Customer Advisory Board

What is a Customer Advisory Board?

A Customer Advisory Board (CAB) is a group of selected customers who are representative of a company's target audience and are invited to provide feedback, ideas, and suggestions about the company's products or services.

The CAB serves as a channel for communication between the company and its customers, providing valuable insights on market trends, customer needs, and product development. Members of the CAB are typically chosen based on their expertise, level of engagement with the company, and potential for constructive feedback.

The CAB members are usually asked to attend periodic meetings or conference calls to share their thoughts and opinions about the company's offerings. They may also be invited to participate in focus groups, surveys, or beta testing of new products or services.

The benefits of having a CAB include better customer retention, increased customer loyalty, and improved product development. By gathering feedback from the CAB, companies can gain valuable insights that can help them to better understand their customers and to create products and services that are better aligned with their needs and preferences.

What are the benefits of having customer advisory boards?

Customer Advisory Boards (CABs) are a powerful tool for companies to gain insight into their customers’ needs and wants. CABs provide a platform for customers to share their feedback, experiences, and suggestions with the company. This feedback can be used to inform product development decisions, marketing strategies, customer service initiatives, and more

There are several benefits to having a Customer Advisory Board (CAB):

  1. Improved customer retention: By involving customers in the product development process and incorporating their feedback, CABs help to ensure that products and services are better aligned with customer needs and preferences. This can result in higher customer satisfaction and loyalty, which in turn can lead to increased customer retention.

  2. Enhanced customer engagement: CABs provide a forum for customers to voice their opinions and provide feedback, which can help to deepen their engagement with the company. By involving customers in the product development process, CABs can also foster a sense of ownership and loyalty among members.

  3. Access to valuable insights: CABs provide companies with access to valuable insights about customer needs, preferences, and market trends. By gathering feedback from a diverse group of customers, CABs can help companies to stay ahead of the curve and develop products and services that are more likely to succeed in the marketplace.

  4. Improved product development: By incorporating feedback from CABs, companies can develop products and services that are better aligned with customer needs and preferences. This can result in more successful product launches and better overall business performance.

  5. Stronger customer relationships: By involving customers in the product development process and incorporating their feedback, CABs can help to build stronger relationships with customers. This can result in increased customer loyalty, advocacy, and word-of-mouth referrals, all of which can help to drive business growth.

When should you leverage a customer advisory board?

Leverage a Customer Advisory Board (CAB) in the following situations:

  • Product Development: Gain feedback on new features, products, or concepts before broader release.
  • Strategic Direction: Validate or refine company and product strategy with direct input from key customers.
  • Customer Insights: Understand pain points, needs, and usage patterns from an engaged customer perspective.
  • Market Trends: Stay informed about emerging trends, challenges, and opportunities in the industry.
  • Strengthen Relationships: Deepen ties with key accounts or users, fostering loyalty and partnership.
  • Expand Networks: Utilize the board as a platform to connect with potential customers or partners.
  • Risk Mitigation: Identify potential challenges or issues in early stages and develop strategies to address them.
  • Go-to-Market Strategy: Validate pricing, packaging, or positioning strategies for new or existing products.
  • Brand Advocacy: Convert engaged customers into brand advocates who can provide testimonials, case studies, or references.
  • Leveraging a CAB is especially beneficial when making decisions that can significantly impact your customer base or when navigating uncertain market conditions.

Why are customer advisory boards important for B2B SaaS?

Customer Advisory Boards (CABs) are especially important for B2B SaaS companies due to the following reasons:

  • Product Feedback: SaaS products evolve continuously. CABs offer real-time, detailed feedback, ensuring the product aligns with customer needs.

  • Strategic Alignment: B2B SaaS solutions often play critical roles in customers' operations. CABs ensure solutions align with customer strategies and pain points.

  • Retention: Engaging key accounts through CABs fosters loyalty, reducing churn in the subscription-based SaaS model.

  • Reduce Sales Cycles: Insights from CABs can help refine sales and onboarding processes, leading to faster sales cycles.

  • Risk Mitigation: CABs provide early warnings about potential issues or market shifts, allowing SaaS companies to adapt proactively.

  • Brand Advocacy: Engaged CAB members often become brand champions, promoting the SaaS solution within their networks.

  • Market Insight: B2B SaaS landscapes can be niche and complex. CABs offer deep insights into market trends and competitor movements.

  • Upsell and Expansion: Understanding customer needs can reveal opportunities for upselling additional features or expanding into new areas.

  • Trust Building: Regular interactions with CABs build trust and strengthen the relationship between the SaaS provider and its key clients.

  • Collaborative Innovation: CABs can foster co-innovation, where clients and the SaaS company collaborate on new features or products.

In essence, CABs offer B2B SaaS companies a valuable channel to stay closely aligned with their customers, ensuring long-term success and mutual growth.

How to assemble and manage a customer advisory board?

Assembling and managing a Customer Advisory Board (CAB) involves careful planning and ongoing commitment. Here's a step-by-step approach:

  • Define Objectives: Understand why you're creating a CAB. Common objectives include gaining product feedback, understanding market trends, and strengthening customer relationships.

  • Select Members: Choose a diverse mix of customers representing different industries, sizes, and use cases.Prioritize engaged users who provide feedback and show interest in your product's evolution.Ensure members are decision-makers or influencers within their organizations.

  • Determine Size: A CAB of 10-15 members is common, allowing for diverse input while remaining manageable.

  • Set Expectations: Clearly communicate the CAB's purpose, member roles, meeting frequency, and time commitments.

  • Establish a Charter: Create a formal document outlining the CAB's objectives, guidelines, member roles, and terms (like tenure duration).

  • Plan Meetings: Decide on the frequency (quarterly, bi-annually). Mix in-person meetings with virtual ones. Create agendas in advance, focusing on discussion topics that align with your objectives.

  • Facilitate Productive Discussions: Use skilled moderators to guide conversations. Ensure all members have an opportunity to speak. Stay open to feedback, both positive and negative.

  • Document and Share Insights: Record key points from meetings.Share summaries with stakeholders and internal teams. Implement a system to track and act on feedback.

  • Provide Feedback Loops: Update CAB members on how their feedback has been implemented or addressed. Show members their input's value to foster continued engagement.

  • Review and Refresh: Regularly assess the CAB's effectiveness against its objectives. Rotate members periodically to introduce fresh perspectives, ensuring a mix of tenured and new members.

  • Show Appreciation: Recognize members for their time and insights. This can be in the form of exclusive previews, company swag, or even special events.

  • Stay Committed: For a CAB to be effective, it requires ongoing commitment from the company. Regularly engage with members and ensure their feedback is genuinely considered.

By following these steps and maintaining a customer-centric approach, you can assemble and manage a productive CAB that provides valuable insights and strengthens customer relationships.

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