3 ways to close the customer feedback loop to prevent churn and increase revenue

What is the customer feedback loop?

The customer feedback loop is the practice of responding to customers meaningfully when they leave feedback. For example, if a customer complains about being overcharged, the company may respond with an apology and issue a refund.

Why is the customer feedback loop important?

Did you know that it can be anywhere from five to 25 times more expensive to acquire new customers than to retain existing ones?

New Call-to-action
New Call-to-action
  1. They only reach out to the most extremely negative responses as defined by the scores left alongside the comment. In the case of Net Promoter Score (NPS) surveys, this may mean they only get back to “Super Detractors”, i.e. those who leave a score of 0, 1 or 2 on an 11-point scale. They are the most at-risk customers, who are likely to churn and give a bad review.
Likelihood to recommend score
Likelihood to recommend score

3 amazing examples of closing the customer feedback loop

1. Make it easy for people who love you to spend more money with you

3 amazing examples of closing the customer feedback loop
3 amazing examples of closing the customer feedback loop

2. Stop customers from leaving by closing the loop meaningfully

At Thematic, we have analysed millions of feedback pieces and have found that there is a clear link between what people say and what they do in the following months.

impact on churn
impact on churn
  1. immediately close the loop with such customers preventing them from leaving.

3. Acquire new customers through advocacy

Positive feedback can also be used in a meaningful way. Imagine a customer, let’s call him Adam, has said: “I love your weekly deals section”. A powerful way of closing the loop would be to acknowledge this by saying:

Acquire new customers through advocacy
Acquire new customers through advocacy

How to create a personalized closing the loop strategy?

So, you have hundreds, or thousands, of people leaving feedback each month. What are the right steps for closing the loop? How do you actually implement this? Here are some steps to consider.

1. Coming up with a closing the loop strategy

First of all, decide what will create the greatest impact on revenue?

2. Implementing closing the loop workflows

Believe it or not, but we have worked with one software company, who had a working system for closing the loop built on Google Apps and Zapier, an integration system. Once the feedback is collected, it’s funnelled into a Google Spreadsheet.

Implementing closing the loop workflows
Implementing closing the loop workflows

3. Including customers who haven’t left any feedback

Finally, not everyone leaves a comment, but with the right tools, you can close the loop automatically for a good proportion of your customers without the noise and bias.

CEO of Thematic (YC S17), a customer insights platform that helps companies increase customer satisfaction and loyalty http://www.getthematic.com