Learn. Apply. Succeed.
Monthly Tips on Product Management,
Strategy and Marketing.
Capturing Customer Insights
A Beginner’s Guide
December 2015
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Staying connected to the customer is a must. Needs change, neglected relationships sour,
competitors can gain a foothold.
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Best practices for marketing research would have you begin with a qualitative study, followed by a
quantitative approach that probes more deeply and reflects your entire customer base. This is
especially true of consumer markets, which tend to be larger and faster moving than B2B. But
organizations unused to systematically collecting client feedback can find the prospect daunting.
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First, there’s the question of time. Product managers face an ever-growing list of to-do’s, and it’s easy
to push market research to the bottom. “Consider hiring a professional researcher, especially if you
want statistically valid data,” suggests Judy Iskovitz, who conducts workshops for Sequent Learning
Networks. “You may even be able to purchase off-the-shelf studies though, of course, they would also
be available to the competition.”
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“Using an outside researcher has pros and cons,” advises Andrew Ronfeldt, Director, Solution Services,
for SMC³, which provides technology and services to the North American transportation industry. “It’s
usually a more expensive way to go, but if you try to do it on your own, it could take a lot longer and
the results might not be as robust. There’s also a lot to be said for the fresh perspective of an
‘outsider.’”
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Even if resources aren’t an issue, ingrained attitudes may stand in the way. “I’ve worked for firms that
felt it weakened your standing as an industry leader to ask customers questions, that you should be
the one providing all the answers,” says Ronfeldt. Then there are overly protective sales reps,
concerned about maintaining account control. And product managers may need to overcome their
own anxiety, fearing missteps or political fallout if they end up delivering unpopular information to
executives.
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The Cost of Doing Nothing
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To get management approval for your customer outreach, try talking numbers. How much does your
company spend on research and development? Some sources indicate that U.S. industrial firms tend
to spend 3.5 percent of revenue on R&D. For high tech, it can be seven percent. Probing the
customer mindset before committing funds can avoid bad investments.
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On the other hand, big opportunities could pass you by. The New York Times ran an article about
Eone, a startup that had designed a “read-by-touch” watch, originally meant for people with vision
problems. Focus groups surfaced two important points:
• The original target market wanted stylish watches that wouldn’t highlight their disability.
• People with normal vision were also interested in the ability to discreetly check the time.
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As a result, the company began focusing on a much larger market.¹
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Learn. Apply. Succeed.
Monthly Tips on Product Management,
Strategy and Marketing.
How to Begin
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Try starting small. A little hard data is better than nothing, so long as you don’t over-extrapolate. Begin
by talking with the members of your cross-functional team who regularly interact with customers.
“Working with Customer Service is a favorite of mine,” comments Ronfeldt. “They’re the ones fielding
calls about product problems, and their trouble logs are a gold mine.”
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The salesforce is another natural place to look. If product managers aren’t regularly included in winloss audits, get yourself a seat at the table. But don’t wait for audits. Regularly check with reps about
what they’re hearing.
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“Recognize that you’ll have to apply a filter to sales feedback,” cautions Ronfeldt. “Customers aren’t
always willing to pay more for what they’re suggesting or their ideas may not be relevant to a large
enough market.”
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Visit the Customer
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There’s nothing like face-to-face visits to cement relationships and see how customers are actually
using your products. If travel budgets are tight, start locally. “Even video conferencing loses nuance,”
continues Ronfeldt. “When you’re in front of a person, subtle reactions can help you frame followup
questions.”
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Online surveys are a great way to inexpensively reach large numbers of prospects. Remember to
target both decisionmakers and influencers, since their perspectives often differ.
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If you’ve never written a survey before, here are a few tips:
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Keep it short to encourage participation.
Use clear, unambiguous language.
Avoid combining two questions into one, since answers will be less precise.
Leave sensitive questions till the survey’s end to avoid incompletes.
Be aware that respondents may not always be truthful. Ask important questions in two or more
ways throughout the survey, then compare answers.
Consider recruiting especially insightful customers to a user council. The format could range from a
LinkedIn group to webinars to formal events with opportunities for executive involvement. Share
product prototypes with your “lead customers” and involve them in beta testing.
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It may seem obvious, but don’t forget to monitor your customers’ websites. They can often be mined
for important clues. Set up Google alerts so that you’re up-to-date on what’s being written about
them.
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Finally, if development costs are low, consider a limited launch so you can test in the marketplace.
“Sometimes you can agonize over details for so long that the opportunity passes by,” warns Ronfeldt.
“In the right situations, a fail-fast/succeed-fast approach to market research can be very effective.”
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Learn. Apply. Succeed.
Monthly Tips on Product Management,
Strategy and Marketing.
Key Insights
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Explain to management the role of market research in evaluating investment opportunities.
Consider hiring a professional researcher.
If quantitative research is too expensive, careful use of qualitative data can be helpful.
Interview customer-facing colleagues.
Gather customer insights through visits, online surveys, user councils and website monitoring.
Consider a limited launch for quick in-market learning when development costs are low.
¹Felicia Craddock, “Touch Time, for the Blind and Everyone else,” www.nytimes.com (March 19, 2015).
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