What Is a Feedback Loop and How Does It Work?

Feedback loops are an essential part of customer experience management. They include collecting customer feedback, responding to customers, and using their suggestions to improve customer experience and engagement.

The customer feedback loop involves getting feedback from customers and responding to them in order to “close the loop”. Depending on the sort of feedback you get, you may have positive or negative feedback loops. It’s important to always “close the loop” by making sure you’ve addressed customer feedback properly.

How does Closed Loop Feedback Work?

The process of “closing the feedback loop” consists of the following:

• You collect customer feedback through spontaneous or requested surveys generated in your customer experience management platform. 
• If you need to get the full picture, you ask follow-up questions or connect directly with the customer. 
• After analysing the feedback, you determine the cause of either a one-time or recurring positive or negative incident. 
• You decide how to respond to the customer and how to act internally to either repeat a good experience or prevent a bad one. You may automate basic responses and free yourself up to prioritise. 
• You use customer insights to improve your customer experience through “quick-fix” solutions or long-term strategies. 
• Finally, you communicate your actions to your customers and employees.

Why Is Feedback Loop Essential in Creating a Positive CX?

The most important opinion on your products and services comes from the people who are going to be using them – your customers. Gathering feedback from them is essential for refining and improving your offerings.

Getting customer feedback and responding appropriately through your customer experience management platform is the basis of an ideal feedback loop. Taking their thoughts and ideas and turning them into changes and improvements to your products and services can encourage even more positive feedback in the future. Don’t just settle for a simple “Thank you” when customers provide their opinion – make sure to take action on it.

Taking into account what customers have to say and taking action in response is the optimal way to make the most of any customer interaction. Your main aim should be to use feedback to construct and improve the service you offer to customers. The biggest priority is to cultivate an atmosphere which is centred on the customers and encourages taking action instead of just gathering feedback and leaving it at that. Utilise this feedback to make meaningful changes.

Feedback Loop and Employee Engagement

Typically, responding to customer feedback is the only step of the customer feedback loop, but it is also critical to share that feedback with the people within your organisation in order to enhance your products and services.

Leverage employee engagement software to share positive customer feedback with your front-line employees and boost their engagement. On average, 80% of customer feedback is positive and can be used to increase employee motivation. A few nice words from the customers can motivate employees to provide the same excellent service in the future. 

When it comes to negative feedback, employee engagement software usually sends this type directly to the manager. The manager can then communicate the incident with the responsible employee and decide on the next steps. It is necessary to respond to the customer and offer an apology, solution, or assurance that the problems are being addressed.

Consult Your Feedback Loop Strategy with Experts

Feedback loops are essential for understanding customer needs and expectations and adapting your products and services to meet them. Customer experience consulting can help you get the most out of your feedback loop strategy and streamline the process. 

A customer experience consulting firm can help you monitor customer feedback and provide you with valuable insights. They can analyse customer feedback, identify areas of improvement, and develop a comprehensive strategy to improve your customer experience. By leveraging the expertise of a consulting firm, you can ensure that your feedback loop strategy is effective and that you are providing your customers with the best possible experience.

Final Word

Feedback loops are an essential part of customer experience management, involving collecting customer feedback, responding to customers, and using their suggestions to improve customer experience and engagement. As a manager, your job is to close the loop by addressing customer feedback and taking action on it. To streamline the process, a customer experience consulting firm can help you monitor customer feedback and provide insights to improve customer experience.