Closing the feedback loop is a part of the CX strategy, which involves following up with customers to ensure their issues or concerns have been fully addressed. Customer feedback is a goldmine for companies striving to improve products, expand their customer base, and increase revenue.
This seemingly simple act of responding to customers can impact customer experience and loyalty. As we know, a happy customer is likely to be a loyal customer. The best strategy to ensure your customers are happy and satisfied is to show your commitment to providing quality service at all times.
In this article, let’s explore the impact a closed feedback loop has on customer experience and loyalty.
Closed-loop feedback is a customer service practice that involves responding to the people who share their feedback.
This is not limited to an automated response that says, “Thank you for your feedback.”
Closing the feedback loop can involve various actions, such as following up to understand the pain point further, updating customers on how you plan to use the insight to make improvements, or letting them know how the issue has been resolved.
Closing the feedback loop helps you demonstrate:
→ you have received their response
→ you appreciate their feedback
→ their feedback/opinion is used to take action
→ how you are using their feedback to make improvements.
The customer feedback loop aims to ensure that your customers feel heard. They should know that you continuously use their feedback to improve your products or services.
Businesses can improve customer satisfaction and build trust in customer-brand relationships.
There are many ways you and your customer service teams can close the loop with the customers.
Additional read: How to create a customer feedback loop.
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Did you know among the 95% of companies collecting customer feedback, only 10% use that collected feedback to improve? Yet only 5% inform customers of what they are doing in response to what they heard. – Gartner.
Customer feedback is essential to improve your product or service quality. However, if the customers believe that the effort they put in to share their feedback with you is going to waste, they will stop responding.
Closing the feedback loop helps you influence customer experience positively. It helps you increase satisfaction, build trust and increase the lifetime value of your customers.
Integrating the customer feedback loop in your CX strategies will help you be aware of every aspect of a customer journey. It will help you identify and dig deep into the pain points to develop effective resolutions.
Keeping customers updated on the status of their concerns and opening conversations with them can help establish trust and lead to a better experience. Leverage a customer experience platform to gather feedback and identify what prevents customers from becoming your brand promoters.
When you follow up with your customer to ensure that their issue has been resolved, it shows that you value them and are willing to go the extra mile to resolve their concerns. This leads to increased customer trust and confidence, which is crucial for building strong customer relationships.
When you ask for customers’ feedback or suggestions, they expect you to take some action. When you fail to address their feedback, you risk losing their trust.
Closing the feedback loop makes them feel like they are a part of the company, which establishes their trust in the brand and influences the customer experience.
Customers are likely to gravitate towards companies with a good reputation for customer experience.
A closed feedback loop helps improve customers’ satisfaction with the company. This, in turn, influences customers to stay with your brand for longer.
Customer feedback helps you identify gaps in your experience that you may otherwise not be aware of. Gathering feedback regularly and closing the customer feedback loop can improve sentiment and optimize the customer journey.
More positive customer sentiment helps establish a stronger relationship. This means higher customer lifetime value and more loyalty.
Additional read: Close customer feedback loop with NPS surveys.
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Your customers are doing business with many other brands. Moreover, in this saturated market, they have more brands to choose from with competitive pricing and similar product/service offering. This makes retaining customers a real challenge for brands.
Closing the feedback loop with a meaningful interaction can help you deliver a positive experience. Timely intervention can motivate them to continue doing business with your brand and boost loyalty.
41% of customers believe that brands that reply to customer reviews care about them.
Closed-loop feedback system helps you enhance communication with your customers. Responding to their feedback – positive and negative – and informing them about the actions and their impact, you can help retain at-risk customers.
Use the customer feedback loop to understand why customers are at risk of churning. By taking action to resolve the issues and communicating with your customers, you can change a negative experience into a positive one.
70% of customers say they are likely to repeat business with an organization if their complaint is resolved the first time.
You can respond directly to your customers and resolve their issues to keep them loyal. When customers feel you are taking their concerns seriously and addressing them promptly, they are more likely to continue their business with you.
Moreover, we know that satisfied customers are more likely to refer your brand to their friends and family.
As a result, open communication can lead to even more loyal customers.
Whether you gather customer feedback or not, they will share their opinion with others over social media or online reviews. What customers say about your brand online can influence your brand reputation. A public review can impact prospective customers’ decision on whether to do business with you.
Closing the feedback loop can help you convert negative reviews into positive ones. 45% of customers share they are more likely to do business with a company that responds to their negative reviews.
Responding to a negative review shows you care about your customers’ experience. This helps put your brand in a positive light. A brand that goes to great lengths to help a customer earns a positive reputation among its customer base.
Additional read: Top 10 Customer Experience Software.
✓ Turn detractors into promoters.
✓ Close the experience gap.
✓ Bring customer’s voices inside the organization.
See how you can close the loop with Voxco.
As a part of your Voice of Customer initiative closing the feedback loop allows you to become familiar with the customer experience. It will help you identify if the feedbacks sprout from a one-off issue or if it is deeply rooted in something that can impact the business in the long run.
Integrate closed-loop feedback with your CX strategy. Leverage software that allows you to trigger automated alerts. For example, the software should automatically create a follow-up ticket if a customer leaves a 9 rating on your NPS survey or a score of 5.
Just like your customers are taking the time to respond to your survey, you should also respond to them with the same enthusiasm to make them feel appreciated. Delve deeper into customers’ concerns and perform root cause analysis to understand pain points.
Follow up on customer feedback and build strong customer relationships with Voxco’s Close the Loop. Our powerful insights platform allows you to collect and analyze data in real-time so you can quickly address them and improve experiences at every touchpoint.
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