The combination of user data and AI often creates data feedback loops. This means that as a firm gathers more customer data, it can feed that data into machine learning algorithms to improve its product or service, thereby attracting more customers, generating even more customer data. Think, for example, of search engines: the more people search on Google and click on the links provided, the more data Google gathers, which allows its algorithms to provide more accurate and relevant search results, attracting even more users and searches, and so on.
To Get Better Customer Data, Build Feedback Loops into Your Products
How to generate data that actually improves what you’re selling, and in turn attracts more customers.
July 11, 2023
Summary.
Thanks to the increasing availability of AI, including machine learning algorithms, deliberately creating customer data feedback loops is now possible for most products and services. This means that as a firm gathers more customer data, it can feed that data into machine learning algorithms to improve its product or service, thereby attracting more customers, generating even more customer data. For some products, it is easy; for others, one needs to find more creative ways to engineer the data feedback loops. This article explains how to do so.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.