Understanding the Importance of a Customer Feedback Loop
What is a Customer Feedback Loop and Why Do You Need One?
Have you ever thought about how companies make their products or services better based on what you say? Well, they use something called a feedback loop! It's a process that lets companies get info about your experiences with their stuff, look at that info, and then use it to make things better.
Here's how it works: first, companies ask customers for feedback through things like surveys, social media, or talking to customer service. Then, they look at the feedback to see what people are saying over and over again.
Based on this, they make changes to the product or service and see how it affects how happy customers are. They keep doing this, getting more feedback and making more changes, to keep improving their product or service over and over.
By doing this, companies can make sure they're always making their product or service better based on what people really want. This helps them stay ahead of what people expect and stay competitive. It also helps them make things that are more personal.
Finally, the feedback loop helps companies know how well their product or service is doing, which can help them make choices about how to sell it.
What makes a good product feedback loop?
A great way for companies to improve their products is by listening to their customers. They should make it easy for customers to share their thoughts through different channels like email, social media, in-app feedback forms, or surveys. The feedback process should be simple and not take up too much of the customer's time.
It's important for companies to have a team or person in charge of collecting and analyzing customer feedback. They should be skilled and have the right tools to analyze feedback data and identify patterns or trends that can help improve the product.
Companies should communicate clearly with customers about how their feedback is being used and what changes are being made as a result. This helps build trust with customers and shows that their opinions are valued.
When companies act quickly on customer feedback and make timely improvements to their product or service, customers feel appreciated and are more likely to be satisfied and loyal.
Positive feedback loop examples
It's time! Let's talk about positive feedback loops. They're not just a nice-to-have, they can help you recreate great customer experiences and affirm that your customer journey is working as planned (or even better!).
For example, imagine a customer has contacted your customer service team and had an amazing experience. They've left positive feedback on a survey you sent them after the interaction.
Here's what you can do to keep the positive feedback loop going:
-Thank your customer for their feedback and let them know you'll pass it on to the specific customer service agent who helped them (if possible).
-Identify if this is a feature of all your customer service agents or if this specific agent is particularly helpful.
-Contact the customer service representative and let them know they've performed well.
-Initiate a workshop or tutorial to help other customer service agents learn from this good example.
-Create an internal rewards scheme for positive feedback for customer service.
-Highlight your customer service agents to your customers through social media stories and website case studies on your corporate culture.
Another example is when you receive positive feedback from multiple customers about your product, specifically stating that it resolves a key customer issue.
Here's what you can do:
- Thank your customers for their feedback.
-Ask these customers to make suggestions for further useful additions to your product range.
-Use these customers as part of a research panel for future products.
-Notify your product developers of the feedback and encourage further developments of this kind.
- Notify your customer base that you've received positive feedback and that you'd like to receive more constructive feedback on issues they think you could resolve.
Lastly, imagine a customer goes out of their way to thank you for your great customer service via a complimentary email. Here's what you can do:
- Thank your customer for their feedback (as always should!)
- Ask this customer to promote you via their connections, such as on social media channels.
- Ask this customer if they'd be willing to provide a testimonial to your service.
- Notify your customer service team of the feedback and encourage further customer service examples like this.
- Highlight this positive feedback via a testimonial or a positive rating score on your site.
Negative feedback loop examples
Getting negative feedback is not the most pleasant experience, but it can be incredibly valuable in highlighting areas where you need to improve. Customers will often tell you exactly where things need to get better and even offer suggestions on how to do so. So, negative feedback loops aren't always a bad thing!
Here are some examples of negative feedback loops you might come across:
Your customer service isn't up to par
Problem: A customer has an issue with your product and has tried to resolve it themselves using your online customer service portal. Unfortunately, they couldn't find the answer to their question. They then tried calling your customer service line, but the wait times to speak to an agent were very long. Although their problem was eventually resolved, it took too much time and effort to find a solution. On their CSAT survey, they stated they weren't satisfied for this reason.
The feedback loop: Firstly, thank the customer for their feedback and ensure that your response is tailored to their message (e.g., "We're sorry to hear about your experience today" rather than "Thanks for your feedback!").
Steps you could then take include:
- Clarifying if this is a one-time problem during a peak season or if long wait times and issues finding information are ongoing issues by evaluating your feedback trends
- Making a compensatory offer for their trouble, such as a discount for another purchase
- Notifying your customer service staff of this potential issue
- Updating your online customer service hub to flag that there is a resolution to this particular issue
- Adding a new customer service channel, such as a chatbot, to help reduce the load on your customer service telephone lines
- Notifying this customer, in particular, but also your other customers, to let them know that you've received negative feedback about this particular issue and that you've changed your customer service policies as a result
Your product has a frequently-found fault or bug
Problem: You receive multiple complaints about a particular product fault that you were not aware of during its production or initial testing. This feedback is received through multiple channels.
The feedback loop: Again, thank your customers for their feedback and notify them that it is an issue you are working on resolving.
Steps you could then take include:
- Making a compensatory offer for their trouble, such as a discount
- Creating a specific customer service page with solutions for this particular issue
- Notifying your product developers of the issue and creating solutions
- Notifying your customer base that this problem has been resolved and that you welcome further feedback from them, as it helps you to provide a better service
Your returns process is too complicated
Problem: Your customer has decided that a product isn't what they're looking for and wishes to return their purchase. However, your returns process is complicated - you're only able to process a return via the telephone, and the process can take days to refund the money they've spent. Your customer complains to you on your customer service line.
The feedback loop: Thank your customer for their feedback and notify them that it is an issue you are working on resolving.
Steps you could then take include:
- Identifying if this is a one-time issue or a common issue among your customers by using text analysis
- Contacting the customer for further details on what improvements they would like to see made
- Identifying how to streamline your customer journey and remove pain points by sharing your insights with your teams
- Evaluating your suppliers and the processes you currently use for returns
- Making amends to your process
- Notifying your customer(s) that your process has been changed
Customers can't find what they're looking for on your site
Problem: You can see that customers frequently leave your product listing pages without making a purchase. Conversely, your customers have noted to your customer service team that they find it hard to find what they're looking for with your search function.
The feedback loop: As always, thank your customer for their feedback and assure them you're working on a solution.
Steps you could then take include:
- Identifying if this is a one-time issue or a common issue among your customers by using text analysis and speaking to your customer service teams for frontline feedback
- Evaluating your customer journey and see if your website is working effectively for your customers' needs
- Identifying how you could further develop your website search functions or comparison tools on your site
- Making adjustments to your customer journey and UX
- Notifying your customers that your search process and product comparison are easier than ever
The link between NPS survey and customer churn
The Net Promoter Score (NPS) survey is a widely used tool to measure customer satisfaction and loyalty. It asks customers how likely they are to recommend your product or service to others on a scale of 0-10. Customers who respond with a score of 9 or 10 are considered "promoters" while those who answer with a score of 0-6 are considered "detractors." Those who select 7 or 8 are considered "passives."
Keeping track of NPS scores can help you keep customers. High scores mean customers are more likely to stick around, while low scores mean they might leave.
By watching your scores over time, you can see if customers are getting happier or not. If they're not, you can figure out why and fix it with the mentioned loops! If someone gives you a low score, you focus the loop on trying to schedule a call.
This shows you care about what they think and want to make them happy. By doing all this, you can keep customers happy and make sure they stay with you.
Build and test early-stage ideas
Building early-stage ideas can help create product feedback quickly and efficiently.
Ben Garner at Strategyzer shares cost-effective ways using brochures, datasheets, and UI mockups, which are tangible and can be put in front of users right away.
Prototypes are another good way to go because they effectively capture the vision of your product’s future and how it will serve customers’ needs.
When you're testing your product, you don't have to build everything perfectly. You just need to make sure it works well enough for users to give you feedback. If you want to test how the product looks and feels, you might need to make it look more like the final version. But the most important thing is to get something in front of users as soon as possible so you can start learning from their feedback.
Best Practices for Closing the Customer Feedback Loop
When it comes to closing the feedback loop in SaaS products, there are a few best practices to keep in mind. First and foremost, it's important to make sure that your customers know their feedback is being heard and valued. This means sending personalized follow-up messages after they provide feedback, letting them know what changes you've made as a result of their input.
Another key best practice is to be transparent about how you're using customer feedback. This includes sharing updates on product improvements or new features that were inspired by customer suggestions. You can also consider sharing aggregate data from customer feedback surveys, which can help build trust with your user base.
It's also important to close the feedback loop quickly and efficiently. This means having a streamlined process for collecting and analyzing feedback so that you can take action accordingly. Additionally, it's essential to communicate clearly with customers about when they can expect to see changes based on their input.
Finally, don't forget the power of positive reinforcement. When customers see that their suggestions are being taken seriously and acted upon, they're more likely to continue providing valuable feedback in the future. Consider offering incentives or rewards for customers who provide particularly insightful or actionable feedback.
Unlock the Power of Feedback Loops with Trackey
We hope you found this article as enlightening as we did putting it together! But remember, knowledge is most valuable when put into action.
In the fast-paced world of digital companies, staying competitive means creating a culture of continuous improvement. It's about evolving your product, refining your services, and staying aligned with your customers' needs.
And here's the kicker: Trackey is here to help you achieve just that. We've developed a micro-survey tool that not only gathers customer feedback but empowers you to take personalized action on every response you collect. It's about turning those insights into real, tangible improvements that resonate with your audience.
Imagine having perfect feedback loops based on every single interaction your customer has with your product or service. Picture your product team being able to target your customer base to the limit, leading to better communication, enhanced user experiences, and ultimately, skyrocketing growth for your business.
The best part? You can get started right now.
Sign up for Trackey today, and let's start shaping your future, one feedback loop at a time.