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Customer Feedback Loop: How to approach it?


What is the first thing you need to improve your product or service? That's right; it is right in the title: Customer Loop Feedback.

As you start taking your product to the market, you do it with high hopes of getting customers the best experience. Nevertheless, it doesn't matter how much effort your team and you can make into producing it; customers will always find details.

Now, is this bad? Well, NO, in fact, it is an excellent opportunity to improve.

When you implement a Customer Loop Feedback strategy into your business, you get closer daily to creating what customers need. 

Listening to the recommendations and feedback from your customers and then applying the necessary changes to it improves the customer experience. These changes will benefit your earnings, as a Forbes article shows that 86% of consumers will pay more for a better customer experience.

So, in this article, you will find the antidote to churn and gain more retention by applying a customer loop feedback strategy.

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What is Customer Feedback Loop?

This loop refers to the constant interaction between the customer and the business. You provide them with your product or service, and then they evaluate it based on reviews, feedback and suggestions. 

When you add your customer's opinions to your business process, you get the voice of customer data that you can turn into products, techniques and different strategies to enhance the overall functionality of your business.

This method is beneficial for it as it makes your company a customer-centric one, which makes your whole business  60% more profitable than companies that are not, according to research from 2022.

It's fear to say that as customers feel that your company listens to their recommendations, that reinforces their ties to your company, and those ties are so strong that they are even willing to spend more on your company. 

Now, offering a fantastic experience is so imperative today since, according to Survicate, 32% stop doing business with a brand they've been loyal to in the past over a single bad experience; that's why you should focus on listening to their recommendations and complaints.

So, for example, if you are into SaaS products, adding a Customer Loop Feedback can lead you to a better activation while also helping differentiate from those who don't use it, creating a customer-centric culture with a high-quality experience.

How to Implement a Customer Feedback Loop?

Now that you understand the importance of your customer's feedback to your business's continuous development, we want to show you how to implement this format. Now you can achieve this through the so-called "4 Stages of the Customer Feedback Loop," which are:

Stage 1: Collect Customer Feedback

Starting with the basics, you must collect as many reviews as possible. For this, the options are numerous, so you can use different methods, such as:

  • Online review platforms.
  • Live chat.
  • Call data from your virtual phone system.
  • Product suggestion forums.
  • Social media monitoring.
  • Net Promote Score (NPS)
  • Email Marketing

Now, it is good to emphasize that when requesting reviews from the company's account, it is best not to give respondents too much room to think, not so much to deny their opinion, but more because if we have proven something in digital marketing, it's that clients are usually quite lazy when it comes to reading or commenting in great detail, so you must make the process more digestible.

The best format for this feedback is usually simple answer surveys, which are easy and quick to answer. At the end of the questionnaire, leave an optional tab for them to develop more comments if they wish.

Now, depending on your type of business, it is likely that you should look for reviews in different places, for example:

  • If you own a brick-and-mortar store, Google Reviews is the go-to platform.
  • SaaS companies can rely on software review platforms to see how their users respond.
  • Those who use 
    Ecommerce can go to the product reviews to see the buyers' comments.

Stage 2: Analyze Feedback Data.

When you have gathered enough feedback, it is time to analyze and study it. Customer Relationship Management software can help you combine everything in a single platform to visualize it more comfortably. In these studies, we recommend several things: 

  1. If you have any negative feedback or bad experience with your business, take care of it ASAP to alleviate the client's annoyance and avoid churn. 
  2. You will likely see some repeated several times within the complaints. These are the significant "glitches" of your business that you overlooked. Therefore, these are the first things you will correct for future services.

Stage 3: Apply Feedback.

Once you reviewed all the feedback data, it's time to test it on those more relevant aspects.

Next step, you should send relevant data to the marketing team to help them improve the customer experience, while product management should get information on UVP feedback and feature prioritization. Read this complete guide on digital marketing funnel and then choose the right digital marketing channel for your business.

A good idea to test your thoughts is to use an A/B test to see what new option they like more.

Also, if you notice that some customers have more options to give extended feedback, you can email them to provide the news about your updates and ask for additional input. In the end, these interactions will reinforce customer relationships with them as they feel rewarded in some way for their honest reviews. 

Stage 4: Follow Up with Customers.

Before closing this loop, it is good that we closely follow specific cases of reviews to reap the maximum benefits of this strategy.

So, as we said before, clients value that "The Company" considers them. It is somewhat similar to receiving a simple "Hello!" from a celebrity, where the client feels that he exists and is important among the consumers of your business.

If any customer helped you find a bug that you missed - resolving a bug, repairing a broken submission form, adding new integrations - let them know that their contribution has helped the company, and even reward them with a trial of your updated product, or even some extra benefit that you can give him. As you can see, this generates a closer relationship with this client and thus ensures their loyalty to your brand.

Many businesses fear negative criticism because they feel it is a "disgrace" or a stain on their organization. However, you just need to reach out to these dissatisfied customers to resolve this dissatisfaction. Once you have made the pertinent changes, try to contact these unhappy customers through an email and offer them a trial of your renewed product or system to see if you can win back the trust of this customer.

In this matter of responses and communication, it is crucial that you do it within a relevant period since letting a long time pass will make the client forget about his excellent comment or complaint. For this, help yourself with automation tools that help you manage this in a better way.

And now, finally, you have closed the loop, but wait, there is more!

What Makes a Positive Feedback Loop?

At Codedesign, we are used to adding more valuable content so that you can make the most of the information that we provide in these articles. After all, the important thing is that after reading this article, you have enough tools to continue improving your business.

That is why we will share some extra data with you so you can make an effective customer feedback loop.

By the way, if you want to work with us, contact us by clicking here.

Collect Feedback on Key Points of the Customer Journey.

Throughout your entire customer journey, users will probably be experiencing either good or bad things through it, due to this normal process is good to gather feedback through all these touchpoints.

To do this, you'll use the top feedback-gathering tools by placing surveys at crucial steps through this journey. These surveys can pop up either on your website, app or any other place, and you let customers notice if there are any bugs or missing features along the way.

Usually, surveys are an excellent option for:

  • Website feedback.
  • Post-purchase satisfaction
  • Product experience

Choose the Right Feedback.

The Internet is full of comments; it is enough to enter Twitter to realize how many thousands of users are experts in topics they don't master.

If you know where we are going, you probably know that you should not give importance to every comment, only those that contribute to your business's development.

As a business owner, you must get thick-skinned to learn how to tell a comment from a mean "hater" and just let it go. It would be best not to value unfounded criticism since the one who wins is the hater you are paying attention to. Check these Amazon FBA tips to grow your business and see how optimising your Amazon listing could help you grow. 

Instead, learn to differentiate a bad review, which needs resolution, since this is not just a hater but a disappointed customer, and you should attend to them.

On the other hand, be able to detect these comments that continue to be repeated among all your users since these are the bugs on which you should focus to improve as soon as possible.

How to Close a Customer Feedback Loop?

An unclosed loop is an image that can cause anxiety for all of us. It's like an unresolved trauma or an unhealed wound. That is why it is imperative that within your organization, you have a closing process for these processes.

Closing a customer feedback loop corresponds to the last two stages of the process, that is:

  • Take action on the feedback.
  • Follow up on the case.

With each feedback process, you follow up on the conversation with the user.

So, you let them know what you've done on their recommendations, show the improvements, and then cap it off with a thank you for their time.

In any case, you should always leave the door open to a new loop, letting them know that your organization is open to all their recommendations or constructive criticism. Read this guide on E-commerce supply chain and voice search optimization.

Final Thoughts.

One of the enormous benefits of the massification of the Internet, and the arrival of new interaction methods such as email or social networks, is that it allows us to have first-hand the reaction of our audience, so we can better evaluate how we are doing.

As a company, you must take advantage of this since it will allow you to continue growing and providing an excellent customer experience, making your customers loyal to your brand and thus increasing your business. Contact our digital agency if you want more advice on digital marketing issues.

FAQS - Frequently Asked Questions

What is a Customer Feedback Loop and why is it crucial for businesses?

A Customer Feedback Loop is a strategic process through which businesses collect, analyze, and implement feedback from their customers to improve their products, services, and overall customer experience. This iterative loop involves direct communication channels between the company and its customers, enabling businesses to understand customer needs, preferences, and dissatisfaction points. It's crucial for businesses because it facilitates continuous improvement and innovation, aligning products and services more closely with customer expectations. Implementing a Customer Feedback Loop demonstrates to customers that their opinions are valued, which can significantly enhance customer satisfaction, loyalty, and ultimately, business success. For instance, at Codedesign, leveraging Customer Feedback Loops has enabled us to refine our digital marketing strategies and services, ensuring they meet the evolving needs of our clients and their target audiences.

How can businesses collect customer feedback effectively?

Businesses can collect customer feedback effectively through a variety of channels and methods, ensuring they capture a broad spectrum of customer experiences and opinions. Surveys and questionnaires are among the most direct methods, allowing for targeted questions about specific aspects of the product or service. Social media platforms and online reviews also offer a wealth of unsolicited feedback, providing insights into customer perceptions and areas for improvement. Customer interviews and focus groups can yield in-depth qualitative data, while feedback forms on websites or within apps facilitate ongoing input from users. For optimal effectiveness, it's important for businesses to make the feedback process easy and accessible, encouraging more customers to share their experiences. Integrating multiple feedback channels allows for a more comprehensive understanding of customer needs and preferences.

What are the best practices for analyzing customer feedback data?

Analyzing customer feedback data effectively involves several best practices to ensure that the insights gained are actionable and impactful. Firstly, categorizing feedback into themes or areas (e.g., product features, customer service, usability) can help in identifying common issues or suggestions. Quantitative data from surveys can be analyzed using statistical methods to identify trends and patterns, while qualitative data from open-ended questions require content analysis to extract meaningful insights. Utilizing text analytics or sentiment analysis tools can automate the process of sorting through large volumes of feedback, highlighting prevalent sentiments and topics. It's also crucial to prioritize feedback based on its potential impact on customer satisfaction and business goals. Regularly sharing feedback summaries and insights with relevant teams across the organization ensures that the data informs decision-making and strategic planning.

How should businesses apply the feedback they've gathered?

Businesses should apply the feedback they've gathered by first prioritizing actions based on the feedback's potential impact on customer satisfaction and business objectives. Develop a plan that addresses the most critical issues identified in the feedback, and allocate resources to implement changes or improvements. It's essential to involve cross-functional teams in the process to ensure comprehensive solutions that consider all aspects of the customer experience. Communicate openly with customers about the feedback received and the steps being taken to address it, demonstrating that their input is valued and has a tangible impact. Monitoring the effects of these changes on customer satisfaction and feedback over time is crucial to understand the effectiveness of the implemented actions and to make further adjustments as necessary.

What methods can be used for following up with customers after implementing their feedback?

Following up with customers after implementing their feedback can be done through personalized emails, social media posts, blog updates, or direct communication channels, depending on the nature of the feedback and the preferred communication methods of the customers. It's beneficial to explain how the feedback was used to make specific improvements, demonstrating the value placed on customer input. Inviting customers to share their thoughts on the changes or to participate in follow-up surveys can further engage them and reinforce their importance to your business. For larger or more impactful changes, hosting webinars or creating video content to showcase the improvements can be an effective way to communicate with a wider audience. This follow-up not only enhances customer loyalty but also encourages ongoing feedback, maintaining a dynamic and responsive Customer Feedback Loop.

How can a Customer Feedback Loop improve customer satisfaction and loyalty?

A Customer Feedback Loop can improve customer satisfaction and loyalty by ensuring that customer insights directly inform business decisions and improvements. This process demonstrates to customers that their opinions are valued and taken seriously, fostering a sense of ownership and connection with the brand. As improvements are made based on customer feedback, the quality and relevance of the product or service to the customer's needs increase, leading to higher satisfaction levels. Furthermore, the responsive nature of a Customer Feedback Loop can turn negative experiences into positive ones, recovering potentially lost customers. The continuous engagement and improvement cycle also builds trust and loyalty over time, as customers see their feedback leading to tangible changes and benefits.

What tools and technologies can support the implementation of a Customer Feedback Loop?

Various tools and technologies can support the implementation of a Customer Feedback Loop, including customer relationship management (CRM) systems, survey and feedback tools, social media monitoring platforms, and text and sentiment analysis software. CRM systems can track customer interactions and feedback across different channels, providing a holistic view of the customer experience. Survey tools like SurveyMonkey or Google Forms facilitate the collection of feedback through customizable questionnaires. Social media monitoring platforms such as Hootsuite or Sprout Social can capture unsolicited feedback and mentions across social networks. Text and sentiment analysis tools help in analyzing large volumes of open-ended feedback, identifying common themes, sentiments, and trends. Integrating these tools can automate and streamline the feedback collection and analysis process, making it more efficient and effective.

How can businesses differentiate valuable feedback from noise?

Differentiating valuable feedback from noise involves assessing the relevance, specificity, and potential impact of the feedback on customer satisfaction and business objectives. Valuable feedback typically provides specific details about the customer's experience and suggests areas for improvement or innovation. It's often consistent with trends observed in other feedback or aligns with business goals. To filter out noise, businesses can look for patterns or recurring themes in the feedback, prioritize feedback from target customer segments, and use analytical tools to identify outliers or irrelevant comments. Establishing criteria for what constitutes actionable feedback can also help in focusing on inputs that offer the most significant opportunities for improvement.

What are the common challenges in managing a Customer Feedback Loop and how can they be overcome?

Common challenges in managing a Customer Feedback Loop include overwhelming volumes of feedback, differing customer opinions, integrating feedback across various departments, and demonstrating tangible improvements to customers. These challenges can be overcome by using technology to automate and streamline the collection and analysis of feedback, such as text analytics for identifying common themes. Diverse customer opinions can be addressed by focusing on feedback that aligns with strategic goals and has the potential for the highest impact. Cross-functional teams should collaborate on implementing feedback to ensure comprehensive solutions, and clear communication strategies should be in place to inform customers about how their feedback is being used. Regularly reviewing and adjusting the feedback process can help in managing these challenges effectively.

How does customer feedback influence product or service development?

Customer feedback directly influences product or service development by highlighting areas that require improvement, innovation opportunities, and customer needs and expectations. This input is invaluable for prioritizing development efforts, ensuring that new features or services align with what customers value most. Feedback can lead to iterative changes that refine existing offerings or inspire entirely new product lines designed to meet emerging customer needs. Incorporating customer feedback early and throughout the development process ensures that the final product or service is more likely to satisfy customers.


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