Not many people know what exactly Customer Feedback Loop is and how to take advantage of it. It is, in fact, one of the most efficient methods to make improvements to your product and service, based on what your customers want. When you use Feedback Loop, you can collect, study and apply whatever your customers are suggesting in order to improve your business. Read below to find out more.
What exactly is Customer Feedback Loop?
Customer Feedback Loop is an improvement strategy, where customers’ suggestions and feedback drive the change. This is a constant process called “mutual causal interaction”, where the feedback received from the customers is implemented by the company. In turn, those changes implemented by the company affect the customers, who give new feedback and the loop gets repeated.
The 3 Stages of Customer Feedback Loop
The Feedback Loop has 3 crucial stages: gathering information from customers, learning and analyzing the data, and finally applying the changes.
The starting point of the Customer Feedback Loop is to start collecting customer feedback. There are a variety of ways you can do this, from sending surveys or feedback forms to collecting feedback directly in-store.
Surveys tend to be the most popular form for requesting customer feedback. With the help of a customer feedback tool, surveys are convenient and easy to create and analyze. In addition, you can target different groups of consumers or send surveys concerning only a certain product.
Some examples of surveys include targeted website surveys, in-message surveys, Net Promoter Score, and questionnaires. Targeted Website Surveys are usually directly on the company’s website and take the form of a pop-up. They are extremely useful when trying to judge how usable your website or service is, if the quality of your products is good, etc. Secondly, In-message surveys are a direct way of collecting feedback through email or chat. The third option is to send Net Promoter Score surveys, which determine if your customer would recommend your company to friends or family. Based on their answer, customers are sorted into 3 groups: promoters, passives and detractors. Finally, you can send questionnaires via email or social media to collect more in-depth information from your customers.
After the data is collected, the next step is to analyze it. When using a customer feedback tool, this becomes even easier. Finding patterns and trends can give you a lot of information and it can help you find out what your customers are looking for. Thus, you can draw conclusions about what you have to change in your company. Adapt a product if your customers are dissatisfied with it, or provide more training if your service is not on par.
The third and final step is to apply the changes. Start with the issues which are critical and never forget to inform your customers about the changes and fixes you have done. Always inform your customers that you have taken their feedback into consideration and that you value their opinion. Once you have implemented the changes, start the process all over and collect feedback about the new product once again.
Benefits of using the Feedback Loop
Whether or not your business grows depends massively on your customers’ satisfaction with your product. Therefore, you need to constantly listen and respond to their wants and needs. Moreover, it is crucial to reply to and manage their critique and complaints. Thus, you can provide them with better products and services and gain an advantage over your competition.
Further benefits which Feedback Loops provide is that it can be the foundation of your customer success process. Thus, you will always be up-to-date with what your customers think about your company and products. This gives you the opportunity to create lasting relationships with your customers and increase their loyalty.