Closed loop feedback refers to customer feedback (via surveys, emails, etc.) that is directly responded to by the company to close the loop. When a business implements modifications based on customer feedback and/or reciprocates the queries put forward by customers, the feedback loop is assumed to be closed. By implementing closed-loop systems, you can ensure that your company responds quickly to customer feedback. The quick action does not make the clients feel neglected and overlooked. Closed loop feedback encourages and embraces customer-business communication, which ultimately serves the best interests of both.
In this article, we will see the many advantages of customer closed loop feedback and explore how you can implement it to grow your brand.
The Advantages of Closed Loop Feedback
There are numerous reasons to use customer closed-loop feedback, ranging from understanding the customer journey to identifying pain points along the way. Here are a few advantages that can significantly impact any business.
#1. Improving customer satisfaction:
By conducting a customer feedback loop and putting in place a closed-loop feedback process, you can examine every step of the customer journey and identify the main problems that need to be fixed to improve customer satisfaction. You can assess the overall success of your enterprise with regular CSAT surveys and social media listening techniques, and you can conduct market research to identify how your customer experience management stacks up against the competition.
#2. Cultivating decisiveness:
Sentiment Analysis can automatically detect patterns in thousands of surveys within minutes to determine whether they are positive, neutral, or negative. They can also continuously monitor your brand sentiment online to determine whether your customers have a positive, neutral, or aversive opinion. Running this assessment constantly and in real-time allows you to respond quickly to shifting public opinion or address a problem before it gets out of hand.
#3. Reducing customer churn:
To recognize why buyers are leaving your business, minimize churn, and improve retention, include closed-loop feedback in your customer retention management plan. This approach is massively helpful when it costs exponentially more to acquire new customers than to keep the ones you already have. You can reveal why customers might be dissatisfied by conducting surveys and monitoring pain points along the customer journey. Also, you might even be able to keep the relationship by closing the loop and informing customers that you have fixed previous errors.
#4. Learning from previous mistakes:
Closed loop feedback ensures that employees learn from their mistakes when they act accordingly to close the loop. A simple apology can go a long way to let customers know that you are listening. When employees are held accountable, they are less likely to make the same mistake again.
Creating a Closed Loop Feedback System
It is simple to construct a closed loop feedback system. Following these three steps, you can make your own customer closed loop feedback system and readily include it in your CX strategy.
Step-1: Gathering customer feedback
Existing information from email, chat, and CRM systems frequently have several uses, and you’re already storing all this data on your own servers or in the cloud. Even online reviews, news articles, and comments on social media platforms can provide opinions about your company and products that may be even more helpful than surveys.
Step-2: Analyzing the feedback — Sentiment Analysis
Online comments and open-ended survey responses can be automatically analyzed using SaaS text analysis tools to provide you with insightful data in the present. To go beyond numbers and statistics and understand the thoughts and feelings of your customers, use sentiment analysis to automatically analyze surveys, reviews, or social media comments. For even more in-depth outcomes, incorporate techniques like topic analysis when performing aspect-based sentiment analysis. The feedback that you receive as a result will help you identify the positive and negative aspects of your company.
Step-3: Closing the Loop
It’s time to complete the loop at this point. Utilize the findings of your analysis to strengthen customer experience management and improve your products and services. Perhaps a user has discovered an entirely new use of your product. This revelation can be shared with the rest of your customer base, and you can publicly appreciate the person who noticed it.
Final Thoughts
According to a noteworthy Zendesk survey, 50% of global customers say they would switch to the competitors in the market after a single frustrating experience, and 80% would do the same after a few disappointing experiences. Real-time feedback loop closure helps brands maintain profits, defend their reputation, and give customers an added sense of value. Additionally, it can support brands’ competitive edge in markets where CX performance is becoming more significant.
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