Best Practices for Closing the Customer Feedback Loop

Best Practices for Closing the Customer Feedback Loop

Every customer-centric company wants to build a smooth experience for their customers to improve customer satisfaction, delight users, and differentiate your company from the competition. Customer feedback plays a central role in this.

But, merely collecting customer feedback is not enough. You need to respond and act on it. Many companies miss out on essential aspects of closing the customer feedback loop, missing out on loyal customers and continued valuable feedback from customers.

What is the importance of closing a feedback loop, and what are the best ways to do it? We’ll walk you through some practical tips with examples.

What is a Customer Feedback Loop?

Companies of all kinds get customer feedback from different sources, such as support tickets, slack channels, surveys, and feedback portals.  Conversations with internal teams such as the support and sales team also occur daily.

When does this information dump actually turn into powerful insights that inspire action across the company and support overall product growth? It’s when you close the customer feedback loop.

A customer feedback loop is the process of aggregating customer feedback, deriving meaningful insights, taking action, and responding back to customers with updates.


The concept behind closing a customer feedback loop is to improve customer satisfaction. While surveys like NPS, CSAT, CES, market research, and voice of the customer programs help a lot. But as a customer-centric business, you must ensure that your customers understand that their feedback is valued and heard by the company.

At companies where strong customer feedback systems take hold, business leaders and employees start to own customer loyalty the same way they own their targets for revenue, profits, and market share. Indeed, increasing positive customer feedback and meeting conventional financial objectives are becoming one and the same goal. -HBR

Why is the Customer Feedback Loop Important?

According to a report by Salesforce, 66% of customers expect companies to understand their needs and expectations. The significant benefits of capturing customer feedback include:

  • Understand your customers: Customer feedback loops help build customer engagement and understand their expectations from the product.
  • Increase customer satisfaction: Closing a customer feedback loop is simply how you tell your customers you’re listening and care about their needs.
  • Reduce customer churn: User feedback loops help customers feel appreciated and heard, increasing their trust and providing a churn collateral process.
  • Build healthy customer relationships: Feedback loops help create long-lasting relationships with your clients and reduce customer complaints.
  • Identify bugs and new features: Feedback loops also help identify the commonly faced issues by the customers to improve your products and services.

Closed-loop Feedback is complete with — a personalized follow-up communication letting them know that their insights are acknowledged and acted upon along with the new updates. Let us now look at a couple of examples of ideal customer feedback loops.

Examples of Closing Customer Feedback Loops

A feedback loop involves customers and internal team members. To better understand the process and how they are co-related are two examples that involve both these parties.

Example 1: External feedback loop

A feature that several customers requested is getting released. The support team hears about this and personally informs the customers requesting the feature to close the feedback loop immediately.

Example 2: Closing the feedback loop

Best Buy created a research tool called VOCE  to collect customer feedback and complaints. It helped them to listen and learn from our customers in real-time.

Example 3: Internal feedback loop

The sales team receives information on certain pain points that prospective customers have. They relay that information to the marketing team, which allows them to better position the product. They also relay that information to the product team, which will help them create new features that better solve those specific pain points.

Now that you thoroughly understand the customer feedback loop let’s look at closing the loop effectively.

Best Practices for Closing the Customer Feedback Loop

Acknowledge and respond to customer feedback

Before you do anything else, respond to the feedback you have received.

There are different kinds of feedback, ranging from product feedback and feature requests to bug reports and complaints. Each feedback needs to be addressed differently and with personalized text.

Google maps

In every case, you must let customers know you have acknowledged the problem and will take the necessary steps. Always leave space for open-ended questions to open another loop as soon as one feedback loop closes.

For positive feedback and ratings, you can reward them by offering a discount coupon. For negative feedback and complaints, let them know they are heard, and the complaints will be taken care of.

Aggregate and centralize customer feedback

To understand what your users want, you need to collect and organize feedback properly from both customers and teammates. This isn't easy when feedback is scattered inconsistently across different channels and folders.

Closing a customer feedback loop will most likely take months. And you need to keep track of everything that happens in between, like whether there have been any follow-up communications associated with a piece of feedback. The feedback you collect should be:

  • Organized by category of feedback received
  • Easily accessible to everyone
  • Organized by typed of customers
  • Shared across teams and types of customers

To achieve this, you need a centralized system. Here’s how:

1. Collect on a spreadsheet/Trello:

When collecting feedback with a spreadsheet or Trello board, you can categorize your feedback repository into specific types of feedback, feedback sources, and types of customers. You will need to manually collect every feedback you receive from different sources such as NPS surveys, CSAT ratings, CES (customer effort score) feedback, feedback forms, live chat, social media, and email feedback and add it to the sheet.

2. Automate feedback management:

If you’re concerned about the time it will take you to collect feedback manually, the best solution is to use a customer feedback tool that can automate the process.

What if you could bring feedback from different channels all in one place? This is possible with feedback software like Rapidr. With supported integrations, all feedback from Emails, Spreadsheets, Slack Channels, Intercom Inbox, and surveys will be aggregated in one centralized place.

Collect & Organise Feedback

Analyze and Prioritize customer feedback

Prioritizing product feedback is necessary, as responding to every request is not practical. The first step in product planning is to sort through customer feedback, analyze them according to priority, and find learnings.

Here are some helpful tips for analyzing customer feedback and deriving learnings:

1. Try to identify trends and prioritize:

Identify common or similar topics that frequently occur in the feedback. Is a particular product/feature being discussed often? Is it a feature requested by many users? Leverage this information to prioritize features and product improvements. This takes the guesswork out of product planning and prioritization.

It’s always best to prioritize features that customers want the most. But how do you know this? Rapidr has a feature where it allows customers to vote on features. You can then sort with the "most voted feedback."

Rapidr - feature voting tool 

There are many frameworks that you can use to decide whether a product feature is worth building or not. Here’s a detailed guide on feature prioritization.

2. Consider feedback sources:

Looking at a single source of feedback is not ideal for obvious reasons, but okay for starting. Most important feedback sources include:

  • Customer Feedback Surveys
  • User Interviews
  • In-app Feedback
  • User Feedback Tools
  • Usability Testings
  • Focus groups

3. Consider both positive and negative feedback:

Analyze positive and negative feedback differently. For positive feedback, firstly, thank the user and ask for more pointers. Also, use this to understand what works and extend such concepts to other parts of the company.

As for negative feedback, acknowledge the customer’s concerns. Offer a solution or a way to fix it. Close the feedback loop once you have resolved the issue.

32% of customers stop doing business with a brand they love after a single bad experience. - Research by PwC

Analyzing feedback before taking action is required to avoid wasting time building the wrong features and saving time closing the suitable feedback loops. You can use various customer feedback tools, including Rapidr, to analyze and prioritize feedback to identify top ideas for improving your product.

Analyzing feedback with Rapidr

Include various team members in the feedback loop

Customer feedback shouldn’t be limited to the product, customer success, and support team alone. Break down silos. Let marketing, sales, and engineering teams get involved in customer communication as well.

For example, the information from customer feedback can be helpful to the marketing team in crafting better copy and creating messaging that resonates with the audience. Sales would be able to target better leads, and the product team would be able to make informed product decisions with the knowledge of customer feedback.

Increasing transparency across the company, collecting internal team feedback, and encouraging all teams to make follow-up conversations with the customers helps close the feedback loop effectively.

Keep customers informed about the progress

Based on a research study, here’s how you can stand out from 95% of companies: Track and review customer feedback and communicate back about the changes that were made based on their feedback.

Set customer expectations about time once you have organized and analyzed feedback to improve product features. Only 5 % of companies tell their customers that they actually leveraged feedback to improve the product. This is not ideal because the loop is still open: the customer is not informed about the progress.

Responding immediately to the feedback with “we’ll review your feedback” is only the first step.  With a product roadmap, you can prioritize features and customer feedback and provide more visibility on your feature prioritization process to keep all stakeholders in the loop.

Rapidr feature roadmap

You need to identify which customer requested the feedback to prioritize feedback better. For this, it’s easier to use a feedback management tool that keeps track of precisely who requested a feature, such as Rapidr.

User profiles on customer feedback management tool
User profiles on Rapidr

Communicate new features, releases, and announcements

The next step is to circle back to them about the progress. And when the feature is finally released, make sure they’re the first people to know. Providing follow-up communication to each and every customer and stakeholder who provided the feedback can be an overwhelming task. But this shouldn’t keep you from doing it.

It is common for the marketing team to do new release campaigns to inform your user base about the latest features. Remember that this isn’t necessarily closing the loop. A personalized email or message should be sent to the customer(s) who submitted the feedback.

How do you engage customers throughout the product lifecycle? One way is to use a customer feedback tool like Rapidr, which provides a product changelog to announce product updates and increase feature awareness.


Don’t hesitate to say no

You don’t have to act on every single feedback that comes your way. Of course, you can respond to them, as we discussed before. But not every feature request will be a good fit for your product.

The best thing to do in this situation is not to ignore the feedback. You should communicate the reason why their feedback request is not being prioritized. It is always beneficial to learn how to say no to feature requests.

Customers will understand if you provide valid reasons for not going ahead with their request, listen to customer feedback, and address their pain points. Being transparent about your feature prioritization process to all stakeholders may be your best bet here.

Power of closing customer feedback loops

Feedback loops should be a constant part of your business to ensure a better customer experience. Consistently collecting, analyzing, and responding to feedback is a major challenge. So, make sure that you stay consistent at it with the help of customer feedback software.

This will help you automate the manual tasks, keep every team member informed and connected, and keep your customers engaged in product development.

Now that you know the best practices for closing customer loops, it’s time to take the first step. Try Rapidr for free for 14 days and keep customer feedback management at your fingertips.


What are the types of customer feedback loops?

Positive and Negative Feedback Loops: Feedback loops vary based on the feedback received.

A negative feedback loop is when you receive complaints and negative feedback from your customers about your product and use that information to build better features and /or improve customer service. If appropriately leveraged, negative feedback can significantly benefit a company and make the customers feel valued and respected.

On the other hand, a positive feedback loop in business is when a company uses criticisms and complaints from their employees to improve the work environment and work processes. This feedback loop is closed once the employee's complaints are addressed and acted upon. A positive feedback loop enables companies to improve their employee retention and quality of work done, thus increasing profits.

How to create a customer feedback loop?

The customer feedback loop process consists of five steps:

1. Listen - The first step in the process is to listen to what customers are saying.

2. Act - The second step in the process is for businesses to take action based on what they hear from their customers.

3. Learn - The third step is for businesses to learn from what they did and how it impacted consumers.

4. Repeat - The fourth step in the customer feedback loop is for businesses to repeat steps 1-3 until they meet their goals.

5. Share - The fifth and final step in the customer feedback loop is for businesses to share what they learned with customers, internal team members, and all stakeholders directly affected by it.

Best Practices for Closing the Customer Feedback Loop
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