Glossary. Feedback by Paul Matthews. The first group received clear performance goals. The second did not receive goals, but did benefit from regular performance feedback. The third group was given goals at the start and feedback throughout.

This is what gets people to show up every day and deliver their best. Giving regular feedback is one way we can show employees that they are valued and useful. Even negative feedback can spur people on to want to do better. Any feedback, good or bad, will reinforce to your employees that there is a point to what they are doing. A study by Officevibe shows that 4 in 10 workers are actively disengaged when they receive little or no feedback.

The research also highlighted how important it is for employees to receive regular feedback. Even if they don't vocalise it, employees crave feedback.

And with the ambitious and growth-driven younger generations of Millennials and Gen Y now making up a significant proportion of the workforce, feedback is only going to become more focal for companies. Peer to peer feedback opens up the communication channels between employees. This can be particularly useful if there is conflict or tension between colleagues. Giving feedback is an opportunity to get things out in the open so that issues can be resolved and they can find ways to work together better.

Make sure you are properly prepared beforehand so you can provide solid, actionable feedback. Productive feedback means giving it frequently. Picking the right time and place is essential in providing feedback to your employee.

How serious is the matter? Do you need to schedule a formal meeting to discuss the issue or can you have an informal chat in the tearoom? No one likes receiving vague feedback. For example telling an employee he has lousy people skills is neither constructive nor effective.

Make sure you prepare some specific examples of the behavior or incident you observed. By providing clear suggestions as to how the employee could do things differently will help foster a positive relationship with the employee for the future.