Research by Monetate (direct pdf link) shows that 79% of customers are likely to make another purchase from a company if the experience was good.
However, 89% of them will switch to competition in the blink of an eye if the experience wasn’t satisfactory. Using Feedback Loops provides you with churn collateral process, and a way to listen to your customers.
You might think using such a solution might be very demanding, in fact, it only requires your orderly approach to customer feedback, and of course some analytic skills.
What is Customer Feedback Loop?
Customer Feedback Loop is a strategy for constant product improvement based on users’ opinions and suggestions. It is based on the naturally recurring pattern called “mutual causal interaction,” where actions of both subjects’ have a mutual impact on each other.
Clients’ interactions with the product define the company’s direction and the direction they choose to define clients’ interactions. In the case of Customer Feedback Loop, customers leave feedback about the product, then the feedback is analyzed, conclusions are implemented and finally, the loop is repeated.
Benefits of Using the Loop
Using Feedback Loops brings several benefits. It can be a foundation of a customer engagement process. Thanks to gathering feedback, you will be up to date with all the needs and complaints your customers have.
This way you will uncover new opportunities to create lasting relationships with your clients and reduce customer complaints by quickly reacting to their needs
Moreover, Feedback Loop is your reality checker. Some ideas and solutions might seem perfect when deploying, but in the end, it is users who decide if the changes were good.
By applying Feedback Loop pattern to your customer interaction, you can find out what your clients think of the product, what points might cause confusion or what are their favorite parts and use this information to constantly refine your product.
3 Stages of Customer Feedback Loop
The Feedback Loop can be divided into three, equally important stages: gathering information from our clients, learning and analyzing the data, and finally applying conclusions into the product.
It isn’t called a loop for anything. In order to be fully effective, Customer Feedback Loop has to be constantly reapplied taking into consideration feedback from all possible channels.
In order create Customer Feedback Loop first it is crucial to start collecting customers’ opinions. There are a variety of ways to do it. From call centers, live chats, social listening to direct email marketing.
Nonetheless, one of the most effective tools are surveys and feedback forms. With them, your users’ have a dedicated space directly on the website to leave their feedback.
Moreover, surveys can be targeted to specific users, allowing you to collect more detailed feedback.
Once the data is collected it has to be analyzed. The easiest way is to look for patterns in customer feedback.
Find the recurring issues and list them by frequency and importance to your company’s growth. For example, try to identify causes and points of cart abandonment and hunt for points of confusion in your clients’ paths.
Next, put your finger on the issues you identified, and draw conclusions on how to fix them and enhance usability.
When you have your conclusions, it’s time to apply fixes to your product. A good starting point can be the most critical issues. Small changes and enhancements can be dealt with simultaneously.
Remember to inform your customers about the changes applied to the product and the upcoming bug fixes. It’s crucial to let the customers know that their feedback was considered during the product enhancement process.
Once the fixes are implemented, the time has come to gather feedback once again.
Gather feedback with surveys
Among the variety of options for collecting feedback one method seems to stand out, surveys. They are the most convenient and systematized way to gather feedback. Because of their common reoccurrence, they are the most user-friendly of the tools.
There are several types of surveys: Targeted Website Surveys, In-message surveys, NPS®, and Questionnaires.
Each one of those gives a unique opportunity for client engagement and assessing the quality of the product. Nonetheless, each one is specified for different usage.
1. Targeted Website Surveys
Website surveys are run directly on the website in the form of an unobtrusive pop-up window. They can be targeted for specific users or actions, thus providing a way to gain insights from particular steps of users’ journey.
These surveys can give you a very accurate view of the usability of the service, quality of the product, clarity of the information presented on the page.
2. In-message surveys
They are the most direct way of collecting feedback. Distributed through an e-mail or a chat, they allow checking overall user experience. In-message surveys are user-friendly, one-click surveys perfect for gathering customers’ opinion.
3. Net Promoter Score
Net promoter score surveys or NPS are short evaluation forms sent to customers in order to determine how likely would they be to recommend a company. In the NPS you always ask the question: ‘How likely would you be to recommend our company to a friend?’.
The customer can reply by choosing any number from 0 to 10. Based on that customers are sorted into 3 groups: Promoters, Passives, and Detractors. To find out more about NPS, read our article on the subject.
Questionnaires are the most traditional way of surveying customers. They provide detailed data about customers and usually consist of multiple questions.
Questionnaires are usually distributed as a link via email, social media or any other method. They are perfect for in-depth customer satisfaction research.
Use Feedback Loops in practice
Growing your business vastly depends on your customers’ happiness. To make sure they are satisfied with your product, you need to listen and respond to their needs and requests.
At the same time, it is an easy way to manage clients’ complaints and actively react to them. Creating a Customer Feedback Loop allows you to provide better products and experiences. Knowing exactly what your customers expect, gives you an advantage over the competition.
Consider creating a solid Customer Feedback Loop for your services. Even if the product is right, once your clients are left with a bad taste in their mouth it is extremely hard to change them around.
According to a Walker study, by the year 2020 customer experience will overtake price and product as the key brand differentiator. With Customer Feedback Loop you will gain an advantage over the competition, creating the high-quality customer experience people won’t forget.