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

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