Why Feedback is Essential to a Thriving Business
Does the word feedback give you an uncomfortable feeling? It’s understandable—feedback can be tricky to accept, especially when we fear what others might say about our business or our work. Here's the truth: feedback is a vital ingredient for growth, both personally and professionally. In this post, we'll dive into how to embrace feedback, how to build a culture around it, and the impact it can have on your business.
The Two Types of Feedback: Formal and Informal
There are two main types of feedback: informal and formal.
Informal Feedback includes those in-the-moment conversations, quick emails, and thank-you notes. It’s valuable because it’s natural and candid. Encourage people to share this kind of feedback—it’s often the easiest to gather and can give you a quick sense of what’s working.
Formal Feedback involves structured methods, such as surveys, testimonials, and tools that measure client satisfaction, like the Net Promoter Score (NPS). This type of feedback is measurable, allowing you to identify trends over time and make data-driven improvements.
Both forms of feedback play important roles in business success. Informal feedback boosts morale, while formal feedback helps refine strategy.
Why Building a Feedback Culture Matters
Feedback isn’t just about patting ourselves on the back or brushing off complaints. A feedback culture within your business helps create transparency, promotes continuous improvement, and ultimately results in a better client experience. Encouraging feedback is about fostering a culture where feedback is not just welcome—it’s expected.
Imagine creating a product or service without knowing what people truly think. You may think you’re building the “best mousetrap,” but without feedback, it’s a guessing game. Just ask Adidas. They were blindsided when a major celebrity partnership backfired, almost leading to a financial disaster, all because they didn’t have a formal feedback loop with their consumers. Instead of engaging their audience for input, they relied on assumptions and sales data, which didn’t tell the whole story.
Gathering Feedback from Both Sides: Buyers and Non-Buyers
One often overlooked group in the feedback process is potential clients who didn’t buy. Understanding why someone didn’t make a purchase is as valuable as understanding why others did. By consistently gathering insights from both groups, you can detect patterns, optimize messaging, adjust offers, and improve client experience.
Net Promoter Score: Your Business Health Check
If you’re new to formal feedback, consider starting with an NPS survey. An NPS survey is designed to measure client loyalty and satisfaction. It’s a simple way to determine how many of your clients are “promoters” (enthusiastic supporters), “neutrals,” or “detractors.” A high NPS indicates a loyal client base; a low score can highlight areas to address.
Embracing Feedback, Even When It’s Uncomfortable
When you actively seek feedback, you’re likely to encounter some critiques. That’s okay! A strong business needs a thick skin and an openness to improvement. Use feedback to refine your business, boost customer satisfaction, and build long-term loyalty.
Take Action in 2025
To close out the year strong and set yourself up for success in 2025, I’m offering planning sessions to help you reflect on 2024’s wins and challenges, set bold goals, and create a roadmap to reach new milestones in 2025. Whether you’re aiming for seven or eight figures, planning a live event, or launching a new product, these sessions are designed to set you on the path to success.
There is very limited availability for 2025 planning workshops to learn more click here.
