How Creating a Customer Feedback Loop Can Fuel Loyalty

Not knowing what customers think is one of the main reasons brands fail to meet their business goals. By listening to feedback and actioning changes, you can show them that their opinions are important to you.

Find out how creating a customer feedback loop can fuel brand loyalty for your business.

Why brand loyalty matters

Brand loyalty is the key to long-term growth for organizations. Loyal customers are those who trust your brand and make repeat purchases.

Existing customers are 60-70% more likely to purchase a new product or service than new prospects. One Accenture study found that 57% of consumers spend more on brands that they’re loyal to. With this in mind, it’s clear that brand loyalty is not only great for your retention rates, but also drives sales and has a direct impact on ROI. 

Furthermore, loyal customers are more likely to spread the word about your product or service to the people around them - which is ideal for businesses as referrals are the number one source of new leads.

What is a customer feedback loop?

The interactions a customer has with a product or service define the future direction of a company as they seek to improve the customer experience.

The customer feedback loop refers to the process of gathering customer feedback and using this feedback to improve and refine your product or service.

It involves responding to and analyzing feedback, and is based on the concept of “mutual causal interaction” where both the customer and the brand have an impact on each other.

In practice, customers will leave their feedback, the company will analyze the feedback and conclusions will be implemented before the loop is repeated.