customer feedback management
June 28, 2024

What is Customer Feedback Management? Best Practices and Tips


Picture this.

You visit an online store and experience a hard-to-navigate website, slow shipping, and a non-responsive customer care desk.

Despite leaving detailed feedback, the issues persist, and the company ignores recurring complaints. As a result, customer dissatisfaction grows, ratings drop, sales decline, and the store eventually closes down.

Customer feedback is like a compass guiding your business. It shows you where you’re doing well and where you need to improve, helping you stay on course.

Ignoring what your customers say can lead to missed opportunities, loss of trust, and, ultimately, the downfall of your business.

You, therefore, need a robust customer feedback management strategy to quickly address issues, improve customer satisfaction, and encourage return purchases.

In fact, businesses that prioritize customer feedback experience a 10% increase in retention and a 5-10% increase in revenue.

Key Takeaways

  • Effective customer feedback management is crucial to business growth.
  • Customer management can make informed business decisions.
  • A good feedback management system can increase customer satisfaction.

Speaking of a system, we’ve created the perfect tool to streamline your customer feedback management efforts – the Multi-Channel Inbox (MCI). Our tool consolidates messages from various platforms into one easy-to-use interface, ensuring you never miss customer queries or complaints.

Why is Customer Feedback Important?

Customer feedback is crucial for several key reasons:

It Increases Customer Loyalty

Allowing customers to share their opinions demonstrates that you value their input, creating a sense of appreciation and trust that leads to increased loyalty and retention.

A study by Harvard Business Review found that customers who had the best past experiences spent 140% more compared to those who had the poorest experiences.

It Helps You Identify Flaws and Improves Products and Services

Collecting customer feedback can help you highlight areas where your product falls short. In addition, it provides valuable insights that allow you to make improvements that align with customer needs and expectations.

It Helps Supports Brand Advocacy

Satisfied customers who feel heard and valued are more likely to recommend your products or services to others, fueling brand advocacy and organic growth.

According to Nielsen, 92% of consumers trust recommendations from friends and family over any other type of advertising.

It Improves Customer Experience and Service

When you actively solicit feedback and respond to it, you’re enhancing customer experience and service quality, resulting in higher satisfaction.

According to a Forrester study, companies that prioritize customer experience outperform those that don’t by nearly 80%.

It Helps Guide Business Decisions

Customer feedback management can offer valuable data to inform business decisions related to product development, marketing strategies, and support.

For instance, a residential cleaning business can use customer review management software to collect reviews to help identify common areas of concern and tailor their cleaning services to meet client needs.

It Helps Measures Customer Satisfaction

With good customer feedback management software, you can determine client satisfaction levels.

You can use tools like Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) to quantitatively measure client satisfaction and track changes over time.

If you run a pet cleaning service, for instance, you can use CSAT surveys to identify and address issues with grooming quality or appointment scheduling.

That said, effective communication is crucial for getting valuable customer feedback.

To improve your services, you must actively listen to your customers and ask open-ended questions like, “How can we serve you better?” or “What could we improve?” The idea here is to encourage detailed responses.

In addition, you need to make the conversation two-way by acknowledging their feedback and showing genuine interest. Then, use these insights to make informed changes, showing your customers that you value their opinions.

While robust business communication sounds practical on paper, things can often get complicated in practice due to various factors like misunderstandings or lack of clarity. With a communication tool like the Multichannel Inbox, however, you can streamline customer interactions, which then makes it manage feedback.

In the following section, we discuss how you can collect customer feedback and how the MCI can help with the communication aspect of it.

How to Collect Customer Feedback?

You can collect customer feedback using various methods, including text, emails, surveys, and live chat tools like NPS, CES, and CSAT, to measure client satisfaction.

You can also use third-party review platforms and social media to gather a broader range of opinions and sentiments.

Let’s narrow down the best ways to collect customer feedback. 

Live Chat

Live chat is a highly effective way of gathering customer feedback as it enables real-time interaction with customers.

This allows you to promptly address concerns, answer questions, and gather immediate insights into what it takes to keep your customers happy. 


Text and email surveys allow you to collect valuable feedback from a large number of clients quickly and efficiently.

This method also enables easy tracking and analysis of responses, helping you identify trends and areas for improvement. Moreover, customers can provide feedback at their convenience, leading to higher response rates and more accurate insights.

Social Media

Social media platforms offer immediate, public feedback from customers, influencing brand perception and customer engagement.

Like live chat, social media allows you to monitor and respond to customer comments in real-time, resolve issues, and collect positive experiences customers have had with your brand.

In addition, collecting customer feedback through social media enables you to identify customer preferences and trends, which can guide your marketing strategies and service improvements.

The MCI unifies customer communication from live chat, text, and social media into one interface, allowing you to manage and respond to all customer interactions from a centralized inbox.

In addition, the tool ensures you can maintain consistent communication without switching between channels, which improves customer experience.

This holistic view allows for a comprehensive analysis of all interactions, identifying trends and common issues. It also enables prompt responses to feedback, improving customer satisfaction.

 Besides, consistent follow-ups and centralized communication build trust and streamline the feedback management process, enhancing your ability to deal with customer concerns effectively and improve service quality.

In the image below, for instance, the customer SMS one time and the other here’s on Chat Box. With the MCI, you can reply to the customer in their preferred channels from one inbox without switching between Chat Box and SMS.


NPS, CES, and CSAT are powerful tools for collecting customer feedback.

NPS measures customer loyalty, CES assesses the ease of interactions, and CSAT evaluates overall satisfaction.

 These metrics provide quick, valuable insights into customer experiences, helping businesses identify areas for improvement and track progress.

According to Bain & Company, companies that achieve high NPS scores tend to grow faster and have higher customer retention rates.

Third-party Review Platforms

Third-party review platforms aggregate reviews from a diverse user base, providing unbiased perspectives on products and services.

Research from Trustpilot indicates that 89% of consumers worldwide make their purchasing decisions based on online reviews. Popular review platforms you can use to gather reviews include G2 and Capterra. 

Customer Interviews

While time-intensive, customer interviews offer deep insights into customer preferences and pain points.

Research from Harvard Business Review shows that face-to-face interviews can help you discover unmet needs that your customers may not tell you in surveys.

Speaking of reviews, the Multichannel Inbox allows you to request 1-on-1 reviews, enabling you to gather direct and personalized customer feedback.

 Furthermore, this feature helps you gain deeper insights into customer experiences, address specific concerns, and build stronger relationships, all of which work to improve feedback management.

How to Manage Customer Feedback Best Practices

How well you manage customer feedback can mean the difference between losing a client and keeping one. 

That said, here are five best practices to manage customer feedback efficiently:

1. Define Your Feedback Objectives

Why are you collecting the customer feedback? That’s the question you need to ask yourself before you dive into the actual process. Why? …because the answer will set the pace for everything else that follows. 

Some of the reasons for collecting feedback include:

  • To improve product features
  • To enhance customer service
  • To identify new market opportunities
  • To reduce customer churn

2. Utilize Multiple Feedback Channels

Customers interact with businesses in various ways, so it’s essential to collect feedback across multiple channels. This approach ensures that you capture a comprehensive view of customer experiences. Common channels include:

  • Online surveys
  • Social media
  • Email
  • Phone calls
  • In-app feedback

3. Categorize and Organize Feedback

Once feedback is collected, sorting it into categories can help in identifying patterns and trends. Categorization makes it easier to analyze feedback and prioritize actions. Common categories might include:

  • Product-related issues
  • Service quality
  • User experience
  • Pricing concerns

In addition, organizing feedback in this manner allows for a more structured analysis, helping teams to focus on specific areas that need improvement and to allocate resources effectively.

4. Implement Changes Based on Feedback

Collecting feedback is only valuable if it leads to action. Once feedback is categorized and analyzed, develop a plan to address the key issues identified. This could involve:

  • Implementing new features or fixing bugs
  • Training staff to improve service
  • Adjusting pricing strategies
  • Enhancing user interface design

Taking visible action on feedback demonstrates to customers that their opinions are valued and can lead to increased loyalty and satisfaction.

5. Monitor Results and Follow Up

After implementing changes based on feedback, it’s essential to track the outcomes and follow up with customers. This can be done through:

  • Monitoring key performance indicators (KPIs)
  • Conducting follow-up surveys
  • Analyzing customer retention and satisfaction rates

Following up shows customers that their feedback leads to tangible improvements and keeps them engaged with your brand. It also helps in measuring the effectiveness of the changes made and identifying areas for further improvement.

Streamline Customer Feedback Management with a Multichannel Communication Platform 

Keeping up with feedback from different channels can be challenging without a robust communication tool. The MCI simplifies this by unifying customer communication from live chat, text, and social media into one interface.

Here’s a quick rundown of the platform’s features:

Centralized Inbox

The Multichannel inbox allows you to centralize all customer messages from chat, SMS, email, and social media into one interface. That way, our platform not only helps simplify feedback management but also ensures you don’t overlook any message. It also allows you to respond faster to customer concerns.

Real-Time Updates

The MCI sends notifications as soon as new customer feedback arrives, allowing for immediate action. The real-time alerts allow you to stay on top of all interactions, enhancing customer engagement. In addition, it enables you to maintain a dynamic and responsive communication flow, building better relationships with your customers.

Collaboration Tools

The MCI comes with a Team Chat feature that allows you to streamline coordination by assigning customer feedback to specific team members and tracking response progress. You can enhance communication further with internal notes, offering context or instructions to ensure everyone is aligned.

The Team Chat’s collaborative approach improves efficiency, ensuring that feedback is addressed accurately, leading to better customer service.

Filtering Tools

The MCI allows you to filter messages by communication channel, contact type, and more to manage customer feedback effectively. In addition, you can organize all communications in chronological order with threads, making it easier to track interactions.

Moreover, you can quickly locate specific contacts or messages using the dedicated search bar to address feedback promptly.

Marketing Tools

Besides helping you manage customer feedback, the MCI allows you to market your business while at it. You can, for instance, engage your customers beyond feedback by sending direct booking links, interactive quotes, and review requests.

You can even send mass messages to customers who haven’t booked recently.

Customer Recognition

The MCI automatically displays customer details when they initiate a chat, allowing for quick feedback collection. In addition, you can capture all new customer prospects by automatically creating profiles, ensuring that you don’t miss any feedback. You can also record customer interactions for future reference.

To effectively use the multichannel inbox, set up your channels by integrating all your communication platforms. Then, regularly monitor and respond to the new feedback at the earliest opportunity.

Getting started with our multichannel inbox is easy. Simply sign up below and start optimizing your customer feedback management strategy. It free!