Estimated Time
- Reading: ~8 minutes
- Video: ~17 minutes
- Activities: to be completed prior to the next week
Insights
- Focus on developing and improving your core features
- Not all customer feedback is equal — find your high-value users
- Customer requested feature development should not be used as a sales tactic
- Find a balance that works for you and continue to make daily progress
Episode Date: September 3, 2021 -- External Link to video
Customer feedback
- Founders need to get to know who the users are in order to better understand the feedback
- Why did they pay to use your product?
- How they are using the product/service?
- What do your users need?
- Are you meeting the needs of the user?
- Collecting feedback from your users is critical to the adoption and growth of your product
- As we've discussed in detail, you should be prioritizing customer interactions as a founder
- But keep in mind, not all customer feedback should be weighted equally
- It is essential to understand which customers you are talking to and which input to consider for your roadmap
- Create a group of your top customers
- It is likely your top users understand your product as well as (or better than) some of your employees
- This isn't ideal, but it is a reality
- Does your sales team log in to your product regularly?
- When was the last time your leadership team or advisors were active in your product?
- Another reason sharing customer use cases with your team is valuable
- So who are the top 5-10% of your customers?
- You can measure this "top group" by revenue or engagement
- Users who are using your product the most (engagement)
- Users who are paying the most amount of money (revenue)
- You probably want to blend these together for a well-rounded representation
- Unless you are collecting feedback on a specific metric that makes sense to isolate them
- Building for the customer is usually a winning strategy - especially when you know they are the most active or most invested customers
- You are solving their problems, so getting input from the most valuable cohorts is a smart place to start
- Listen to your customers, document their feedback, and bucket common concerns or suggestions together to drive roadmap decisions
- Keep in mind that customers don't always know what they want
- This is another reason it is important to get to know your ideal customer profile deeply
- You can then blend your expertise and product vision with the problem they are trying to solve and really delight them
- Even if they can't verbalize exactly what they want
- Customer feedback isn't intended to convert customers
- You are building a company and a product, not a consulting service
- When it comes to bucketing feedback there are a few things to consider
- Did the user offer you the suggestion or did you request it?
- Gain an understanding of the types of suggestions that come in without your request to determine how to proceed
- These users are oftentimes not in the group of value customers
- This feedback should not be ignored, but place more emphasis on the feedback coming from a valuable user
- Don't get bogged down by focusing on the casual users
- Especially a free user without skin in the game
- These users are often quick to offer suggestions or complain without being invested
- How you are talking to customers is just as vital as who you are talking to
- Customer surveys are a great place to start because they are simple to create and implement
- A few things to keep in mind when creating a survey
- Keep the survey short
- Only ask one question at a time
- Before sending the survey review and remove unnecessary questions
- Have a clearly defined goal of what you want to accomplish with the survey
- Remove all questions whose answers will not get you to your goal
- It doesn't have to be only multiple-choice; use open-ended questions as needed
- Collecting qualitative data not easily available in surveys is another great way to gather feedback
- Schedule recurring calls with key customers
- Keep it very casual to build rapport
- Begin the calls with open-ended questions like:
- "What can we help you better understand about our product?"
- "What is working for you?"
- "How can we help you be more efficient with our solution?"
- "What do you wish it did?"
- "Is there anyone else you'd like me to help you onboard at our next meeting?"
- Help them get more team members using your product — you'll save them work and ensure the early adopters are up to speed on your product
- This call can also be a great time to show off any new features or collect initial feedback on roadmap items
- This should be done after you have provided value to the customer
- Can be phrased: "We have some items on our roadmap that I think you might find really interesting - would you like to check them out quick?"
- Similar to launching your MVP — you can simply show mockups and ask what they think about this new feature in the works
- Often the customer will feel special that you're having an intimate conversation and requesting their insights
- Record the conversation for internal review
- Build these relationships with early customers
- Frequent conversations will build trust and credibility
- Encourage users to tell you what you are doing wrong
- Honesty from your most active and invested users is invaluable
- This feedback will help drive product development and lessen the change of churn
- Balance feedback with product vision
- Fitbod does a great job of balancing feedback with their core development
- They keep the product vision at the forefront but are willing to experiment with features suggested by customers
- The three streams of product development they focus on at their high-growth startup are:
- Core Feature Development
- Experiment-based Feature Development
- Importance of product-led growth
- Core feature development
- These are features that your product cannot exist without
- For example, video processing for YouTube
- The core features of your product can not be neglected for one-off suggestions from users
- Feedback on your core features should be considered over requests for new features
- You must do one thing extremely well and that should be your main focus of development
- What is your main value proposition? What is your one simple sentence?
- You must build around this first and foremost
- Experiment-based feature development
- Be careful as this is where startups can "overbuild"
- You never want to go on a feature death march where you build without a clear purpose until you run out of money
- Avoid what Jason calls "founder ADHD" and wanting to build the newest shiny thing simply because you are excited about it in the moment
- The experiments you try need to be with a purpose
- Keep in mind that a vision or product without users is not a company
- As much as you need to be focused on your vision, if people aren't using the product the company won't succeed
- Listen to the users, find product-market fit for your core features, then consider which additional features to experiment with
- You can leverage experiments and customer feedback to define parts of your roadmap
- This is outside of core feature development
- Bucket user feedback based on their suggestions
- Identify alignment with your vision and across your valued customers to prioritize which to try first
- Keep the MVP mindset for this feature development
- Implement the experiment quickly, test the new feature with users, and gather feedback
- Make quick decisions (based on the metrics you define beforehand) to move forward with additional development or cut the experiment
- Do not be afraid to delete unused features or unsuccessful experiments
- The Lean Startup has an entire chaptered entitled "Experiment" that touches on this exact concept
- Ries dives deep on questions like "which customer opinions should we listen to, if any?"
- And he reiterates the scientific method of entrepreneurship: "If you cannot fail, you cannot learn"
- He suggests that you should treat each experiment like an MVP
- Start small but continue to think big picture
- Implement changes, iterate, and always be learning
- I would highly suggest rereading chapter 4 from The Lean Startup for more insight on experiments
- Product-led growth
- "Product-Led Growth is defined as a go-to-market strategy that relies on using your product as the main vehicle to acquire, activate, and retain customers."
- As defined by Wes Bush founder of ProductLed and thought leader in the space
- This method is centered around letting your product drive sales by making it easy for users to start using it and understanding the value
- There could be an entire module on product-led growth (but that is slightly out of scope for this program)
- If you are interested in learning more about it I'd highly suggest checking out Wes's book as well as his website
- Fitbod does a great job of blending their product vision with testing user feedback
- They are focused on those three streams of development while staying true to their roadmap principles
- The simplicity of Fitbod's 4 roadmap principles are a huge part of their growth and one I would consider implementing in some form at your company
- Their four principles are:
- Focus on Craftsmanship
- Build something that you're proud to share with your friends and family
- Build something that you can happily use yourself
- Allen and Jesse were Fitbod's first two power users
- They built a product they needed and would use
- This focus on craftsmanship is across their product
- Always make progress
- Small steps in any direction are better than no steps
- Each iteration of the product is an improvement and offers an opportunity to learn and improve
- Keep in mind, that done is better than perfect
- Done is never really done — so get the product, new feature, etc. in front of users and gather feedback
- Reid Hoffman famously said:
- "If you're not embarrassed by the first version of your product, you've launched too late!"
- This applies beyond the first version, to new features and experiments
- But should not proceed the first principle — focus on craftsmanship
- This is one of Jason's key focuses also — he is always encouraging founders to get just 1% better every day
- Leverage core differentiators
- Prioritize features that leveraged and highlighted core differentiators
- It is important to be aware of your competition but to not obsess over them
- Make your core features faster, better, easier to use, etc.
- Delight early adopters
- Listen to customers and deliver
- Constant improvements and iterations build trust with early users
- Talk to them regularly
- It is important to find a blend of product vision and customer feedback that works for you
- But prioritizing your core features should always come first
- And adding new features should not be used as a sales tactic
- Users who say they "need just this one little thing" and they will buy, will always need just one more thing...
- Focus on what you do best and delight the users that have the problem you solve for
- Prioritize on improving your core features!
"The number one thing I end up talking to people about is, how can we do fewer things, but do them faster and better." - Charles Hudson
"You have this bundle of energy as a founder; we just need to make it into a laser, not a grenade." - Jason
- In other words, do fewer things, but do them faster and better
- Jason continuously reiterates with our portfolio companies...
- When you find something that works double down!
- When you strike oil, keep drilling!
- Improve the digging tools to be more efficient
- Create faster augers and bigger wells for the oil
- Don't start looking for diamonds!
- Focus on improving the core features every single day while listening to your users and experimenting with their suggestions
- Find a balance that works for you and keep building
Additional Resources
- How to Balance Focus on One Customer at a Time Versus New Features for Many?
- Startup Basics: Knowing when to pivot
- Scaling Your Startup "Delighting Your Customers": NPS, PMF, focus, feedback, interviews, and tools
- Fitbod's Allen Chen & Craig Zingerline of Growth University talk about growth metrics
- Jesse Venticinque of Fitbod on with Rahul Vohra of Superhuman talk about product-led growth and retention
Activities
Week 8
Identify your top 5% of users
- Document who they are in a CRM or spreadsheet
Schedule a recurring meeting with a top user
- Can be more than one
- The meeting doesn't need to be long, 10-20 minutes is fine
- Find a cadence that works for them — once a week, every other week, once a month
Week 9
Bucket initial user feedback
- This should be based around your core features at this point
Identify core differentiators
- Which of your core features will help you stand out from the competition?
Week 10
Does a product-led growth strategy make sense for you?
Continue to collect and bucket feedback from users regularly