5 Steps to Take Charge of
Your Customer Feedback Loop

How to Gather and Analyze Customer Data

What is the Customer Feedback Loop?

The Customer Feedback Loop is a strategy used for Customer Relationship Management. It is used to gather information based on the customer’s perception of your product or service. This information gathered is then analyzed in order to review the feedback given, plan changes to implement based on feedback, and predict future behaviors after making those changes.

The feedback loop consists of a 5 step process as seen on the image above.

 

1. Ask

Reach out to customers to ask how they feel about your product or service. Customers should be contacted within a short period after their experience. This is to assure that their experience is recent enough to allow them to provide adequate feedback. Examples of contact can include an invitation to provide feedback via a survey or questionnaire.

 

2. Collect
Gather all customer feedback given to you and store it appropriately to make it easily accessible.
Save the feedback in a database where it can continue to be accumulated. Information collected should be categorized so that all future data references can be made effortlessly.

 

3. Analyze & Plan
Review customer feedback to determine what is and is not working. Evaluate all customer
commentary and look for any trends that may be influencing their critique. Use the information analyzed to help make future business decisions.

 

4. Implement
Make necessary changes to your product or service based on the feedback received. Customers
needs are always changing so it is important to make adjustments so that your product or service evolves overtime to avoid becoming outdated.

 

5. Notify
Let your customers know that you’ve listened to them and have made the appropriate adjustments. This can be a useful strategy to enhance customer sentiment for those who have had positive and negative experiences.

 

Why Create a Feedback Loop?

The aim of the customer feedback loop is to repeatedly improve the customer’s experience.
The collection and analysis of data becomes a repetitive process that allows business decisions to
be continuously refined using insight gained from earlier analysis from customer data. In other words,
improvements are based on suggestions and feedback from customers. As their needs change, so does their feedback which then creates a recurring cycle. Hence the analogy of the feedback loop.


How to use the feedback loop

To capture feedback using the loop model, many channels can be used. Common listening channels are:

  • Call centers
  • Surveys
  • Direct email marketing
  • Social media
  • Interactive chat


Feedback gathered through these channels can be collected and categorized as Structured or Unstructured data.


Structured data is highly-organized and formatted in a way so that it’s easily searchable in databases. Examples of structured data can be things like customer names, purchase dates, and product stock information. Because structured data is highly organized, it is easily maintained by software databases where one can input, search, and manipulate data quickly.


Unstructured data has no pre-defined format or organization which makes it more difficult to collect, process, and analyze the information. Examples of unstructured data include text, social media activity, video imagery, and audio recordings. Because unstructured data is not organized, it cannot be processed or analyzed using conventional tools and methods.


Surveys and direct email marketing can gather structured data as those methods will ask direct questions and the answers can be stored in categorized in an organized manner. Feedback gathered via social media and interactive chat can be considered Unstructured as these methods may contain feedback based on customer sentiment that cannot be organized. For example, it would be difficult to categorize social media because the text may not provide information that can be stored. The same with interactive chat, an audio recording or text recording cannot be stored easily. Therefore, structured data formats tend to be favored over unstructured.


Conclusion

When gathering customer feedback, it can be categorized as either positive or negative. The classification can be used in relation to customer sentiment, but should also be applied in relation to the feedback loop response. For example, negative feedback applied to the loop should be used to indicate that a change should be implemented. Meanwhile positive feedback in regards to the feedback loop would simply indicate that the existing conditions are working well.

Gathering and analyzing feedback can be challenging, but the data can prove to be very useful for determining what is working well during the customer’s experience and what aspects need improvement.

To learn more about how to effectively gather and analyze data download visit our page and download our free tutorial.

To make it easy, we created a template for you to use:

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