How Customer Feedback Can Increase Business Success
Feedback loops are an important marketing tool for strengthening customer loyalty. What may sound innovative and technical at first is based on a principle that is almost as old as the Earth itself. Without feedback loops, there would be no people, nor the ability to read this article on the Internet right now. Feedback loops can be found in all areas of our lives and control our technical, biological, and social systems.
As in the body, this creates a cycle of constant control and improvement. Feedback loops are therefore an effective way to look for improvements and take into account customer wishes. The most important prerequisite for this is active listening. Profitable information about customer behavior is revealed in real-time through the coveted answers provided. Using feedback loops in a targeted manner gives companies the opportunity to influence the behavior of their customers.
Feedback loops can be divided into two groups. There are positive feedback loops, where the feedback enables the customer to make a positive change compared to the previous state in the company. Numerous positive feedback loops are also observable in nature: when plants die, their dead components enrich the earth with hummus. The hummus, in turn, provides nutrients and moisture so that more plants can grow and thrive. The more plants grow and die again, the more humus is produced. More new plants can sprout. A colorful flower meadow results. Customer feedback is thus like the hummus that makes the company grow and flourish. In marketing, this process is described as an output increase.
However, feedback loops can also form a negative cycle. For example, if a forest is cut down, that area becomes more vulnerable to erosion. Erosion, in turn, deprives the earth of organic material and nutrients. It becomes harder and harder for plants to find what they need in the soil. At the same time, soil without roots further promotes erosion – a kind of vicious cycle is created. Critical customer feedback acts as an erosion of the company. In broad circles, it can negatively affect potential customers and their consumer behavior, thereby weakening the company and its products. Just as more and more plants lack a foothold in the soil, more and more customers are losing confidence in the company and its products. Companies can target measures against such downward spirals:
- Balancing Feedback Loops: These feedback loops have a balancing effect, weakening negative habits.
- Reinforcing Feedback Loops: These feedback loops reinforce behavior and help build good habits.
Closing the Feedback Loop as Part of NPS
But detailed and extensive data is of little use if it disappears into someone’s desk drawer instead of being effectively deployed in the right position. Modern software such as zenloop, therefore, relies on topicality and regularity. It helps employees to respond effectively by…
- offering the possibility to request weekly reports by e-mail. In this way, employees can always keep an eye on current developments
- sending customer feedback via an “alarm system” in real-time to a computer or smartphone. Employees can respond to the feedback immediately
- Sending messages and comments to the appropriate department using various integration tools such as zendesk or Salesforce on request. These messages can then be further processed via a ticket system.
- Enabling automated communication with customers is made possible and thus relieves the employees.
The Feedback Loop describes a multi-step process: from obtaining customer feedback to analyzing it, and then deriving insights. These findings, in turn, have an impact on the individual divisions. The Feedback Loop is closed by an active message to the customer about how the issue has been resolved. With the Closed Loop, customers can be transformed into enthusiastic, loyal fans.