7 Benefits of Feedback- Why It Matters The Most

Sakshi Gupta
July 11, 2024
14 mins


Feedback is a crucial element in business growth, especially for B2C companies. Understanding the benefits of feedback can significantly impact a company’s success by enhancing customer satisfaction, loyalty, and revenue. 

According to a study by Microsoft, 77% of consumers view brands more favorably if they proactively invite and act on customer feedback. Moreover, a PwC report highlights that 73% of consumers say customer experience is an important factor in their purchasing decisions. B2C companies that actively incorporate feedback can not just see an increase in revenue but also a boost in customer retention.

These insights underscore the vital role of feedback in business strategies. For companies, leveraging customer feedback through tools like in-app surveys can rapidly transform operations, driving both immediate and long-term growth. By gathering real-time insights directly from customers, businesses can swiftly adjust and enhance their offerings, fostering loyalty and satisfaction.

Next, let's explore how feedback yields specific benefits that enhance overall business performance. 

What is feedback? When to ask for feedback?

Feedback refers to information or reactions expressed by individuals regarding a product, service, or experience they have encountered. It provides insights into how well something meets expectations, what improvements could be made, or what aspects are particularly valued. Feedback can be both positive (praise or appreciation) and negative (criticism or suggestions for improvement).

When to ask for feedback?

  1. After a transaction or interaction: Request feedback immediately after a customer makes a purchase, completes a service, or interacts with your product. This timing ensures their experience is fresh in their mind.
  2. During specific stages: Ask for feedback during critical stages of a process, such as after a trial period, after customer service interactions, or following a product demonstration.
  3. After a significant event: Seek feedback after events like launches, campaigns, or major updates to gather insights on their impact.
  4. Regularly and consistently: Implement ongoing feedback mechanisms to continuously gauge satisfaction and identify areas for improvement.
  5. Upon customer departure: Request feedback from customers who are leaving your service or switching to competitors to understand reasons for churn.
  6. When making changes: Before implementing significant changes, solicit feedback to ensure they align with customer needs and preferences.
  7. Periodically for overall satisfaction: Conduct periodic surveys or feedback requests to assess overall customer satisfaction and loyalty.

By strategically timing when you ask for feedback, you can gather valuable insights that help improve products, services, and customer experiences effectively.

Benefits of Feedback

Implementing customer feedback offers numerous benefits for companies, enhancing both customer satisfaction and business performance. Here are the seven benefits: 

1. Improved Product Development

Feedback is invaluable for refining and innovating products. By directly engaging with customers, companies can gather insights into what features are lacking, which aspects need improvement, and what new products customers desire. This iterative process helps in creating products that truly meet customer needs, ensuring higher satisfaction and market fit. Implement Nudge's in-app surveys to gather direct feedback on product features and usability

Example: Starbucks Starbucks effectively utilized customer feedback through their My Starbucks Idea platform, which allowed customers to suggest and vote on new ideas for products and services.

(Starbucks Idea platform screenshot example)

Impact of Implementation: One notable success was the introduction of the Pumpkin Spice Latte, which was suggested by customers. This product has since become a seasonal favorite, significantly boosting Starbucks' seasonal sales. The platform also fostered a sense of community and loyalty among customers, as they felt their opinions directly influenced the brand’s offerings.

2. Enhanced Customer Satisfaction

"A satisfied customer is the best business strategy of all." 

– Michael LeBoeuf, American Author

Customer feedback is crucial for identifying and resolving issues that detract from the customer experience, enhancing the benefits of feedback. By actively listening to customers and addressing their concerns, companies can improve satisfaction, leading to higher retention rates and positive word-of-mouth marketing. This proactive approach demonstrates that the company values its customers’ opinions and is committed to delivering the best possible experience.

Example: Amazon continuously collects feedback on various aspects such as delivery speed, product quality, and customer service through their website and app. Implement Nudge's real-time nudges to engage customers for feedback, ensuring prompt resolution of their concerns and enhancing satisfaction levels.

   (Example screenshot of how Amazon address feedback)

Impact of Implementation: Amazon's implementation of feedback has led to faster delivery times, a more user-friendly interface, and higher product quality standards. This commitment to addressing customer concerns has significantly contributed to Amazon's reputation for excellent customer service, resulting in high customer satisfaction and loyalty. The seamless and efficient shopping experience keeps customers returning, driving Amazon's growth and market dominance.

3. Increased Customer Loyalty

Customer loyalty means customers choosing to buy from a brand again and again instead of switching to other brands. It shows how satisfied customers are and how much they trust the brand. Integrate Nudge's gamification features to reward customers for providing feedback, fostering loyalty, and encouraging repeat engagement


Apple keeps customers loyal by listening to them using in-app surveys and the Apple Support app. They gather feedback about their products and services quickly and act on it.

(Apple’s feedback example)

Impact of Using Feedback:

Using these feedback tools has made a big difference for Apple. They can fix problems fast and make their products better based on what customers say. This makes customers happier and more likely to stay with Apple. It also shows that Apple cares about what customers think and wants to give them the best experience possible.

4. Better User Experience

"The user experience is everything. It's not just part of the product, it is the product." 

- Jacob Nielsen, Usability Expert

Better user experience means making it easier and more enjoyable for users to use a product or service. Companies focus on this to keep users happy and satisfied with their interactions. Enhance user experience with Nudge's interactive videos and stories that collect feedback seamlessly, making it enjoyable for customers to share their thoughts


Netflix improves user experience by listening to feedback from customers. They use in-app tools where users can give feedback about what they like or don't like. This helps Netflix suggest better shows and movies based on what users enjoy, making their time spent watching more personalized and enjoyable.

(Netflix’s effective feedback example)

Impact of Feedback Tools:

Using these feedback tools has a big impact on Netflix. By understanding what users prefer, Netflix can offer content that matches their interests more closely. This not only keeps users engaged but also attracts new users who hear about Netflix's personalized recommendations. Ultimately, it strengthens Netflix's reputation as a platform that cares about delivering a tailored and satisfying viewing experience.

5. Reduced Churn Rate

Reduced churn rate refers to retaining more customers over a period of time, rather than losing them to competitors or disinterest. It's a critical metric for businesses as it reflects customer satisfaction and ongoing value derived from the product or service.


Spotify uses customer feedback to reduce the churn rate. Through in-app surveys and personalized recommendations, Spotify understands why users might stop using their service. They analyze this feedback to improve their app's interface, recommend better playlists, and introduce features like Discover Weekly to keep users engaged.

(Example screenshot of personalized recommendation from Spotify)

Image source

Impact of Feedback Utilization:

By actively listening to user feedback, Spotify has successfully decreased its churn rate. Addressing user concerns and preferences through continuous updates and enhancements has made the platform more appealing and user-friendly. This proactive approach not only retains existing subscribers but also attracts new ones, driving sustained growth in user base and revenue for Spotify. By leveraging feedback for strategic improvements, Spotify strengthens its position as a leading music streaming service known for its personalized user experience and commitment to customer satisfaction.

6. Revenue Growth

Revenue growth refers to the increase in a company's income over time, demonstrating how the benefits of feedback can be achieved through improving customer satisfaction and operational efficiency. It's a key indicator of business success and can be achieved through various strategies, including improving customer satisfaction and operational efficiency.


Airbnb experienced revenue growth by paying attention to feedback from both guests and hosts. They use in-app tools to gather feedback about safety features, user policies, and overall experience. This feedback helps Airbnb make informed decisions to enhance its platform continuously.

(Airbnb feedback example)

Impact of Feedback Integration:

Integrating guest and host feedback has had a significant impact on Airbnb's revenue. By addressing safety concerns and improving user policies based on feedback, Airbnb has built trust among users. This has led to increased bookings as more guests feel secure and satisfied with their stays. 

7. Higher Conversion Rates

Higher conversion rates mean more people who visit a website or use an app end up completing a desired action, emphasizing how companies aim to increase conversion rates to boost sales and revenue through the benefits of feedback. Companies aim to increase conversion rates to boost sales and revenue. Improve conversion rates with Nudge's interactive surveys and engaging content, guiding customers smoothly through the conversion process


Booking.com achieved higher conversion rates by listening to customer feedback. They use surveys within their app to find out where users struggle or get stuck during the booking process. This helps Booking.com make their website easier to use and more straightforward for customers to complete bookings.

(booking.com’s feedback)

Impact of Feedback Implementation:

Implementing these feedback strategies has been crucial for Booking.com. By addressing issues highlighted in user feedback, they have improved the overall booking experience. This means fewer obstacles for customers and a smoother process from browsing to booking. 

As a result, more visitors to Booking.com end up making reservations, which directly increases their revenue and business growth. This focus on user feedback not only enhances customer satisfaction but also strengthens Booking.com's competitive edge in the online travel industry.

Also read: In-app survey examples| Uber and Airbnb


Incorporating customer feedback is essential for business growth. Understanding the benefits of feedback and simplifying feedback collection with Nudge's in-app survey tools can enhance customer satisfaction, refine product offerings, and boost loyalty effectively. 

Enhance customer satisfaction, refine product offerings, and boost loyalty effectively. To streamline your feedback process and improve user engagement, book a demo with Nudge today. Visit us to explore how our intuitive survey solutions can empower your team to make informed decisions based on real-time customer feedback

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Sakshi Gupta
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