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Customer feedback loop - what it is and why it's important?

Customer feedback loop to gather feedback, review feedback, take action and follow-up
Helena Ahlström
Helena Ahlström

Are you getting back to your customers about the feedback that they have given you? If not, you have a broken customer feedback loop. Creating a customer feedback loop is key to building better products and retaining your customers. In this post, I will explain what a customer feedback loop is and why it's important.

What's a customer feedback loop?

The customer feedback loop has four steps

  1. Gather feedback. Here are 3 ways to collect customer feedback to get you started.
  2. Review feedback. Analyze and prioritize the feedback that you receive. Make a decision on what action to take.
  3. Take action. Implement the decision that you have made.
  4. Follow-up with your customers. Get back to your customers to let them know the decision and changes that you have made based on their feedback. Let them know that you are listening and taking action based on their input. Even if you decide not to take action based on their feedback, get back to them and let them know why. One way of communicating planned changes to your product is using a public product roadmap.

Closing the customer feedback loop by completing all four steps is key. If you complete step 1 to 3, but don't follow up with your customers, you are leaving a lot of value on the table.

Why is the customer feedback loop important?

The customer feedback loop executed well will give you more satisfied and loyal customers which will drive your business growth through higher customer retention. Customer retention is key as "acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one". The last thing you want to do is spent a lot of money acquiring new customers only to have them churn.

The customer feedback loop helps you retain your customers for two main reasons.

1. Better product

Build a better product by listening to your customers. Gather feedback from your customers, review it, and take action to improve your product. Make sure you are making improvements to your product that add value for your customers. If you build a better product, your customers are more likely to stay.

2. Happier and more engaged customers.

Customer feedback is typically a one-way street where the customers leave feedback and never hear back from the product team. If you instead follow up with your customers and take action based on the feedback that they give you, they will feel valued and heard. They are also more likely to engage with you.

A better product along with happier and more engaged customers will help you keep the customers you have. Be smart about customer feedback to reduce your churn.

The customer feedback loop can also help you acquire new customers.

If you build a great product for customers that are happy and feel engaged, they are likely to recommend your product to others as well. This is a great way to get new customers. Track how likely your current customers are to recommend your product to others using an NPS survey.


Few businesses manage customer feedback well. Use this to your advantage by creating a positive and unique experience for your customers by both listening to their feedback and taking action based on their input. If you execute well on the customer feedback loop, you can keep more of the customers you have and also get new customers through recommendations which will drive results and grow your business.

Plug: Convas, a feedback page for your company

Feedback page

Convas is a feedback page for your company. Gather all your feedback in one place, understand your customers and build the right products.

Your customers can share, discuss and upvote feedback in one organized place. Stay in control without messy spreadsheets, emails and Slack notifications.

Its a product manager's best friend. Try it for free.

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