How Customer Feedback is Important for Your E-Commerce Business
Do you know what the most recent consumer who purchased anything from your eCommerce business thought of the product?
What about your most recent ten clients? Or someone who purchased a few items three months ago?
You may use customer feedback to gauge how your eCommerce consumers feel about your brand and items.
Let's take a look at why client feedback is so important and how you can utilize it to better your eCommerce business.
What Is the Importance of Customer Feedback?
People nowadays have more opportunities than ever before to research products and services and read reviews before making a purchase. You can't afford to disregard the opinions of your customers.
Here are some major facts that demonstrate the importance of client feedback for eCommerce businesses:
According to Podium, 93 percent of respondents believe reviews influence their purchasing decisions.
According to ReviewTrackers, the most popular places for consumer reviews are Google and Facebook.
According to KPMG, 30% of buyers have posted product comments online.
According to a Cone Study, 80% of buyers opted not to buy anything after reading a poor review.
According to the Spiegel Research Center, a product with five reviews is 270 percent more likely to be purchased than one without. Furthermore, they discovered that showing evaluations for more costly items raised conversion rates by 380 percent.
How customer feedback can benefit your eCommerce business
There are several reasons why listening to your consumers is beneficial to your business, from lowering client acquisition expenses to raising website conversion rates and earning more loyal customers.
1. Make the consumer experience better
Did you know that for every client that complains, there is an average of 26 more who feel the same way but don't say anything? They simply leave and never return to your store.
You can uncover what consumers truly think about your organization and goods by tracking customer satisfaction ratings across the whole customer experience.
You may study these results overtime to figure out what makes someone so enthusiastic about your company that they share it with all of their friends on Instagram. You may utilize this data to improve your customer experience across the board and increase the number of satisfied consumers.
2. Increase the number of superfans
Superfans are devoted clients who will freely suggest your items and talk about your company to their friends, family, and coworkers.
Superfan word-of-mouth marketing may be a dream come true for eCommerce marketers. When they talk about your brand on social media, it raises brand awareness and, in most cases, leads to sales.
3. Make product development better
It's almost too simple to mention, yet it's easy to overlook asking for input on how to enhance both new and old items. It's quite hard to have an impartial perspective of your items when you're in the weeds every day. However, unless you ask, most consumers will not share their opinions with you.
If you offer luxury ice cream sandwiches, for example, you could read a couple of five-star reviews and conclude that everything is OK. What if, by the time they were delivered, 5% of ice cream sandwiches had turned into ice cream soup?
4. Show that you are concerned
It shows that you appreciate your clients when you listen to them and recognize them. As a result, customers have a better experience and are more likely to return.
Plus, if you treat your consumers like people rather than numbers, you'll learn more about them and be able to better customize your offerings to their requirements.
5. Lower the cost of acquiring new customers
When you have a thorough understanding of who your ideal client is and can give them an amazing experience, you may reduce your acquisition expenses. You're giving existing consumers a terrific experience so they'll keep buying from you. They'll be more inclined to post product reviews as well.
6. Increase the number of online conversions
Did you know that the typical eCommerce conversion rate is between 3% and 4%?
You can enhance conversion rates by focusing on improving your website depending on consumer behavior and feedback. If you boost your conversion rate from 4% to 5%, you might potentially generate thousands of dollars in new revenue in a single month.
7. Give yourself a leg up on the competition
Simply said, businesses that are really customer-centric have a significant competitive edge.
You'll save money on client acquisition, have a greater percentage of repeat sales, have more super fans, and probably get better product ratings. A moat is formed around your firm as a result of this.
8. Establish benchmarks for your company
What you can't measure, you can't manage or improve. When you allocate customer experience or feedback-related KPIs to different teams and individuals in your business, you're demonstrating that you value it.
If you measure this on a regular basis, you'll see changes and more optimistic outcomes.
What is the Best Way to Collect eCommerce Feedback?
Now that you've learned about all of the advantages of using client feedback to better your business, it's time to start collecting, systemizing and streamlining this information.
Customer feedback may be collected in five distinct ways:
Survey your customers for feedback
This is by far the most common approach for obtaining feedback from both existing and prospective clients. There are many other types of surveys you may do, but for the sake of this article, we'll focus on surveys that target either new consumers or current customers.
Make one-on-one contact
While it takes more time than conducting a survey, reaching out to consumers and having one-on-one conversations can provide insights that an online survey can't provide — and it doesn't take long.
Use the feedback boxes on your website
Website feedback boxes are comparable to suggestion boxes seen near the cashier or check-out counter at your local store or restaurant.
At numerous touchpoints on your website, they let you swiftly gather feedback and evaluate sentiment from users and customers.
Examine the user's behavior
You may utilize software to examine how visitors engage with your website in real-time in addition to feedback forms.
This allows you to "spy" on visitors and see what they do on your site without having to ask them through surveys, phone contact, or feedback form.
Keep an eye on social media
Monitoring comments, likes, and shares on social media is the last option to gather useful input.
Putting it all together
It's time to take action after you have all of the mechanisms in place to gather and evaluate consumer feedback on a regular basis.
1. Automate your feedback collection to keep everything in one location
Everyone in your firm should be able to see where this feedback is stored, who wrote it, what it's about, any attachments, and the current status in order to act on it. This will assist you in establishing a positive customer feedback loop.
2. Turn your consumer feedback into particular tales and takeaways that you can use
Turning comments into tales is one approach to make it stay. The more you can turn consumer input into tales, the easier it will be for you and your team to recall and act on it.
3. Prioritize comments depending on their business effect
Not every feedback should be given the same weight. You should set up a system for triaging input using the following criteria:
What kind of impact will the modification have if it succeeds?
On a scale of one to ten, how confident are you? (extremely confident).
User-friendliness: Is it tough to make the switch?
4. Assign key performance indicators (KPIs) to hold teams responsible
It's easy to become lost in a sea of possibilities and to-dos as teams get better at gathering feedback. Assigning a KPI connected to customer feedback to each employee, team, or department is one approach to keep it at the forefront. Your eCommerce firm will be really customer-centric as a result of this.
5. Analyze the outcomes once any feedback has been implemented
Finally, go through any feedback you've implemented again. Check to see if what you're doing is effective.
To put it in a nutshell
One of the most effective methods to guarantee that you have a pulse on what your consumers think about your brand and goods is to collect, apply, and analyze feedback.
Over the coming decade, the eCommerce firms who pay attention and actively demonstrate that they care about their consumers will be the ones to watch.
However, while reading articles like this one, it's easy to become overwhelmed by all of the possibilities. You can become paralyzed by analytical paralysis and accomplish nothing.
