Innovation. It’s the bread and butter of any forward-thinking business, big or small. It’s what separates the leaders from the followers, the pioneers from the late entrants.
But what’s less clear is the role of customer feedback in driving innovation. Traditionally seen as a social proof tool – what type of insight can reviews provide, and how can they be used to exploit new opportunities?
Some of the biggest companies worldwide create better experiences using customer feedback – Amazon being one example. We also know that customer-ideated products perform 20% better, according to a study in Harvard Business Review. Clearly feedback has the potential to ramp up your sales and revenue. So, without further ado, let’s explore how you can leverage customer feedback as you create and develop products.
A customer-led value proposition
We’ll start by stating the obvious: as you develop a new product, it’s crucial to make sure it meets your audience’s needs. If it’s not solving a real problem, it won’t leave the shelf.
But how do you understand what your customers truly want? A good place to start is looking at current consumer trends. Check out research like our Consumer Benchmark report – doing so will help you identify growth markets and understand how people’s spending habits are changing. You should also look at your customers’ feedback. It’s a great way to gauge demand for a new product and create a compelling value proposition.
Tools like Feefo Surveys can be particularly helpful here. This feature enables you to create questionnaires and distribute them to your entire customer base, for fast and anonymous feedback. It’s a surefire way to understand what your customers want – so you can innovate in line with their expectations.
Make sure you draw up clear objectives of your product innovation before you start asking customers for their feedback. This will help you focus your survey questions and measure the success of your innovation.
Putting your product to the test
Customer feedback is equally valuable at the product testing stage. It enables you to identify any potential issues and address them before launch. When pilot testing your product, consider the following questions:
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Does this product solve a tangible problem the customer is facing?
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Does this product appeal to the target audience?
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Will this product fill a gap in the market, or does something similar already exist?
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What is the unique selling proposition (USP) of this product?
You can collect feedback prior to mainstream launch with tools like Review Booster. It helps you determine your product’s reception, so you can develop a message that resonates with specific customers. Plus, the feedback you collect through Review Booster can be displayed the moment you launch – maximising sales from day one.
There’s always room for improvement
Innovation doesn’t stop once your product hits the shelves. As market dynamics continue to shift, what once set your product apart may no longer suffice. If you want to keep hold of your customers, you need to adapt what you offer in line with their changing needs.
Don’t worry though – you don’t need to dream up never-before-seen features. Improving one or two aspects of your product can be just as effective. It may be as simple as tweaking the user interface or switching to eco-friendly packaging.
Knowing where to improve relies on verified feedback, which is guaranteed to have come from genuine buyers. That way, you can be sure you’re addressing customers’ real desires and pain points as you enhance your product.
With AI, you can make improvements even faster. Our Customer Sentiment feature uses AI to identify themes in your reviews. If topics like ‘packaging’ are constantly mentioned in a negative context, it will automatically flag that so you can resolve the issue.
Case study: Independent coffee shop develops a new offering with Feefo
With growing competition from larger chains, the owners of a small independent coffee shop were seeking ways to retain more customers.
The coffee shop partnered with Feefo to collect and analyse customer feedback.
A recurring theme in the feedback data was identified: while customers loved the coffee and the brand’s ethics, they missed the loyalty schemes offered by bigger coffee chains.
The owners introduced a loyalty card scheme. This simple change sharpened their competitive edge and significantly increased the number of repeat customers.
Listen more, innovate better
Whether you’re creating an entirely new product or enhancing an existing feature – it’s vital to incorporate customer feedback at every stage of your process. Doing so will ensure that you’re innovating in line with customer needs, for a product that is guaranteed to sell.
Here at Feefo, we help over 6500 brands collect feedback and turn it into actionable insight. So they can enhance their offering and stand out from the crowd.
To find out how we can support you, or you if you need help using customer feedback to innovate, just get in touch – we’d love to talk.
