Customers are the backbone of every business. Without customers, a business cannot thrive in the market. It’s essential for a business to know what their customers think and say about their brand, products, and services.
A feedback loop can help you in finding this out. Customer feedback can help your business to make improvements in products, enhance services, and increase revenue.
Are you getting what we are talking about? Oh, don’t you know about the feedback loop? No worries today we will tell you everything that you should know about the customer feedback loop.
What is a Feedback Loop?
A feedback loop is a process of using employee or customer feedback to improve company processes or products and services. In this, the output of feedback is used as input for improvement processes.
In other words, any feedback that the company receives is used for the improvement of either internal processes and structure or products and services.
Types of Feedback Loop
Feedback loops can be internal or external to a business organization. Based on this, feedback look is of two types:
- Positive feedback loop (Employee Feedback)
- Negative feedback loop (Customer Feedback)
Let's take a closer look at these two forms of feedback loops:
Positive Feedback Loop
The positive feedback loop is for employees where companies take feedback from employees within the company and act on that feedback.
A positive feedback loop will strengthen the company's culture, processes, and infrastructure which will help to boost employee satisfaction and improve shortcomings within the organization.
Happy and satisfied employees will have maximum productivity and will generate more revenue.
Negative Feedback Loop
the negative feedback loop is for customers where companies take feedback from customers about the product and company services.
A negative feedback loop helps companies increase customer satisfaction and build brand loyalty by improving products and services.
Happy and loyal customers will lead to higher sales and revenue.
Benefits of Feedback Loops
Using feedback loops can help businesses identify problems or shortfalls in their business processes and structure as well as products and services. It also makes employees and customers feel valued.
Apart from these, feedback loops have various other benefits that we are going to discuss in this section.
ack loops highlight the strengths and weaknesses of your brand that help to make necessary improvements. This also helps businesses to know what their customers and employees feel about them, allowing them to immediately address their pain points and make improvements.
Attract loyal customers
Feedback collection will only be fruitful if actions are taken. When companies act on feedback, they attract loyal customers as this not only improves products and services but also reflects that the company values its customers and their opinions. This builds trust and turns critics into brand lovers.
Enhance customer service
Within the feedback loop process, companies get to know parts where their customer support services are lagging. This gives companies the scope for improvement in their customer service. Information gathered through feedback can be used to enhance customer support service so that their needs can be addressed.
Create a healthy work culture for Employees
Both types of feedback loops impact the work culture and employee satisfaction. Companies generating more revenue can pay more to their employees, offer other employee benefits, and create a healthy work culture for employees. All this is only possible if customers are happy for which you need to know their needs and pain points.
How to Build a Feedback Loop Process
Now that you're more familiar with feedback loops and their benefits, let's dive into how to build a feedback loop process of your own. Here are a few steps involved in feedback loop processing:
- Collect feedback
- Evaluate the feedback
- Take action on feedback
- Follow up
Collect Feedback
The first step of creating a feedback loop process is collecting feedback. In this step, you need to send surveys to employees and customers to get their feedback. Ways to collect feedback are to send surveys through emails, chatbots, live chat, review sites, social media, etc. Companies should conduct such surveys regularly and analyze data to make future company decisions.
Evaluate the Feedback
The feedback collected in the first step will be evaluated now. The collected feedback will have qualitative data that will be valuable for your company but evaluating it can be a bit difficult. So, you can use tools such as Olvy to analyze and evaluate your feedback data. Olvy helps companies create feedback forms, collect data, and represent it in different forms.
Take action on Feedback
Once you've analyzed and evaluated your feedback and have a better understanding of the requirements of your customers and employees, it's time to act on that feedback. This implies that you need to improve your products/services and internal business operations based on collected data.
Follow up
As a result of acting on the feedback, further opportunities for feedback will arise. At last, reach out to your customers and employees after making changes to inform them about the changes you've made. This will make them aware of the fact that you are listening to them and acting on their recommendations. You can even ask negative reviewers to change their reviews considering new experiences with the company.
Best Feedback Loop Tool- Olvy
Choosing the right tools for feedback is essential as it can be a deciding factor for your company’s fate. So, here is one of the best tools- Olvy- that allows you to manage your efforts in the customer feedback loop.
Olvy is the best tool that can help you in collecting feedback by using various feedback forms. It also helps you to analyze feedback and take action based on that feedback.
If you want to build a feedback loop for your customers and employees, you should surely give it a try.
