Improving Profit by Utilizing Customer Feedback

An underutilized tool in business development is customer feedback. For the most part, entrepreneurs see this to be a "soft" option; a set of information that cannot be justly quantified or relied upon. The term does suggest this. There is absolutely no way to delineate biases from customer feedback. Nevertheless, used correctly, feedback from one’s clients can be used to augment existing data and address certain issues.

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There is a time and place for everything. Customer feedback can give clues to areas that would otherwise go unnoticed. How does this product or service make you feel? What emotion does this product or service provoke? These are factors that mere scientific data cannot record. This becomes of especial importance in industries that promote personal interaction. An example would be health care. Technically speaking, health is a matter of numbers. Did the medicine work? If so, how fast did it take? What were the side effects, if there are any? These are all quantifiable data. However, hospitalization goes beyond this. Now, government and health agencies are tracking bedside manners as well. This has more than a cosmetic reason: studies have found that patients improve faster when they are happier, less stressed, and feel that they are well taken care of. Numbers – substantial and irrefutable evidence – are affected by an intangible, feedback.

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This has a direct effect on profit. People are more likely to repeat pleasurable experiences. This is how one gains repeat customers. When the feedback is good, entrepreneurs may use this to continue practices that work. Similarly, customer feedback can be used to pinpoint areas that need improvement or should be disregarded.  

Industries such as pharmaceuticals, media, and real estate have sought the expertise of Steven Rindner, a business and growth analyst. Learn more by following this Google+ account.