How to Use Customer Feedback for Product GrowthDecember 23, 2021
The product life cycle (PLC) is one of the oldest, most enduring, useful business concepts. In broad strokes, it defines the stages of customer acquisition and retention that all products typically go through.
At each stage, it forces you to take a step back and think about the big picture:
How can you get this product to more customers and make sure it stays relevant to them in the long run?
Your product, how customers use it, and your customer acquisition strategy can all change drastically throughout the PLC. However, no matter what stage of the PLC you’re in, success depends on how much value customers derive from your product.
One of the best ways to figure that out is to ask them directly and incorporate the feedback into your product development cycle.
In this blog, we will explore the importance of customer feedback in the product cycle and how you can turn that feedback into actionable insights for innovation and product growth.
So without further ado, let go further.
Why Gather Customer Feedback?
Customer feedback at every stage of the product development cycle helps align customer expectations with the product features. From the conception of the product idea to its launch and afterward, gathering feedback becomes vital to make sure your product appeals to the target market.
Here are a few reasons why you need to incorporate customer feedback in your product development and beyond:
1. Identify the Right Product-Market Fit
A “product-market fit” is when your product’s value proposition aligns with the audience’s needs. It means building the right product for the right audience.
When you’re first starting, your single biggest priority needs to be getting to product/market fit. It won’t be possible to acquire customers if your product doesn’t solve a market need.
But how do you know who your customers are and what they want?
By collecting regular feedback.
It helps to gauge the demand for the product so you can craft your value proposition accordingly. The answers you need should come from the people whom your business runs i.e. your customers.
Looking to hit the right product-market fit? Take a look at Qualaroo’s Guide to Product-Market Fit
Multiple factors can affect the product-market fit, such as;
- Ease of use
With valuable insights for your target audience, you can find the perfect balance between these factors to build products that appeal to your target market.
Case Study: How Netflix achieved its product-market fit
Netflix has always found its perfect-market fit by reading the current and future trends. It started as a DVD rental business to provide cheaper options to the users than the brick & mortar shops.
It used to mail movie DVDs to the customers as part of its subscription package, allowing users to keep the DVDs with them for as long as they wanted without worrying about the late fees.
With the increase in internet bandwidth, Netflix shifted from DVDs to online streaming to compete as the cheapest alternative to whatever the entertainment market offered.
By constantly altering their product over the years to fit the current market, Netflix is now one of the best streaming platforms in the world.
2. Test New Ideas & Product Concepts
It’s not just about building a product but finding the next best thing for your customers.
According to a study in Harvard Business Review, customer ideated products performed 20% better.
That’s one more reason to crowdsource product ideas.
To create products that resonate with potential customers, getting to know them inside out is vital. It is even more important for digital and SaaS products because they tend to serve very specific purposes – and hence, are targeted towards similarly specific customer segments.
- What kind of solutions are your target looking for?
- Does the current product solve their problems in the most effective way?
- Does your current idea appeal to your target audience?
Another factor to consider is competition.
- Does a similar product exist in the market?
- Does more than one option exist to satisfy the purpose (or similar) that your product aims to fulfill?
- If yes, then what will set your product apart – the Unique Selling Proposition, the famous “USP”?
Customer feedback can help you explore answers to these questions and test new ideas at the pre-development stage so you can make early changes before committing to building a prototype:
When you incorporate the learnings from your potential customers into the product development process in the beginning, it increases the probability that the product will be well-accepted by users.
Case Study: Udemy drives continuous product growth with user feedback
Udemy, an e-learning platform, uses Qualaroo’s contextual surveys to segment its audience based on various factors such as language and location. The survey responses help to understand issues and preferences for each segment to develop new ideas and product optimization strategies.
For example, using customer feedback, they identified that many users outside English-speaking countries were opting for courses taught in English. So, they added a new feature – automatic captioning in their course videos to make courses inclusive for more people worldwide.
To optimize it further, they asked users to rate the quality of automated captions and provide suggestions to improve.
They also use user research surveys to obtain information about traffic sources to understand the effectiveness of marketing efforts and optimize budget allocation.
Watch: 3 Ways Udemy Learns From Their Students
Incorporating customer feedback into your product cycle is necessary not only at the pre-development stage but even after launching the product.
It allows you to explore new ideas about making your product better. Sometimes even seasoned entrepreneurs feel a shortage of ideas that have a high probability of success.
During such slumps of creativity, customer feedback can spark innovation like nothing else.
Since the general people do not have to face the pressure of coming up with ideas, they can surprise product developers with their fresh perspectives.
The way forward for the product can be charted by taking advantage of their so-called ‘out-of-the-box’ ideation through one-to-one conversations. When the purpose of the product becomes clear, the rest of the product innovation and development process becomes quite streamlined.
How to Innovate by Using Feedback in R&D
With the increasing relevance of customer feedback, it has become essential to use the Voice of Customer in product R & D. You can eliminate most guesswork by incorporating customer feedback in the design stage itself. Plus, your theories and assumptions get validated!
Some common ways to get customer feedback are:
- Interactive workshops
- Usability testing
- Social media monitoring
- Simple direct surveys that can be run inside your product or on-site.
Community feedback from long-time users is a great driver of new product development.
An excellent example of this strategy is the Lego Ideas portal, which allows the entire Lego community to submit their unique product ideas, participate in Lego-building contests, vote for the new ideas submitted by others, and interact with others in the world-ranging community.
Putting a customer feedback system in place lets you extract maximum insight from your target user’s mindset. It can also open up opportunities for target market expansion, customer acquisition, and new customer segments who are more than likely to love your end product.
4. Install a Continuous Delivery System
Often product developers and marketers are too close to it to identify (or even acknowledge) its problems. To them, the flaws become invisible.
Customer feedback is a great tool to break this dangerous mindset. It identifies users’ problems that might not be readily apparent to those involved deeply in the product’s design, creation, or promotion.
With the constant changes in market trends and customer preferences, effective feedback systems allow businesses to adapt agile product development to respond to such changes quickly, thereby reducing risks.
Even at the prototype phase, new products should be tested by unbiased users. The fact that such users have no prior experience with the kind of product you are testing gives you insight into how well the product works (or doesn’t, and why), even when new customers choose to try it out for the first time.
Case Study: KingsPoint discovered a problem to save $60000
KingsPoint implemented Qualaroo to collect and incorporate customer feedback in their conversion rate optimization process. The team deployed surveys on product pages, resource pages, and checkout pages.
This is what Steven Macdonald, advisor at KingsPoint, had to say about the impact of customer feedback on their product cycle – “Without Qualaroo, we would still be unaware of the problem. Based on conversion rates for both Firefox (12%) and Internet Explorer (9%), if we can convert just as many users with Safari, then fixing this problem could be worth approximately $60,000 this year.”
4 Steps to Incorporate Customer Feedback Into Your Product Cycle
Implementing customer feedback into your products requires planning and strategizing to build a robust cycle so you can continuously turn data into insights with a planned approach. It will not only help to improve products but other aspects of your business.
Here are a few detailed steps to establish the feedback loop in your business:
Step 1: Set up a Customer Feedback System
The first thing to do is choose a customer gathering and analysis platform for your business. It should perform the following things:
- Make it possible to collect feedback
- Consolidate it in one place
- Help to analyze it
As we know, there are multiple means of collecting feedback. You may need more than one means to collect customer feedback depending on the depth of information you require for your product.
- Pre-development stage: You are more likely to conduct face-to-face interviews, do guerrilla marketing, or use email surveys to collect customer feedback.
- During the product development stage: Usability testing methods and surveys become a viable choice. Suppose it is a website, mobile app, or SaaS-based product. In that case, you can use surveys or usability testing methods to uncover issues, bugs, and other problems with UI and UX.
- When your product launches: Surveys become the best bet to collect in-context feedback from different audience segments, especially for a digital product. You can embed them directly into your product, send them via email or SMS, and even use social media to collect feedback.
Tip: If you are working in a rapid development or agile environment, surveys can offer tremendous advantages over other means.
They are cost-effective, simple to build, offer more targeting options and multi-channel accessibility
Step 2: Ask for Feedback
Now that everything is in place, it is time to collect insights about your product.
A. Select the Right Audience
The right people will make all the difference in finding out the reliability of the feedback data.
- Making changes to the checkout process: In this case, your ideal target audience would be your verified customers or people who have used the checkout system. You cannot ask first-time customers for their feedback because they don’t know how your checkout process works.
- Adding an onboarding process to your product: Your target audience shifts from customers to first-time visitors. In this case, first-time visitors are more likely to provide valuable insights into how informative the onboarding process is. The people who are using the app, website, or product already know its features and functionality.
Here are a few tips for selecting the right target audience:
- In the pre-development or concept stage: Choose people not associated with the project. Choosing friends or family may seem viable, but the emotional bias towards you can creep into their product feedback. The same goes for teammates who know about the product; they may be too close to it to evaluate it from a user’s perspective.
- In the development stage: Set up a cross-team feedback system to evaluate process flows and product design. Tools like Qualaroo provide prototype testing abilities to collect feedback on your design. You can embed the survey into your design template and send it to anyone.
You can also choose a mix of people who have worked with a similar product or concept and who haven’t. It will help gauge how easy it is for new users to understand the product and also figure out missing features from users who have used such a product.
In the post-launch stage: You can use your user base to select the target audience such as first-time users, potential customers, verified customers, churned customers, etc. One of the fastest and most effective ways to collect feedback from this stage is through surveys.
B. Choose the Right Questions
Once you have identified the audience, it is time to work on the questions. Whether it is a personal interview, usability test, or survey, the questions you pose will determine the product feedback’s accuracy.
Here are quick tips for writing good questions:
- If you are hosting interviews, try to design a scenario around your question to help participants understand it.
- If you are using surveys, keep the question clear and easy to understand. If people can’t understand your question, they won’t be able to select the answer objectively.
- Avoid leading or double-barreled questions. It may introduce interviewer bias and make it harder for the respondent to answer them.
If you are looking for more tips to design targeted questions, refer to the guide: How to write good survey questions
C. Choose the Right Channel and Medium
The right channel(s) can assist you in finding the target audience and maximizing the response rate.
Here are a few mediums you can use to collect customer feedback:
- One-on-one interviews:
Suitable for pre-development stages to collect in-depth feedback but require more resources, time, and effort than other mediums.
- Usability testing:
Perfect to test product concepts, and design flows at every stage of the product cycle. But it requires special tools like UserTesting with techniques like screen recording, video recording, voice recording, eye-tracking, or heatmaps to analyze user actions and behavior.
- Email surveys:
Best for recruiting participants for usability testing and collecting customer experience feedback after they interact with your business, like making a purchase or contacting the support service.
- On-site or in-app surveys:
Best for targeting multiple audience segments at once with different survey types. They allow advanced targeting based on visitors’ behavior and actions like exit-intent, after the checkout, and after clicking the CTA button.
Tip: When it comes to exit-intent popups that can improve user experience, increase conversions with personalization while collecting useful data, Picreel and Optimonk are amazing tools that can help you do this and much more.
- Social media:
Optimal to crowdsource ideas and assess customers’ perception of your brand. You can add surveys or polls to your product page or company’s account to collect highly targeted feedback.
- Feedback boards:
Another suitable medium to collect feedback, suggestions, and ideas from your online user community. Add feedback boards on your website or app for people to post ideas, upvote on others’ ideas, and reply to comments. Choose the most upvoted ideas for your product roadmaps and development.
- SMS surveys:
Best means to run pulse surveys at various touchpoints along customers’ journey. You can ask one or two quick questions like NPS or CSAT using short surveys.
- IVR surveys:
Mainly used after the customer contacts the support services to collect satisfaction ratings. The customer punches the applicable number of the keypad to answer the survey.
Step 3: Analyze – Categorize Data to Make Sense of It
The next step after gathering feedback through any of the ways mentioned above is customer feedback analysis. Analysis of the feedback should drive actions.
The first task is to decide the categories into which you want to sort feedback data.
Do you want to separate positive and negative reviews?
Do you feel it will be more beneficial to sort it according to the type of product feedback it is, like feature requests, major/minor bug reports, crash data, system logs, etc.?
Once the feedback is sorted, analyzing it can be made more efficient by using the power of artificial intelligence and machine learning. These results are the perfect basis for an action plan to improve your product in the way(s) customers want.
Step 4: Act – Have a Specific Product Evolution Plan
It is not viable to take all the myriad types of customer feedback into account to decide on the course of action for product lifecycle improvement and extension.
The analysis should yield the major areas or factors that require fixing and any challenges customers face while using your product. Customer feedback and product management should be closely linked to maximize user adoption.
Incorporating customer feedback into your product’s life cycle at every stage (introduction, growth, maturity, decline) can increase user adoption.
Involve all the stakeholders in the product (early-stage designers, coders, developers, alpha/beta testers, UI/UX designers, sales/marketing – all of them. Share the feedback related to their part of the product life cycle and ask them to add value to the product based on that feedback.
Customer Feedback Questions at Various Stages of Product Cycle
As discussed above, the right questions will fetch the correct information and prevent you from making mistakes that may deteriorate the product experience instead of enhancing it.
That’s why we have compiled a list of various questions you can use to collect product feedback for different scenarios that may arise in your product development and growth cycle.
A. Pre-Development Stage or Planning Stage
Scenario 1. Exploring product opportunities
- Which feature do you want us to build next? (Single answer type)
- Would you purchase the product at [price]? (Y/N)
- Have you seen any product with [feature name]? (Y/N)
- Would you purchase this product if it were available today? (Y/N)
- What problem would you like to solve with our product? (Free-text)
Scenario 2. Competitive analysis
- How long have you had the product?
- How often do you use the product?
- Rate the factors that affect your buying decision for [product] (Matrix match)
- How satisfied are you with the product? (Likert Scale)
- According to you, which brand best fits each of the following traits. (Matrix match)
- According to you, in which area is this product/service lacking the most? Specify below. (Free text)
B. Development Stage
Scenario 3. Testing usability
- What was your initial impression of the product? (Free-text, Likert Scale)
- What function do you think this product does? (Free text)
- What problems did you encounter while using our [product]? (Free text)
- What feature did you expect but not find? (Free text)
- How easy was it to navigate the product? (Likert scale)
- What are the things that you liked the most about the product? (Multiple choice)
- What grabbed your attention? (Free text)
- What words or sentences can you recall?
- What are the main elements you can recall?
- How can we make [this product] easier to use? (Free text)
C. After the Product Launch
Scenario 4. Understanding product experience
- Please rate the following aspects of the product as per your experience: (Matrix question)
- Please rate your overall experience with the product? (Rating scale 1-5)
- What changed for you after you started using our product? (Free-text)
- What convinced you to buy the product? (Free-text)
- Which of the following words would you use to describe our product? (Multiple choice)
- How satisfied are you with the product? (Likert scale or rating scale)
- What difficulty did you face while using the product? Please specify. (Free-text)
- How can we make the product better for you? (Free-text)
Scenario 5. Gauge customer satisfaction (CSAT survey)
- Overall, how satisfied were you with our [product name]? (Likert scale or rating scale 1-5)
- If the response is negative (1-3): Sorry to hear that! How could we improve?
- If the response is positive (4-5): What do you love about [product name]?
- Do you feel our [product or service] is worth the cost? (Y/N)
- What should we do to ‘WOW’ you? (Free text)
Scenario 6. Likelihood of recommending the product (NPS survey)
- What is the likelihood that you would recommend [company or product or app] to a friend or colleague? (NPS scale)
- If the answer is (0-8): What is the reason for your answer? (Free text)
- If the answer is (9-10): What are the aspects that you like the most? (Free text)
- How likely are you to buy again from us? (Likert scale)
Scenario 7. Identifying product Issues
- What’s the one thing that nearly stopped you from buying from us today? (Free-text)
- Did you find what you were looking for? (Y/N)
- What important features are we missing? (Free-text)
- What is your greatest concern about [product]? (Free-text)
- Have you started using other similar products? If yes, what made you choose that product? (Free-text)
- What are the things that you want to improve in the product? (Free-text)
- What are your main concerns or questions about [product or service]? (Free-text)
- How can we improve our product? (Free-text)
Scenario 8. Releasing new updates
- How would you rate this new feature? (Rating scale 1-5)
- How likely are you to recommend [product name] to your friends and colleagues after implementing [feature name]? (NPS Scale)
- Please let us know how we can further improve this feature? (Free-text)
- Have you used our [product or service] before? (Y/N)
5 Best Practices to Incorporate Customer Feedback Into Product Cycle
1. Estimate the Required Sample Size to Ensure the Data Is Reliable
One of the most important things to do while collecting customer feedback is to estimate the sample size for your survey responses.
A large sample size provides two benefits in your survey campaigns:
- Helps to establish the statistical significance. For example, a 95% statistical significance means the probability of getting wrong results is 5 out of 100.
- Increases the reliability of the data.
- Provides you with enough data points to draw accurate conclusions.
All customer feedback systems have limitations like survey bias, respondent bias, or random answers from respondents. So, If you don’t have enough responses, you cannot separate the genuine feedback from the outliers. Plus, it helps to spot trends among the data.
If you are using surveys, calculate the sample size from here.
As you can from the image above, to get 95% statistically significant results, you need to collect at least 2070 responses.
In the same way, if you are doing usability testing, the acceptable sample size can be between 5-39, depending on the method.
2. Ask for Feedback but Innovate Yourself
Always listen to the customers before, during, and after the product development to drive new ideas and innovation.
But there is a caveat.
According to Anthony W. Ulwick, founder of Strategyn, most companies approach customer feedback incorrectly. They ask customers for solutions instead of outcomes.
For example, the customers might say they want to be able to record videos using the app, and when companies deliver these solutions, it is observed that they don’t pan out as expected.
Anthony states that the reason is, the customers are not experts in innovations. Instead, the companies should only ask for outcomes like ‘what do you want the product to do for you.’
Using these outcomes as insights, the R&D team should develop new innovative solutions that appeal to the customers.
By focusing on desired customer outcomes, innovation becomes in-house research that can help you create products that sell.
3. Use Multiple Channels to Maximize the Sample Size & Response Rate
One of the most effective ways to collect customer feedback is to follow an omnichannel approach because:
- It puts you right where your potential customers are
- Makes it easy to reach the required sample size
It also helps to design a seamless omnichannel experience. So the customer can switch channels along its journey without any issues. For example, they can add the products to the cart from their desktop and then checkout using the mobile app afterward.
Plus, it helps you identify the most used channels and traffic sources so you can leverage them for feedback and optimization.
Using multiple channels for collecting product feedback is key to building the perfect product-market fit.
4. Look at the Big Picture — the Overall Experience
There are multiple touchpoints and interactions customers use along their journey. They may be directly or indirectly related to your product.
For example, a bug that prevents the customer from generating the report in your SaaS product is product-related feedback. But an issue such as an unoptimized help center or unclear pricing structure indirectly affects the product cycle.
These experiences help to shape the perception of your business in the customer’s mind. That’s why it is essential to optimize each point for improving the overall experience.
If you are only prioritizing the product-related issues, you are missing out on all other valuable information. You may offer the best product in the market, but if your services do not match customers’ expectations, they may move to the competition.
Here are some tips to improve the overall product experience:
- Optimize both transactional and overall customer experience.
- Use simple surveys or feedback forms to collect feedback across various customer interactions.
- Find the points of customer drop in the conversion funnel and collect customer feedback to uncover the reasons behind it.
- If you have a SaaS product, add a Contact Us tab and a help center link to give quick access to the customers.
- If you have a website or app, add a live chat widget to provide 24/7 support to the visitors.
- Collect feedback regularly to monitor general trends, spot undetected issues, and changes in customers’ satisfaction levels.
Watch: Supercharge Your Revenue With Data-Driven Pricing
Close the Loop Quickly
One of the biggest challenges while incorporating customer feedback into your product cycle is to act on it quickly.
With hundreds of data points, it becomes difficult to analyze each of them to drive actionable insights. But if you don’t act on it quickly enough, you risk losing customers.
So what to do? Categorize and conquer!
- Take help from relevant cross-departmental teams to work on the customer feedback simultaneously.
- Try to develop a system that consolidates the feedback into one place so all the teams can see it. For example, Qualaroo integration with Slack automatically sends the survey responses to the Slack channel in real-time. The teams can instantly pick and categorize it.
- Utilize the latest techniques like AI-based sentiment analysis, text analytics, voice analytics, NPS track
- For example, sentiment analysis can automatically identify the mood phrases in the responses to categorize them as happy, sad, angry, etc. In this way, you can prioritize the negative sentiments first.
The NPS or CSAT score trackers monitor the scores over time and let you visualize the changes in real-time.
- Behavioral analysis tools employ eye-tracking, heatmap, or screen recording to help you understand user behavior and actions.
Try to break down the customer feedback into small chunks that your teams can quickly analyze and act upon.
4 Examples of How Companies Use Feedback to Build Better Products
Apple has always taken a keen interest in collecting customer feedback on their products since the dark ages when customer feedback was not even a thing. Whether it’s an in-store or online experience, the brand always reaches out to its customers and asks them to share feedback about the products and services.
It also has an official support account on Twitter, which proactively collects suggestions, complaints, and customer feedback. CSAT and NPS surveys constitute a significant part of Apple’s product feedback program to measure customer satisfaction with the products.
This feedback is directly incorporated into the product cycle to drive innovation and explore new ideas for improving the products.
It’s no wonder that Apple has consistently scored one of the highest customer satisfaction ratings in the market – The fact evident in the 97% approval ratings for their Apple Watch among the customers.
Cloud communications platform Twilio’s product development strategy involves putting themselves in the customers’ shoes at every stage of the product cycle to work on their issues.
As they work in a fast-moving and constantly changing environment, testing every hypothesis and idea is impossible. So, the company uses customer insights from survey feedback to prioritize which hypotheses to pass for the experimentation process.
Using Qualaroo survey Nudges™, they collect targeted customer feedback to build data-backed hypotheses, making the process more efficient and increasing the chance of positive results.
The customer feedback is used not only by the product teams but across the entire organization – 18 different teams use survey data to build new ideas and test them.
Here are some ways Twilio empowers its teams with customer feedback:
- They use surveys to screen & recruit participants for user testing and interviews.
- Map customer needs and expectations to spark new ideas and innovation
- Collect data and collaborate among different teams to understand the difference between customer expectations.
With a constant feedback loop in place, Twilio can innovate, experiment, and deliver new functionality almost every week.
Salesforce employs the community feedback board called IdeaExchange and voice of customer research panels to collect customer feedback to improve their products and services.
IdeaExchangeIdeaExchange is a community feedback channel to crowdsource ideas, suggestions, and feedback from customers. People post their ideas about which features they want to be included in the product, and others can vote on the submitted ideas. The product development teams then pick the top voted ideas for testing and implementation.
By including customers directly into its product development process, Salesforce can find the perfect product-market fit for its platform.
Voice of Customer research panel
Salesforce research panels are a group of pre-screened respondents who participate in their research activities like surveys, 1-on-1 interviews, and focus groups. The interested customers can sign in to become a part of the research team. The feedback from these participants is directly used in the development of products and services.
The combined effect of gaining insights directly from real users and involving them in product testing during development makes Salesforce one of the leading CRM software in the world, as seen by revenue standings in the screenshot below:
In 2018, Mozilla decided to branch out from the Firefox browser to include more apps and services. At the same time, it decided to rebrand its identity and designed two design systems to bring the whole suite of tools under one banner.
What’s unique was that the Mozilla team asked users to help them pick the new system. Anyone could leave a comment about the design and suggest any changes by answering the following questions:
- Do these two systems still feel like Firefox?
- How visually cohesive is each of them? Does each hold together?
- Can the design logic of these systems stretch to embrace new products in the future?
- Do these systems reinforce the speed, safety, reliability, wit, and innovation that Firefox stands for?
- Do these systems suggest our position as a tech company that puts people over profit?
The entire campaign did two things –
- It made customers a part of the development and redesign process earning Mozilla loyal users.
- It helped Mozilla grow. By the time the new design came out, people were already familiar with design icons, preventing any confusion.
Listen Better, Build Better
If you keep improving the customer experience and find new applications or markets for your product, it can keep growing steadily well past the maturity stage. But most products fail to keep up with customers’ changing needs, so they gradually lose users and fade away.
Nip that decline in the bud before it happens. You need to put a system in place to figure out why customers leave you before it becomes a problem. That way, you know exactly where to turn to address churn as soon as it starts to spike, like these companies did, to great effect!
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