Customer Feedback: Definition, Uses & Importance

Customer Feedback: Definition, Uses & Importance
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  • 0:03 What Is Customer Feedback?
  • 1:17 Why Is Customer…
  • 2:08 Customer Satisfaction…
  • 3:06 Benefits of Customer Feedback
  • 3:28 Lesson Summary
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Lesson Transcript
Instructor: Tara Schofield
In this lesson, we'll explore customer feedback, an important aspect of business ownership. By asking customers for opinions about goods and services offered by their businesses, owners gain a better understanding of what clients are looking for and how to meet those needs.

What Is Customer Feedback?

You run a successful catering business, which provides services to mostly business clients. You have about ten customers who use your business on a regular basis to cater their business meetings, client events and company parties. You have established an effective system to get customer feedback or customers' opinions regarding the products and services your business offers. You regularly conduct customer surveys to monitor customer satisfaction with your food, staff members, prices, and service levels. You are proactive in responding to feedback appropriately, and this is critical to the success of your company and one of the things that sets you apart from your competitors.

Customer feedback can be gathered informally, as through casual conversation, or formally, such as through surveys. Feedback can also be gathered when customers contact staff directly with specific questions, suggestions or complaints, whether offered in person, over the phone, or via correspondence such as e-mail. A less direct, more informal type of customer feedback can come from satisfied customers referring your products and services to others. All forms of feedback are helpful and can be used to improve your business.

Why Is Customer Feedback Important?

Your catering business got off to a slow start because you didn't have many connections or clients. Because you were new to the business, you were very eager to find out what your clients wanted and what you could do to make them happy so that your business would become more profitable. Within a short time, you recognized the importance of customer feedback. You were able to make changes to your operations based on suggestions your customers made.

For example, several menu items your company offered were eliminated because customers let you know those options were not attractive to corporate clients. Likewise, they made suggestions for more appetizers and finger foods you could offer that would be more attractive menu options. Once you added those items to your menu, sales increased. By listening to your customers' feedback, you were able to make solid changes that made your business more successful.

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