Running customer retention surveys is an important part of your feedback loop. But what is a feedback loop and why does it matter? And how do you run a customer retention survey? We’ve got the answers to all of your questions.
What Is a Feedback Loop?
A customer feedback loop refers to when your business proactively gathers, responds to, and learns from input from your customers. Surveys are among the most common tools in a feedback loop, but they can also include direct calls and the use of QR codes that lead to feedback forms. They can also include pop-up boxes after online purchases.
The big difference between a feedback loop—and feedback in general— is what you do. Specifically, with a feedback loop, you close the circle and respond to the customer.
Inner and Outer Feedback Loops
As you look into feedback loops, you’ll notice that there are inner and outer ones.
An inner feedback loop is a one-to-one interaction following feedback from a customer. To close this loop, you reach out to the customer and listen to their views. After you do something about their suggestions or complaints, you let them know.
By contrast, an outer feedback loop refers to the larger changes your company makes based on feedback from multiple customers over time. Closing the outer loop focuses more on changing strategies, performing large-scale analysis, and creating new products.
How a Feedback Loop Improves Your Business
Why do you need a feedback loop for your business? There are a few reasons, with your customers being the most important one.
You need to take customer feedback to heart, as unhappy customers are bad for business. When you use customer feedback properly and communicate with your customers, you build customer loyalty, boosting retention.
Successful feedback loops will also make your customers feel as if you value their opinion. That can further improve customer loyalty and retention.
