The importance of customer feedback in product teams cannot be overstated. Understanding the needs and wants of customers is crucial in developing successful products that deliver value to both users and the company. However, our recent report “The State of Customer Feedback in Product” highlights that there is still a long way to go before product teams reach maturity in leveraging customer feedback effectively.
The report surveyed over 150 product professionals across the globe, from companies of all sizes and industries, to gain a comprehensive understanding of how customer feedback is being used in product decision-making. The results show that although companies are aware of the importance of customer feedback, many struggle to incorporate it into their product management processes efficiently.
The survey participants worked for companies in various industries and sizes, from well-known brands to startups and scale-ups. The majority of respondents (55%) were from software companies, with around 28% working for companies headquartered in the US. B2B mid-market companies made up about 70% of the responses, and most respondents (38.6%) worked in companies with 51-200 employees.
Here are some takeaways from it:
Key metrics and challenges faced
Revenue, customer satisfaction, and retention were the main metrics for product success, according to the survey. One of the main challenges faced by companies is limited budget or resources. With companies making cost-saving decisions every day, it’s not surprising that this is cited as the top obstacle in achieving product goals. Additionally, a lack of data or market insights is another significant hurdle faced by companies, hindering their ability to make informed decisions based on customer feedback.
Time spent with feedback analysis is steadily increasing
Interestingly, while respondents complain about the lack of data and insights, many also admit that they are not investing in a process to systematically transform feedback into insights. A majority of respondents spend only a few hours per month or no time at all analyzing customer feedback, indicating a lack of investment in leveraging user feedback effectively. About 43.5% of respondents analyze feedback on an ad-hoc basis, while 6.9% do not do it at all.
Despite these challenges, some companies are already investing more time and energy in leveraging customer feedback. The report shows that 42.1% of respondents analyze feedback on a daily or weekly basis, indicating a more proactive approach to understanding customers’ needs and wants.
Making feedback analysis a routine is key
The report’s findings highlight the importance of companies adopting an efficient and effective process for leveraging customer feedback. To address the challenges faced by companies, product teams need to make customer feedback analysis a routine activity and invest in the necessary resources to do so. By combining product analytics with user feedback, questions, comments, and much more, product teams can deeply understand users’ motivations, frustrations, and expectations, enabling them to make informed decisions that deliver value to both users and the company.
In conclusion, companies must recognize the growing importance of customer feedback and make it an integral part of their product management processes. By investing in the necessary resources and adopting an efficient and effective process for leveraging customer feedback, product teams can drive innovation and deliver successful products that meet the needs and wants of their customers.
Download “The State of Customer Feedback in Product” report
Get the full detail of these and other insights – from tools used for user feedback analysis to who owns customer feedback inside organizations.