Browse Definitions :
Definition

customer feedback loop

A feedback loop, in customer relationship management (CRM), is a strategy for gathering information about a buyer’s perception of a product or service in order to determine future actions. The term is borrowed from engineering control systems that use output about a system’s performance to create new input which will either maintain the status quo or improve performance. 

In both engineering and customer relationship management, a feedback loop has a minimum of three stages. During the first stage, input is captured and stored. During the second stage, input is analyzed and during the third stage, the insight gained from analysis is used to make decisions.   

The goal of a customer feedback loop is to continually improve the customer experience.  The collection and analysis of customer data becomes an iterative process that allows business decisions to be repeatedly refined, using insight gained from earlier analysis and previous decisions.

To create a loop, customer feedback can be captured through a variety of channels, including call center transactions, surveys, direct email marking, interactive chat and social listening. One of the major challenges of analyzing customer feedback is how to integrate structured and unstructured data. Feedback gathered from electronic forms, for example, is automatically stored in a structured format, while feedback gathered from mining social media for sentiment requires processes in place to incorporate that unstructured data with other data stored in a structured format. Once that challenge has been met, feedback can be analyzed in a holistic manner and the insight gained from analysis can be used to do more of what is already working well and make changes to aspects of the customer experience that need improvement.

Customer feedback can be classified as positive or negative in sentiment, but perhaps more importantly, can also be classified as positive or negative in terms of loop response.  Positive feedback, in terms of loop response, is that feedback which indicates a change should be made, while negative feedback, in terms of loop response, is that feedback which indicates the status quo is working just fine.

This was last updated in June 2017

Continue Reading About customer feedback loop

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

What methods do you use to manage your customer feedback loop and improve the customer experience?
Cancel

-ADS BY GOOGLE

Dateiendungen und Dateiformate

Gesponsert von:

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • identity provider

    An identity provider is a system component that is able to provide an end user or internet-connected device with a single set of ...

  • firewall

    A firewall is software or firmware that enforces a set of rules about what data packets will be allowed to enter or leave a ...

  • encryption

    Encryption is the method by which information is converted into secret code that hides the information's true meaning. The ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

Close