Feedback Loops Explained: 4 Examples of Feedback Loops

A feedback loop is a cause-and-effect system in which the outputs of a system feed back in as inputs and prompt new cycles. This makes some feedback loops self-sustaining without an identifiable starting point and endpoint. Feedback loops exist throughout the world, from thermostat control systems to customer feedback loops in business.

There are two main types of feedback loops: positive feedback loops and negative feedback loops. These names do not correlate with desired (positive) outcomes or undesired (negative) outcomes. Rather, they differ based upon how inputs and outputs act upon the total system.

• Positive feedback loop: A positive feedback loop is a closed loop in which the outputs accelerate a process. Positive feedback loop examples are evident in climate science, where an ice-albedo positive feedback loop speeds up the process of global warming and climate change. The heat from the atmosphere melts ice, exposing dark-colored earth and reducing the planet’s capacity to reflect light (albedo). The earth’s dark color causes it to absorb more heat, which in turn melts neighboring ice, which perpetuates the warming cycle.
• Negative feedback loop: A negative feedback loop is one in which outputs slow down a process and preserve a stable state. Thermostat control systems function as negative feedback loops. If a heater pushes a temperature too high, the thermostat shuts it off and turns on a cooling unit to lower that temperature. This type of feedback control prevents the heating or the cooling from spiraling on continuously, which makes it an example of negative feedback.

Marketing, communications, and economics offer fertile ground for feedback loops.

1. 1. Customer feedback loops: Customer complaints can prompt a business to change certain practices, while customer praise can inspire a business to leave some things the same. Both the changes and the sameness may affect the customer experience, which will trigger a new round of customer feedback and a new round of reactive adjustments. Critically, the customer feedback mechanism can prompt both change and stasis.
2. 2. Employee feedback systems: Just as corporations experience feedback loops in their customer satisfaction efforts, they can also encounter them when managing their own employees. Employees learn company policies and culture during an onboarding period, and they go on to embody those policies and culture during their tenure as workers. This continues the cycle for the next generation of new hires. Yet for employee retention, a company may also have to conduct employee satisfaction surveys and solicit ideas for improvement. Should the company follow up and implement such changes, the hope is that this will improve employee satisfaction and lead to greater retention.
3. 3. Pricing feedback loops: The setpoint for a price can prompt an ongoing feedback loop. A company may conduct market research to set the initial price of a new product. From this point, customer behavior will indicate whether that price makes sense or not. If the product is priced too high, customers may stay away. This can prompt the company to lower its prices, which in turn can prompt customers to finally make a purchase. If people buy the product en masse, the company may choose to raise prices to reflect the market demand. Such pricing loops occur among both startups and big corporations.
4. 4. Product development cycles: When famous brands release products at the same time every year, customers learn to time their purchases according to those launch dates. This prompts the company to further commit to the same annual launch dates and thus the same product development cycles year after year.

The human body uses a variety of feedback loops to preserve homeostasis. Examples include the hypothalamic-pituitary-adrenal axis, which affects digestion, immune systems, and stress reactions. Similar feedback loops control body temperature regulation. When your body temperature rises, you may sweat to release heat; if too much heat escapes, you may end up feeling too cold, which will cause your muscles to shiver in an effort to make you warmer. This would be an example of a self-regulating negative feedback loop.

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