Customer Feedback Management: Why is it important? [+4 Suggested Tools]

Jul 7, 2023
Anna Pham

Customer feedback is a valuable resource for businesses seeking to enhance their products, services, and customer experiences. To effectively utilize this feedback, you need structured approaches and tools that streamline the feedback management process. 

In this article, we’ll explore 2 customer feedback types and 4 customers feedback management tools that facilitate efficient feedback collection, analysis, and action. By utilizing the recommended tools, you can leverage customer feedback to drive growth, improve customer satisfaction, and stay ahead in today's competitive market.

What is Customer Feedback Management?

Customer feedback management refers to the systematic process of collecting, organizing, analyzing, and acting upon customer feedback to drive improvements in products, services, and overall customer experiences. It involves the implementation of strategies and tools that enable you to effectively gather feedback from various sources, such as surveys, reviews, social media, and customer support interactions. 


By actively managing customer feedback, you can gain valuable insights into customer preferences, pain points, and satisfaction levels. These insights can then be used to make data-driven decisions, identify areas for improvement, address customer concerns, and enhance overall customer satisfaction, leading to increased loyalty and business success.

Customer Feedback Types

Direct customer feedback

Direct customer feedback refers to feedback that is explicitly provided by customers through specific channels or interactions. This type of feedback is obtained through direct communication with customers, such as surveys, feedback forms, focus groups, customer interviews, or customer support interactions. 

Direct feedback is valuable as it provides immediate insights into customer perceptions, experiences, and expectations. It allows businesses to gather specific and detailed feedback on various aspects of their products, services, or interactions, enabling them to address customer concerns and make targeted improvements.

Sources of direct feedback include:

  • A post-purchase survey
  • Customer support chat
  • Customer support phone calls
  • Pop-up UI (ease of use) or user experience (UX) surveys
  • Feature requests
  • Results from usability testing
  • SMS customer satisfaction surveys

Indirect customer feedback

Indirect customer feedback refers to feedback that is obtained through observing customer behavior, actions, and interactions without direct communication or solicitation. This feedback can be collected from various sources, such as social media mentions, online reviews, customer ratings, website analytics, or customer behavior tracking. 

Indirect feedback offers valuable insights into customer sentiments, preferences, and experiences without requiring customers to actively provide feedback. It provides a broader perspective on customer perceptions and helps identify trends, patterns, and areas of improvement. Analyzing indirect feedback allows businesses to gain a deeper understanding of customer sentiment and uncover hidden issues or opportunities that may have otherwise gone unnoticed.

Types of indirect customer feedback include:

  • Reviews on third-party sites
  • Changes in shopping behavior
  • Posts about your company and its products on social media
  • Unsubscribes from your mailing list
  • Conversations in online forums

By considering and analyzing both direct and indirect customer feedback, businesses can gather a comprehensive understanding of their customers' needs, preferences, and pain points. This holistic approach enables organizations to make informed decisions, prioritize improvements, and deliver enhanced customer experiences.

Why is customer feedback management important?

Customer feedback management is crucial for businesses due to several key reasons:

Higher revenue

Customer feedback management enables businesses to identify and address customer pain points, leading to improved products or services. By actively listening to customer feedback and making necessary improvements, companies can enhance customer satisfaction and loyalty. Satisfied customers are more likely to become repeat customers, refer others, and generate positive word-of-mouth, which ultimately leads to increased revenue and business growth.

Reduced customer churn 

Effective customer feedback management helps companies identify the underlying causes of customer dissatisfaction or churn. By promptly addressing customer concerns and taking corrective actions, businesses can mitigate the risk of losing valuable customers. By improving their products, services, and customer experiences based on feedback, companies can increase customer retention rates, reduce churn, and maintain a loyal customer base.

Improved products or services

Customer feedback provides businesses with valuable insights into what customers truly want and need. By analyzing feedback data, companies can identify areas for improvement, uncover new product or service opportunities, and refine existing offerings. This iterative feedback loop allows businesses to continuously innovate and stay ahead of the competition by aligning their products or services with customer expectations.

Long-lasting customer relationships

Engaging in customer feedback management demonstrates a commitment to listening and responding to customer needs. It fosters a sense of partnership between the business and its customers, making customers feel valued and heard. By actively seeking and implementing customer feedback, businesses can build stronger relationships with their customers, creating loyalty and advocacy. Satisfied customers are more likely to stay loyal to a brand, engage in repeat purchases, and become brand ambassadors, resulting in long-term profitability.

Competitive advantage

In today's competitive market, customer feedback management provides a strategic advantage. By proactively seeking and acting upon customer feedback, businesses can differentiate themselves from competitors. Companies that prioritize customer feedback and continuously improve their offerings based on customer insights gain a reputation for customer-centricity. This reputation can attract new customers, retain existing ones, and position the business as an industry leader.

Innovation and adaptation

Customer feedback management allows businesses to adapt and evolve in response to changing customer expectations and market trends. By closely monitoring and analyzing feedback, companies can identify emerging needs and preferences, enabling them to innovate and tailor their offerings accordingly. This agility in adapting to customer feedback helps businesses stay relevant, meet evolving demands, and remain competitive in dynamic markets.

Customer feedback management is essential for businesses as it drives higher revenue, reduces customer churn, improves products or services, cultivates long-lasting customer relationships, provides a competitive advantage, and fosters innovation. By actively listening to and acting upon customer feedback, businesses can enhance customer satisfaction, loyalty, and overall success.

Customer Feedback Management Tools



Ryviu is the best product review app that includes the feature of a customer feedback management tool that specializes in collecting and managing customer reviews. It offers features such as automated review requests, customizable review widgets, sentiment analysis, and review moderation. 

Ryviu has a free plan available, a paid plan starts at $6.99 per month and offers different plans with increasing functionality, including advanced analytics and integrations with third-party apps.



Canny is a user feedback management tool designed for product teams. It enables businesses to collect, prioritize, and track customer feedback and feature requests. Key features include feedback boards, customizable widgets, voting and commenting functionality, and integrations with project management tools. 

Canny offers a free plan available with limited features, paid plans start at $360 per month and scales based on the number of users and features required.



Parative is a customer feedback management tool that helps businesses capture, analyze, and act upon customer feedback across various channels. It offers features such as sentiment analysis, text analytics, real-time dashboards, and automated workflows.

Parlor's pricing is available upon request and is tailored to the specific needs and scale of each organization, with customization options for integrations and CRM systems.



UserVoice is a customer feedback management platform that enables businesses to collect, prioritize, and analyze customer feedback and feature requests. It offers features like feedback forums, voting and commenting capabilities, in-app feedback collection, and customer segmentation. 

UserVoice's pricing starts at $699 per month and includes different plans to accommodate varying business sizes and requirements, with advanced analytics, API access, and custom branding options.


Customer feedback management is of utmost importance for businesses in today's competitive landscape. By using suggested tools that can streamline the feedback management process, you can gain valuable insights into their customers' experiences, preferences, and expectations.  So, you can cultivate stronger customer relationships, increase customer satisfaction, and drive business growth.