The Founders Guide to Listening to Your Customers
The Founders Guide to Listening to Your CustomersThe systems and strategies to help you build a truly customer-centric organization.🌟 Hey there! This is a subscriber-only edition of our premium newsletter designed to make you a better investor and technologist. Members get access to the strategies, tactics, and wisdom of exceptional investors and founders. Friends, “If you don’t listen to your customer, someone else will.” Those words, from Walmart founder and notorious customer obsessive Sam Walton, reflect one of the immutable laws of business: if you are to build a great company, you have to listen to the people paying you. But as anyone who has sat next to a narcissist at a dinner party knows, there is listening, and there is listening. Though disguised as a passive act, listening is, in fact, an active skill—one that rewards preparation, interest, and connection. A good listener takes in what has been said, asks relevant questions, and finds little kinships or interesting disagreements. While being a good listener is an essential quality for any self-respecting hominid, it is arguably even more important for corporations. The egomaniac hogging the burrata may miss out on the joys of human connection by interrupting every anecdote with a comment of their own, but a company with insufficiently open ear canals risks death. So, how do startups listen to and learn from their customers? How do today’s CEOs ensure they’re following the Walton gospel, updated for the 21st century? What strategies and systems do they use? How do they align their organization to champion customer obsessiveness? How do they prioritize which pieces of feedback to address first? Today’s Founders Guide answers these questions. To access all the insights, frameworks, and strategies shared by eight elite CEOs, make sure to subscribe to our premium newsletter, Generalist+. It’s designed to make you a better founder, investor, and thinker for just $22 per month. Brought to you by VouchEvery founder knows the challenge of wearing multiple hats, especially when it comes to navigating business insurance. Vouch is engineered precisely for your world. We provide tailored insurance solutions that adapt to the unique risks and dynamics of scale-stage startups. With Vouch, you get more than coverage; you gain a partner who understands the startup ecosystem and offers next-day protection to keep pace with your growth. Simplifying insurance complexities, we enable you to focus on what you do best – innovating and scaling your startup. Ready to learn more? We have an Insurance 101 guide for new founders you can find here. Tactical Lessons
Previous Founders GuidesDiscover how high-performance founders handle the critical challenges of building a business by checking out our full archive of guides, available to members of our premium newsletter, Generalist+. “You don’t necessarily have to address everything you hear in feedback. The customer signal is always right, but an organization also needs to prioritize what they build based on where there will be the greatest impact.”Pedro Franceschi, Co-founder and Co-CEO at BrexOne of our values at Brex is to “inspire customer love.” To build something that our customers love, we have to constantly listen to and learn from them. Customer research is a continuous process for us versus something we do at a point in time. We have several tools in place to regularly request and receive meaningful feedback from customers, and our research approaches fall into the standard buckets. First, we conduct qualitative research. We use interviews, focus groups, and customer panels to deepen our understanding of their needs and/or get their honest reaction to something, like a new user interface or feature. Shoutout to Great Question, which has been a particularly helpful tool for managing and automating parts of the qualitative research process.
Second, we run quantitative surveys. We use these to help us keep a pulse on how things like customer satisfaction and product usability are trending. These can be conducted in product or over email.
We use the DACI framework to guide decision-making at Brex, and we’ve amended our decision-making documents to include a section at the very top called “Start with the customer.” This section ensures that every strategic decision begins first with an understanding of the impact or value to our customers. We’ve spent a lot of time centralizing customer research in a hub so that we’re all working from the same insights across our organization. That is our approach at a high level, but I want to spend a moment on some considerations:
And finally, if a customer has given you feedback, remember to say thank you and close the loop with them. I speak very frequently with customers and make a point of following up with each of them so they understand that their input is deeply valued and being actioned. “[B]y the time something becomes frustrating or annoying enough to a customer that they message you, it’s usually a signal that there are 10 more customers dealing with that same issue who haven’t messaged you yet.”Immad Akhund, CEO and Co-founder at MercuryListening and changing your product for your customers is a fast way to turn them from users who like your product to users who love your product. Customers have a low expectation of being listened to, so when you do it, it can really move people and make them feel valued. So, I think listening to customer feedback is an important part of respecting your customer and building with them in mind, as well as turning your customers into real advocates. Nearly everything we build at Mercury, big or small, is directly based on customer feedback. I’d say there are three modes of how we learn from our customers:
It’s also important for me to feel like I have a direct line to customers. So I’ll often try to talk to many of our bigger customers once a quarter, and then I make sure to be present at different events where our customers will be when I can. I’m also very active on social media and will often have customers tag me in a question or piece of feedback, so I’m always listening and responding there, as well as taking things back to the team often. “[We run] a company-wide initiative where employees are selected round robin to respond to NPS feedback, regardless of if the customer is happy or not happy.”Mathilde Collin, CEO and Co-founder at FrontFront is a modern customer service platform, and our customers differentiate by the level of service they deliver. So, we try to lead by example. Here are a few things we’ve implemented:
And, of course, everyone at Front uses Front, so it’s easy to get ourselves into the mindset of our users and see what people like/dislike. “By the 30th time you've heard something, you'll know it's important, and you'll be sick of hearing it.”Jack Altman, Co-founder and Executive Chairman at LatticeLearning from customers is the most important thing a company can do. More important than fundraising, hiring, or really anything. It’s the absolute fundamental lifeblood of a company. ... Subscribe to The Generalist to read the rest.Become a paying subscriber of The Generalist to get access to this post and other subscriber-only content. A subscription gets you:
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