Why is feedback necessary for good business?

Every business and every company needs feedback. The question is, why is this feedback so important to run a business?

Let us look at some of the reasons why feedback is necessary for any good business:

• Honest feedback helps the business grow. Based on the feedback, the entrepreneurs make changes in their strategies and work towards making their products/services better. Online businesses rely more on the feedback because it is easy for a consumer to give brutally honest feedback on the website.

• It improves the customer experience/engagement. If you react to the customer feedback and solve the issue, that will give a positive publicity to your product. A satisfied customer attracts more customers to your business. Loyal and returning customers are the assets to any business.

• Genuine feedback by the employees improves the employee engagement to the company. It helps the management to drill down to the questions -- Why are my employees leaving the company? Why are they not productive? What should I do to improve employee retention and cut out attrition? This will build the reputation of the company and thereby helps the management to run a successful business.