{"id":6540,"date":"2023-08-29T08:00:00","date_gmt":"2023-08-29T14:00:00","guid":{"rendered":"http:\/\/prodim2020.wpengine.com\/7-steps-for-implementing-a-closed-loop-system\/"},"modified":"2024-08-09T08:25:49","modified_gmt":"2024-08-09T14:25:49","slug":"7-steps-for-implementing-a-closed-loop-system","status":"publish","type":"post","link":"https:\/\/inmoment.com\/blog\/7-steps-for-implementing-a-closed-loop-system\/","title":{"rendered":"7 Steps for Implementing a Closed-Loop System"},"content":{"rendered":"\n
With so much riding on each interaction with your brand, you can\u2019t afford to leave a negative customer experience <\/a>unresolved. Research shows that it takes about 12 positive experiences to make up for one unresolved negative experience. In fact, a study by Lee Resources reveals that 91% of unhappy customers won\u2019t return<\/a> to your brand at all. That\u2019s where a closed-loop system comes in!<\/p>\n\n\n\n A closed-loop system is \u201cthe ability to identify and resolve individual customer issues and larger organizational patterns and trends based on those issues while communicating solutions back to customers and employees,\u201d as defined by Bain & Company in \u201cThe Ultimate Question 2.0.\u201d<\/em><\/a> <\/p>\n\n\n\n This system consists of an inner loop<\/a>, the ability to identify and resolve individual customer issues while communicating solutions back to customers and employees, and the outer loop<\/a>, the ability to identify and resolve larger organizational patterns and trends based on individual customer issues while communicating solutions back to customers and employees.<\/p>\n\n\n\n And though closed-loop systems have been around for a while now, they are still just as vital to your customer experience (CX) program! Here are just a few reasons why: <\/p>\n\n\n\n Additional benefits that come from putting effort into closing the customer feedback loop:<\/p>\n\n\n\n Are you convinced? Great! Now that you\u2019re on board, we\u2019ve outlined the 7 most important steps you need to take to get started with an effective closed-loop system. <\/p>\n\n\n\n Customer experience is an investment, and for your program to have a positive impact\u2014and succeed\u2014you need buy-in from your executive<\/a> team. For best results, we\u2019ve found that closed-loop pilot programs focused on a few locations usually are the easiest for executives to get behind. With fewer locations, it\u2019s easier to prove the efficacy of the program without straining your brand\u2019s resources too much.<\/p>\n\n\n\n Implementing a closed-loop system is a marathon, not a sprint. No matter the size of your company, setting up your program will take time. As your program matures, look for the easy wins to gain credibility and prove success within your organization. Once you\u2019ve found your stride, gradually move on to more complicated issues.<\/p>\n\n\n\n Identify employees with an understanding of your organization\u2019s operations, and empower them to resolve customer issues as they occur. Your employees know your business and are in a unique position to help your customers and quickly close the loop on customer issues.<\/p>\n\n\n\n As technology advances and the customer experience evolves, consumers expect more and more from your brand. Expectations have risen to the point that 42% of consumers said that if they contact your brand for support, they expect a response within 60 minutes. Resolve customer issues in a timely fashion, and your customers will reward you with repeat business and brand advocacy throughout the years.<\/p>\n\n\n\n Don\u2019t get too comfortable with the way things have always been done in regard to your CX program. Treat every customer issue as you would if you were a small business, and resolve it as quickly\u2014and personably\u2014as possible. Customers want to feel special, and the quicker you\u2019re able to adapt to individual customer issues, the more you\u2019ll be able to reduce customer churn and ensure organizational success.<\/p>\n\n\n\n Your customers don\u2019t care about the size of your business; they care about how your brand treats them on a personal level. Study your brand\u2019s customer journey, gather feedback, and identify ways to increase the amount of personal contact during the process of resolving a customer issue. A simple note or phone call can have a profound impact on the success of your program.<\/p>\n\n\n\n As mentioned earlier, your employees understand the way your organization operates better than anyone else. This knowledge puts them in a unique position to understand customer issues and know the right solution for resolving the problem. Have faith in your employees and give them the autonomy they need to address customer issues on a case-by-case basis and resolve them as efficiently and personably as possible.<\/p>\n\n\n\n Closed-loop systems are one of the most effective ways to not only reduce customer churn but proves the financial impact of your brand\u2019s customer experience program. One client of ours implemented a closed-loop system that helped them identify nearly $23 million in potential revenue.<\/p>\n\n\n\n Other studies have found that closed-loop programs help retain customers, which can increase company value (up to 30%) and increase profits (up to 125%).<\/p>\n\n\n\n You can learn more from Pearl-Plaza expert Jim Katzman about the value of closing the loop in his article <\/em>here.<\/em><\/a><\/p>\n\n\n\n When developing an effective closed-loop system, it is just as important to think about what to do as well as what NOT to do. We\u2019ve put together a list of 3 myths revolving around closed-loop systems\u2014and what you can do to avoid them. <\/p>\n\n\n\n An effective closed-loop system will not only help you break even, it will help save you money! While many people think that closed-loop systems handle singular cases, they actually help you identify business trends and get ahead of them! By anticipating, not merely reacting, to your customer\u2019s needs, you\u2019ll be improving experiences before they even happen. <\/p>\n\n\n\n There is a stigma surrounding closed-loop systems\u2014that they only belong in certain industries, such as retail or food service. While those industries definitely benefit from closed-loop systems, they are not the only ones with something to gain! Every business, regardless of the industry they operate in, can benefit from a system that gives you the ability to identify the next best action for a customer and address the root cause of issues to ensure continuous improvement. <\/p>\n\n\n\n Checkout this <\/em>case study<\/em><\/a> to see how one of our Financial Services clients utilized a closed-loop system to improve their NPS score as well as other business-specific metrics! <\/em><\/p>\n\n\n\n A system that allows you to quickly respond to customer complaints, analyze data to identify customer trends, and share knowledge within your organization to create a holistic view of the customer experience? It sounds like it would be a headache to implement. Well, that couldn\u2019t be further from the truth\u2014if you have the right partner!<\/p>\n\n\n\n Closing the loop shouldn’t be a complex process, with automation you can simplify the method. For example, if you use Intercom to communicate with customers, you\u2019re in luck. It\u2019s extremely easy to implement a customer experience (CX) program that will close the customer feedback loop with Pearl-Plaza\u2019s entirely code-free Intercom Messenger Integration<\/a> and start gathering feedback right in Intercom chat. Pearl-Plaza\u2019s NPS microsurvey can be integrated with Intercom Messenger with one click and survey responses automatically appear in Intercom user records. This makes it easy to set up automated follow-up messages to survey respondents based on their sentiment. Whether or not you use Intercom and Pearl-Plaza, you can adapt a closed-loop process to your own systems as you handle customer feedback. <\/p>\n\n\n\n Lead-gen software startup Albacross recently shared how they were able to swiftly automate a full-cycle NPS program. While the team started by simply sending NPS surveys through Intercom, they quickly realized the value in closing the customer feedback loop with all of their respondents\u2013detractors, passives, and promoters. For Albacross, automating a close-the-loop process took just a few simple steps and the results have been incredible. Albacross has been able to understand its detractors on a whole new level, and they\u2019ve been able to leverage promoters to drive more business. <\/p>\n\n\n\n Sure, it might not feel great when you\u2019ve received some low scores from valued customers on your customer surveys<\/a>. But, qualitative feedback from detractors can become a guiding light for your organization as it chooses what issues and insights it wants to prioritize in closing the customer feedback loop. You should also pay attention to detractors because a low score is often an indicator of customers who are at higher risk of churn. In other words, it\u2019s crucial that you leverage your detractors \u2013 there is so much that you can learn from them. And, it\u2019s quite simple \u2013 here\u2019s how Albacross automated their messages for detractors: <\/p>\n\n\n\n For users who rate their app low (0-6),<\/strong> Albacross sends two Intercom messages that ask for additional feedback. The main purpose of asking for additional customer feedback is to start the conversation and gain a deeper understanding of how the customer feels, what they\u2019re struggling with, and why they\u2019re disappointed.<\/p>\n\n\n\n Albacross sends messages via email: <\/p>\n\n\n\n and via in-app messages that appear immediately after the user completes the survey:<\/p>\n\n\n\n When creating these automated messages, it\u2019s important that you pay great attention to the simplicity and brevity of the message you\u2019re sending out. In this case, Albacross only asks users for a single<\/strong> thing that they can improve to make it as easy as possible for customers to answer.<\/p>\n\n\n\n What about all of your promoters? How can you make use of all this praise and admiration coming from your customers? <\/p>\n\n\n\n Here\u2019s the answer: close the customer feedback loop by getting your promoters to share their experience on online review sites. <\/p>\n\n\n\n Online reviews are of utmost importance in a buyer\u2019s evaluation process, especially in the B2B world, since these transactions often involve many people and large investments of money. According to a study done by G2 Crowd and Heinz Marketing, 71% of B2B buyers look at online reviews during the consideration stage. In addition, 92% of B2B buyers are more likely to purchase after reading a trusted review. By getting happy customers to share their positive experiences online, your organization can build credibility, improve trust, and increase brand awareness among potential buyers. If you\u2019ve got happy customers, the momentum is already there \u2013 it\u2019s now your job to transfer<\/em> that positive momentum from your surveys to review sites. <\/p>\n\n\n\n Let\u2019s take a look at how Albacross closes the loop with their promoters. <\/p>\n\n\n\n For users who give the app a passive rating (7-8), <\/strong>Albacross sends an email of gratitude to let them know that they appreciate the user\u2019s feedback. This is sent via in-app message.<\/p>\n\n\n\n You\u2019ll notice that Albacross\u2019s message is short and sweet, and at the end, they ask their users to leave them a review on Capterra. <\/p>\n\n\n\n For users who rate the app very high (9-10)<\/strong>, the Albacross team sends an email with similar content, but this email is sent from their CEO. <\/p>\n\n\n\n Automating your close-the-loop process is guaranteed to uncover invaluable insights and drive high-impact action, whether that\u2019s fixing a common issue for detractors or sending promoters to a review site to share their praise for your product. We cannot stress the value of closing the customer feedback loop enough. <\/p>\n\n\n\n In the case of Albacross, their efforts in closing the customer feedback loop and automating their program saw two key tangible effects:<\/p>\n\n\n\n Albacross\u2019s NPS Score is consistently climbing. In just a short period of time, Albacross has more than 2x\u2019ed their NPS score. Anyone with any experience with NPS knows that this is not an easy feat. <\/p>\n\n\n\n Secondly, Albacross now has a rating of 4.5\/5 and 100+ reviews on Capterra. Most of the reviews that they\u2019ve gathered recently have come from promoters who were directed to Capterra from Albacross\u2019s automated Intercom messages. <\/p>\n\n\n\n So, go forth and close the customer feedback loop with survey respondents. It\u2019s easy when you automate!<\/p>\n\n\n\n For more tips and tricks on closing the customer feedback loop, read our whitepaper<\/a> designed to help you learn all you need to know to help you make a difference in your company using customer feedback.<\/p>\n\n\n\n Not sure where to start? No worries, we are here to help. We have developed a Closed-Loop Action Package that contains everything you need to get started with a system that will improve your business tomorrow, today!<\/p>\n\n\n\n Our Closed-Loop Action Package consists of four products: Case Management, Alerts & Notifications, Moments, and Reporting. Let\u2019s break down what those are and what they mean for your business. <\/p>\n\n\n\n Ready to start closing the loop? Schedule a whiteboarding session<\/a> with our experts today!<\/p>\n\n\n\nWhat Is a Closed-Loop System?<\/h2>\n\n\n\n
Why Is a Closed-Loop System Important?<\/h2>\n\n\n\n
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Getting Started with a Closed-Loop System<\/strong><\/h2>\n\n\n\n
1. Get Executive Buy-In<\/strong><\/h3>\n\n\n\n
2. Prioritize Initiatives<\/strong><\/h3>\n\n\n\n
3. Harness Existing Business Knowledge<\/strong><\/h3>\n\n\n\n
4. Commit to Faster Resolution<\/strong><\/h3>\n\n\n\n
5. Increase Organizational Agility<\/strong><\/h3>\n\n\n\n
6. Make Individual Contact<\/strong><\/h3>\n\n\n\n
7. Empower Your Employees<\/strong><\/h3>\n\n\n\n
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The Value of Closing the Loop<\/strong><\/h2>\n\n\n\n
3 Myths Around Closed Loop Systems<\/strong><\/h2>\n\n\n\n
Myth #1: Closed-Loop Systems Are Not Profitable<\/strong><\/h3>\n\n\n\n
Myth #2: Closed-Loop Systems Are Only Relevant for Certain Industries<\/strong><\/h3>\n\n\n\n
Myth #3: Closed-Loop Systems Are Too Complex<\/strong><\/h3>\n\n\n\n
Automating the Customer Feedback Loop-Closing Process<\/h2>\n\n\n\n
Real-Life Example of an Automated Closed-Loop System<\/h3>\n\n\n\n
Ask Detractors for Product Feedback<\/h4>\n\n\n\n
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Ask Promoters to review you on Capterra or G2 Crowd<\/h4>\n\n\n\n
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Closing the Customer Feedback Loop with Automation Leads to Results<\/h4>\n\n\n\n
Get the Closed-Loop System Starter Kit with Pearl-Plaza\u2019s Closed-Loop Action Package<\/strong><\/h2>\n\n\n\n
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References