How To Create Effective Customer Feedback Strategy

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How To Create Effective Customer Feedback Strategy

A customer feedback strategy is a system of collecting feedback and analyzing it to produce actionable insights. Besides, it’s the easiest way to gain insights.

Loyal customers bring more sales compared to any marketing campaign. While dissatisfied customers can cost you a lot more than just sales. So, how do you keep up with these ever-evolving customer expectations?

By asking them! After all, feedback is a champion’s breakfast.

A customer feedback strategy is a system of collecting feedback and analyzing it to produce actionable insights. Besides, it’s the easiest way to gain insights into things that matter to your business.

Whether you are collecting feedback through surveys, social media responses, or reviews, the challenge is transforming that mass of raw, unfiltered feedback into something useful for your business.

A modern customer feedback strategy can be broken down into four basic steps.

Let’s start!

How To Create A Customer Feedback Strategy?

The system of creating a customer feedback strategy from scratch consumes a lot of effort. But, on the contrary, it’s not rocket science.

Introducing the simple A.C.A.F (Ask.Categorize.Act.Follow up) feedback loop helps you walk through it with the best possible customer feedback strategy. This process helps you track the pulse of customer opinion, gain customer loyalty by closing feedback loops and use both to inform strategy and stay ahead in trends.

Ask – Gather Customer Feedback

While gathering customer feedback, you should adhere to the fact that each tactic will be different depending on what your goals are.

Here, I’ve outlined the different ways in which you can collect customer feedback and what each type suits the best:

Surveys – Ideal For Touchpoint Feedback

Often, survey distribution and collection are done using the big three customer satisfaction metrics – NPS, CSAT, and CES.

To put it all in all, surveys are crucial and beneficial in learning how the customer feels at a given point of time in their customer journey. So, by requesting customer feedback in the form of surveys ensure your customers feel cared for and get the satisfaction of being heard.

Emails – Best for Delayed Feedback

Email feedback campaigns prove to be ideal when you wait a while after a customer interaction to have a follow-up with them. This is especially true when your product has any kind of learning curve.

Reviews – A Considerable Choice For Detailed Unsolicited Feedback

Understanding where your customers leave reviews and how they’re talking about you and your product means you can take steps to correct any negative trends.

Social Media – Top Pick For Passive Feedback

Monitoring social media like Twitter, and Facebook is another kind of passive feedback collection for discussions surrounding your business or products.

Once you have asked and collected all your customer feedback, you are all set to take the next step in your ACAF journey – “C- Categorizing Your Customer Feedback”.

Categorize – Analyze Customer Feedback

Once you are done collecting the customer feedback, the next step funnels to sorting it. This means identifying, categorizing, coding, and finally visualizing it in a way that makes it easy to find trends.

Let’s inch step by step:

Identify your customer feedback

To “identify” your data, it’s imperative to understand the difference between quantitative and qualitative data.

Quantitative Data

The numeric data, commonly derived from survey scores (CSAT, NPS, CES), star ratings, or other non-text social media metrics are defined as quantitative data.

Qualitative Data:

The data that comes from open-ended responses or any other form of freeform text – intends to bring deeper insights, aka the “why” behind the quantitative scores it is related to.

B. Now, categorize your customer feedback

After identifying your data, you can proceed to perform cross-tabulation and other sub-grouping analyses on the quantitative data.

Then, diametrically important, you can use no-code, low-code tools on the qualitative data. Conversely, qualitative data can be approached in two ways:

Manually, which is subject to viewer bias and is labor-related.

Automatically, AI integrated programs operate objectively and can reveal deeper trends and visualize complete datasets all at once.

Act – Use Customer Insights

Now, that you have collected and analyzed customer feedback, you’ll need to give the insights to the respective teams in the right order. To do this, you can use a chart called customer needs matrix.

You could implement a simple chart called customer needs matrix:

This is just an approach to help you understand which action items to prioritize by classifying them into four categories as “Bucket I-IV”.

Bucket I

“Bucket I” has high demand and low complications to develop. So, these will be the easiest to integrate with significant results and should be passed on to the respective teams immediately.

Bucket II

“Bucket II” is second most important, with high demand and build time. For example, this could be the need for an Android app. Surely, this will take some effort to build but will satisfy Android users, likely a significant customer segment.

Bucket III & Bucket IV

Bucket III and Bucket IV are the third and fourth-least important because their user demand is less. However, these action items could be worth integrating in the future.

A Healthy Reminder: Action items in these sections could have a surprisingly positive influence on the bottom line, specifically if you are an established organization.

Final Thought…

The best part is – you don’t have to do this all on your own. Sentiment analysis can help you in the same.

Customer feedback strategy, whether you are phrasing a survey question for an email campaign or whether it’s the entire customer feedback approach, it’s only as good as its data.

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