Why does customer feedback important for SaaS companies?

March 21, 2022

By - Redpen

Have you ever considered the most common factor that contributes significantly to the success of SaaS companies? You're probably thinking about products, cutting-edge technology and tools, talented employees, expertise, and so on. It's true, but one thing that makes your products or services customer-centric is "listening to customer feedback"

Creating customer-centric products and services involves listening to their opinion, want, requirement, and expectation. Customer feedback is one of the most effective methods for identifying bugs/defects in products and resolving them.

According to Forbes, customer-centric businesses are 60% more profitable than companies making a decision based on “gut-feeling.”

Development teams in SaaS businesses involve in building various high-tech cloud-based software solutions that can be accessed from anyone to anywhere. So the SaaS companies will never know if their customers are getting value from their product unless they receive feedback?

As a result, one of the most important and challenging tasks is to create software products based on the expectations of your customers. Feedback is essential for improving SDLC and creating high-quality software products.

Microsoft survey says, 52% of people around the globe believe that companies need to take action on feedback provided by their customers.

What exactly is customer feedback?

In a general way, customer feedback refers to any information, suggestions, and criticism customers give you about their experience using a product or service.

For SaaS companies, any opinion, suggestions, or information provided by customers during UAT& Beta testing is called customer feedback.

The primary goal of gathering customer feedback is to reveal their satisfaction level, experience, opinion, the scope for product improvements, etc. So many times feedback is considered as identifying weak points and bugs in products.

Collecting customer feedback, understanding their feedback, and resolving itself is a challenging process if you don’t follow some of the standards practices used by so many successful SaaS businesses. First, let’s take a quick look at the challenges that are related to customer feedback.

Useful for

Website feedback

Customer feedback

Customer support

Bug capture and bug reporting

UAT & Beta testing etc.

Top features

Redpen Widget

Screen recording with voice comments

Screenshot with annotation

Auto-attached advance diagnostic information

Autofill template

Create a team and invite users

Dictation (voice to text)

Beneficial to

Customer and end-users

Software development team

Marketing team

Project management team

Accounting team

Research team

Useful for

Top features

Beneficial to

Website feedback
Customer feedback
Customer support
Bug capture and bug reporting
UAT & Beta testing etc.

Useful for

Top features

Beneficial to

Redpen Widget
Screen recording with voice comments
Screenshot with annotation
Auto-attached advance diagnostic information
Autofill template
Create a team and invite users
Dictation (voice to text)

Useful for

Top features

Beneficial to

Customer and end-users
Software development team
Marketing team
Project management team
Accounting team
Research team

What are the biggest challenges in customer feedback?

There are two major challenges while getting feedback from customers.

Receiving feedback from multiple sources

Assume one scenario that your customers noticed some issues with their website, which you are developing. They contact you via various emails, sending you PPTs, explaining their issues with the video conferencing tool, support tools, and so on. It is a time-consuming process to centralize data and there are high possibilities that you miss out on some of the important feedback that needs to address first.

According to a survey by Microsoft 66% of consumers have used at least 3 different communication channels to contact customer service.

Understanding customer feedback

Why do customers send unclear and ambiguous feedback? The reason is that the platforms they use to send feedback may not have features to make feedback visually understandable. For example, there is no option to take a screenshot or record the screen, and there are no annotation tools. That is why it is extremely difficult for you to completely understand customers' feedback & bugs visually.

As a result, you won't be able to meet your customers' expectations by delivering high-quality products, and they may become dissatisfied with your services. You eventually lose them.

According to Harris Interactive (digital consultative custom market research agency), 89% of consumers have switched to doing business with a competitor following a poor customer experience.

Check out how you can overcome these challenges while keeping your employees and customers happy.

Useful for

Customer survey

Website feedback

Customer support

User experience feedback

User experience feedback


Top features

Customer survey templates

AI sentiments analysis

A/B testing

Nudge for prototypes

Exit intent survey

NPS (Net promoter score)

Beneficial to

Customers

E-commerce businesses

Software development team

Marketing team

Useful for

Top features

Beneficial to

Customer survey
Website feedback
Customer support
User experience feedback
Grow website lead
Customer survey templates
AI sentiments analysis
A/B testing
Nudge for prototypes
Exit intent survey
NPS (Net promoter score)
Customers
E-commerce businesses
Software development team
Marketing team

The Importance of customer feedback for your SaaS business

Improve the quality of the product

Receiving feedback indicates that you need to improve in some areas. Feedback is very necessary while the customer’s software product is in the developing and testing phase. UAT/Beta testing is critical in the software development life cycle because resolving issues/bugs during the development stage saves time and resources that can be used to build quality products.

High customer retention

Consider the customer's perspective: what they want is a high-quality product that improves product usability and their overall experience. Quality/bug-free products always result in a happy and satisfied customer. The quality product reduces support cost which is a sensitive factor for any consumer. Early feedback and resolution are the most effective ways to build better products that result in high customer retention.

According to Ameyo, 67% of customer churn is preventable if firms resolve issues the first time they occur.

Reduces development cost

If you are developing a software product for a client, early feedback is critical in order to make changes before it is too late. More changes or defaults in the product necessarily require more time to develop and test the product. It causes a delay in the software development life cycle. It also takes up time and resources on your development team, resulting in higher development costs. Therefore you can reduce costs by getting early feedback from customers.

Reduce time to market

Faster turnaround of issues/feedback greatly reduces development and testing time. It is always critical for SaaS companies to reduce SDLC time in delivering products to clients as quickly as possible. Delays result in higher development costs, dissatisfied customers, product quality compromises, increased time requirements, etc.

Identify trends

Market trends, particularly in the SaaS business, are always changing. So many new products are introduced over time, and many of them become obsolete in a short period of time. As a result, asking for customer feedback helps you to get in touch with current trends.

Easy decision-making

When a company plans to create a new software product, senior members and employees frequently brainstorm. Customer feedback, on the other hand, can be quite critical in identifying customer needs.  How can someone make the product without knowing what exactly customers want? So feedback makes your product development and related decisions soo easy.

Useful for

Customer feedback

Customer support

Bug reporting

User acceptance testing

Website feedback

Top features

Feedback Widget

Annotation tool

Feature request board

Inline raters and forms

CSAT, NPS, polls, and thumbs up/down surveys


Beneficial to

SaaS companies

Web/software agencies

Useful for

Top features

Beneficial to

Customer feedback
Customer support
Bug reporting
User acceptance testing
Website feedback
Feedback Widget
Annotation tool
Feature request board
Inline raters and forms
CSAT, NPS, polls, and thumbs up/down surveys
SaaS companies
Web/software agencies

What are the best practices for collecting customer feedback?

Well, there are so many general techniques to collect customer feedback such as customer surveys, customer interviews, phone calls, social media surveys, etc. But some standard practices are used by successful SaaS companies. Let’s reveal it.

Feedback Widget

One of the most proven successful methods of collecting feedback on websites/web apps. If you have your own website or building your client's website, the feedback widget helps you a lot with getting suggestions on improvement areas. It's also the easiest and smartest way to collect feedback via annotated screenshots or screen recordings with voice comments.

Best recommended tool: Redpen Widget - A smart solution for sending and receiving unlimited visual consumer feedback in one spot, along with all technical data needed to quickly resolve customer issues.

Popup surveys

Popup surveys are the most basic method of encouraging customers to act and provide feedback on your website. There are numerous types of pop-up surveys, including brief surveys, ratings, emoji pop-ups, star ratings, chatbox pop-up buttons, specific feedback pop-up buttons, and so on. Basically, it encourages users to provide quick feedback while they are already on your website.

Email

Email feedback collection is still widely used by many businesses. It's mostly used by e-commerce companies when customers buy something and complete transactions. Companies are sending emails to their customers inquiring about their product usage experiences. The same thing happens in SaaS businesses, where they are asked to provide genuine feedback via email in order to learn how they feel about SaaS products.

According to a survey by Ameyo, 57% of customers would rather contact companies via digital media such as email or social media rather than use voice-based customer support.

Polls

This is a fun and engaging way to collect feedback, especially on social media platforms.  Customers need to choose the best option out of available options. MCQs and open-ended questions are most widely used.

Live chat

Live chat is a completely action-based technique of collecting feedback from customers. When a user visits a website, it usually appears. Customers can post comments and ask questions there. Customer service representatives can get immediate feedback from clients without having to wait for an email response.

According to a survey by Microsoft, 30% of US consumers rate chatbot interactions as “very effective” in dealing with customer service issues.

Useful for

Customer feedback

Visualize user behavior

Behavior analytics

User survey

Top features

Heat maps - To visualize user behavior

Video Recording

Feedback Widget

Feedback Widget

Beneficial to

Product managers

Product designers

Researcher

Useful for

Top features

Beneficial to

Customer feedback
Visualize user behavior
Behavior analytics
User survey
Heat maps - To visualize user behavior
Video Recording
Feedback Widget
Survey forms
Product managers
Product designers
Researcher

Conclusion

The success of SaaS business depends on how much your customer expectation is fulfilled with the product and service that is delivered to them. Knowing the pain point of customers is the key point for your business. That is what feedback does, you exactly trying to find out their needs and requirement.

Customer feedback also helps to make better business decisions, improve the quality standard of product, and all result in happy and satisfied customers that brings your Saas business to the next level.

Useful for

Website feedback

Bug reporting

UAT testing

Top features

Feedback Widget

On-screen annotation

Bug report with metadata

Guest - To collaborate with client

Beneficial to

Digital agencies

E-commerce

SaaS/ Software development companies

Useful for

Top features

Beneficial to

Website feedback
Bug reporting
UAT testing
Feedback Widget
On-screen annotation
Bug report with metadata
Guest - To collaborate with client
Digital agencies
E-commerce
SaaS/ Software development companies

Useful for

Website feedback

Customer survey

Feedback insight and action

Top features

Feedback widget

Feedback buttons & forms

Text analysis

Beneficial to

Digital marketers

Product managers

UI/UX designers

CRO experts

Email marketers

Useful for

Top features

Beneficial to

Website feedback
Customer survey
Feedback insight and action
Feedback Widget
Feedback buttons & forms
Text analysis


Digital marketers
Product managers
UI/UX designers
CRO experts
Email marketers

Useful for

QA and UAT testing

Website feedback

E-learning

E-commerce

Top features

Bugherd feedback widget

Screenshot and screen recording

Technical information with every ticket

Taskboard and user dashboard

Invite user

Beneficial to

Marketing agency

Web development agencies

In-house teams

Useful for

Top features

Beneficial to

QA and UAT testing
Website feedback
E-learning
E-commerce
Bugherd feedback widget
Screenshot and screen recording
Technical information with every ticket
Taskboard and user dashboard
Invite user
Marketing agency
Web development agencies
In-house teams

Useful for

Website feedback

Survey

Bug reporting & fixes

Top features

Survey widget

Feedback widget

Beneficial to

Software companies

Digital marketing agencies

Web development agencies

Advertising agencies

Useful for

Top features

Beneficial to

Website feedback
Survey
Bug reporting & fixes
Survey widget
Feedback widget


Software companies
Digital marketing agencies
Web development agencies
Advertising agencies

Useful for

Website feedback

User acceptance testing

Bug tracking

Software feature request

Customer satisfaction

Top features

Video feedback

Feedback widget

Session reply

Annotation tool

Beneficial to

Web agencies

Software companies

Designers and developers

Useful for

Top features

Beneficial to

Website feedback
User acceptance testing
Bug tracking
Software feature request
Customer satisfaction
Video feedback
Feedback widget
Session reply
Annotation tool

Web agencies
Software companies
Designers and developers

10. SurveyMonkey

SurveyMonkey is the leading tool for collecting customer surveys. SurveyMonkey helps you to get feedback from customers, employees, or prospects. SurveyMonkey is highly rated by G2 Crowd customers and the most popular survey software by Capterra customers. SurveyMonkey enables you to create a world-class professional survey template to get customer feedback. It helps you to get engaged with more and more customers.

Visit Website: SurveyMonkey: The World’s Most Popular Free Online Survey Tool

Useful for

Customer surveys

Marketing research

HR surveys

Employee engagements

Opinion polls

Concept testing

Top features

Unlimited surveys

Advanced survey design and analysis

Custom colors & survey URL

A/B test text and images

Multilingual surveys

Beneficial to

Marketing team

HR teams

Health care team

Research team

Useful for

Top features

Beneficial to

Customer surveys
Marketing research
HR surveys
Employee engagements
Opinion polls
Concept testing
Unlimited surveys
Advanced survey design and analysis
Custom colors & survey URL
A/B test text and images
Multilingual surveys

Marketing team
HR teams
Health care team
Research team

11. UserVoice

UserVoice is a feedback tool for B2B SaaS companies. UserVoice is a centralized product feedback system that provides everything you need to collect, aggregate, evaluate, and act on feedback from customers and internal teams. With UserVoice, you can effortlessly capture, annotate, track, and organized feedback from customers. Combine numerous kinds of feedback in one location to get a better overall picture of what your users want.

Visit Website:
UserVoice - Product Feedback for B2B SaaS

Useful for

Product feedback

Customer feedback

Top features

In-App Feedback widget & API

Customer segments

Feedback into slack

Internal status updates

1 to 1 and 1 to many communication

Beneficial to

Product manager

Product executive

Feedback manager

Useful for

Top features

Beneficial to

Product feedback
Customer feedback
In-App Feedback widget & API
Customer segments
Feedback into slack
Internal status updates
1 to 1 and 1 to many communication
Product manager
Product executive
Feedback manager

Conclusion

Blogs to check out

1. 11 Best Bug Tracking Tools for 2022 - Redpen
2. Why does customer feedback important for SaaS companies? - Redpen

Feedback

SaaS

Product

Quality

Development