In this lesson, we will cover the meaning of feedback marketing and the different types of strategies companies use to receive customer feedback.
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Define Feedback in Marketing
Feedback marketing is the process of the marketing department allowing customers to give transparent details about their experiences with a product or service. Companies that implement feedback programs are in tune with their customers. They get their customers entrenched in their products and brands. And when customers feel that they have a voice, they are more likely to be loyal.
Not utilizing feedback from customers can paralyze a company. Paralyzed companies are unaware of customer attitudes and future trends. This is why it is imperative that companies create strategies on how to receive feedback from their customers.
Keeping up with customer attitudes and experiences are vital parts of feedback in marketing. Top companies spend more than $750,000 a year on different feedback strategies. Customer feedback can help with strategic planning and future marketing promotions. There are several feedback strategies, but we will specifically address two: app technology and focus groups.
With the Internet creating an environment for consumers to express their opinions and give their immediate feedback on products and services, companies have had to be strategic about how they receive information. In the new technology day and age, most people have smart phones with app technology. There are several apps that companies use to receive customer ratings and reviews.
The apps are used to generate feedback from customers.For instance, FourSquare is an app that provides recommendations from customers and friends who are linked on social media. Users are able to receive reviews on services as well as products. The benefit to users is that they are able to receive opinions on products before buying them. In addition, they are able to give their feedback once they have used products themselves.
Companies drive users to the app by offering coupons and discounts for giving reviews. Companies utilize this information to help them understand customer needs and wants as well as make the necessary changes to the marketing strategies and plans.
Companies use focus groups as another source of feedback marketing. Focus groups can be a combination of customers, non-customers, wandering customers, etc. The type of feedback a company wants will determine the makeup of the focus group.
In most cases, companies use a third party to conduct the actual focus group session. A company’s marketing team creates a strategy on how they would like to approach the project. They have to determine the demographics, questions, predicted outcome, needed answers, etc. The marketing team has to be very specific on what they would like to get out of the focus group due to the third party administering the session.The marketing group serves as a guide to the administrator while sitting behind a two-way glass.
The marketing team’s identity is anonymous during the session. The administrator probes the room and asks a series of questions to get a candid conversation going. The goal of the session is to get different opinions and feedback from the candidates about the company’s product.
Once the necessary data is collected, a brainstorming meeting is conducted. The marketing team uses qualitative and quantitative data to provide predictions from the focus group. They make a decision on the solution and strategy that should be implemented.