Internal Feedback: How Is It Different From External Feedback?

Internal Feedback

Feedback is a gift. Ideas are the currency of our next success. Let people see you value both feedback and ideas.”

Jim Trinka and Les Wallace

Now, what leaps into your mind when you hear about feedback?

The feedback you get from customers. Right?

Well, you are correct, but only partially because there is another equally important type of feedback that many companies do not pay much attention to. That is the internal feedback. 

Companies dwell so much on collecting data from product analytics, user interviews, and focus groups that they often overlook the internal feedbacks that keep landing on their proverbial desk. Now it’s a little challenging to differentiate the internal and external feedback. Moreover, to ace your product journey, you should also know how much importance you should give to each of them.

Feedback is vital to any organization, yet people often see it as a negative process. Employees are usually reluctant to give feedback, and managers are often unwilling to receive it. This creates problems and hinders growth.

A few organizations encourage their employees to provide feedback to one another to improve communication and collaboration. However, giving and receiving feedback can be difficult, especially if it is not done constructively. 

Feedback is essential for organizational growth and development. If not appropriately gathered, it can stymie the growth of the organization.

Don’t worry

We have got you covered. In this blog, we will take you through the meaning of internal feedback, its importance, and the difference between internal and external feedback. We will also provide tips on how to give and receive feedback effectively.

Internal feedback is one of a successful business’s most important yet often overlooked aspects. Enterprises need to collect accurate and actionable employee feedback to grow. 

This article will explore the benefits of internal feedback, the different methods of collecting it, and how you can use it to create a more positive workplace.

What Is Internal Feedback?

Let’s get to the kernel of the concept and understand the definition.

Internal feedback is information that is circulated within a company or organization. This can include everything from customer feedback to employee performance reviews. 

Internal feedback is how an organization solicits and receives input from its employees. 

It is a process by which employees give feedback to each other to improve their work. Employees can give it several times through performance reviews, team meetings, or one-on-one conversations.

It is essential to any organization’s efforts to improve employee engagement and create a positive workplace culture. 

There are many ways in which internal feedback can be helpful. 

For Employees

  • Internal feedback is crucial because it can help employees to improve their work and to identify areas where they need to make changes. 
  • It can also help build team morale and improve employee communication.

For Business,

  • It aids Businesses in improving their operations. 
  • It helps them improve the company’s products, services, or policies.
  • Companies can also use it to identify employee problems and find solutions to those problems.

Ways to Collect and Manage Internal Feedback

Organizations must find ways to collect and manage internal feedback to improve employee satisfaction and performance. There are various ways to collect internal feedback, such as surveys, interviews, focus groups, and 360-degree evaluations

  • Surveys: Asking employees to answer questions about their experiences with the company
  • Interviews: Talking to employees one-on-one about their experiences with the company
  • Focus groups: Getting a group of employees together to discuss their experiences with the company. One-on-one meetings and group meetings are also the way to go.
  • Data analysis: Examining data from sources such as employee productivity reports, customer satisfaction surveys, performance reviews, and sales data.

Each of these methods has its advantages and disadvantages. For example, surveys are a great way to collect large amounts of data, but they can be anonymous and may not capture all the nuances of feedback. On the other hand, one-on-one meetings provide an opportunity for a more in-depth discussion, but they may be time-consuming.

Now, these are not the only ways. Companies are getting increasingly creative and may also have some out-of-the-box, innovative techniques to collect and manage their internal feedback.

Once collected, this feedback needs to be managed. Companies use it to address issues and pain points

Steps in Managing Internal Feddback

  • One of the first steps in managing internal feedback is to ensure that the data is appropriately processed and organized. Companies can do this through data entry, coding, and creating feedback reports. 
  • One way is to ensure that all feedback is captured in a central location. 
  • You can do it through an online system or even a physical feedback box. 
  • Another way to manage internal feedback is to set up regular meetings to discuss the feedback. This allows for an open discussion and action items to be assigned. 
  • Finally, it is essential to thank the person who provided the feedback.
  • Once the data is organized, it needs to be analyzed to identify patterns and trends. 
  • After the companies analyze, they need to create action plans to address the issues. Companies should These action plans should be reviewed and updated regularly to ensure that they are effective.

The most important part of the process is ensuring that you use the input to make meaningful organizational changes. 

General Guidelines for Giving and Receiving Feedback Properly.

When giving feedback, 

  • It is vital to be clear, concise, and specific. 
  • Avoid general comments or making assumptions about someone’s understanding. 
  • It is also essential to give feedback in a way that is respectful and not excessively critical. 

When receiving feedback, 

  • It is essential to be open-minded and receptive. 
  • Avoid getting defensive or feeling like you have to justify your actions. 
  • Focus on understanding the input and how to use it to improve your performance. 

Giving and receiving feedback can be a challenging but rewarding process. By following these tips, you can ensure that your feedback is constructive and helpful.

Difference Between Internal and External Feedback

Now it’s time to address one of the most common confusions, the difference between internal and external feedback.


Internal Feedback is Feedback that you give yourself, while 

External Feedback is Feedback that you receive from others. 


Internal Feedback is Feedback that comes from within the organization, such as from employees or customers.

External Feedback is Feedback that comes from outside the organization, such as from suppliers or partners.


Internal feedback is crucial because it allows you to self-reflect and identify your strengths and weaknesses.

External feedback is vital because it gives you a different perspective on your performance and can help you identify areas you may not have thought of on your own.

Useful in 

Internal feedback is typically used to improve processes or products while 

External feedback measures customer satisfaction or market demand. 

Both types of feedback are essential to improve your performance and reaching your goals.

Which Feedback Is More Important for Product Horizon?

There are many factors to consider when giving feedback on a product in development. However, some input is more critical than others, depending on where the product is in its development cycle. 

For example, early feedback is more important for products in the design phase. This is because input at this stage can help shape the development and make it more user-friendly. This is usually internal feedback.

Internal feedback is vital because it helps you reflect on your performance and identify areas that need improvement. External feedback is essential because it gives you an objective perspective on your performance.

Internal feedback helps you stay motivated and keep improving, while external feedback provides valuable insights that you might not be able to see on your own.

So which type of feedback is more critical for product development? The answer is both.


Internal feedback is a fundamental process that can help organizations improve their operations. If not managed correctly, internal feedback can lead to a breakdown in communication and tarnish relationships.

In this blog, we tried to break down the indispensable aspects of internal feedback to save you that extra time.

At some point in every product manager’s career, they will have to deal with the task of managing feedback. Whether it is employee feedback, other departments, or customer feedback, it is essential to know how to manage it properly. 

The first step is to gauge which is internal and which is external feedback. Here in this blog, we have tried to simplify that for you.

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