From Feedback to Action: How to Effectively Capture and Utilize the Voice of the Customer
In your organization’s effort to improve business and drive revenue, one thing you can't ignore is customer satisfaction. You can find out if customers are happy with your services through feedback, but it changes nothing until you take action. This is known as Closing the Feedback Loop and represents a crucial part of the feedback process. It is what distinguishes a customer-centric organization from others, merely seeking feedback for the fun of it.
A report from Gartner states that 95 percent of companies seek customer feedback, but only 10 percent use the input for product improvements, and only 5 percent communicate this to customers. But what exactly does it mean to close the feedback loop, does it come with any benefits, and what are its best practices? We’ll dive straight into all that and more in the following sections.
Closing the customer feedback loop is a process of acknowledging customer feedback, responding to their messages, engaging with customers, and taking all necessary steps to provide better experiences with your products and services. The process goes beyond thanking customers or sending them automated messages. It is a conscious process by feedback-friendly organizations to ensure maximum customer satisfaction. To close a feedback loop is to show customers that you value their feedback and continuous patronage of your business by acting on their concerns.
Taking action regarding customer feedback comes with several benefits for all parties involved, including the business, customers, and even employees. One of the biggest advantages of closing the feedback loop is that it will enhance customer satisfaction and increase loyalty. Satisfying more customers will reduce churning and increase the likelihood of getting them to preach your business to others, enhancing a positive reputation and growing revenue.
On the other hand, customers will be happy that they're heard and they will love to provide even more feedback that will lead to service improvements. As for employees, taking action will equip them to become better and serve customers more. They'll become better listeners and learn new ways to engage with customers, take action, and solve issues. It will also encourage employees to welcome feedback, building a customer-centric culture within your business.
Now that you know what closing the feedback loop is and the benefits, it's time to look at the things you should do to close the loop effectively:
Communicating with customers at every step of the journey is key to closing the feedback loop. It's the first thing you should do when you get their feedback. Acknowledge their comment and thank them. Keep the communication lines open as you work on their feedback and tell them a possible time frame for solving their issues. After taking action on the input, informing the customers about the process and result is also necessary. By doing this, you’ll not only demonstrate that customers are valuable, but they’ll enjoy the process, leading to a more satisfying experience. Maintaining constant communication can be challenging for some, but automation should be helpful, especially in the early stages.
Aside from real-time chats with your customer service team, customers can drop feedback through any of the channels you’ve made available. When this happens, the aim should be to reach out to them as soon as possible. Quick response times keep customers happy after a complaint, request, etc., and it is effective for closing the feedback loop. Again, automation can be helpful for both giving a response and routing the message to the appropriate department or personnel.
Closing the feedback loop must happen through channels easily accessible to customers. Email is still one of the most popular channels. It’s also possible to use phone calls for personal communication, while social media and newsletters are perfect for the public.
While this may not always be possible, it is a crucial aspect of closing the feedback loop. Responding to each customer's feedback with a personalized touch appeals more than sending a generic message. It helps to acknowledge each feedback and connect more with each customer. Personalized responses encourage customers to give more feedback. It also means you’ll be able to address each customer based on the group they fall into, whether promoters (customers likely to recommend you), detractors (customers who won’t recommend), or passives (neutral customers).
The overall goal of the feedback system is to achieve improvements. So, as you close the feedback loop, remember to document the process, continuously improve your offerings, and look for ways to make feedback submission easier. As the competition among brands continues to grow, there’s a need for more effective feedback systems. One way of ensuring this is to close the feedback loop. It tells customers they’re valued and gives you a competitive edge. When you take action from customer feedback and tell them about it, you give people a much better experience, and your business will be rewarded with sustainable growth and revenue.
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