EFFECTIVENESS OF CUSTOMER FEEDBACK ON PROCESS IMPROVEMENT OF SMALL BUSINESSES IN PUROK 2, MALARIA, CALOOCAN CITY

Abstract

Customer feedback is a valuable source of information that customers provide regarding their experiences with a product or service. By analyzing this feedback, businesses gain deeper insights into their target market, which empowers them to make informed decisions about future product offerings, marketing strategies, and customer service improvements. Furthermore, process improvement refers to the ongoing effort to identify, analyze, and enhance existing processes within an organization. This continuous improvement ensures that the business operates at its optimal capacity, meeting or exceeding quality standards, performance benchmarks, and quotas. By integrating customer feedback into process improvement strategies, businesses can fine-tune their operations, address customer needs more effectively, and ultimately drive greater satisfaction and loyalty. To accomplish this study, the researchers employed a simple random sampling technique and utilized a descriptive research design. A total of 44 respondents participated in the study. This approach allowed for a broad understanding of customer feedback and its role in process improvement, providing insights into how businesses can enhance their operations based on consumer input. The findings revealed that there is no significant relationship between customer feedback and process improvement in terms of service, as indicated by a Pearson correlation coefficient of 0.2369 with a p-value of 0.1173. However, a significant relationship was observed between quality and process improvement (Pearson r = 0.4636, p-value < 0.0010) as well as between price and process improvement (Pearson r = 0.3034, p-value < 0.0423). These results suggest that quality and price factors play a more substantial role in driving process improvements compared to customer feedback regarding service. Based on the findings, the researchers concluded that respondents tend to prioritize timely assistance and meeting customer needs, while also ensuring that products are affordable and reasonably priced. This suggests that efficiency in customer service, along with competitive pricing, plays a critical role in process improvement. In light of these results, the researchers recommend that business owners offer discounts and coupons to attract customers, while also establishing a continuous feedback loop to facilitate ongoing process improvements. Additionally, it is suggested that businesses implement benchmarking practices to compare their products or services with competitors, helping to identify areas for further enhancement and ensuring they remain competitive in the market.