A feedback loop in software has four steps: a user notices something, they report it, someone acts on it, and the outcome comes back around. Most teams implement the first two and stop.
The loop breaks at predictable places. Reports land in a shared inbox nobody owns. They are re-typed by hand into a tracker, losing detail. They are fixed without anyone telling the person who reported them, so that person never reports anything again.
Closing the loop means the report arrives already structured, lands where work actually happens, and carries enough contact information to send an outcome back — if and only if the reporter asked for one.
Why it matters
An open loop trains your most engaged users to stop telling you things. That is a slow and invisible failure, and it is the expensive one.