CX Dictionary

What is Closed Loop Feedback?

Closed Loop feedback is when a business responds or takes action to feedback submitted by a customer through an online or offline survey. By “closing the loop” businesses respond to feedback in a timely and effective manner, directly or indirectly addressing customer concerns or praises to secure a positive customer experience.

Closed Loop Feedback does not require 1:1 confrontation, so long as a business takes action to correct an issue or address an opportunity they can close the loop.

Why Is Closed Loop Feedback Important?

Closed Loop Feedback has a multitude of benefits with one of the biggest being maximized revenue from retained customers. When businesses follow up with customers they address concerns and make changes that benefit the company as a whole. By retaining more customers businesses lower sizeable acquisition costs and improve their word-of-mouth reputation.

In addition, Closed Loop Feedback can improve team performance overtime and bring to light critical issues that should be a focus for a business in order to improve the overall customer experience.