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What is a Feedback Management System and Why Is It So Important?

Updated: Jan 19

feedback management system

Serving customers in the best way is becoming more and more complex for businesses. With time, too many layers and aspects are added in the field of customer experience and management. One such aspect is feedback management, which basically means collecting and analyzing customer feedback. In this blog, we will cover everything you need to know about an efficient customer feedback management system, including its importance and effective practices.

Feedback Management System: An Overview

Simply put, CFM is the process of collecting customer feedback from various channels and analyzing it to guide better decisions for an enhanced customer experience. A customer feedback management system is a customer-centric approach to delivering better products and services to cater to their needs and demands in the best way. Since it plays a major role in product and service management, it is the cornerstone for a product's success.

An excellent example of an efficient feedback system is Uber. After every trip, customers use in-app surveys to rate their drivers from preset categories, and they are encouraged to compliment the driver if they provided exceptional service. In this way, Uber is able to identify problem drivers and outstanding drivers quickly, which enables them to maintain quality and reduce negative experiences.

Why is Feedback Management So Important?

Being the driving force in deciding the course of action for a particular product or service, creating an efficient feedback management system can change the game for a business in the following ways -

Product Intuition

Product intuition is an essential skill to make better decisions for your customers and the business. A brand can build product intuition by properly analyzing customer demands, actively seeking feedback, and engaging with them to understand their needs and demands.

Reduced Risk

An intuitive customer feedback system can help make better product decisions by eliminating the guesswork. Through feedback, you can get detailed insights about what the customers expect from your brand, which can reduce the risk of disappointment or losing customers due to unmet expectations. This can help manage risk while developing or introducing a new product because you already know about their preferences.

Valuable Insights

Customer feedback can help derive detailed insights into customer responses about a certain product. A proper feedback management tool can aid businesses in understanding these insights and analytics. This can help modify the product to suit their needs or develop a new one with better features, leading to an increase in product sales.

Better Relationship

Asking customers for feedback makes them feel valued, and acting upon their suggestions can build a better customer relationship. This can improve retention and reduce churn, which can be very economical for the business and create a better brand image.

Competitive Advantage

Excelling at managing customer feedback can help you stay ahead in the market and can be a great way to deal with competition. A customer-centric approach will make customers more drawn toward your brand and can increase overall satisfaction, which is key for business growth.

Popular and Effective Methods to Obtain Customer Feedback

Developing a successful feedback management system starts with using the correct methods to obtain feedback, and here are the most effective ones -

  1. Customer interviews

  2. Text/email and live chats

  3. NPS/CES/CSAT scores

  4. Third-party review platforms

  5. Social media

5 Best Practices to Manage Customer Feedback Efficiently

Now that we have understood customer feedback management and its importance for a business, here are five ways to develop a feedback management system -

Identify Objectives

As with any other system planning, it is important to identify the objectives for collecting customer feedback. Hence, the business needs to determine what information they want to gather from customers, including the topics to be covered. If your feedback queries aren't specific, you will end up with random data that won't allow you to form a pattern while analyzing them for decisions. Thus, businesses should determine the information to be collected and ask for only necessary feedback to ensure that there is no unnecessary data overload and the feedback is more relevant to the goals.

Utilize Multiple Channels to Gather Feedback

Now that we are clear on the objectives, the next step is to tap into multiple channels and mediums to collect feedback, which includes interviews, in-app surveys, emails, etc. There is no one-size-fits-all when it comes to customers; hence, by tailoring channels, businesses can gather more valuable information for making product decisions. According to a study, 90% of customers expect companies to maintain consistent interaction via different channels; thus, deploying multiple channels is an actual requirement.

Sort and Organize Feedback

Once the feedback is collected, you need to sort and organize them into categories to make sense of the data. This can help identify patterns and enact meaningful change in the products and services. Businesses should not mix qualitative and quantitative data while sorting feedback to avoid confusion. Once the feedback is organized, the team can summarize the info for each category to link them to each other and reach conclusions.

Act Upon Critical Concerns

Once the planning and collecting part of the job is done, it's time to take action. You need to prioritize all the conclusions and results drawn through the collected feedback and focus on the critical ones first. This can help customers feel heard, and once the essential matters are resolved, you can tackle the less pressing ones.

Track and Follow Up

Lastly, it's crucial to follow up with customers to ensure that the changes made are reaping results. Businesses can collect personalized follow-up responses to demonstrate commitment toward customers. If there are still some concerns, you might need to modify the products and services again. Remember, feedback management is a continuous process, and as new data is collected, businesses need to evolve their products from time to time.


Thus, developing an effective feedback management system is a continuous, evolving process that is much more than collecting and analyzing data. You can succeed in providing the best customer experience through your products and services only by modifying them according to customer needs.





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