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Why Customer Feedback is Crucial to a Startup Business?

To make our startup business grow, we are constantly told that we should collect customer feedback. That's because it can give us an insight into how we can improve our venture. 

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But there is more to customer feedback than that. 

In this post, we have listed seven reasons customer feedback is crucial for your startup business. 

To Improve Products and Services

As mentioned earlier, collecting feedback allows you to find ways on how you can improve your startup. 

Here's the thing: We can know a lot about our target users by conducting market research. But you can learn much more about your products and services when your customers can experience them. 

Another thing to keep in mind is that user needs evolve through time. As such, customer feedback can give you an insight into what is working well and what can be done to improve customer experience. Make sure customer-centricity is on your agenda when you are forming a business from scratch.

To Measure Customer Satisfaction

Customer satisfaction can lead to loyalty. And this can help determine your startup's financial performance and help determine financial planning and analysis for your startup business.

That's because it is seven times cheaper to retain a customer than attract a new one. After all, it is easier to convince someone who has tried your product than those who are not familiar with your startup. 

And what is the best way to know if customers are satisfied with your offers? Their feedback! 

For this reason, we recommend the Net Promoter Score (NPS) survey if you want to measure customer satisfaction. That's because this survey only asks one question: How likely would a customer recommend your product or service?

To Create a Better Customer Experience

Aside from measuring customer satisfaction, feedback can also help you provide a better user experience. You can do this by asking users what they like best about your products or services. 

Often, you would be surprised at how customers prefer your products because you offer the best customer support. Or that your values are in line with theirs. 

Nonetheless, the key here is to provide the best customer experience at every touchpoint, including interactions with your chatbot for startup. Doing so can encourage them to stay loyal to your startup. 

To Foster Customer Loyalty

We want to provide the best customer experience and ensure satisfaction because we want to foster user loyalty. 

Keep in mind that unhappy customers will leave and look for a better alternative. Meanwhile, a happy customer will stay and even spread the word about your startup. 

As such, you should know how you can make your customers happy. And the best way to do that is to collect customer feedback. You can do this by conducting a regular email survey or asking a user's opinion if he decides to downgrade or delete his account. 

Doing so also allows you to determine and solve the issue to boost customer loyalty. 

To Show That You Value Customer Opinion

On the flipside, collecting customer feedback make your users feel that you value your opinion. 

That's because you make them feel involved in shaping your startup. Mind you, investors like Michelle Dipp of Biospring Partners consider your action plans in making your business grow.

You should also include customer feedback in your simple business plan to show your potential investors what customers think about the product.

In addition, it allows you to foster a meaningful relationship with your users. And these users can turn into brand ambassadors who will spread the word about your startup. 

You would be surprised at how people trust online recommendations as much as personal ones. 

To Help Promote Your Startup

In relation to the previous point, 79% of consumers trust online reviews as much as personal recommendations. 

To put it simply, your customers would prefer to read reviews from people who have used your products and services. As such, customer feedback can come in handy in promoting your startup. 

For example, if your business is about helping people find the best state to form an LLC, customer reviews would be essential for your audience to trust you in making their financial decision.

Imagine that you are looking for Airbnb accommodation. Aside from apparent parameters like location and cost, you would also check for the following: 

  • Superhost badge
  • Start rating
  • Guest reviews 

These are customer feedback that can impact an accommodation's popularity. When used correctly, it can have the same impact on your startup. 

To Make Informed Business Decisions

The key to making a startup grow is to provide the best service to your users. Nonetheless, there is no place for business decisions that are based on guesses. Instead, it would be best to get it straight from your customers. 

Everything must be based on solid facts and figures. From familiarizing yourself with business structures' pros and cons to knowing the importance of marketing strategies, all of these will be instrumental to the overall success of your business. 

You can use social media listening tools to know what people say about your products and services on various networking platforms. Another option is to check forums and review websites that are relevant to your niche. It will also help if you conduct different kinds of customer surveys. 

Doing so ensures that you have the tangible data needed to improve your startup. 


Collecting customer feedback allows you to stay on top of things. More so if you treat them as a valuable source of information. After all, the customers themselves know how you can serve them better. 

That said, you should learn to collect customer feedback and treat them as a pointer on how you can improve your startup.

Learn more about the Customer Feedback

Guest Author

Written by Guest Author

Sep 02, 2021

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