Customer Insights: Using Feedback to Improve the Customer Experience

It is crucial to prioritize customers and understand their needs to provide exceptional service. Adopting a data-driven approach with customer insights can significantly enhance the buyer experience. In this post, we will explore the significance of customer insights, their importance, and how to leverage them effectively. For quick reference, you can jump to the relevant information if needed.

What are customer insights?

Customer insights involve analyzing customer feedback and data to identify behavioral trends that can enhance the effectiveness of marketing, sales, and service initiatives. By leveraging quantitative and qualitative customer data, businesses can make informed decisions and improve the buyer experience based on objective metrics.

Why are customer insights important?

Gaining a deeper understanding of customer psychology, behavior, and preferences can significantly enhance customer service and potentially drive revenue growth. Obtaining direct data on your customers’ user experience (UX) is crucial in preventing churn. By delving into the underlying issues through authentic and timely customer feedback, you can proactively address their concerns before dissatisfaction escalates. Leveraging this valuable data can undoubtedly benefit your business, but it is vital to master the art of collecting actionable customer information.

How to Gather Customer Insights?

1. Collect customer feedback.
2. Get a pulse check on customer sentiment.
3. Use third-party data for market research.
4. Do some situational analysis.
5. Passively collect behavioral data.
6. Conduct real-time user testing.
7. Use predictive modeling.

Since insights are more about the conclusions you can use to make decisions, you can reach those conclusions from various sources.

Gather customer feedback.

Obtaining customer insights is most effectively achieved through direct inquiry. Surveys and questionnaires, such as “How Are We Doing?”, can yield valuable insights that inform future campaigns. For local businesses, this step is crucial in comprehending how customers address challenges specific to their niche or industry. A notable illustration is Monarch Roofing, which conducts post-roof installation reviews to identify any issues encountered by homeowners during their roofing projects. This feedback is then utilized to enhance future installations.

However, it is important to acknowledge that this approach may not provide a comprehensive perspective. Some customers may hesitate or be reluctant to express their genuine opinions, resulting in minimal feedback during the survey process.

Obtain an assessment of customer sentiment.

Customer sentiment measurement methods, such as the Net Promoter Score (NPS) system and star ratings, hold equal importance alongside surveys. By soliciting customer ratings and streamlining the process, for example with a one-click popup, you can effectively gauge customer satisfaction with digital experiences. These methods are particularly effective for in-app or on-page testing of individual features and assessing experiences following sales calls or customer service interactions.

Utilize third-party data for conducting market research.

Suppose you don’t have much customer feedback to make decisions from. In that case, you can draw insights from market research performed by larger organizations with a broader audience. This can be done using keyword research tools such as Google Trends, Ahrefs, and SEMrush.

Conduct a situational analysis.

Customers may not be aware of potential improvements until they are confronted with them directly. This can have negative consequences if a competitor introduces innovative solutions, or it can lead to customer satisfaction if you enhance your offerings. However, if customers are unaware of flaws in your processes, services, or products, it becomes challenging for them to communicate their concerns. In-person interviews, ongoing gap analysis, and training seminars can provide valuable insights that may not be captured through surveys alone, particularly when utilizing open-ended questions.

Passively gather behavioral data.

You can learn much about your customers by noticing how they interact with your website, product, or content. Analytics platforms such as:

• Google Analytics: Social media dashboard
• Hotjar: Heat mapping software
• Lucky Orange: Screen recording software

These tools gather data that managers can use to draw more informed conclusions. You can also get information about what prospects care about from searches they do online.

Conduct real-time user testing.

For applications, websites, and online experiences, valuable insights into audience preferences can be obtained by conducting A/B tests on specific variables. Through A/B testing, you can observe real-time interactions of your user base with elements like copy, navigation, and button color or placement, allowing you to determine the most effective approach. The majority consensus guides decision-making, supported by statistical evidence.

Utilize predictive modeling techniques.

Predictive modeling or lead scoring is utilized by certain companies as a valuable source for gaining insights and making informed decisions. The advancements in machine learning and artificial intelligence have made it increasingly feasible to leverage algorithms and statistical models for effectively analyzing vast amounts of data and variables, surpassing what can be achieved without computer assistance. This enables the generation of valuable “predictions” related to user or customer experience.

Examples of Customer Insights

1. PodcastGuests.com Customer Feedback Survey
2. HubSpot’s Net Promoter Score System
3. Yokel Local’s Bug Fix After Insights from Behavioral Data
4. Csek Creative’s A/B Testing
5. Netflix’s Machine Learning

PodcastGuests.com Customer Feedback Survey

PodcastGuests.com is a service that facilitates connections between podcast hosts in need of guests and podcast guests seeking opportunities. As part of their weekly email campaign, this service conducted a survey that serves two important purposes:

1. Gathering meaningful feedback from subscribers to enhance their experience.
2. Collecting valuable data from subscribers to ensure proper segmentation of the PodcastGuests.com email list.

By strategically asking questions that require respondents to choose an option, PodcastGuests.com can utilize this information to deliver more personalized emails, containing content that is truly beneficial to the customer. This approach not only enhances their email campaigns but also improves the overall user experience.

HubSpot’s Net Promoter Score System

At HubSpot, we utilize NPS (Net Promoter Score) and leverage email marketing automation to gather and assess customer satisfaction. Following the conclusion of a customer support ticket, an email is sent to the customer, kindly requesting them to rate their experience on a scale of one to ten. This data is then analyzed to determine the effectiveness of our customer service efforts.

What we find particularly advantageous about this approach is its simplicity – a seamless one-click experience, without burdening our customers with an extensive list of survey questions. Such a straightforward method enables our team to accurately gauge the effectiveness of our strategy and identify areas for improvement.

Yokel Local’s Bug Fix After Insights from Behavioral Data

Yokel Local, a digital marketing agency, observed a concerning drop in conversions on the “Request a Consultation” page. After conducting in-house testing, they were unable to identify any reasons for this decline. Consequently, they turned to Lucky Orange, a screen recording software, to analyze real customer interactions with the site. It was discovered that certain devices were unable to register checkbox clicks, resulting in user bounce rates.

Positive Outcome: This valuable insight prompted the implementation of web development fixes to address the issue, subsequently restoring conversions to their normal levels. This serves as a reminder that appearances can sometimes be deceiving, as even seemingly flawless elements can harbor hidden problems.

Csek Creative’s A/B Testing

When a company decides to make a significant change to its website homepage, there should be a compelling reason behind it. After all, there is no guarantee that the change will result in improvements. That is why conducting A/B testing to compare the new copy with the old copy is a valuable practice. This allows you to determine which version generates a higher percentage of the desired outcome.

Csek Creative, a digital marketing agency, followed this approach when they updated their tagline. What they initially considered a minor modification resulted in an impressive 8.2% increase in their click-through rate.

Positive Aspects: The company’s conclusive tests demonstrated that changing the tagline on the home page would lead to a higher click-through rate. This outcome underscores the importance of conducting such tests before implementing any changes.

Netflix’s Machine Learning

One of the most notable instances of machine learning for improving customer experience is exemplified by Netflix’s recommendations engine.

Positive Features: Through comprehensive analysis of user interactions and preferences, Netflix can provide personalized content that is highly likely to engage and entertain. This not only enhances customer satisfaction but also prolongs their engagement on the platform.

How to Apply Customer Insights?

You have conducted surveys across your digital platforms, and your customers have eagerly shared their thoughts. Now, it is time to integrate these valuable qualitative insights with analytics and implement changes accordingly.

But where should you begin? Take inspiration from these use cases where customer feedback played a pivotal role in driving meaningful transformations.

1. Make changes based on the result of user testing.

Customer feedback plays a crucial role in the testing phase. To ensure that the Support portal revamp meets users’ needs, Usabilla took the approach of releasing it in beta and actively soliciting feedback from users.

By selectively targeting a percentage of visitors to the existing site, Usabilla invited customers to test the new beta website. Once on the site, customers demonstrated a high willingness to share their thoughts, potentially due to the active invitation to try the page, fostering greater engagement by providing feedback.

A notable aspect is that Usabilla employed a combination of passive feedback obtained through a Usabilla feedback button and conducted active surveys. These surveys featured actionable questions based on the ones mentioned above. This approach allowed the company to test and enhance the beta website before its public release.

2. Share your wins and ROI from the data you receive.

Paris Saint-Germain, a French football club, achieved a remarkable return on investment by leveraging user feedback to collect customers’ contact details. According to Hugo Charrier, E-commerce Manager at PSG, they implemented a slide-out campaign to allow customers to provide their details if they didn’t have time to complete the purchase of a VIP ticket or had any further inquiries. This initiative resulted in the acquisition of over 500 email addresses, leading to sales worth nearly €100,000.

Key Takeaway: It’s important to note that gathering valuable customer data doesn’t always require extensive surveys or open-ended questions. Simply enabling communication channels can make a significant impact.

Use Your Customer’s Experience to Innovate

Becoming a genuinely data-driven and user-centric organization necessitates the integration of both quantitative and qualitative sources. Engaging with customer feedback can be effectively managed, particularly with the aid of a robust feedback platform, to deliver the seamless digital experience that your customers desire.

You can find more useful and interesting information about working with clients in our Customer Relationship Management section