The purpose of employing Closed Loop Customer Feedback is to grow customer loyalty. Studies have shown that implementing Closed Loop Customer Feedback is effective for improving an organization’s NPS, or Net Promoter Score, which is a measure of customer loyalty commonly used as an alternative to traditional customer satisfaction surveys.
Closed Loop Customer Feedback helps ensure customers receive the focus and attention necessary to guarantee a positive purchasing experience. Seeking their opinions following a transaction gives them a voice and hopefully yields valuable information on how company performance can improve.
Not all customer issues will stem from systemic challenges. Some will be contained within an individual or team’s performance. Sometimes simply hearing a recording of a phone call with a customer can help employees increase their awareness and hone their communication skills.
Closed Loop Customer Feedback also helps create a culture of continuous improvement by establishing norms and expectations around giving feedback, identifying areas of improvement, prioritizing them, developing effective solutions and implementing them.