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Feedback Management

The Importance of Customer Feedback in SaaS

March 14, 2023

If you are into SaaS business, who can know better how challenging it is to take it towards heights of success. SaaS products solve a variety of problems for their users. But for every problem and task, there are a number of products available in the market which makes it a competitive market. Ensuring customer satisfaction becomes even more necessary in such a market.

You make every effort to provide great products and services to your customers. But how would you know whether they are satisfied with your products, services, and the overall experiences with your brand? The only way is to collect SaaS Feedback.

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Feedback is essential to know how your customers perceive the experience with your product, services, and brand. It is not only crucial to know their satisfaction levels but also what they desire from your products. It is a way to know customers’ needs and expectations. It helps you get insights of their perception about an ideal product or service.

In this article, we will explore what SaaS Feedback is, and how it is important to collect it for the success of your product and business. Let’s get started!

What is SaaS Feedback?

SaaS Feedback is the valuable information about the feelings, viewpoints, and perception of customers or product users about their experience with a product or service, and the overall company.

Feedback helps you know what your customers expect from your products and services, and how well you are able to fulfill those needs and expectations. Let’s explore why it is important to collect Customer Feedback in SaaS.

Why is SaaS Feedback important?

All your hard work of developing your products and services can go in vain if they are unable to satisfy your customers. Customer Feedback helps you get actionable insights of the users about their experience with your brand and shows the way to ensure customer satisfaction and make your business successful.

Let’s understand this better by exploring the reasons to collect Customer Feedback.

Reasons to Collect Customer Feedback in SaaS

  1. To improve your products and services
  2. To show that you care for your customers
  3. To increase the brand advocacy
  4. To evaluate performance of your teams and team members
  5. To stay competitive in the market
  6. To understand better about customers’ needs and expectations
  7. To learn from the faults in the past
  8. To prevent customer churn
  9. To know about ongoing market trends
  10. To be able to make better business decisions

Let’s learn more about these reasons to collect Customer Feedback in SaaS.

1. To improve your products and services

No matter how hard you work to develop your products, there can always be some flaws, bugs, or loopholes where there is a scope of improvement. Customer Feedback helps you know about all this and work in the direction of making your product and services better.

Moreover, you sometimes don’t know much about your target audience and what exactly they want from your products and services. Customer Feedback provides real customer insights about their requirements and how well your product and services are able to fulfill these needs and expectations, and where they lack.

This helps you identify the scope of improvement and ultimately improve your products and services and make them better for your customers. 

SaaS Feedback survey template for Product

2. To show that you care for your customers

Asking for customer feedback conveys that you care for your customers and their opinion matters to you. This induces a positive feeling among them regarding your product, services, and brand.

Whether you ask for rating your product and services or you ask for suggestions to improve them, asking for feedback shows that you want to listen to the voice of the customers. And when you follow customers’ suggestions, improve your products and services, and inform them about this, it creates a very good impression of your brand, and induces loyalty among your customers.

3. To increase brand advocacy

Collecting Customer Feedback can fetch you many benefits. Along with letting you know about the strengths and weaknesses of your products and services, Customer Feedback can also help you promote your brand. If you get positive feedback or a good Net Promoter Score, you can showcase it to promote your brand.

Moreover, if some of your customers are willing to promote your brand, for instance, promoters found through NPS Surveys, you can request them to write a review on social media, or on a popular review platform like G2, Capterra, and GetApp.

NPS Survey to collect SaaS Feedback

4. To evaluate performance of your teams and team members

Customer Feedback is a great way to track and evaluate the performance of your various teams and team members. You create a good product and you set up good processes to help your customers. But how do you know whether your customer success teams are working the way you want? Are your customers happy with the service they get? Are their queries and concerns resolved on time?

The way to get answers to all these questions is Customer Feedback. Customer Feedback Surveys are an opportunity for your customers to share their insights about the services they get, the interactions they had with your service executives, and the overall experience with your employees. Maybe some executives were rude to them, maybe some lacked knowledge and experience.

Customer Feedback helps you know all these aspects and evaluate the performances of your teams and various employees. With this evaluation, you can put in your efforts to improve their performance.

5. To stay competitive in the market

As discussed earlier, SaaS is a competitive market and customers have many options to choose from. There are various reasons for which the customers choose one brand over another. Listening to the voice of the customer can become one of such strong reasons to choose it.

When you collect Customer Feedback, and take action on it, it conveys that you are not asking for feedback for the sake of collecting it, but also take it seriously and genuinely want to make your customers happy and satisfied. When you make improvements to your products and services as per the feedback your customers have shared, and inform your customers personally about it, it makes them feel associated with the product which gives you a good competitive advantage over other brands.

6. To understand better about customers’ needs and expectations

Customer Feedback helps you understand your customers better. Although you do market research before launching your SaaS product and collect your customers’ information about their demographics, needs, and expectations. However, customers’ requirements and expectations change over time. So it is necessary that you have the updated information about what customers desire from your product and services.

Feedback is a great way to get this information. It helps you understand what your customers like and what they don’t like. In this way, you will be able to modify your products and bring in new innovations as per your customers’ choices and thus satisfy them in a better way.

7. To learn from the faults in the past

One more reason to collect Customer Feedback is that you get to know about where you made mistakes and where your products and services lack. Researches suggest that most SaaS startups had a churn rate of around 60% in 2019. And most customers churn without telling the reason for the same.

Customer Feedback helps you know your past mistakes and where your product and services lacked that caused churn. This enables you to avoid the same mistakes in future and keep the customers satisfied ultimately preventing churn.

8. To know the Strength and Weaknesses of your products and services

Customer Feedback helps you find the strengths and weaknesses of your products and services and how they are affecting your business. There may be a feature that customers like the most, and there may be certain things which your customers don’t like. Knowing all this will help you keep the strengths and eliminate the weaknesses.

9. To know about ongoing market trends

SaaS is an ever-evolving market and its trends change over time. Sometimes these trends change even faster than you think. There can be some customers who have explored new innovations and trends in the market and they may expect you to bring in those innovative features and trends.

Collecting feedback helps you know these changes and new innovations that have arised in the competitive market, and can attract your customers to switch to their products. When you are updated about such new trends, you can take actions to bring the right changes in your products and services at the right time and prevent them from going outdated. This helps you not only retain your SaaS users but also attract new customers to use your products and services.

10. To be able to make better business decisions

When you are in the product industry, you have to make decisions from time to time about your products and services. Needless to say, taking the right decisions at the right time is crucial to make your products and services successful. To make the right decisions, you have to ensure that your decisions satisfy the customers. But how would you know how satisfied your customers would be if you don’t know what’s in their mind?

Customer Feedback helps you gain customer insights about your products and services, what they want and expect from you and what will make them happy. Knowing this enables you to make better decisions for your business and thus make your business more successful.

Now, let’s explore some positive outcomes of Customer Feedback to understand even better about the importance of Customer Feedback in SaaS.

Outcomes of Customer Feedback for SaaS

1. Better Retention 

As Customer Feedback helps you make the right decisions and avoid the churn-causing mistakes, you get better customer retention. 

2. Increased Customer Satisfaction     

When you collect Customer Feedback and take appropriate action on it, this removes the dissatisfaction among your customers and increases their satisfaction levels to a large extent thus befitting your business.

3. More Customer Loyalty

Asking customers for feedback, taking action on it, and telling them what you have done for them drives loyalty into your customers. This establishes a long term relationship with them.

4. Improved products and services

By regularly collecting Customer Feedback and following customer suggestions, you make  improvements in your products and services. This ultimately gives you the outcome of new and improved products and services that are more likely to attract new customers and run successfully in the market.

5. Increased Goodwill in the market

Customer Feedback is a medium to work in the direction of increasing customer satisfaction. Happy customers usually talk about their happy experiences with their known ones which creates a good word of mouth. This increases your goodwill in the market.


Providing good customer experiences and ensuring customer satisfaction is utmost important when we talk about being successful in the market. The way to know whether your customers are satisfied with your products and services is by collecting SaaS Feedback from them.

Customer Feedback helps in increasing customer satisfaction, loyalty, retention, and helps you make better decisions and improve your products and services. You can easily collect Customer Feedback with the help of an effective Product Feedback Tool. Zonka Feedback is one of the best SaaS Survey Software that helps you create and share SaaS Feedback surveys with your customers and collect feedback from them. It has brilliant features and it also enables you to take instant action on feedback and close the feedback loop effectively.

You can try it for free for 7 days and see how it works for your business.

Nikhil Dawer

Written by Nikhil Dawer

Jan 04, 2023

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