Closed loop feedback and your customer: What, why and how?
Steve Earwaker looks at the processes and benefits of an emerging area of customer experience management that is attracting a lot of attention - closed loop feedback.
To really get the job done, customer experience management (CEM) must allow companies to 'close the loop' with customers. Closed loop feedback gives companies the ability to continue a dialogue, whereas typical customer feedback programs end the conversation or don’t start it at all.
Companies that engage in closed loop feedback gain substantially more ROI from their CEM programs than competitors, in the form of improved customer loyalty, greater employee engagement and stronger financial returns.
And it is this that is ensuring that it is receiving a lot of attention, making it one of the most exciting areas in CEM. So with that in mind, let’s look at the processes and the benefits more closely…
- Technology must be scalable and flexible, able to grow with your company’s CEM platform and accommodate a diverse range of feedback at all customer touchpoints.
- CEM experts must be on hand and ready to step in with analytical and data support.
- Positive: the customer’s loyalty to the company improves.
- Neutral: the customer’s loyalty to the company does not change.
- Negative: the customer‘s loyalty to the company deteriorates.
Steve Earwaker is VP of financial services and business development for Medallia, Inc., a CEM vendor headquartered in Palo Alto, CA. He boasts 20 years of experience in market research, business development, and statistical methodology in the private and public sectors.