Businesses in Dubai and all around the UAE are turning to customer-centric business practices and strategies. Customer feedback is one of the most important part of customer satisfaction and customer journey transformation strategy. The customer feedback provides highly accurate and focused business intelligence data set which is very vital to improve a business’s performance and its future strategies. The customer centric strategies are not only helpful in improving customer satisfaction and customer loyalty but such strategies result in higher profitability.Businesses who tend to move forward with customer centric policies are more likely to double up their revenues. In some cases when businesses have moved toward the customer centric policies they have witnessed four to five time more revenue in just a single year. Which is huge. The center point of customer centric policies is customer satisfaction, it drives customer loyalty. A loyal customer base act as a strong foundation or platform at which a business can built its legacy.
Moreover the customer loyalty is also important to generate more revenue and to reduce the expenses. According to several studies and market searches it is almost nine to twelve time less expensive to sell to an existing customer rather acquiring a new customer. The loyal customers are also good brand advocate and help promoting a positive brand image. Positive brand reputation further have impact on the conversion rates of other marketing campaigns and a brand with good brand identity tend to yield higher ROIs from their marketing campaigns. Overall the customer feedback is very helpful in making strategies and taking actions to maximize the customer satisfaction which leads to maximum profitability and better expense management.
What is Customer Feedback Loop?
The customer feedback loop is basically a process of getting customer feedbacks then extracting actionable reports from it, then sharing those reports within the business to the concern departments and the management to inspire actions, then providing the customer with the information about the actions that are being taken and how those action will benefit them in future is called a customer feedback loop since the entire process ends from where it is being started so it is also knows as closed loop customer feedback or customer feedback close loop. Businesses are always collecting customer feedback data, it could be from a full-fledge customer feedback system, occasional surveys such as NPS (Net Promoter Score), CES (Customer Effort Score), CSAT (Customer Satisfaction Score), customer’s behavioral data from various touch points, their conversation with the sales and support staff or direct customer suggestions.
It is for certain that a good business always have some strategy to collect the customer feedback data by different sources and different channels. Which provide the business with a deeper understanding of their customer’s behavior, needs, expectations, problems and liking/disliking. This data is extremely important to build future strategies and policies which will be more customer centric and will ensure a positive and steady growth in the long term.
The Importance of Customer Feedback Loop
Customer and business relationship is a very delicate relation, same like any other relationship, the customer and business relationtoo requires attention, care and trust. It is extremely important that a business ensure that its customers are getting this impression and feeling. This way the customer will feel more connected to the business. The customer feedback loop is very important as it tells the customers that you are willing to listen to them, you value them and you act upon their suggestions, feedbacks, and concerns. This impression is very strong, if a customer sees that their favorite brand is not only eager to listen to them but their opinion has power to make change, they will start trusting the brand more and they will become more loyal and supportive of the brand. If such customers get any bad experience or will be unsatisfied they will still give the business a second chance as they have trust on it and they would like to be part of it too.
The customer retention and loyal customers are very important to ensure steady growth. If you will keep losing customers it will be like bucket with a hole in it, no matter how much you pour from your marketing funnel, the bucket will never get full. The customer feedback loop is considered to be a single loop but in reality it acts more like a combination of two loops. One is called the inner loop and the other is called the outer loop:
Customer Feedback Loop: Inner Loop
The inner customer feedback loop is basically the internal loop inside the business, it flow the customer feedback within the internal departments, managements, concern employees and whoever else is relevant to it. Most likely the inner customer feedback loop involves almost everyone who can have any impact on customer experience and customer journey. It includes customer support team, sales staff, product/service development team, design team, marketing & communication, senior management and decision makers. It is extremely crucial that all the departments and concerned employees are getting the same data feed and are on the same page. Only then they can make policies, take actions and do changes that can have a positive impact on customer experience and customer journey.
Customer Feedback Loop: Outer Loop
The outer customer feedback loop is the loop that involves the customers, from submitting their feedback or suggestions to reverting back to the customers with the response and details of actions taken on the bases of their feedback. The outer customer feedback loop is the most popular among the marketers in Dubai and all around the UAE however, both are important to make sure your customers are satisfied. A business and customer relationship relies on good communication as well. It is very important that the business clearly communicate what steps have been taken on the bases of customer’s feedback or suggestion. This will increase their trust on the brand and give them a feeling of being appreciated which will definitely improve their relation, attachment and loyalty with the business.
How to Create Customer Feedback Loop
The customer feedback loop is not as that complicated. It is a simple process of collecting customer feedback, processing it, learning from it, take possible actions accordingly, and then telling your customer what has been done. Here are some simple steps to create a customer feedback loop:
- Step 1: Collect customer feedback via surveys system, on-site kiosks, emails, online, websites, polls, social media, etc.
- Step 2: Consolidate all customer feedback data, analyze it and prepare reports for all level of management.
- Step 3: Share the relevant reports to the corresponding department/employees or management.
- Step 4: Learn from the data, update strategies, company policy, business processes, products/services, and take action.
- Step 5: Contact the customers through call center, emails, or social media and tell them what actions has been taken in response of their feedback.
That is it. You got a complete customer feedback loop. This loop is also called a closed customer feedback loop. It is called closed because in this process a business also notify the customers about the actions taken in response of their feedback and suggestions. This really make your customers happy and give them a sense of importance and appreciation. Which further strengthen the relationship.
Why Closing the Customer Feedback Loop is Important?
It is very important that you close the customer feedback loop. Because most of the business in Dubai and all around the UAE are regularly taking customer feedback but are not responding back to them with the changes they have made or actions that are being taken to improve the customer experience and customer journey. In some cases businesses don’t even make any change due to certain reasons, such as it may require huge modifications in the existing business processes and methodologies, or it may involve updating technology or infrastructure or any other action which could be expensive. It is not important that you are turning the upside down of your business, the important thing is as much as you can do. Of course if a customer is suggesting you to cut the price by 80% that is not doable.
However, if a customer is asking for small changes that can easily be done, then you should do it. Then you should inform the customer or all of the customers who have been asking for the same that due to your feedback we made this change and from now onwards you will not face the same issue or inconvenience, etc. Something like that could really make your customers happy. They will feel appreciated and they will know that their favorite brand gives them importance and care for them. That is why closing the loop is equally important as collecting the feedback or acting upon it is.
Businesses with customer centric strategies and polices are witnessing rapid growth and huge appreciation in Dubai and all around the UAE. The customer’s behavior, their expectations, the market trends and the entire business dynamics is completely different in this part of the region. The Dubai alone is among the world’s top cities and the country is considered to be the most advanced and modernized country in the entire region. This have a huge impact on the businesses too, the businesses need a completely new strategy to compete in this market. The customers are more demanding and there are tons of option available for them to switch. A customer usually never give a second thought to switching to another vendor or brand if they have a bad experience. This is what makes it extremely important that businesses make sure they are offering best quality service to ensure highest customer satisfaction.
A customer feedback loop is a process that starts from collecting customer feedback and it ends at communicating with the customers and telling then what change has been made to address the problem or concern from their feedbacks. It includes intensive analysis of the feedback, report generation, sharing the data with the concerned departments, management, employees and everyone else who is involved. This provides a deeper insight of the business processes, practices and let the businesses evaluate everything. After that these concerned personals or departments learn from the data and make informed decisions to make change. Then the businesses contact the customers and informed them about the actions taken or changes made in the future strategies and company policies. This whole process is called a closed customer feedback loop. It is very important to build trustworthy relationships with the customers and strengthen the brand image. RSI Concepts is a leading name in customer journey transformation and customer feedback systems. If you need any help or want a quote for the customer feedback system, feel free to reach us out through our Contact Us page or leave a comment in the comment box below and we will get in touch with you.
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