Closed-loop feedback: what it is, importance and best practices

Nowadays, more and more companies are using online and offline surveys to get feedback from their customers. Customers want personalized experiences and products and services that are better tailored to their needs. Let's talk about what Closed loop feedback at a hunt.

Feedback has become crucial when it comes to delivering a great customer experience that beats the competition.

What should you do after collecting and analyzing survey data? A structured and open closed-loop feedback system is essential for engaging with your customers because they are waiting for feedback or an update from your company.

Many companies claim to have a customer feedback system, but don't act on it or use it to keep customers coming back. This is called “closing the loop.”

This article will discuss some of the best practices for closing the feedback loop, but first let's talk about what closed-loop feedback is and why it's so important.

What is Closed Loop Feedback?

Closed-loop feedback is when a company responds to customer feedback or takes it up through an online or offline survey.

By “closing the loop,” companies can deal with feedback quickly and efficiently by directly or indirectly addressing customer complaints or compliments to ensure they had a good experience.

A common misconception about closed-loop feedback is that it needs to be handled personally, face to face with the customer. While an in-person conversation has its benefits, you can close the loop by simply solving a problem or taking advantage of an opportunity, either online or in person.

The closed-loop feedback process begins with a survey that the company conducts with the customer in mind. Once the survey is conducted and sent to customers, they provide their feedback and the company collects and reviews the data.

The cycle closes when problems or opportunities are identified in the feedback and appropriate measures are taken to attract or retain the customer.

You can also consult this guide to learn how to create your own customer journey map and which touchpoints need a closed-loop feedback system.

The importance of closed-loop feedback

Closed-loop feedback is important because it allows a system to change the way it works based on the results of its previous actions. This type of feedback can help a system stabilize itself, improve its accuracy or precision, or achieve a goal more quickly.

Below are a few more reasons why every company should prioritize a closed-loop feedback system:

Reducing customer churn

Customer churn can have many causes. If the cause is a poor customer experience, consider taking customer feedback to improve the relationship.

You can email or contact the customer to resolve the issue and let them know that their feedback will be taken into account in future service or product improvements.

Closed-loop feedback helps solve problems at the source, makes customers feel heard, and provides important information to improve customer experience and reduce customer churn.

Learn more about why understanding the customer journey will transform your CX program and help you close the loop.

Better overall reputation

Online reviews are important. Why? Because public reviews give buyers an impression of your brand and influence their purchasing decision.

Responding to reviews can help prevent unhappy customers from leaving reviews online. Your response to a negative review can strengthen your brand. 45% of customers visit businesses that respond positively to negative reviews on Yelp or Google My Business.

Data shows that customers are more likely to recommend a product or service after a positive experience or complaint. Customers value a brand that cares about solving a problem.

Increased revenue

Feedback that closes the loop improves the overall customer experience. When customers are happy and their ideas are taken into account, they are more likely to recommend your company and speak positively about their experience.

Customers are willing to pay more for the brand that offers the best customer experience and can prove it. Customer experiences differentiate your brand in a competitive industry and can increase sales.

Best practices for closed-loop feedback

Learn how these best practices can improve customer satisfaction by facilitating feedback.

Choose the right mechanism

The most effective way to learn more about an issue and close the loop is usually a phone call. However, this can be time consuming. If you have limited resources, consider responding via email.

It is advisable to inform customers of your intentions and progress via email so that they can participate at their own discretion.

Involve as many customers as possible.

The most important thing is to close the loop with your detractors, but don't forget your passives and promoters either. These are important customer groups that, if ignored, could turn against the company.

Close multiple levels of the loop

While it may seem most sensible to place responsibility for closed-loop feedback systems solely on the customer service department, this is not the case.

If you don't involve all levels of the company, you're leaving the door open for further unnecessary disruption.

• Every problem requires a different solution.
• In some situations, a manager or even an executive needs to be involved.
• Ensuring everyone in your company can close the loop improves internal competencies and can have a significant impact on your NPS.
• Describe quarterly company meetings.

Discussing customer feedback with key B2B decision makers in quarterly meetings can close the loop.

This way, show how you are increasing your return on investment and point out areas you can improve in the future.

Closed-loop feedback with QuestionPro

Closed-loop feedback (CLF) is a QuestionPro CX feature that allows companies to monitor and respond to customer feedback in real time. With the help of this tool, companies can better respond to customer complaints, solve problems and improve their products and services.

With QuesionPro CX closed-loop feedback, companies can:

• Identify the customer
• Collecting actionable information
• Follow-ups can be automated
• Efficient case management
• Identification of internal problems

The closed-loop feedback QuestionPro CX function aims to optimize the process of collecting and processing customer feedback. To help companies track key performance indicators (KPIs) and make data-driven decisions, the platform offers a variety of analytics and reporting features.

Companies can also set up automated workflows and notifications on the platform to initiate follow-up processes or escalate issues to the appropriate team or department. This allows companies to improve their customer service and support procedures.

Conclusion

Unless action is taken, insights are just words and numbers. It's important to establish a productive, closed-loop feedback process to immediately respond to customers and implement changes after new data is discovered.

Use surveys to collect customer feedback to plan the direction of your business and identify areas that need improvement to provide the best customer experience. With QuestionPro you get real-time feedback from your customers and can take immediate action!

QuestionPro is the only CX solution on the market that includes all 3 components of the CX ecosystem, including customer journey mapping, journey measurement and all-the-loops systems:

• Experience and journey mapping
• Closed loop system
• CX consulting
• NPS
• Voice of the customer
• Change management/implementation
• CX reputation and more.

With QuestionPro CX the closed loop feedback uses a ticketing system. You can create a ticket for anyone who doesn't like your product, send it to the right person, and resolve the issue. Such a system can reduce the number of people leaving your website and turn your critics into your biggest fans.

Use QuestionPro CX today!

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KEYWORDS OF THIS BLOG POST

Closed loop feedback | Closed loop  | Feedback