What is a Closed Feedback Loop?
As the name suggests, a closed feedback loop is a cyclic and continuous loop.
It is a process where feedback is acquired from the users, and respective changes are made to the products and services to make them better.
Now, unlike traditional feedback processes, a continuous feedback process involves a continuous supply of user feedback to the business’s marketing team and managers.
The team ensures that every little part of the product is improved to perfection.
There are two major types of feedback loops!
1. Positive feedback loop
In a positive feedback loop, the obtained feedback reinforces a change or deviation in the system. Hence, the system works in the same way as now, whether the product succeeds or fails.
2. Negative feedback loop
In contrast to the positive feedback loop, a change or deviation in the system is corrected by the feedback.
The negative feedback loop aims to stabilize the system and divert it towards the desired state.
Besides, there are two other categories of feedback based on its acquisition!
- Intrinsic feedback loop: In this feedback loop, the feedback is generated and used within the process or a system. This kind of feedback is usually automatic.
- Extrinsic feedback loop: In the extrinsic feedback loop, the feedback is generated from external sources like customer reviews.
All these types of feedback loops have significant importance! Here are some brief pointers about the same!
- Innovative products: With a continuous feedback loop model, you are surefire to improve products for the best. With feature request survey methods, you can learn about ingenious features and add them to your products. Lasso, which helps users earn from affiliate marketing, provides the users the chance to request features.
- Quality control: I think the best thing about a continuous feedback loop design is the quality control. As the feedback is continuously collected, analyzed, and implemented in the product and services, their quality is surefire to enhance. And all of this happens in a short time.
- Customer satisfaction: As regular feedback is used to improve the products, the new changes and improvements in the products boost customer satisfaction. Slack is the perfect example of this. Rather than tracking leads, it uses NPS scores and daily active users to oversee customer satisfaction.
When it comes down to examples, there are several feedback loop examples, such as
- User engagement feedback loops
- Customer feedback loop
- Pricing feedback loop
- Creative feedback loop
- Project management feedback loop
How can a Continuous Feedback Loop Help with Continuous Improvement?
Well, the feedback loop is not just about collecting feedback and implementing the changes.
There are many finer details in it. Let me help you understand them!
- Proactive issue identification
Unlike traditional feedback methods, where feedback is collected from the users on a periodic basis, such as bi-yearly or annually, a continuous feedback loop collects it at all times.
This allows businesses to identify product issues proactively. Furthermore, the required product improvements can also be made proactively.
- Targeted product improvements
When feedback is collected continuously, there will be issues that might not be that wide. Or should I say there would be specific issues with the app or website?
Therefore, targeted product improvements can be made on the most sensitive parts, leading to faster conversions and customer satisfaction.
- Potential Future Trend Analysis
Your feedback is your power, and when you are continuously collecting it, you can learn a lot from it. For example, with access to customer preferences, opinions, and needs, you can plan certain product upgrades for the future.
Yes, improvements can be made with time, but analyzing trends for the future can help you stand out from your competitors. AI can be of great use here.
Netflix is an example to consider here! When a show is released, Netflix tracks how many people watch it and whether they like it. Based on these factors, Netflix makes future plans to make more of those shows or cancel them.
Process to Design a Feedback Loop for Continuous Improvement!
Well, I believe that a continuous feedback loop is not a fixed process; it is a regular practice. Therefore, it has to be designed and re-designed regularly based on the business requirements.
Here are certain steps that form a part of the feedback loop analysis.
- Clear your objectives
In the first stage, get a clear idea of your objectives. Some of the objectives can be boosting user engagement, boosting conversions, generating more leads, enhancing response rate, etc.
All these aspects form a part of continuous improvement.
- Identify feedback sources and collect feedback.
Once you are clear on your objectives, you need to identify the sources from where you will collect feedback.
These sources can be customers, stakeholders, and your competitors to some extent. Moreover, besides sources, it is also important to finalize tools for collecting feedback.
These tools can be surveys, interviews, product reviews, focus groups, session recordings, etc.
There is also a need for a good feedback loop software.
Qwary is the tool that has all the above-mentioned tools to collect user feedback. Based on your goals, you can use the tools to collect feedback.
- Feedback analysis
The next stage of the feedback loop design is the analysis phase. In terms of user feedback, there are several methods of analysis, such as sentiment analysis, text analysis, root cause analysis, etc.
These methods can be implemented to understand the quantitative and qualitative feedback provided by users.
For accurate results, AI analysis can also be done on scores such as NPS, CSAT, etc.
- Implement improvement methods
So far, the analysis results will be with you. Based on the results, product or service improvement methods need to be implemented.
The product improvement process includes making changes to your production process or team, making changes to the products based on user needs, and establishing new equipment if required.
- Inform the customer
This is ideally the last step of the closed feedback loop process. It involves informing the users about the changes made to the product.
You can do it via in-app messaging, emails, newsletters, etc.
The best thing about the closed feedback loop model is that users feel valued when the products are improved based on feedback.
Furthermore, it establishes brand credibility in the market.
- Monitor and adjust
Next, keep an eye on the feedback on a continuous basis. If there are any other suggestions, keep improving your product until the ideal product is on the market.
Real-World Feedback Loop Examples
Based on the design of the feedback loop, there are several examples on the market, such as
- Toyota used the Kiazen or the continuous improvement method. In the process, the brand acquires feedback from its workers on the issues about the production line. Furthermore, necessary actions can be taken to improve efficiency and product quality.
- IBM is another example where customer feedback is used to speed up the product improvement process. It uses techniques like Six Sigma and Agile methodology to simplify the continuous improvement process and boost the overall user experience.
- General Electric also uses multiple continuous improvement techniques to improve its products and optimize its operations. It uses the Six Sigma methodology to fine-tune its products and Lean Manufacturing principles to optimize the production process.
Challenges Involved in Feedback Loop for Continuous Improvement!
Right now, the overall feedback loop process may seem simpler to you. However, I need to tell you that you will face some challenges. Let me highlight them for you!
- Lack of sufficient feedback
For accurate data analysis, you need a sufficient amount of data. As the attention span of the human mind is short, getting enough feedback can be challenging.
Hence, the feedback form should be crisp, short, and concise.
- Data analysis
Analysis of data is only possible if it is enough and is in the right form. Highly accurate and unbiased data is necessary to ensure faster and more accurate results, and getting hands-on such data can be tough.
Moreover, if data is in huge volumes, it can be difficult to analyze. Hence, power analysis methods, including AI, are required.
- Resistance to change
Making a better product can sometimes require changing the process or individual responsibilities. However, in some cases, the team members may show resistance to change, posing a challenge.
To ensure that the feedback loop model is implemented smoothly, a team ready to embrace change is necessary.
How can Qwary Help in the Customer Feedback Loop?
Now, let’s discuss about the feedback loop software, Qwary. Qwary is a suite of tools that you will require for the customer feedback loop.
It has tools to capture feedback, built-in features for feedback analysis, tools to inform the customers, etc.
From in-product surveys and session recordings to monitoring the users in the conversion funnel and a dedicated closed feedback loop software, Qwary can make the entire process of the feedback loop smooth for you.
Conclusion
Continuous improvement is not a walk-in-the-park process. It is an iterative process that has to be established and monitored carefully.
As the feedback from the users may not be consistent or related to the product, there is a need for data segregation to make smarter decisions.
Moreover, the challenges that come with it should also be dealt with.
But, against all odds, there are tools like Qwary that can somehow reduce the complexity of the feedback loop process to some extent.
FAQs
- What is a feedback loop design?
A feedback loop design is a cyclic process where a part of the output is fed to the input for analysis and further changes to improve the output.
- What are the four elements of any feedback loop?
The four crucial elements of any feedback loop are stimulus, sensor, control center, and effector.
- What are the five steps of a feedback loop?
The primary five steps of a feedback loop are feedback collection, analysis, acknowledgment, implementation, and informing the users about the changes.
- How to improve the feedback loop?
Some great tips to improve the feedback loop are being specific, concentrating on the user behavior, offering timely surveys, etc.
