Week 61 - When You Should (and Shouldn't) Listen to Your Customers 👂- Complete Guide
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"Listening to the voice of your customers is essential, but true innovation comes from reading between the lines.”
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💯 Framework // Concept // Mental Model
When You Should (and Shouldn't) Listen to Your Customers 👂
As a product manager, getting customer feedback is crucial. But you also can't let customers fully dictate your product roadmap. Finding the right balance is key.
In this guide, we'll cover:
Why listening to customers is important
The different types of customer needs
Common traps when listening to customers
When to listen vs when not to listen
Why Listening to Customers Matters 📣
Listening to customers provides many benefits:
Get feature ideas 💡. Customers can suggest new features or improvements to existing ones. This gives product managers insight into what users find frustrating or lacking.
Understand pain points ❌. Customer feedback reveals struggles and pain points when using your product. This shows opportunities to improve the user experience.
Gain market insights 📊. Feedback provides insights into customer demographics, needs, behaviors, and preferences. This intelligence fuels product and marketing decisions.
Clearly, listening to customers provides value. You gain critical insights you'd miss otherwise. But you can't listen blindly.
Understanding the Different Types of Customer Needs
As a product manager, fully grasping your customers' needs is essential for building products that delight you. However, customer needs are complex and multifaceted. They cannot be boiled down to a simple request list.
To get a comprehensive understanding, it's important to segment customer needs into different categories based on how overtly they are expressed. This allows you to dig deeper into the customer psyche to uncover insights across the spectrum of conscious to unconscious desires.
Let's explore four key categories of customer needs: expressed 🗣, unexpressed 🤫, latent 💭, and future needs 🔮. Each offers valuable signals to guide your product strategy if you know where to look.
Expressed Needs 🗣: The Tip of the Iceberg
Expressed needs represent the requests and feedback customers directly communicate about your product. This includes:
Feature requests and bug reports
Responses to surveys and interviews
Ratings, reviews, and social media posts
Support tickets and live chat queries
In short, expressed needs 🗣 encompass any need a customer voluntarily tells you about.
The benefit of expressed needs 🗣 is they offer straightforward feedback. If a customer asks for a new feature or reports a bug, you have clear input on how to improve your product.
However, relying solely on expressed needs 🗣 has downsides:
Customers suggest solutions, not underlying problems. They might request features that don't solve their root issues. You need to dig deeper to find the source of their pain points.
Customers anchor to existing solutions. People often lack imagination. They benchmark against current experiences rather than envisioning new possibilities.
Vocal minorities skew perceptions. Feedback channels like social media are dominated by power users. Casual users who represent the majority don't speak up as often.
Positivity bias abounds. People who like your product are more likely to leave reviews. Dissatisfied customers simply churn silently.
In summary, expressed needs 🗣 deliver helpful but superficial insights. They reveal what customers say they want, not necessarily what they need. Expressed needs 🗣 are only the tip of the iceberg when it comes to understanding customers.
Unexpressed Needs 🤫: Reading Between the Lines
Unexpressed needs 🤫 are those customers have but do not directly voice. For example:
Struggling to complete onboarding
Abandoning your product after a short period
Switching to competitor products
With unexpressed needs 🤫, you have to read between the lines by combining analytics with proactive research. Some strategies include:
Analyze usage funnels. Where do customers drop off in your onboarding or sales funnel? These reflect pain points.
Conduct exit surveys. Ask customers why they stopped using your product to uncover pain points.
Monitor churn rate. Increasing churn may indicate customers are unsatisfied. Dig into reasons.
Spend time with new customers. Observe them using your product to identify usability issues.
Interview former customers. Ask why they switched to competitors to learn where you fell short.
Send quarterly check-in surveys. Stay on pulse of satisfaction levels and evolving needs.
The challenge with unexpressed needs 🤫 is customers won't tell you about them unless you explicitly investigate. But they offer invaluable insights once uncovered.
Latent Needs 💭: Seeing the Unseen
Latent needs 💭 are those customers didn't know they had. For example:
Faster horses in the era of cars
Mobile phones before smartphones existed
Latent needs 💭 represent innovation opportunities. But they require understanding customers better than they know themselves by inferring their unrecognized desires.
Some ways to identify latent needs 💭 include:
Observe customers' environment. Notice points of friction in their workflows that could present opportunities.
Analyze adjacencies. What other products or services are customers using to compensate for your shortcomings?
Draw analogies to other industries. How are latent needs 💭 being fulfilled elsewhere from which you could expand?
Prototype new concepts. Test if exposing customers to an unfamiliar solution triggers a latent need 💭.
Leverage behavioral science. Apply principles of psychology and human behavior to uncover subconscious needs.
A classic example of a latent need 💭 is Airbnb. Hotels were the accepted solution for travel accommodation. However Airbnb uncovered an unrecognized desire for more affordable, personalized, and local lodging experiences.
Latent needs 💭 are challenging to identify precisely because customers are oblivious to them. But they present massive potential for disruptive innovation.
Future Needs 🔮: Gazing Into the Crystal Ball
Future needs 🔮 are those customers will develop over time as trends evolve and new realities emerge. For example:
Video calling before the internet existed
Smart home devices before IoT technology
Future needs 🔮 are highly unpredictable given their dependence on technologies and circumstances that do not exist yet. But they offer huge potential if you can spot where things are heading.
Some ways to start envisioning future needs 🔮 include:
Analyze megatrends. Where are shifts happening in demographics, politics, economics, and the environment?
Learn from lead users. What emerging needs are the most advanced customers already experiencing?
Consider sci-fi. How do authors envision future worlds and human needs?
Prototype radical concepts. Explore where technology breakthroughs could take user experiences.
Extrapolate existing trajectories. How might current customer needs progress over 5-10 years?
Of course, predicting future needs 🔮 has high uncertainty. You cannot know for certain how technologies like AI, VR, and brain-computer interfaces will transform user behaviors and demands.
But exploring future needs 🔮 expands your creative horizons. It prevents you from rigidly anchoring to the status quo. The future will not be an extension of the past.
Maximize Your Insights
As we have seen, customers have a spectrum of needs ranging from overtly expressed 🗣 to deeply latent 💭. To build products that truly resonate, you need insights across this entire range.
Relying solely on expressed needs 🗣 gives an incomplete picture. You must also uncover the needs customers don't consciously voice 🤫 through usage analysis, research, observations, and drawing analogies.
Furthermore, latent 💭 and future needs 🔮 represent huge opportunities for innovation, even though they are harder to identify. You need to see beyond what customers are telling you to imagine what could be.
The most successful products fulfill needs customers didn't even know they had until encountering them. Continuously expanding your aperture beyond expressed needs 🗣 will widen the possibilities.
No single method provides a silver bullet. But by combining the right listening channels, research approaches, analytical techniques, and creative exercises, you can achieve a comprehensive understanding of your customers across their entire spectrum of needs. This knowledge ultimately fuels building products that customers love.
Common Traps ⚠️
While customer feedback is valuable, some common traps can mislead product managers:
Customers Requesting Solutions
Customers often express needs as specific solutions. For example, "Add bulk editing to this page." But their solution may not solve the actual problem. 🤨
Dig deeper into the underlying problem. Ask why they want that solution.
Customers Can't Identify Latent Needs
Asking customers what new features they need rarely uncovers game-changing latent needs. They struggle to imagine what's possible beyond their experience. 💭
Observe their behavior to infer needs. Don't just ask. 👀
Customers Dislike Change
People inherently resist change, even if it's for the better. Customers often give knee-jerk negative reactions to innovative ideas simply because they're different. 🙅♂️
Have conviction in your vision. Don't abandon bold ideas too quickly. 💪
The Vocal Minority
The loudest customers don't necessarily represent your broader user base. If you over-index on complaints, you may tailor to niche needs rather than the majority. 🗣
Match feedback to data on customer behavior and priorities. 📊
Desirability vs. Viability
Customers request features based on what seems desirable. But as PMs know, viability matters too. An idea may be unfeasible or unprofitable. 💰
Weigh business impact along with customer desires. Prioritize based on both. ⚖️
When to Listen vs. When Not to Listen 👂🔇
Now that we've covered why listening matters, the types of needs, and common traps, when should you listen versus not listen?
When to Listen 👂
Incremental improvements: Listen closely to learn how to improve your existing product. Address bugs, usability issues, missing features, etc. 🐛♻️
New features: Let customers inspire new features by listening to feature requests, needs, and pain points. But dig into the underlying problem they're trying to solve rather than just implementing their suggested solution. 💡
Market research: Listen to customer demographics, behaviors, attitudes, and pain points to gain market insights. Just don't take their word as the sole source of truth. 📈
Churn drivers: Pay attention to why customers complain or cancel your product. This shows you what to fix urgently. 📉
In summary, listen to learn how to incrementally improve your product-market fit. But avoid over-indexing on expressed needs only.
When Not to Listen 🔇
Innovative ideas: Don't expect customers to come up with innovative, game-changing ideas. Observe them for latent needs. 💡
Product vision: Don't let customers dictate your long-term vision. Have strong conviction in where you're leading them. 🗺
Viability concerns: Weigh customer desires against business viability. Sometimes you can't do everything customers ask for. 💰
Change aversion: Recognize natural aversion to change. Don't abandon bold ideas solely due to initial negative reactions. 🙅♂️
The vocal minority: Ensure you hear the silent majority, not just the loudest voices. Match feedback to actual data. 📈
In summary, listen but don't let customers dictate your product vision and strategy. You know your business best. 🧠
Key Takeaways 📝
Listen to customers to learn incrementally improve your product and better understand the market. 👂
Observe customers for latent needs and future opportunities beyond what they say. 👀
Have conviction in your vision. Don't let customers drive strategy. 🗺
Beware of common traps like solution bias and the vocal minority. ⚠️
Balance customer desires with business viability concerns. ⚖️
The best product managers leverage customer feedback as one input to strategy, not the sole input. By combining listening with your own vision and business judgment, you can build products customers love but can't imagine. 😍 Just be wary of common traps that can mislead.
Listening to customers is crucial, but it requires nuance. You must filter feedback against other sources like data, trends, and your own expertise. With the right balance, listening becomes an invaluable asset to building great products. 🙌
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This is a must read for every aspiring product manager thanks for putting this together