For Tech Marketers: [Simply] Gathering Customer Feedback Drives Retention

Guest post from Erik Koto, CEO of QuestionPro.

Technology Marketers would do well to re-embrace some tried and true methods of driving customer loyalty, not the least of which can be encapsulated by one pithy phrase- “Ask your customers what they think!”

A research study published in the Harvard Business Review conducted by Dr. Paul Dholakia and Dr. Vicki Morwitz concluded that simply asking customers about a company’s performance, in and of itself proved to be a great customer strategy. In the year-long study, twice the number of people who completed a satisfaction and opinion survey continued and renewed their loyalty toward the company, compared to the control group who were not offered the survey.

The survey correlated 3 consumer psychology findings to the act of asking for customer feedback:

1. A satisfaction survey reinforces positive feelings.

Stemming from a desire to want to ‘appreciate’ a product or service that is already liked, the survey becomes a vehicle for the customer to engage with the company and reinforce commitment.

2. Surveys can increase awareness of auxiliary products and services.

Most people think of a survey as purely a data collection exercise, but it can also serve as a medium for disseminating information (so long as care is taken not to ‘sell under the guise of research’).

3. Induced judgment.

Analogous to the “product placement” strategy employed in mass-media, the very process of asking for feedback can induce a customer to form a positive opinion on something that otherwise would not have considered.

 Stated plainly, the simple act of conducting feedback surveys

can increase customer engagement and drive retention.

This study by Drs. Dholakia and Morwitz and others since have shown that surveys not only provide critical information for a business, but also enhance the established relationship with customers. Coupled with recent advancements in technology that have made creating, distributing and analyzing surveys easy, gathering feedback is a very effective tactic for engaging with customers.

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