With such stiff competition in the marketplace, it pays to take advantage of any information about a company’s customers. Consumer data is usually available in two forms: secondary and primary research. However, primary research provides more direct information about customers’ feelings, usage, and reactions to certain products. With that in mind, the following are some reasons consumer feedback is imperative to a company’s success.
Identify Needs and Wants
Consumer feedback allows a business to identify the needs and wants of customers. Often referred to as “hot buttons,” these desires or customer necessities dictate what’s most important to consumers, according to Chron.com. Subsequently, when an organization fulfills these needs and wants, they have a better chance of retaining customers and increasing repeat business.
Serves as Measuring Stick Versus Competition
Feedback from customers shows how companies fare against key competitors. This type of information is usually garnered using rating scales in marketing research surveys to measure the company’s specific attributes and competition. For example, restaurants often measure variables such as food quality, service, and cleanliness. If a particular restaurant rates lower on one of these variables versus competitors, it will know where it needs to improve to get more sales and traffic. Business owners can also identify key strengths versus competitors and use them to their advantage.
Eliminate Negative Experiences
A marketing firm recently discovered that one negative article could cost a company up to 22% of its business, according to Forbes. Once a company pinpoints these negative sentiments or experiences, it can rectify them immediately. That’s why most companies have customer service departments to handle problems or questions.
Prepare for Future Trends
Like anything else, consumers’ tastes and needs change over time. These changes are often caused by technological advances, greater expectations, or even new legislation that affects how companies do business. A business owner that stays informed of these changing trends through market research can adjust his or her products or offerings to meet consumer demand. The key is to pinpoint various trends well in advance so that the product changes can be made on time.
Keeping track of consumers is essential for business success. One of the best ways to measure consumer feedback is to conduct market research continuously.
