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Customer Feedback Loop

Market research 04 12
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Listening to the voice of the customers is very important to maintain a loyal customer base. Listening to unhappy customers paves a way for you to improve your service and provide a better customer experience. 

Customer Feedback Loops is the process of gathering customer feedback for the purpose of improving the products and services of the business. It is the practice of responding directly to the customers in a meaningful way after they leave feedback for you. 

Customer Feedback may not always be negative sometimes they may leave a compliment as well. They may also leave suggestions and opinions which can be insightful for the business. Whatever it may be, you should respond to the customer immediately. 

Customer Feedback Loop should involve mutual interaction between the customer and the company. Once feedback is received the customer should be informed of the changes implemented.

Customer Feedback Loop2


What is the importance of the Customer Feedback Loop?

Customers change the brand they were doing business with when they feel unappreciated. Most companies ask for feedback from their customers but they can’t close the loop on that feedback. Companies usually respond with a “Thank you for the feedback” or only reach out to the detractors (NPS® ). 

Companies fail to understand that closing the loop is very important. 

52% of customers, according to Microsoft, believe that companies must take action on the feedback provided by the customers. Closing the loop shows that you are listening to your customers which makes them feel valued. It reflects that customer relationships are important to you. 

Companies who are well aware of the importance of the Customer Feedback Loop benefit from it. Listening to the customer’s opinion can help you in

  • Improving products and services
  • Build better customer relationship leading to customer loyalty
  • Provide improved customer experience and satisfaction
  • Improve customer retention
  • Convert detractors into promoters
Customer Feedback Loop3

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Inner and Outer Customer Feedback Loop

There are two customer feedback loops that work together to complete the process. 

Inner Customer Feedback Loop: The process of the inner loop includes customer feedback circulating across different departments in your company. The feedback is sent to relevant departments, like marketing, sales, engineering, product, etc., responsible for the customer journey. 

For example, sending feedback that informs about issues with a product, to the product team in order to use the insight to solve the issues with the product. 

The Inner Customer Feedback Loop prevents any miscommunication among the departments. 

Outer Customer Feedback Loop: It is the path that follows the customer providing feedback and receiving information from the company regarding the feedback. The company informs the customer that they have heard the feedback. This response from the company is more than a simple “thank you”.

For example, say a positive comment from a customer on your Twitter page resulted in increased traffic and business. You can recognize the loyal customer and thank them with a discount coupon or free gift, for their support. 

The Outer Customer Feedback Loop shows that you are listening to your customers and appreciating their feedback.

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Stages in Customer Feedback Loop

There are 4 stages in closing the feedback loop

Ask and Collect Feedback

The first stage is what every company does: ask customers for their feedback. You can use various platforms to collect customer feedback. However, you have to make sure that all the feedback is collected in a single place. This will help you filter out complaints, opinions, and compliments in an organized way. 

Some strategies company use to collect feedback is

  • Product reviews 
  • Satisfaction survey
  • NPS®
  • Open feedback forums
  • Interviews
  • Social Media poll/survey

You need to provide an easy way for your customers to deliver their feedback. Also, you should collect feedback at regular intervals and on possible opportunities. You can ask for feedback after every purchase from your brand or interaction with your customer service. 

Analyze and Prioritize the Feedback

After collecting feedback from your customers you need to analyze and prioritize them. This is very important and complex work. 

While all feedback is important, you cannot work on all of them. You have to prioritize which feedback to work on. You have to identify which feedback aligns with the goal of your company. 

You can use the “RICE framework” or “Value Vs Effort” matrix as your prioritization tool. 

RICE framework:

Reach defines the number of customers who will be affected by the change you implement

Impact defines how the change will influence your business

Confidence refers to how confident you are about the first two steps (reach and impact)

Effort asks for how much effort you have to put to make the change

Value Vs Effort Matrix

It is the approach where you can map out the value the product improvement will have in comparison to the effort you have to put. If you find any feedback that results in high user value and low effort should be prioritized. 

Take Action

After analyzing and prioritizing the feedback it is time for you to take action and implement the decisions you made. 

You may find repetitive requests from several of your customers. So it makes sense to implement change for such feedback which also aligns with your company goal. However, there may be cases where you decide that the feedback does not align with the company goal. So, you may decide not to implement change. 

Whatever may your decision be, you should inform the actions taken to the customers who provided you with the feedback. 

Follow-up with your Customers

When you implement changes or requests made by your customers, you should send them some personalized messages. This shows that you are listening to your customers. Your customers will feel valued and appreciated when they receive such messages. 

It is a simple act but it makes the customers love the brand more.

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Closing the Customer Feedback Loop

Customer Feedback Loop as the term implies should remain a loop. This means that you need to gather feedback, analyze and prioritize them continuously. 

Make improvements in your business and communicate with your customers. These two tasks should be a part of your workflow. 

Closing the Inner customer feedback loop ensures that the feedback is circulated internally and all the departments are aware of it. Departments have received insights on factors they are responsible for and the best decisions are made to implement changes. 

Closing the Outer customer feedback loop involves informing the customer that the company is listening to them and taking actions to improve their experience. 

Collecting customer feedback is essential and can help in the growth of your business. However, don’t forget to close the loop. Take actions on feedback that align with the goal of your company and follow up with your customers. 

Use customer feedback loop and benefit from it. Provide excellent experience to your customers by keeping them involved. When customers feel that the company is taking them seriously, they promote the company for free and return for purchase. 

Interview or put out surveys for customer feedback but also follow up on the loop.

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When a business uses the customer feedback they receive from a campaign effort is called a Marketing Feedback Loop.

Customer Feedback is the opinion, or information customers provide about their experience with the company’s product and services. The purpose of customer feedback is to understand the satisfaction level of the customers. This understanding helps the company improve its strategies to provide better services to its customers.

There are Five major types of Customer Feedbacks:

  • Product and brand health feedback
  • Customer satisfaction feedback
  • Loyalty feedback
  • Sales feedback
  • Customer preference feedback

Customer satisfaction defines how happy and satisfied the customers are with the company. It reflects the customer’s happiness with the products and services offered by the company. Customer satisfaction can help a company determine the ways they can implement changes to improve the customer journey.

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