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What is a Feedback Loop?

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A feedback loop is a system that allows the results of your actions to be measured. It is often viewed as a repeated process of strategy change followed by measurement of results that ultimately leads to a fully optimized strategy.
Ideally, a feedback loop provides immediate and perfect information detailing the effects of each action. However, real world feedback loops may incur time delays. As a result, there is often guesswork involved in matching results back to actions. For example, if a company changes its brand colors it may take time to see the effect on sales. In the meantime, other marketing initiatives or competitive pressures have also impacted sales.
Overview: Feedback Loop
Function
Decision Making
Problem Solving
Business Strategy
Value
Measuring results to improve strategy in an iterative fashion that may lead to an optimized solution.
Common Pitfalls
Difficulty in mapping cause and effect relationships due to the granularity or timing of feedback.

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