The Importance of Customer Feedback to Your SaaS Business: 9 Big Facts

Ultimate guide to customer feedback how to increase revenue

Are you part of a SaaS company? You know better than anyone how challenging this can be. Especially because in critical moments, you rely on the importance of customer feedback to grow your profits. 

There are a multitude of SaaS businesses springing up, as businesses continue to become more digital.

The customer problems solved by these SaaS businesses are diverse, but for sure there is competition among them. Sometimes target audiences can overlap, thus making some brands address the same persona or team. 

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So, how could you answer your target audience’s needs and desires with your brand, products, and services? How do you know what the customer wants and expects from you? By asking your customers for feedback

Even though it may not feel comfortable, this step is crucial for the development of your brand and business. 

Still unclear how customer opinions and feedback can help you grow? We got you covered here. We have detailed a list of 9 facts why customer feedback is important to your SaaS business.

1. Improvement of Services and Products 

If you think about how the development of a product or service is done, you surely need customer inputs. Did you know that 48% of consumers claimed to have left a website without making a purchase because they felt it was poorly curated for them?

When it comes to products, undoubtedly you work on delivering the best customer experience and customer service to bring customer value. However, as it is the first iteration of the product launch, flaws can easily appear.

Moreover, you do not necessarily know if it met the needs of your target audience. Between the bugs, glitches, requests, and usability feedback, it’s easy to swim in a haze of ideas that can help make your SaaS product better.

Screen showing a button doesn't work

Getting feedback from customers is essential as it helps you improve your services and products. Even though you do thorough market research before the launch and development of the product, the needs, and desires of your target audience change. 

On top of this, you may not think about some needed functionality. Their feedback should give you an insight into how well your product was received by the audience. And that feedback can be used to improve your product and service. 

dashboard showing important customer feedback

2. Increase Brand Advocacy 

It is up to you how you decide to collect feedback from your clients. However, asking customers for feedback comes with many benefits for your brand. Some brands take the feedback they get from customers public so that their opinions on the brand could attract new leads. 

Specifically, if a customer says they’d be willing to promote your product via an NPS widget, you’d get a clear sense of who can actually help you do that through word-of-mouth promotion.

At the same time, this improves your brand advocacy and engages your customers in this too. It’s been reported that 92% of people trust word-of-mouth recommendations, a reliable source of marketing for any SaaS company.

This is essential for your brand and one of the main benefits of customer feedback. 

NPS rater widget for important customer feedback

As nowadays there are many channels where brands choose to advertise themselves, when prospective customers choose to purchase from you, they check a lot of details. 

Besides the technical specifications of the products, checking what other clients who have ordered the same product say is an essential step everyone goes through. Plus, to get more loyalty from your customer, it never hurts to send branded promo items to them.

3. Evaluate Your Customer Service 

The importance of customer feedback is invaluable and it comes with many benefits for the brands that choose to do this. Asking for feedback from clients is essential and it can help you evaluate how well some of your employees perform. 

If you have a customer service team, you already know that they are the ones interacting with customers and answering their questions and inquiries. But how do your customers evaluate the customer service representatives? 

Good customer experiences equal more customer advocates

Maybe some of your customers find these employees rude or that they don’t meet their needs. Or on the contrary, maybe they love how they handle conflict situations and offer their support. 

Either way, customer service is essential to every brand, and knowing how your clients evaluate this service is crucial. 

4. Show the importance of customer feedback to your customers

Because there are so many SaaS businesses out there, customers have plenty of options to choose from. Choosing one brand over another is a decision that has many reasons at its base. And even though it may seem odd, some of them choose the brand they feel closest to. We’re more and more glued to our screens, without question. However, the SaaS products capable of giving the most human touch to their customer experience win.

The importance of customer feedback cannot be underestimated here, especially when you want to make your clients loyal to you. Showing that you value and care about their opinion brings them closer to you. 

Making your customers loyal brings other positive benefits as well. They will recommend your brand to their friends and you will get new customers. 

NPS trends showing importance of customer feedback

5. Understanding the Customers Better 

If you ask yourself why customer feedback is so important, then you should know that there are a lot of reasons why you should do this. And one of them is because it will help you understand your customers better. 

Even though you conduct market research, build your buyer persona and try to define your target audience, its characteristics change over time. Needs and desires change as well and these could have an impact on your business as well. 

Interview request widget for customer interviews

By asking customers for feedback through research interviews, you get a glimpse and an insight into their actual needs, so you can use this data to improve your products and services or design new ones. 

6. Learn from Past Mistakes 

Another benefit of asking customers for feedback is that you now have the chance to learn from past mistakes. This is important especially in the case of customers that no longer buy from you. 

At the base of this decision is probably a good enough reason, so if you manage to find that out, you could learn from past mistakes. You will know what you did wrong and what you need to avoid to have good customer retention. 

7. Increase Customer Retention 

Knowing how satisfied your customers are with your products and services is essential. This is one of the greatest benefits of customer feedback, especially in this competitive industry. 

If customers avoid buying from you anymore, they are probably buying from another brand with similar products. Understanding why they have done this helps you improve your customer retention

It helps you understand how to make your customers satisfied by improving the products and services you offer. 

8. Identify Market Trends 

Market trends evolve and change over time. Writers who offer essay help on marketing topics have already acknowledged that these changes sometimes happen faster than they have predicted. 

As brands and businesses compete for customers, they might introduce new products that could revolutionize the industry. 

Statistics dashboard for customer feedback analysis

Detecting these trends that your customers have already picked up is crucial and it helps you keep up the pace with the evolution of the industry. Especially when you know that the trends aren’t just fun, but effective in helping your customers get to their needs faster.

9. Better Business Decisions 

If you run a SaaS business, you have probably faced some moments when a decision had to be made. Sometimes, doing this is easy, but other times you may need more information on the topic. 

Most business decisions should be taken so that your customers are satisfied, but if you know nothing about them, how could you do this? This is when a customer feedback solution steps in to give you the comprehensive overview..

The importance of customer feedback is huge, especially because it provides some data that could help you make better business decisions. 

Product feedback widget to understand customers

Conclusion on the Importance of Customer Feedback 

If you are asking yourself why customer feedback is important to your SaaS business, we hope this article has answered your question. Also, when you’re searching for the best customer feedback tool to take action on behalf of your customers, Usersnap is a great choice. 

Asking your customers for feedback is essential and it can help you improve your products and services, but also make better business decisions, learn more about your customers and keep them close to your brand. 
Author Bio: Aziz Nicleson is a journalist and essay writer with 4 years of experience working in a professional writer service. This is the best essay writing service for students from all over the world. He is a professional mini-tennis player and he has written a novel “His heart”.