Tips & Hints

How to get customer loyalty insights from customer reviews and surveys

Published on 01 October, 2021

If you want to build a successful business, you have to understand your customers. Not only do you need to know who your ideal customers are, you also have to find out exactly what they want. The desires, needs, hopes and dreams of your buyers are known as customer insights, and they can prove invaluable to your business.

There are a lot of ways to get these crucial insights. One of the best and easiest ways is to search for information through customer reviews and surveys.

So, what are customer insights and how can you use customer reviews and surveys to get them? Discover everything you need to know below.

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What are customer loyalty insights?

Customer loyalty insights provide invaluable information about customer retention. You'll get a good idea of how loyal your customers are, alongside the factors that impact their loyalty.

These insights will give you a much deeper understanding of how your customers behave. This, in turn, provides a huge range of benefits. At the very least, they help you to identify any changes that may need to be made to improve retention ratings.

So, what other benefits can customer loyalty insights provide?

The benefits of customer loyalty insights

Collecting customer loyalty insights provides a fantastic range of benefits for your business. These include:

  • They help improve the customer journey
  • Boost your marketing efforts
  • Improve customer retention rates
  • An increase in profits

If want to keep ahold of your customers, seeking insights into their loyalty is going to help. When you understand the factors driving loyalty, you can make tweaks to each stage of the customer journey. This will ultimately make it easier and more enjoyable for your customers to make a purchase.

With the right insights, you can also use them to improve your marketing efforts. Instead of wasting money on ineffective marketing techniques, you’ll be able to see where your efforts are best spent. The more targeted and effective your marketing, the more ideal customers you're going to attract and retain. It also allows you to better personalise your marketing materials, focusing on boosting customer loyalty.

As a result of improving the customer journey and retaining more customers, your profits will also significantly improve.

These are just some of the great benefits customer insights can provide. So how do they differ from market research?

The difference between market research and customer insights

With market research, you're gathering information about your customers or target market. It focuses on knowledge and statistics. Customer insights, on the other hand, involve taking action on the information that's discovered.

Market research lets you know what's happening with your customers. Customer insights let you see why it's happening.

How to generate customer loyalty insights from reviews

Now you know why customer loyalty insights are important, the question is, how do you find them? Customer reviews are a great place to start.

As a business, you should actively encourage your customers to leave a review. Not only do does listening to your customers’ opinions help you to gather invaluable insights, it also helps increase leads and conversions. Most consumers look to online reviews to aid them in their purchase decisions. It can be tricky to get customers to leave a review, but once you have them, here’s how to gain customer loyalty insights:

  1. Compare the amount of positive and negative reviews your business has received. This will give you an idea of how happy your customers are overall. If your reviews are mostly positive, you can see exactly what's working. If they're mostly negative, it will show you have a serious issue that could impact customer loyalty. If customers aren’t having a good experience when they buy from you, they most definitely won’t come back.
  2. Identify common insights. Is there anything your customers frequently mention? This will show you what you're doing well, and anything that may need to be improved. For example, you may find that your customers frequently express issues with your delivery process. This would highlight that you need to implement changes, such as switching to a different courier or introducing more options. If you don’t resolve the issues addressed, you'll struggle to not only retain customers, but you’ll also fail to attract new ones.
  3. Respond to reviews. Did you know you can gain even more insights into customer loyalty by responding to reviews? You should respond to both positive and negative reviews in a professional manner. If you've received negative feedback, apologise and offer a solution. This will alert you to anything you may need to change to improve customer service, as well as to show potential customers that you care about their experience.

The above are the main ways to gain customer loyalty insights from reviews. If you're struggling to get your customers to actually leave a review, there are a few tricks you can try.

Automated emails that are sent after a customer has made a purchase can be particularly effective. You can either arrange to send them directly after the customer has made a purchase or a short time afterwards. Some companies also offer incentives for their customers to leave a review. This could be in the form of a prize draw or competition.

How to get customer loyalty insights from surveys

As well as reviews, surveys can also be a great tool for gathering customer loyalty insights. These do take more effort than reviews, as you will need to create the surveys and think about the questions that will have the most impact on your business. However, when done correctly they can provide valuable insights into your customers’ loyalty.

The only thing to be wary of when you’re collecting insights from surveys is that the results may not be 100% accurate. Customers won’t always tell you the truth in surveys, particularly if their responses aren’t anonymous or if they think it might affect their chances of winning a prize. Some may also simply rush through the survey, not really paying attention to the responses they are providing.

If you want to ensure you gain valuable customer loyalty insights from your surveys, you can:

  1. Keep the survey short. Your customers aren’t going to spend a lot of time filling out your survey. Therefore, the shorter you can make it, the better your results will be. If you have a lot of questions you’d like to ask, condense them down into a list of the most important ones
  2. Ask the right questions. If you're keeping the survey short, you need to make sure you're asking the right questions. In terms of customer loyalty insights, you should ask questions regarding their experience and how likely they are to make another purchase. Remember to ask them to expand upon their answers.
  3. Make sure it's easy and enjoyable to fill out. Let’s face it, a lot of surveys can be tiresome. If you create boring surveys, your customers are unlikely to complete them. Similarly, you’ll get few responses if it isn’t easy to complete.

Don’t be afraid to add a little humour or personality into the survey. Pay attention to its design and mix up the type of questions you ask. For example, you could ask for written responses, followed by a few multiple-choice questions. The more enjoyable the survey is, the more valuable the responses will be.

Once you have your responses, you can start to analyse them for key customer loyalty insights. Specifically, look for any negative feedback, as this will help you to identify how you can improve customer retention.

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Net Promoter Score® survey

Net Promoter Score (NPS) is another great way to get customer loyalty insights that dig deeper into how customers really feel about your brand. You can find out more about how to use NPS here.

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Common customer loyalty insights mistakes to avoid

While reviews and surveys can be incredibly valuable for generating important insights, there are some mistakes you can make. If you want to make sure you're gaining the most from the insights you discover, you’ll need to know the key things to avoid:

  • Underestimating how much time it takes
  • Using a single piece of information
  • Failing to act

Gathering valuable insights into customer loyalty takes time. It isn’t something you can rush through, and it takes a lot of effort to increase the number of customer reviews and surveys you receive. If you don’t have enough time to dedicate to collecting and analysing important data, it would be a good idea to outsource the task. While this will cost money, it does guarantee that you’ll get accurate results with minimal effort on your part.

You should also avoid using a single piece of information to gather your insights. To get the most accurate customer loyalty insights, you need to analyse various pieces of data. Don’t just rely on reviews or surveys alone. Gather information from as many different sources as you can. This will give you a much clearer picture of how your customers feel and behave in relation to your business.

Finally, the worst mistake you can make is failing to act on the insights you discover. The reason you look for insights is so you can improve the customer experience. If you simply observe what you have found, you aren’t going to see any results.

Acting on customer loyalty insights

Now that you have gathered your customer loyalty insights, it’s time to act on them. Begin by identifying the things you need to address. Fixing immediate issues will greatly benefit your business.

What negative experiences do your customers have and how can you resolve the issues? By making improvements and acting on common problems, you’ll be able to ensure future customers have a better experience. Without a good customer experience, your retention rate will drop significantly.

You should also apologise to customers who've had a negative experience, letting them know what you're doing to improve. Often, customers just want to be heard and reassured that you'll take care of the problem. Offering compensation for the poor experience will also help to boost customer loyalty.

Don’t just pay attention to the negative. Positive reviews and surveys can also provide valuable insights. You can use the great things customers say about you in your marketing efforts. Is there anything positive that sets your business apart from your competitors? Look to see what your customers are saying.

Remember, even with positive reviews, you should still reply. Thank the customer and let them know you appreciate them, as well as their feedback.

You can also use the insights you've gathered to increase brand awareness. It helps to focus on one platform at a time, rather than trying to raise awareness everywhere. So, start with the platform where most of your referrals come from.

If you sell products and customers have reported issues when using them, creating content that shows how to use them can prove useful. It could be that the customer simply doesn’t know how to use the product correctly. Having a tutorial video on your website can clear up any confusion and reduce the number of negative reviews you receive.

Other ways to generate customer loyalty insights

As well as surveys and reviews, you can gather customer loyalty insights from a range of other sources. The more methods you use, the greater the insights you will develop into customer loyalty.

Social listening is a great way to see how loyal your customers are. Track any mentions of your brand through the platform’s search feature. This will show you how many people are talking about your business. It will also give you an idea of your brand’s reputation.

As you can see, customer loyalty insights can do wonders for your business. Provided you collect them correctly, you can use them to improve customer experience and boost your customer retention rates. Taking care of existing customers is crucial to any business. They spend more, purchase more frequently, and are more likely to recommend you to others. With customer loyalty insights, you’ll know what is and isn’t working.

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