The government of Garden Grove, California installed five radar speed signs at five separate locations in which drivers routinely drove too fast. The sign would flash a bright light and display a driver’s speed if they were 5MPH or more above the limit. After these signs were installed, speed in those five locations immediately dropped 22% from 44mph to 34mph.
We are on a constant lookout for information that provides us with direction on what actions we should take. Feedback Loops provide us with this direction by telling us how we are performing relative to a certain standard. In the study mentioned above, that standard was a speed limit. When we encounter a feedback loop, we automatically change our behavior to align with what we believe should be “better.”
Implementing feedback loops into your CRM automations, membership programs, and in-store experience (if you have a brick-and-mortar location) will bring out the best levels of engagement in your customers. It could also very well lead to a boost in sales. Gamification technology is a great example of using feedback loops in all kinds of areas in business.