As we all know, Nowadays, getting feedback by online and offline surveys has become more of a growing approach for succeeding businesses. With the modern customer’s elevated demand for personalized experiences and more tailored outgrowths and services, feedback has become a significant component in offering an excellent customer experience that overpowers opponents, or we can say the competitors. However, while many companies include a feedback program in place, most of them forget to act on the feedback collected or use it in a manner that maintains customers (customer retention management), also known as closing the loop.
In this article, we’re taking a closer look at what it means to close the loop, the basic working principle of a closed-loop system, and how to build it effectively.
What is Closed-Loop feedback?
Closed-loop feedback means that you respond to the feedback. When you are probably able to read and analyze customer feedback. It’s a systematic cycle of making significant changes in how an organization works according to customer feedback.
In other words, a closed-loop system is anything that simply adjusts itself as a function of changes to its environment to get the desired state.
What’s the benefit of closing the loop?
Closing the loop isn’t much possible with just any feedback. It must allow you to determine poor experiences that warrant you closing the loop and ensure your organization uses its resources as effectively as possible.
Most likely, around 70% of consumers have already stated that they would be more likely to do business with an organization besides if their concerns were handled well initially.
So basically, it is a perfect method to show your customer directly and uniquely that their provided feedback is important and you genuinely care about the outcome.
How Does a Closed-Loop Feedback System Work?
In a closed-loop control work system, the control action from the controller is entirely dependent on the desired function. It is provided back to control the action of the desired state. A closed-loop control system operates when feedback is monitored in order to modify an actuator.
Closed-loop systems simply measure, monitor, and manage the fundamental process through feedback to compare the actual feedback with the outcome. It significantly reduces error and brings about the desired state.
The closed-loop system operates in such a way that they automatically provide the desired feedback by comparing it with the actual means. The closed-loop system develops the error signal, which creates the difference between the input and output. It simply interprets the real feedback for getting quick responses.
How to Make a Closed-Loop Feedback System:
- Collect customer feedback with surveys, internal systems, or on the web
- Interpret customer feedback with AI means for quick outcomes
- Close the loop – put your effects to work and close the loop
Closed-loop feedback is when you react or simply give a response to your customers’ feedback to additionally understand your customers’ experiences from their perspective, help promote their experiences, and obtain insights to notify your long-term customer experience management techniques.
Here are some of the advantages and disadvantages of a closed-loop control system are as follows:
Advantages of Closed-loop Control System
- Reduce errors by automatically changing the input of the system.
- Improve the strength of an unstable system.
- Raise or reduce the acuity of the system.
- Enhance robustness against external disturbances to the function.
- Deliver reliable and repeatable performance.
Disadvantages of Closed Loop Control System
- They are very difficult and complex to design.
- Economically they are more expensive.
- High maintenance is required.
- Sometimes the feedback signal causes the system to oscillate, which will deliver an oscillatory response.
- More time and effort are required to design a stable closed-loop system.
Closed-Loop feedback system improve customer experience
The customer feedback loop system improves the customer experience by retaining more existing customers, which is far more profitable than finding new ones. It helps you build customer engagements get to know their needs. Also, for customers’ expectations from the product/services you provide.
Closing the loop can make customers feel valued. When customers deliver honest feedback through one of your surveys, they volunteer their time to make you understand their experiences with you. Closing the loop makes the customer’s overall experience more effective and valuable.
How much Closed-Loop Feedback adds value to the business?
Customer closed-loop feedback systems provide higher accuracy because the command reacts instantly to possible changes. In businesses, closing the customer feedback loop means engaging with individual customers about specific experiences with your brand, wherever they may be in the customer journey. That can represent a massive number of more remarkable experiences.
Delivering authentic customer feedback in real-time to close the loop can add much value to all the companies by offering better service and improving individual experiences. Making CX professionals understand the impact of their current CX efforts. Also, the key stakeholders have a constant source of understanding to help them optimize CX design. In short, Closed-loop feedback in business improves the work atmosphere, business operations, or internal functions and processes.
Wind-up Thoughts
Closed-Loop Customer Feedback simply permits creating a culture of constant progress by establishing norms and expectations about giving feedback, determining areas of progress, prioritizing them, creating effective solutions, and implementing them.
It’s time to boost customer loyalty, drive employee engagement and generate more revenue for your organization.
