Today, many businesses collect customer feedback, however, this is just the first step. They will need a system in place to analyze, categorize, and respond to feedback. Or else, feedback, which is generally collected using the Customer feedback app, won’t help them to improve their product and reduce customer churn.
Here we have collected experts’ views on how they manage customer feedback analysis and have made a list of their responses. But before we look into this, we will take a closer look at the topic of customer feedback analysis, what is it? And why it is important?
What is Customer Feedback Analysis?
Customer feedback analysis is the process of analyzing user feedback and looking for broad trends. The process also includes a way to tag or organize feedback, so that the customer team can quickly sort through feedback and see important trends.
Why Customer Feedback Analysis is Important?
If you wish to know who your brand loyalists are, who wish your software product had more features, and who are conflicted about your product, you will have to gather and investigate feedback.
Blissful customers can bring you a new business in the form of references while unhappy customers can increase churn. Ongoing customer impact analysis can help you solve problems before they lead to lost customers, while showing you how to improve your SaaS product.
What is Reactive Feedback & Proactive Feedback? What’s the Difference?
Customer feedback falls into either of two categories: reactive or proactive. These are the basic differences between the two.
Reactive Feedback: It’s a type of feedback that is unsolicited and may include feature requests, social media posts, or reviews on third-party websites. In general, these types of feedback are either positive or negative, as ambivalent users are unlikely to review or mention a product.
Proactive Feedback: When you go to users and ask for their opinions, whatever responses you receive are proactive feedback. Some well-known methods to collect proactive feedback using a customer feedback tool includes live chat, in-app surveys, and focus groups.
Tips on Improving Customer Feedback Analysis
Here are the tips on the best way to move along and better analyze feedback and use it to drive online sales:
Analyse all Customer Feedback
Although, this may sound obvious, but it is important that you actually analyze all the feedback you get – otherwise why bother to collect it in the first place!
While some details may provide a standard or informal explanation (which will also be useful – see the popular section below), some may contain information that could be a big boost for your business.
Categorize (and sub-categorize) Feedback
You will quickly notice that feedback will begin to fall into general categories – these may incorporate the speed of your services(or lack thereof), accuracy, courtesy and helpfulness of the staff, price and product selection, availability or condition, etc.
Organizing surveys into groups will immediately help show the big picture of how a customer perceives your business and services. Of course, some customers can answer questions in several categories and you can organize them well.
You will probably find those sections very useful. This will help to make the invisible elements of your business, which can be very important to your overall idea.
Use Negative & Positive Feedback
Inevitably feedback will range from complaints to high praise! It’s a good idea to divide the outcomes utilizing these standards, as your reaction to each will differ significantly.
It ought to be accentuated right now that positive feedback is as useful as a complaint, as it shows you what you enjoy and motivates your customers all the time.
Gratitude will also motivate your team, and thanking customers for their positive feedback helps build customer loyalty.
Similarly, negative reviews will show why customers leave and go to your competitors. You need to close the loop and fix these issues – it’s a proven way to keep more business. Either way, your business will improve and thrive by responding effectively to feedback.
Focus on The Root Causes
Naturally, you will have to understand what is driving client faithfulness to further develop it and client input will assist you with doing this.
Therefore, it helps to make root cause analysis more important than addressing complex or niche issues reported by your customers.
To achieve this, it is fundamental to have a management system that will enable you to get information and help you search through large amounts of data.
You need to be able to determine the data that will help identify the root cause of the problem, before moving on to more complex (and sometimes niche) problems.
Understand Your Customer’s Value
Although, all customers are valuable to your business, but there are a few that are more valuable than others.
Therefore, it is important to understand the value of the customer/group of customers, so that you can prioritize changes to your sales funnel or customer management regime.
For example, some customers may buy from you only during the sale while the more loyal customers would do the same on an ongoing basis.
Therefore, regular customers are more important for your revenue than those who “Cheery Pick” during sales. So, it makes sense to give importance to those customers that come to you repeatedly.
Identify Trends
Out of all the criteria you use to evaluate customer feedback, identifying trends is the most important one. The process will show where you are right or wrong, and it will become more important as your volume of feedback increases.
When you look at individual reviews, you may find some strong opinions or complaints. However, these will be considered in your general market situation.
For example, a customer may have had a bad experience with a product you sold to him/her, but other customers who have purchased the same item may give positive reviews.
Looking at long-term trends can also help determine if you have a statistical or behavioral bias that needs to be corrected.
Never do the Mistake of Comparing Unrelated Data
You can use different geographies, different business segments, or different search results, but that can be misleading. Comparing the results (although they may seem related) can give a mutilated view.
For instance, clients in various districts or nations may differ from those in other parts of the world (due to different cultures or lifestyles, etc.). than others, which can be due to many different reasons and it does not depend on the quality or availability of your product or service. Each section or area should be viewed as larger, and feedback data should take this into consideration.
Challenges in Analyzing Customer Feedback
Analyzing customer feedback depending on its volume, method of delivery, and internal workload is a difficult task. The fundamental difficulties in breaking down customer feedback are:
Multiple Feedback Channels
At the point when feedback is delivered through email, social media, Google searches, and other channels, your customer service team can struggle to keep up.
Quality of the Feedback
Sometimes the feedbacks that are collected using customer feedback software are too vague to be useful. For example, some customers may explain that they are unhappy, but they may not explain why or what else they would like to see in a SaaS product.
Inability to Sort Feedback Type
Perhaps you want to know if a negative review is from an industry-level customer who has been involving your product for a really long time. Nonetheless, the test with different feedback channels is that organizations may not be able to integrate feedback into their CRM, making it difficult to organize feedback by customer type.
