customer advisory boards are a gold mine for startup brand champions
Throughout my two decades as a Chief Information Officer and while consulting for numerous startups, I’ve participated in many customer advisory boards (CABs) and observed their development. Certain organizations cultivate exceptionally effective CABs, while others utilize them simply as channels for receiving feedback. Any new business aiming to build a direct relationship with its customer base could greatly improve its efforts by creating a dedicated advisory board.
Below are several points to consider to help ensure your customer advisory board achieves its intended goals.
Why CABs matter
A customer advisory board, for those who haven’t encountered the term, is a collective of customers assembled to contribute their perspectives, experiences, and recommendations to a business. The primary role of a CAB is to acknowledge and integrate the customer’s viewpoint, a crucial element in any company’s progress as customers have the most direct engagement with its offerings.
It is generally most effective to include early adopters on the board – individuals who initially trusted your company and have actively used your product or service as it developed – alongside more recent customers.
Forming this group not only demonstrates gratitude and esteem for your customer base, but also allows you to systematically organize and solicit the feedback you need. You can gain confirmation for potential product features, receive direction regarding your strategic plans, evaluate marketing communications, and even access valuable market data.
However, the most significant advantage of a CAB is the development of advocates for your brand. These dedicated collaborators will frequently provide endorsements, act as references, and generate new business through referrals. The foundation of this relationship is a mutual understanding of contributing to the ongoing development of your company.
Assembling your CAB superteam
The most effective approach to building your CAB is to begin with a limited number of participants and gradually increase the group size. Careful consideration should be given to the selection of individuals for inclusion. Should you prioritize the executive who initially supported your efforts, the one who recognized the potential of your solution?
It’s possible. However, that person may not be a daily user of your product, actively engaged with its practical applications, or closely aware of the end-user’s perspective.
Identify a customer who possesses in-depth product knowledge and can offer your team accurate, firsthand information, and who is also well-connected within their own organization’s leadership. This individual might be motivated by career advancement and a desire to contribute to a narrative of innovation. Your company’s offering is likely improving the experiences of numerous people, and a collaborative partner will not only offer valuable feedback but also be enthusiastic about sharing that positive impact with others.
Carefully assess the potential group dynamics and select members who are likely to collaborate effectively. Consider whether any individual might tend to control discussions or use the forum to highlight their own achievements. While you will establish a meeting environment that encourages cooperation and mutual respect, it’s important to evaluate each member’s abilities and your existing rapport with them. Seek out individuals who can offer honest feedback alongside thoughtful and helpful suggestions.
Remember that expanding the group excessively will undermine the CAB’s effectiveness. A larger group can lead to numerous competing viewpoints and discussions, reducing the impact of each participant’s contribution. Maintaining a smaller CAB maximizes efficiency and cultivates a sense of prestige – being part of an exclusive group can instill a feeling of accomplishment among its members.
Meeting basics: Build the community and they will come
A frequent question I receive concerns the optimal frequency for Customer Advisory Board (CAB) meetings. While convening your CAB three times annually is a strong target, there isn’t a strict guideline; you must find a balance between providing valuable content and nurturing relationships. Given the recent disruptions to in-person gatherings caused by COVID-19, holding meetings twice a year may now be more practical. Holding too many meetings can be burdensome, while meeting less often risks turning the event into a simple annual report. Regarding meeting length, a session lasting from half a day to a full day fosters in-depth discussion and allows for relationship-building activities, such as a shared meal.
Establish a productive atmosphere by structuring the meeting agenda to prioritize customer perspectives. Instead of standard introductions where members state their name and organization, introduce a question designed to spark future conversation. For instance, you could ask, “If you could add one feature to our product or improve one aspect of our service, what would it be?” Keep the question relatively broad to encourage both positive and constructive feedback. It can be helpful to prepare some CAB members with the question beforehand.
Following this, transition into a company overview, detailing your achievements, team structure, past activities, and future goals. Feature your product and marketing leaders to demonstrate your team’s efforts through product updates and the development roadmap. Avoid simply presenting data and technical details; dedicate time to gauge member responses. What information is impactful? What falls flat? Furthermore, by involving your team members, they can directly experience customer feedback.
Remember that these individuals are present not only at your invitation but also to connect with one another. As all members utilize your product or service, provide opportunities for them to exchange insights. Having held a similar position previously, I personally found it extremely beneficial to learn how peers at other organizations were implementing the product, communicating its value to their teams, and overcoming common obstacles.
Consider inviting an outside speaker or a specialist in a relevant area. At a previous company, I recognized that the Chief Information Officers were particularly interested in the natural language processing (NLP) aspects of artificial intelligence. Consequently, I arranged for one of our skilled engineers to provide an inside look at the technology and explain “how it works.” The CAB members greatly appreciated this presentation.
After the meeting: Show gratitude and measure success
Prior to evaluating how helpful the feedback has been, it’s important to make your new advocates feel valued and appreciated.
It’s essential that your thankfulness for their time and insightful contributions is clearly communicated. While a standard thank you note or email is common practice, consider how your brand can make a more memorable impression. Will attendees depart with a small thank-you gift, or might a gift card be sent to their workplace (or residence, given current circumstances) within a week? Think about selecting a gift specifically for each individual, based on what you’ve learned about them during your interactions.
Regardless of your choice, demonstrate generosity. You are cultivating a relationship with this group that you hope will be long-lasting. They are contributing willingly through collaboration and goodwill, and their efforts should be acknowledged accordingly.
Once you’re prepared to assess the success of your Customer Advisory Board (CAB), collaborate with your team and revisit your original goals. Were those goals achieved? Establish whether you gained actionable insights regarding priorities, and if you were able to resolve a challenge you were facing.
There are also quantifiable metrics to consider: the rate of member continuation, the frequency with which members advocated for you to others, and the number of customer testimonials that originated from the CAB. Ultimately, the most basic indicator of success is attendance rate. If your CAB isn’t perceived as a worthwhile investment of time – a forum where customers can genuinely impact your choices – they will be less likely to participate.
Seize the Opportunity Now
Don’t postpone the creation of a Customer Advisory Board (CAB) while waiting for the ideal moment; that moment will likely never arrive. Consider establishing a CAB early in your company’s development and allow it to adapt as your business grows. The effectiveness of your CAB will increase as you prioritize active listening and gathering input, and consistently update members on how their suggestions have been implemented since your last meeting.
Certain organizations utilize CABs primarily as a platform to showcase achievements and emphasize their customer connections. Avoid this approach. Instead, be open and honest about your company’s development and highlight the significant role customers play in your success. Your business relies entirely on your customers, and fostering a collaborative relationship will yield advantages for both parties.