One of the most important aspects of running a successful subscription service is maintaining a high level of customer satisfaction. Of course, using the right subscription and billing software can help streamline this process and improve your service based on customer input. But that’s not enough.
To fully leverage customer feedback to improve your business, one must establish a process and follow some best practices that allow companies to really thrive amidst all the competition. In this blog post, we will discuss the steps involved in using customer feedback to improve your subscription service.
The first step in using customer feedback to improve your subscription service is to share the data with the relevant departments of your business, such as customer service, product development, and marketing. This will help ensure that everyone is aware of the issues raised by customers and can take action to address them. For example, if customers are complaining about long wait times when contacting customer service, the customer service department can work to improve response times. If customers are having difficulty using certain features of your service, the product development team can work to make those features more user-friendly.
For example, in 2017, Netflix surveyed its customers to find out what they liked and disliked about the service. One of the key takeaways was that customers wanted a better browsing experience, with easier-to-navigate categories and personalized recommendations. Netflix responded by revamping its user interface, making it more visually appealing, and improving the recommendation algorithm. As a result, the company saw a 20% increase in user engagement.
Not all customer feedback is created equal. Some issues may be more urgent or have a greater impact on customer satisfaction than others. Therefore, it is important to prioritize the issues raised by customers and address the most pressing ones first. This can be done by analyzing the feedback data and identifying which issues are mentioned most frequently or have the most negative impact on customer satisfaction.
To get the most out of customer feedback, it is important to dig deeper into the problems by asking the right questions. Subscription businesses need to understand that every negative feedback from their users is an opportunity to not just improve their product or service but to explore new possibilities and innovative ideas that might even lead to new revenue streams and specializations. The important thing here is to ask the right questions and not be afraid to find bigger problems once you do.
Once you’ve identified areas for improvement and developed a plan to address them, it’s time to implement the changes and measure the results. You can start by setting clear goals for what you want to achieve. For example, if you’re working on improving delivery times, your goal might be to reduce delivery times by 20%.
Next, you need to use metrics to measure the effectiveness of the changes you’ve made. For example, you might track customer retention rates, customer satisfaction scores, or net promoter scores. It is also important to use the data you collect to make data-driven decisions about further improvements you can make to your subscription service.
For example, after receiving feedback that their mobile app was too complicated, Spotify simplified the user interface and improved navigation. They then tracked user engagement with the new interface and saw an increase in user engagement and satisfaction.
Effective communication with your customers is essential when it comes to using their feedback to improve your subscription service. When customers give you feedback, make sure to respond to them promptly. This shows that you’re listening to their concerns and are committed to addressing them.
You also need to keep your customers informed about the changes you’re making to your subscription service. Send them regular updates via email, social media, or your website. This will help them feel more engaged with your service and give them confidence that their feedback is being taken seriously.
One example of effective communication with customers is from HelloFresh, a meal kit subscription service. After receiving customer feedback that their packaging wasn’t environmentally friendly, they responded by introducing sustainable packaging. They communicated this change to their customers via email and social media, which helped increase customer satisfaction and loyalty.
In conclusion, using customer feedback to improve your subscription service is a continuous process. By following these steps and keeping your customers informed, you can create a better experience for your customers and increase their loyalty and satisfaction with your subscription service. Moreover, integrating subscription and billing software can automate processes and reduce errors, resulting in better customer experiences.