PetMeds Feedback Loops - Case Study Example

In order to understand the applicability of feedback loops in an organization, one must consider the organizational structure of the company and identify the different feedback loops executed within. The organizational structure of the company is composed of four core departments - customer care, warehouse, pharmacy and corporate departments. The structure is designed in a way to provide direct business processes for the success of the company. Several systems practiced by the company such as customer relationship management and performance management provide a complete loop in the operations of a department as well as the overall process of its business.

This paper focuses on two types of feedback loops that is currently practiced in the organization. The two types identified are balancing loop and reinforcing loop. A balancing loop contains a current state, action and desired state. The action attempts to bring two things, the current state and the desired state, into an agreement. On the other hand, the reinforcing loop composes of an action and the result. The action produces a result. The result then promotes more of the same action.

(Bellinger, 2004) PetMeds implements a customer relationship management system in the customer care department. The customer relationship management practice of the company is an example of the reinforcing feedback loop. . It involves several functions, processes and results. However, for purposes of this paper, a simple loop is identified. An example of such loop is how the marketers of the company promote the products in order to generate sales for the company. The marketers publicize the products through advertising in the tri-media such as television, print and radio as well as through the Internet.

Their aim is to attract new customers as well as encourage existing customers into buying more of the company's products. The strategies implemented by the marketers are examples of actions in the reinforcing loop. Below is a simplified feedback loop that illustrates the customer relationship management system.Figure . Customer Relationship Management SystemAs a result of the different marketing strategies of the company, customers choose PetMeds products and ultimately generate sales and revenue for the company.

Satisfied customers reorder the products. As for new customers, the different promotions of the marketers will influence their buying preference and behavior. The satisfaction levels of the customers are measured in the customer relationship management system. The measurements are then feedback to the customer care department as well as the marketers in order to evaluate the effectiveness of their marketing strategies. The evaluation then becomes the basis for the next marketing strategies that would be implemented and promoted.

Performance Management SystemThe performance management system is another type of feedback loop that is being utilized by PetMeds. This type of loop can be considered as a balancing loop. Every year, the company identifies critical success factors for their overall business as well as each department. These factors become the