Unlocking value from customer feedback analysis

Unlocking value from customer feedback analysis

Customer feedback analysis is a method of data analysis that involves extracting insights from customer feedback. It helps companies uncover customer preferences, satisfaction levels, and service deficiencies to improve customer experience and business growth.

But what does customer feedback analysis entail? How can you unlock value from customer feedback? How should you present the analysis to drive action? In this blog, we'll cover all that and much more. Let's get into it!


Customer feedback analysis is a valuable way for organizations to gain insights into customer experience and satisfaction. Customer feedback analysis involves collecting customer feedback using methods such as surveys, reviews, customer service conversations, customer complaints, and customer behavior analysis. This helps organizations understand customer needs and experiences better and identify ways to improve customer satisfaction. Understanding customer preferences and behaviors using this type of customer behavior analysis is vital in order to increase customer loyalty and revenue.

As an example, one effective method for analyzing customer feedback is segmentation. Segmentation involves dividing customers into different groups based on details about them or their customer behavior. This provides a clearer and more digestible picture of customer feedback, and it helps organizations analyze customer feedback in terms of geography, demographics, and other factors. Segmentation helps organizations analyze customer feedback in a systematic manner and is an important piece to creating an effective customer experience program.

What is Customer Feedback Analysis?

Customer feedback analysis is the process of extracting business insights from customer reviews and surveys, which allows businesses to make informed decisions. Customer feedback analysis involves classifying, tagging, and manipulating customer data to uncover valuable insights.

Why is Analyzing Customer Feedback Difficult?

Customer feedback analysis is a critical part of customer satisfaction and customer experience management. However, companies face difficulty in analyzing customer feedback due to the complexity of human nature and language. Because of this complexity, businesses must invest time and resources to accurately analyze customer feedback.

  • Customers are often reluctant to provide detailed feedback, which can lead to inaccurate or inconclusive analysis.

  • Customers may provide lazy feedback such as 'Good' or 'Ok' without providing necessary details, leading to less-than-useful insights.

  • In addition, businesses must tag customer feedback with different categories and subcategories using data tags. This helps in categorizing customer feedback efficiently and quickly. Without customer feedback analysis, businesses could become data-rich but information-poor, making it difficult for them to identify opportunities for customer experience improvement.

NPS survey window showing the response 'its good'

When customer feedback is vague, it can be hard for businesses to extract useful insights from it.

To increase the effectiveness and reduce the cost of customer experience management, businesses must use enterprise feedback analysis software that is capable of parsing customer feedback and categorizing it automatically. This kind of software can make customer feedback analysis more efficient and accurate, so that businesses can more easily extract insights from customer feedback data.

People use complex language

People often provide multiple variations when expressing the same opinion or answering the same question. For example, when customers give feedback about a product or service, they may use different words to describe the perceived quality of the experience. This can make it challenging for companies to analyze customer feedback without special software or automation. Organizations that collect customer feedback should consider automating analysis with feedback analysis software to ensure accurate results and increase data analysis efficiency. When analyzing customer feedback, it's also important to account for translation and localization when working in multiple countries.

Feedback quality varies

Feedback quality is essential for effective customer feedback analysis. Qualitative feedback analysis can help with design decisions and improve the experience of a product or service. However, it requires careful analysis and thoughtful interpretation. Successful feedback analysis requires data organization, data exclusion, categorization, trend analysis. Analyzing customer feedback involves organizing data, eliminating noise from the data set, categorizing feedback into feedback categories, and analyzing trends in feedback data to identify patterns. This process can be automated using tools such as Kapiche. Ultimately, companies must take action on customer feedback and analyze it correctly if they want to improve products and services.

How to collect customer feedback

Companies can collect customer feedback through various methods such as on-page feedback widgets and surveys, email surveys, NPS surveys, CSAT surveys, and usability testing. Each method has its merits and drawbacks, so companies must weigh the pros and cons of each one based on the kind of feedback they want to collect and the stage of their product or service development.

For example, customer satisfaction surveys let customers rate products or services on a scale ranging from 'definitely not' to 'completely' positive. They can also include open-ended comments where the customer can share unstructured feedback. However, customer satisfaction surveys can be time-consuming for customers and require a significant amount of time and effort to analyze if they include unstructured feedback.

Companies can also collect customer feedback through chat support and chatbots. Customer live chat support provides an easy way for customers to provide feedback about a product or service directly from a chatbot interface. This is cost-effective as the customer experience doesn't need to be repeated for analysis of feedback data.

Customer focus groups are another popular option for collecting customer feedback. These are group discussions where customers can freely share insights about their experience with a product or service with a moderator guiding the discussion. While customer focus groups have many advantages over traditional customer satisfaction surveys, they can be expensive and time-consuming as well.

Finally, companies can also collect customer feedback through social media posts and replies on social media sites. This is a free source of unsolicited feedback that customers share without being prompted, which can reveal different insights than solicited, prompted feedback.

Surveys (NPS, CSAT & Others)

Companies often use customer feedback surveys to collect feedback from customers who recently interacted with their services. These surveys can be sent via email or as a stand-alone document. Examples of customer feedback surveys include Net Promoter Score surveys (NPS surveys) and customer satisfaction surveys. These surveys measure customer loyalty, satisfaction, and satisfaction with a service or product and are used to improve CX. Customer feedback surveys can also consist of on-page surveys and feedback polls that collect customer feedback on website, products, or services. Surveys can be run with software such as SurveyMonkey or Typeform, which are good for collecting customer feedback.

Customized customer feedback surveys allow companies to tailor questions to the specific audience they want to target. This allows them to gain valuable insights about a certain type of customer. By using customer feedback surveys effectively, companies can identify areas for improvement and continually improve their services and products.

Support transcripts

Customer support teams use customer feedback software to collect feedback on support issues. By recording and analyzing support interactions, such as support chats and email conversations, companies can better understand customer needs and improve their services. In addition, marketing teams can analyze these data to validate hypotheses about the market, explore new positioning, and identify language for messaging. These data are also valuable for product teams to help design new features or make improvements to existing ones.

Screenshot of a live chat support platform.

Live support chats like the one shown above can be a rich source of customer insights. (Source: Dashly)

Overall, customer feedback analysis software enables multiple teams to benefit from customer feedback from different sources that's all captured in one centralized location.

Call Center Notes

Call center representatives can collect feedback from conversations with customers to help them identify areas for improvement. They can use data such as customer satisfaction surveys, live chat support, app reviews, call transcripts, and social media feedback to identify customer concerns and improve customer service.

To leverage customer feedback, call center representatives should organize data into analysis reports and insights to help them understand the drivers of customer satisfaction. It is important to ensure that all customer feedback is organized and stored in a systematic way so that it can be analyzed later.

Publicly available reviews

Publicly available customer feedback is an invaluable source of feedback for businesses. Review sources such as Amazon, Google, G2, Glassdoor, and the Apple App Store provide a convenient way to collect lots of feedback. These platforms allow users to post reviews on products, services, and companies and access detailed feedback about others' experiences.

Review platforms enable businesses to quickly access valuable customer feedback and make improvements to their offerings based on customer feedback.

Chat bots

Chatbots can be used to collect customer feedback in real-time. Many customers prefer to chat for support rather than calling or emailing, so companies often have a tremendous amount of data about customers in the form of chat conversations. These conversations are a gold-mine for customer insights and companies must take advantage of everything they can learn from this data.

Social media

Customer feedback can be collected through social media platforms such as Twitter, Facebook, and LinkedIn. Companies should keep an eye out for both constructive criticism and positive reviews on social media platforms. Responding to customers on social media can help build relationships with customers and increase customer satisfaction. In addition, companies should consider forwarding messages from social media accounts into tools such as Intercom for better analysis. By analyzing customer feedback on social media platforms, companies can identify trends in feedback and use them to improve their products and services.

As you can see from the sections above, there are many sources of customer feedback that are common across businesses. Unifying customer data from these numerous sources allows companies to gain a more holistic view of customer behavior.

Strategies for Effective Customer Feedback Analysis

Customer feedback analysis is an effective tool for organizations to understand customer experience and satisfaction. It helps them identify customer insights, develop customer-centric business models, and improve customer experience. However, it requires a systematic approach to collect feedback from customers and analyze the data.

Customer feedback analysis software can help organizations analyze customer feedback efficiently. This kind of software provides a central place to access customer feedback data, analytics, and insights. The software simplifies the analysis process by automating key tasks such as data collection, tracking, analysis, and reporting. It also tracks customer feedback trends and insights over time, making it easier for organizations to continuously improve their offerings.

Ensuring that customer feedback is valid and actionable is equally important. This can be done by using frameworks such as customer satisfaction surveys or a customer experience scorecard. These frameworks provide a structured way of analyzing customer feedback data to identify insights that can help companies improve their service offerings.

Benefits of Effective Feedback Analysis Software

Customer feedback analysis software automates business processes and saves time from manual data processing, resulting in faster, more accurate analysis. This helps organizations quickly identify customer needs and frustrations to improve customer satisfaction and reduce churn. Customer feedback analysis also allows companies to sort large amounts of data quickly and accurately, enhancing customer centricity and long-term profitability. In addition, customer feedback analysis improves employee satisfaction by increasing employee efficiency and the satisfaction with their jobs.

1. More business growth

Customer feedback analysis reports provide actionable insights for critical thought and action. By analyzing customer feedback, businesses can understand the areas of improvement and make any necessary adjustments to their product or service offerings. These adjustments can help improve customer satisfaction and reduce costs, leading to increased business growth and profitability.

Customer feedback analysis software helps businesses identify the pain points of customers, drilling into categories like channel, product, or demographics to find insights. Through this data analysis, businesses can better tailor their offerings to meet customer needs. Besides, customer feedback enables businesses to stay ahead of the competition by identifying customer trends and preferences. This information helps businesses develop products that best address customer needs while reducing costs and increasing profitability. Additionally, customer feedback analysis software helps streamline the feedback collection process and increase data accuracy, making it easier for businesses to collect and use feedback data.

2. Better customer experience

Customer feedback analysis helps organizations better understand customers and their needs. Through feedback analysis, companies can identify friction points and remove them to improve user experience. This leads to greater customer satisfaction and increased customer loyalty.

In addition, customer feedback analysis solutions automate parts of the analysis process and help companies close the feedback loop by solving customer issues and improving user experiences. Automated feedback analysis can lead to gains in efficiency and improved employee satisfaction, leading to long-term gains for organizations. Investing in customer feedback analysis is an effective way to improve customer experience.

3. Improve your Net Promoter Score

NPS surveys help companies understand customer feedback and satisfaction across different areas of a business. It is calculated by subtracting the percentage of Detractors from the percentage of Promoters, which provides a score between -100 and +100. This score can be used to gauge customer loyalty and satisfaction in different areas of a business.

Graphic showing how Net Promoter Score is defined and calculated.

Net Promoter Score can be a valuable tool for understanding customer feedback and satisfaction. (Source: Survicate)

It is important to maintain a score of +30 and above for SaaS (Software as a Service) companies, as this shows that customers are promoters of the service. High-performing businesses typically aim to maintain an NPS score between +50 and +65, which shows that they are improving customer experience over time. Surveys can be gathered and analyzed by exporting or downloading data as CSV or Excel files, or by using integrative survey tools and an analysis tool like Kapiche.

4. Better products and services

Customer feedback is critical to ensuring a business's success. It can help businesses improve their products and services and ultimately retain customers. By constantly asking customers for feedback on their products, services, and business practices, businesses can continuously improve and stay ahead of the competition. This feedback can be collected in several ways, such as surveys, feedback forms, or interviews. Keeping track of customer satisfaction metrics allows businesses to assess customer behavior and experience with their brand.

Besides collecting feedback from customers, you can also categorize customer complaints into three areas: Reliability, usability, and functionality (RUF). For example, complaints about the reliability of a product or service can be categorized as any problems with the product that make it difficult to use or dysfunctional. Complaints about usability can be grouped together into a single category if they are all about how the customer finds using the service difficult or cumbersome. By categorizing customer feedback into RUF, businesses can quickly identify areas for improvement and work toward improving their products and services.

How to successfully scale Customer Feedback Analysis

Customer feedback analysis can become a valuable part of your customer experience program. However, it requires thorough planning, implementation, and constant monitoring to ensure customer feedback is captured comprehensively and that satisfaction continues to improve over time.

To collect customer feedback from multiple sources, you can collect feedback through online reviews, social media mentions, and direct messages. Also, consider using customer feedback tools such as surveys to collect feedback from customers. Once the customer feedback has been collected, you can analyze it manually or with the help of a feedback analysis solution like Kapiche.

After analyzing the data, you must organize the raw qualitative data into themes for analysis and identification of trends. This will make the data usable for many people and will help you deliver insights in an accessible way such as digestible reports.

How to present the results to drive actions

Customer feedback analysis is a valuable tool for organizations to generate insights about customers. This analysis can help organizations learn how customers are responding to their products, services, and marketing campaigns. Effective customer feedback analysis involves creating an analysis framework that outlines the steps of customer feedback analysis (such as data collection, qualitative research, and analytics) and the data the organization should collect and track.

This analysis framework should clearly outline the customer feedback analysis process so as to ensure consistent execution of customer feedback analysis across the organization. Further, customer feedback should be presented in an accessible way such as through digestible reports and surveys. This will help organizations understand customer input and insights more easily.

Screenshot of a slide from a customer insights presentation.

Example of a customer insights report.

In terms of data analysis, it is important to categorize data into themes so that insights can be more easily identified. This will help organizations identify trends and develop actionable insights to improve customer experience. Finally, customer feedback should be highlighted on a regular basis to highlight key insights for strategic decision-makers.


Customer feedback analysis can provide valuable insights about your customer base and business. Using a combination of quantitative and qualitative analysis, you can get an accurate picture of customer sentiment and identify areas for improvement. Automating the customer feedback analysis process can increase efficiency, accuracy, and scalability. Furthermore, analyzing customer feedback data with a feedback analysis software can help you act on customer feedback in a timely manner, which builds trust and loyalty with customers. By analyzing customer feedback data and using it to improve business operations, you can unlock great value and foster a positive customer experience.

Frequently Asked Questions

What is customer feedback analysis and why is it important?

Customer feedback analysis is a process of understanding customer experience and sentiment by gathering customer feedback, analyzing it, and extracting insights from it. Companies collect customer feedback to identify how their products or services are performing with customers. This analysis helps companies to understand why a product or service works or does not work for customers and gain insights into customer experience.

Furthermore, customer feedback analysis can help a company identify customer requests which may lead to new product features or process improvements. It also gives companies an opportunity to stay competitive in the market and ensure customer satisfaction.

In a nutshell, customer feedback analysis is essential for businesses to understand customer experience, build customer satisfaction and loyalty, and ultimately grow profitability.

How can businesses use customer feedback analysis to improve their products and services?

Businesses increasingly rely on customer feedback analysis to gain valuable insights into customer needs, wants, and expectations in order to develop better products and services. By analyzing customer feedback data, companies can identify themes and trends that lead to actionable insights about how to create better CX and remove points of friction. This analysis helps organizations understand and prioritize customer needs.

Organizations can manually analyze customer feedback data to get insights, or they can use enterprise feedback management software to do this work more efficiently and quickly. Analyzing customer feedback data is a key part of product development as it helps businesses make informed decisions to develop better products and services that are tailored to customer needs and expectations. Through customer feedback analysis, businesses can gain valuable insights into customer preferences, satisfaction levels, loyalty levels, purchasing behavior, service experience and more. This analysis can help inform decisions related to pricing strategies, marketing campaigns, customer service policies, product features and overall customer experience.

How can customer feedback be gathered and analyzed effectively?

Gathering customer feedback effectively requires an organized approach. Here are a few steps you can take to collect and analyze customer feedback:

1. Collect feedback from a variety of channels such as surveys, reviews, support chats, or social media.

2. Organize the raw qualitative data by categorizing feedback into different themes or topics, or use a software that can do this for you.

3. Identify the noise in customer feedback and filter it out for analysis.

4. Analyze data by identifying trends, insights, and suggestions from customer feedback.

5. Share insights with internal stakeholders in an accessible way so that all stakeholders can understand it, use it and act on it in a timely manner.

By following these steps, you can collect customer feedback and analyze it effectively, which in turn can help your organization make better decisions related to customer experience and product strategy.

What are the benefits of analyzing customer feedback?

Analyzing customer feedback can be incredibly beneficial for businesses when done right. Understanding customer sentiment, needs, and feedback can help boost customer satisfaction, increase loyalty, and ultimately decrease churn.

By using the right enterprise feedback analysis software, companies can collect customer feedback in a central place, categorize data and insights, identify trends, and deliver actionable insights so that stakeholders can make informed decisions.

Moreover, using a customer feedback analysis software can help companies uncover hidden insights from data that might otherwise not be analyzed. From customer reviews, surveys and social media analytics to customer service conversations - these feedback sources are a gold-mine of insights and should be leveraged to the fullest extent possible.

This automated analysis of customer feedback can provide valuable and timely insights about customer experience which can then be applied to improve service offerings and customer experience overall.

How can customer feedback data be used to improve customer experience?

Customer feedback data can be used to improve customer experience in many ways. Companies can collect customer feedback surveys to gain more targeted feedback from clients who recently interacted with the business, and use enterprise feedback analysis software to analyze customer sentiment and customer needs in order to enhance their satisfaction and reduce churn.

NPS surveys and CSAT surveys are some of the most popular customer feedback metrics that businesses can use to assess customer satisfaction and loyalty and identify specific concerns. Companies should also monitor brand mentions across all relevant channels so that they can better understand customers and remove friction points.

Finally, through customer feedback analysis, businesses can close the feedback loop by solving customer issues and improving the user experience. By doing this, companies can ensure customers get a great user experience, resulting in increased loyalty and satisfaction.

How can customer feedback analysis help organizations better understand their customers?

Customer feedback analysis software is an invaluable tool for organizations that want to understand their customer needs and frustrations better. This software can help companies analyze customer responses from online reviews, surveys, social media posts, email feedback and other customer data sources. It helps them structure the raw data in a manner that can be 'measured' or analyzed more easily.

Analyzing customer feedback also helps companies identify customer pain points, so that they can make informed decisions on how to improve customer satisfaction. Automation of customer feedback analysis helps companies process huge amounts of data from different channels quickly and accurately. The insights from this analysis can then be used to customize products, service delivery and customer experiences in order to build customer loyalty and reduce churn.


The feedback analysis process is a critical customer-engagement tool that can help you collect customer feedback in one central place, analyze it, and use the insights generated to make informed business decisions. It can be a challenge to collect feedback from customers and respond to it in a meaningful way, but the analysis of feedback data is essential for customer satisfaction and loyalty.

If you're looking for a better solution to analyzing customer feedback, Kapiche is a feedback analytics platform used by world-leading companies to generate deep insights quickly. Request a demo of our software today!

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