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.