What is a Closed Loop Process?
"Closed Loop Process" is a term that comes from engineering and refers to a system that's designed to use feedback to automatically regulate itself. In the context of customer experience, a Closed Loop Process takes customer feedback and requires the business to take some action on that feedback to improve the customer experience.
For example, a Service Recovery process will assign an employee to follow up with a customer who provides negative feedback on a survey and attempt to resolve the customer's issue. This "closes the loop" with the customer.
Businesses can "close the loop" in other ways, for example by using customer feedback to search for and close gaps in internal processes; or even using ongoing feedback about the customer survey to improve the customer feedback process itself. Some companies will reach out to customers who responded to a survey to let them know what changes resulted from their feedback.
Any ongoing business process that uses feedback to improve some part of the customer experience has probably been described as "closed loop" by someone.