Business readiness

Customer Feedback Reports

What are Customer Feedback Reports?

Any report that collates, summarizes, and quantifies the feedback obtained from the company's customers in relation to how well their needs have been met and their opinion of how the company's products or services compare with those of competitors.

A covenant report is important for transaction due diligence, particularly those that involve investors taking an interest in a business that will continue to keep the existing debt. The new investor’s interest will be subordinated to debt whether it be subordinated debt or convertible debt.

This information is important for these investors because they will be keen to understand how close the business is to breaching covenants as this event will automatically provide additional rights to more senior lenders that may impact on the Investors’ future rights.

This issue is less of a concern when the entire business is being sold and the existing debt is to be refinanced.

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Why are Customer Feedback Reports important for business today?

A comprehensive approach to customer feedback can be a key driver of growth in your business as it will:

  • Bring you closer to your customer and help you develop a deeper understanding of their pain points and concerns
  • Allow you to develop projects more suited to meeting your customers needs
  • Help you to choose what projects to prioritize based on which projects will deliver the greatest value to the customer
  • Allow you to quickly receive notification of issues through a more formal and more frequent feedback loop
  • Provide a quantifiable measure of the effectiveness of product or service improvements
  • Allow different products, services, teams, geographies or employees to be measured in terms of customer satisfaction

Why are Customer Feedback Reports important for an event tomorrow?

The information available from customer feedback reports can help investors greatly in their due diligence efforts, particularly for investors why may not be competitors or other existing players in the market.

The reports provide a useful measure of how the company is perceived by the market place as it allows the validity of statements about the quality of the product to be checked. This, in turn, provides an acquirer with greater insight into how vulnerable the company’s existing margins are to price competition.

A customer feedback report helps determine what investment will be required to bring the quality of the product up to the level desired by the acquirer after the transaction has been completed.

Pros of addressing Customer Feedback Reports

  • Deeper understanding of your customer
  • Develop and prioritize high customer impact projects
  • Ensure changes in customer perception are captured and assessed quickly
  • Assess customer reaction to new products or services

Cons of not addressing this topic

  • Increased potential for major loss of customers due to a lack of response to changing customer needs
  • Increased potential for developing new products or services that do not meet customer’s needs
  • Increased potential for re- investment in projects that are not meeting customer’s needs while under investing in those that are

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