Customer feedback is vital for a company’s success, and not collecting such feedback is simply not an option.
A friend recently told me about a business that refused to actively engage with review sites, as, in its view, “all customers want to do is moan, and such feedback on an open forum would kill the business”. I would argue that if that’s the view of your customers and the service you provide, you are probably killing the business anyway.
Let’s be honest, it’s a strategic imperative that can influence customer satisfaction and ultimately shape growth. In this article, I’ll explore five ways your company could be impacted if it decided to NOT collect customer reviews.
- Lack of customer insight: Customer reviews aren’t just testimonials – they provide a wealth of insights. Without valuable feedback from customers, your company would be navigating in the dark when trying to make important strategic decisions. Understanding customer preferences, pain points, and expectations would be based on assumptions rather than data, impacting the ability to improve in line with actual customer needs
- Missed opportunities for improvement: Every review, whether positive or critical, carries the potential for improvement. Without customer feedback, your company would risk standing still and becoming complacent. Missing opportunities for enhancing products, refining services, or addressing operational inefficiencies would likely see your company being left behind by its competitors.
- Reduced customer trust: Customer reviews demonstrate transparency and authenticity, so having no reviews may raise suspicions among potential customers. Without the reassurance of reviews, your company risks giving the impression that it’s unwilling to engage with its customers, particularly as many review platforms, like Smart Money People, give you the ability to respond to customer reviews and show that you’re actively listening.
- Competitive disadvantage: In industries like financial services, where customer reviews are the norm, choosing to not collect feedback would leave your company at a distinct disadvantage against your competitors. Potential customers, used to researching products and services through reviews, might overlook your products and services in favour of those with a stronger online presence.
- Less marketing impact: Customer reviews are a powerful marketing tool, and are proven to influence potential customers during their decision-making process. Our research (Smart Money People research, October 2022) shows that 69% of consumers are likely to change their mind after reading reviews. Without visible customer feedback, your company’s marketing efforts may lack a crucial element that persuades prospects to choose your business over alternatives.
In conclusion, the impact of not collecting customer reviews is significant, and more than simply a missed opportunity. It impacts your company’s ability to understand, adapt, and thrive in a dynamic marketplace, so you shouldn’t just see reviews as words on a screen. Customer feedback can shape your company’s strategic direction, and propel it towards sustained success.
by: Jess Rushton, head of business development, Smart Money People
- General
