The question “What do you want to eat next?” may seem straightforward, but the answer can be complex. It depends on your appetite, who’s asking, and the timing. Similarly, when a customer says, “I want this feature” or “I’m hungry for that product,” it’s not as simple as it sounds. The task isn’t just to deliver what they ask for, but to dig deeper to understand what they really need, whether it’s breakfast, lunch, or dinner.
In this session, Sander van Gelderen, CMO at Effectory dives into this nuanced relationship between customer feedback and product development. Over the past 20 years, Sander has built marketing and tech companies, transitioning from service delivery organizations to SaaS providers. His experience has taught him to balance customer desires with the long-term needs of both the customer and the company.
The shift from service delivery to SaaS
Moving from a service organization to a SaaS provider brought a shift in focus for Sander’s teams, from customer satisfaction and engagement to metrics like net retention rate. This shift to a scalable business model allowed them to provide value through technology, but it also led to a major cultural and operational transformation. Yet, one thing remained constant: the importance of customer feedback.
However, relying solely on customer feedback can lead to missteps. While customers are good at articulating what they want, they don’t always know what’s best for them in the long run. The truth is that 65-80% of features in SaaS products are rarely or never used, often a result of focusing too much on immediate customer demands rather than broader strategic goals.
Navigating the feedback economy
We live in what Sander calls the “feedback economy,” where customer feedback is not only expected but also requires companies to act on it. However, not all feedback should be acted upon. The challenge is to find the right balance between customer expectations and the reality that some feedback, while well-intentioned, might lead to wasted effort or features that don’t drive long-term value.
When working with your ICP, it’s crucial to engage your key customers in workshops, beta testing, and community discussions to dig into their needs and wants. This active listening enables you to shape your product so it truly delivers value, not just based on what customers say but on deeper insights into their behavior and future needs.
“Customer feedback should guide, not dictate, your decisions. Ultimately, you want to align your product with your bottom line.”
Aligning voices across teams
Sander introduces the Bow Tie Model, a framework that aligns the diverse voices within an organization – marketing, sales, customer success, and executives, around core customer problems. Marketing might want a new value proposition, sales might push for a specific feature to close deals, while customer success wants to provide customers with exactly what they ask for. At the same time, executives are focused on driving new revenue streams.
The key to aligning these priorities is asking fundamental questions: What problem are we solving? and What will drive the most value for our customer? This focus allows teams to make decisions that balance immediate demands with long-term value creation.
The CX pyramid: A model for prioritization
Sander shares a powerful tool, the CX Pyramid which helps prioritize product development based on customer needs.
- Meeting basic needs: Does the product function as expected? This foundational layer is essential—without it, you can’t move forward.
- Ease of use: Is the product seamless and frictionless? Once basic needs are met, the next step is ensuring customers can easily use the features you’ve built.
- Delightful experiences: Finally, create moments of surprise and delight. This is where you turn satisfied customers into loyal advocates.
This pyramid helps teams prioritize development efforts and ensures that each step builds on the one before, creating a strong, sustainable customer experience.
5 key metrics to measure success
To ensure your product truly delivers value, Sander outlines five key metrics to measure:
- Happiness: How satisfied are your customers? Consider using NPS scores or similar tools.
- Engagement: How deeply are users interacting with your platform?
- Adoption: Are new users taking advantage of existing features?
- Retention: How many customers are returning to your platform over time?
- Task success: Are customers able to accomplish their goals using your product?
These metrics help quantify the impact of product decisions and guide future development.
Telling the story of your product
Ultimately, building a product isn’t just about delivering features; it’s about shaping a narrative that resonates with customers. Make sure to equip your team with a clear vision and strategy. Only 5-25% of employees, on average, understand their company’s strategy, making it critical to overcommunicate your goals. Your product story needs to connect the dots between what customers need now and what they’ll value in the future.
“Customers might articulate their pain points, but the real challenges often lie beneath the surface. It’s up to us to deliver solutions to problems they haven’t even imagined yet.”
Key takeaways
Here are five key lessons from Sander’s talk:
- Balance customer expectations with what they truly need, not just what they want.
- If you don’t get the fundamentals right, you can’t move forward.
- Feedback, hard data, and customer behavior are invaluable. Make sure to tap into them.
- Align voices from different departments using frameworks like the Bow Tie Model.
- Ensure your team understands your strategy so they can effectively tell your product’s story.
With these insights, Sander van Gelderen challenges us to dig deeper, listen smarter, and build better.
