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TWO EARS ONE MOUTH

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<strong>TWO</strong> <strong>EARS</strong>,<br />

<strong>ONE</strong> <strong>MOUTH</strong><br />

The guide to SAAS customer feedback<br />

JOE DANIELS


Two Ears, One Mouth<br />

Copyright © Receptive Ltd 2017.<br />

Acknowledgements:<br />

Cover Art - Carrie Morris<br />

Book Layout - Simon Ross-Hill<br />

Special Thanks - Hannah Chaplin, Aly Mahan<br />

RECEPTIVE • Two Ears, One Mouth


Contents<br />

Foreword​ ------------------------------------- 2<br />

Part 1​: ​The Age Of The Customer​ --------------- 3<br />

Part 2​: ​Two Ears, One Mouth​ -------------------19<br />

Part 3​: ​I’m An Actor, Darling​ ------------------- 36<br />

Part 4​: ​The Storm Is Clearing​ ------------------ 53<br />

Bibliography​ --------------------------------- 58<br />

About Receptive​ ----------------------------- 59<br />

About The Author​ ---------------------------------------- 60<br />

RECEPTIVE • Two Ears, One Mouth 1


Foreword<br />

An Introduction by Hannah Chaplin,<br />

Receptive CEO.<br />

Thank you for downloading our first book about customer<br />

feedback in SaaS.<br />

We chose this topic because at the heart of every SaaS<br />

organization is the same challenge - we all have limited<br />

resources so you have to get really good at working out<br />

which projects will have the highest impact.<br />

Customer feedback plays a huge role in this. It helps you<br />

develop your product in a way that supports the goals of<br />

your organization yet gathering, understanding and using<br />

that data can be really tough in the fast-paced world of SaaS.<br />

This book is an introduction to the key principles which will<br />

ensure you can use customer feedback effectively alongside<br />

data from your internal teams and the market.<br />

We hope it inspires you to think about how customer demand<br />

data can play a crucial role in building a successful product<br />

both for you ​and​ your customers of today & tomorrow.<br />

RECEPTIVE • Two Ears, One Mouth 2


Part 1<br />

The Age Of The Customer<br />

Why Customers Are More Powerful<br />

Than Ever Before<br />

Conduct a Twitter search for the latest “customer feedback”<br />

tweets and you’ll see thousands of conversations between<br />

massive corporations and people lying in bed on their<br />

phones.<br />

Wave after wave of these tweets, back and forth. It’s almost<br />

hypnotic.<br />

It’s also extremely revealing.<br />

Why is it that these colossal conglomerates and product<br />

powerhouses are so determined to speak with these average<br />

members of the public?<br />

Why do they invest a wealth of time and money into their<br />

customer support teams?<br />

Why do they care?<br />

RECEPTIVE • Two Ears, One Mouth 3


The only answer you can possibly discern from this line of<br />

questioning is that they care because they have to.<br />

They care because their customers demand it. And in the<br />

21st Century, you’d better realize that when a customer<br />

wants, a customer expects to get.<br />

Now, we aren’t saying<br />

that you should listen to<br />

your customers and<br />

instantly act on their<br />

feedback. That would be<br />

both terribly taxing and<br />

incredibly ineffective.<br />

You’d end up with a<br />

product reminiscent of<br />

Frankenstein - and we<br />

both know how that ended up.<br />

So you need to balance customer feedback with internal<br />

demand, the market, and your overall vision or strategy.<br />

But it’s still worth listening. And here’s why...<br />

Since the internet brought us all together, connected us all in<br />

a global bubble, we’ve become empowered. Finally, we have<br />

a platform. We all have our opinion, and we’re ready to shout<br />

it from the digital rooftops.<br />

Most of us have felt compelled to share our feelings towards<br />

a certain company who have wronged us, whether through<br />

RECEPTIVE • Two Ears, One Mouth 4


directly contacting them or by indirectly venting our<br />

frustration to our social networks.<br />

As customers, we expect, nay, demand, to be heard.<br />

We’re the ​“little emperors”​ of the online world, and god help<br />

you if you ignore us.<br />

Ruby Newell-Legner​ claims that on average it takes 12<br />

positive experiences to counter 1 unresolved negative<br />

experience.​ 1<br />

This tells us two things...<br />

Firstly, that negative experiences should be avoided at all<br />

costs.<br />

Secondly, that customers expect companies to listen.<br />

Note the key word in Ruby’s claim: ​“unresolved”​. It isn’t<br />

merely the negative experience which weighs on our<br />

customer’s mind, it’s the thread being left dangled in the air.<br />

It’s that feeling of being ignored that really grinds on us.<br />

RECEPTIVE • Two Ears, One Mouth 5


Let’s put it a different way. Have you ever sent a co-worker<br />

an email, expecting a prompt reply? When that reply didn’t<br />

come, how did that make you feel? You probably felt a little<br />

frustrated, maybe even irrationally angry. How dare they<br />

ignore you?<br />

With the advent of cloud technologies and agile development<br />

process, this new dawn of connection with the customer<br />

base is now highly relevant to B2B SaaS organizations.<br />

Eons ago we would ship CD-ROMs ​(remember those?)​ with<br />

patches and releases that were months in the planning. Now<br />

updates can be rolled to a live environment within hours.<br />

This is a paradigm shift and one that presents many exciting<br />

opportunities and challenges for SaaS businesses to really<br />

RECEPTIVE • Two Ears, One Mouth 6


satisfy the pain points of their current and future customer<br />

base.<br />

Customers now expect a quick reaction to our queries. When<br />

they submit a request for a certain feature, they’re spending<br />

their hard-earned time to help you make a better product.<br />

If you ignore that request, if you bury your head in the sand,<br />

then they’ll go elsewhere.<br />

If you don’t care about the customer, the customer<br />

won’t care about you.<br />

And the best way, bar none, to show the customer you care<br />

is to listen to them. Pay attention to their needs and wants,<br />

dig deeper and uncover their actual pain points, and then use<br />

those insights to build a kickass product.<br />

Customers have the power to make or break companies. With<br />

140 characters they can wreak havoc or sing your praises.<br />

It’s not just Twitter. They can use Facebook, contact forms,<br />

email, forums, face-to-face, letters, Reddit, petitions, and<br />

famously even songs​ 2​ , to get their message across.<br />

If you don’t at least take customer feedback on board, then<br />

you’re annoying the very people you’re trying to please.<br />

Besides, if you ignore their feature requests, feedback, and<br />

ideas then you’re missing out on a mountain of gloriously<br />

useful information about what to build in order to drive the<br />

growth of your business.<br />

RECEPTIVE • Two Ears, One Mouth 7


But if you open your ears, and point them in the direction of<br />

your customers, then you can start listening. You can hear<br />

what they have to say, and not only that, you can act on<br />

what they say.<br />

You have two ears for listening, and one mouth for<br />

communicating.<br />

It’s better for you, it’s better for them, it’s better for<br />

everyone.<br />

Welcome to the age of the consumer.​ Please watch your<br />

step.<br />

RECEPTIVE • Two Ears, One Mouth 8


RECEPTIVE • Two Ears, One Mouth 9


Ignore Customer Feedback At Your<br />

Peril<br />

As mentioned in the previous section, ignoring your<br />

customers makes them angry. In fact, research from<br />

Conversocial​ ​ found that ​around 25% of customers would<br />

cease doing business with a company altogether if they<br />

were ignored on social media.​ 3<br />

Can you really afford to lose a quarter of your business? ​Most<br />

people certainly couldn’t!<br />

But one company, way back in 2011, must’ve thought they<br />

could. Their name? ​Netflix​.<br />

Now one of the biggest video services in the world, spawning<br />

much loved shows and even becoming part of the global<br />

lexicon​ (Netflix and chill, anyone?)​, Netflix are a bit of an<br />

institution.<br />

RECEPTIVE • Two Ears, One Mouth 10


That’s what makes this story​ ​ all the more surprising and all<br />

the more educational for SaaS organizations.<br />

In the Summer of 2011, Netflix rather abruptly announced<br />

that they would split up the two sides of their product, DVD<br />

rental and live-streaming.​ 4<br />

They also decided it was a good idea to hike up their prices.<br />

This was perceived as a personal attack on their poor old<br />

customers, who just wanted to watch a film.<br />

“Surely,” ​we hear you cry, ​“Surely they listened to what their<br />

customers had to say on the matter?”<br />

But this was the murky waters of 2011, when companies<br />

hadn’t quite yet realised how mobilized and responsive their<br />

customers were.<br />

By September, Netflix lost around 800,000 subscribers<br />

(‘churn’ is an understatement)​ and their stocks plummeted<br />

to a fifth of what they were pre-announcement.<br />

It was, quite plainly, an unmitigated disaster.<br />

And the worst thing? ​They were warned.<br />

As it turned out, Netflix started off on the right foot and<br />

conducted a lot of focus groups, gathering as much<br />

customer feedback as they possibly could. They did the hard<br />

bit. All they had to do was listen to what they were being told.<br />

As we now know, they didn’t.<br />

RECEPTIVE • Two Ears, One Mouth 11


And the whole debacle was brought to a depressing end, as<br />

they appeared on a list of ​“The Ten Most Hated Companies In<br />

America”.<br />

This is really frustrating. ​They opened their ears but they<br />

didn’t listen. They only ​pretended​ to listen.<br />

26% of the customer conversations which were analyzed<br />

suggested that they would be cancelling their subscription<br />

should the proposed changes be rolled out.<br />

The writing was on the wall. Netflix’s customers were<br />

warning them. They told them not to do it. And yet they went<br />

and did it anyway.<br />

They blatantly ignored their customers, and they paid the<br />

price.<br />

Let this be a lesson to you.<br />

Always consider what your customers have to say.<br />

RECEPTIVE • Two Ears, One Mouth 12


RECEPTIVE • Two Ears, One Mouth 13


The Biggest SaaS Companies Are The<br />

Ones Who Listen<br />

Of course, Netflix’s story has a happy ending.<br />

They are currently bossing the on-demand video streaming<br />

industry. Reports suggest​ ​ a value of roughly $33 billion.​ 5​ For<br />

context, the U.S. network CBS has a value of almost $31<br />

billion.<br />

Netflix has sailed straight through the storm of 2011 to beat<br />

the major networks at their own game. Impressive is an<br />

understatement.<br />

Now, you may be forgiven for wondering why we bothered<br />

warning you in the previous section. Sure, they had a blip,<br />

but Netflix came through in the end. ​What’s the problem?<br />

The issue is that a lot of companies wouldn’t be able to<br />

survive that sort of fall from grace. We guarantee that 99% of<br />

SaaS businesses would simply collapse in those<br />

circumstances.<br />

That’s the bad news.<br />

The good news is that you can avoid the mistake that Netflix<br />

made.<br />

Would you like to know how Netflix turned their fortunes<br />

around? How did they reach the shore with their ship still<br />

intact?<br />

RECEPTIVE • Two Ears, One Mouth 14


The simple explanation is that they started listening to<br />

their customers.​ 6<br />

First on the to-do list: An apology. CEO ​Reed Hastings<br />

publicly apologized for the whole mess, confessing that he’d<br />

grown over-confident as a result of Netflix’s prior successes.<br />

This helped to defrost some of the animosity between Netflix<br />

and its customers.<br />

Next, they started improving the product, with the<br />

customers’ pain points in mind. Their core product offering<br />

started to improve and improve, with a wealth of new<br />

features added. ​The key to this process was listening to what<br />

customers wanted, seeing if it fitted into their strategy, and<br />

then building it.<br />

RECEPTIVE • Two Ears, One Mouth 15


Perhaps, though, the biggest reason for the success that<br />

Netflix now enjoys is that they started producing original<br />

content.<br />

We’ve all heard of their flagship productions: ​House Of Cards,<br />

Orange Is The New Black, Stranger Things.<br />

What you might not have heard is how House Of Cards ​(and<br />

the shows which followed)​ were even conceived.​ 7<br />

Think of all the data Netflix collects from its customers. They<br />

can see everything we watch, how long we watch it for, the<br />

ratings we assign, and then split it up by a range of<br />

demographics such as age, gender and location. They know<br />

that if you like this one show, you’ll like this other show.<br />

They know ​a lot.<br />

And they decided that they could use this goldmine of<br />

information to figure out what their customers enjoyed<br />

watching the most, and, more importantly, what they would<br />

want to watch most in future.<br />

Netflix took a massive risk and decided to produce a whole<br />

television show that they figured their customers would<br />

enjoy, purely based on the data they’d gathered.<br />

They took the time to ​‘listen’​ to the data from their<br />

customers and they used that to inform their product - in<br />

this case an original TV production.<br />

You could argue that Netflix’s original content is the primary<br />

reason for their climb to the top. Their competitors can<br />

stream other films and other TV shows, and they have made<br />

RECEPTIVE • Two Ears, One Mouth 16


inroads to producing their own content, but only Netflix have<br />

these much-loved shows.<br />

The moral of Netflix’s story is that there are huge rewards to<br />

be gained by collecting, measuring and understanding<br />

demand data from your customers.<br />

If you currently feel like you’re Netflix in 2011, the good news<br />

is that there’s still time to turn things around.<br />

And you start by listening to some guy from Ancient<br />

Greece…<br />

RECEPTIVE • Two Ears, One Mouth 17


RECEPTIVE • Two Ears, One Mouth 18


Part 2<br />

Two Ears, One Mouth<br />

How To Listen To Your Customers<br />

Those Greek philosophers were a pretty smart bunch. One<br />

such philosopher, ​Epictetus​, was a stoic.​ 8​ He believed that<br />

external events were out of our control, but that our internal<br />

actions could be guided by self-discipline.<br />

This seems to make a lot of sense but we probably wouldn’t<br />

invite him to our office party.<br />

Technically, we should credit Epictetus for the title of this<br />

book and, not at all coincidentally, the title of this part of the<br />

book.<br />

It was our favorite Greek philosopher who said: ​“We have two<br />

ears and one mouth so that we can listen twice as much as<br />

we speak.​ 9<br />

This is a beautifully simple quote that perfectly illustrates<br />

what we’re trying to say with this book.<br />

RECEPTIVE • Two Ears, One Mouth 19


“<br />

We have two ears and one<br />

mouth so that we can listen<br />

twice as much as we speak.<br />

- Epictetus


Were he around today, Epictetus would be a kickass<br />

product manager because he realized the importance of<br />

listening.<br />

But before you delve into the depths of customer feedback,<br />

you need the tools to find your way. As we’ve mentioned<br />

previously, there are so many feedback channels available to<br />

your customers. This can make it incredibly difficult to gather<br />

it all in one place.<br />

Most companies will have a feedback form either on their<br />

website or built directly into their product. Other methods<br />

include sending out surveys or asking customers<br />

face-to-face.<br />

All of the above systems will work for collecting customer<br />

feedback.<br />

Have your feedback form ready to go and point customers to<br />

it when you feel they have valuable feedback to give. Make<br />

sure your customer-facing teams are always on the lookout<br />

for any useful feedback which they can submit on the<br />

customer’s behalf.<br />

As a SaaS organization, you have a great opportunity to give<br />

your customers an open channel so they can add and<br />

prioritize their requests whenever they like. Let’s face it -<br />

everyone changes their mind from time to time.<br />

RECEPTIVE • Two Ears, One Mouth 21


The little niggles you can pick up through an open channel,<br />

that otherwise would go ignored, can be extremely helpful<br />

and lead to a lot of quick wins from the word “go”.<br />

Of course, taking in all this information is one thing, but<br />

storing and managing it is another thing entirely. In fact,<br />

storing customer feedback is one of the biggest challenges<br />

that SaaS companies face, and it’s best to make sure your<br />

system is in place before you’re inundated.<br />

If your feedback tools are your ears, then your storage<br />

system is your memory.<br />

Imagine if you had to spend your day listening to people<br />

without any memory devoted to what they say. Chances are<br />

you’d end up relatively confused.<br />

It’s the same with<br />

customer feedback. You<br />

need to collate your<br />

information in one easily<br />

accessible place.<br />

Where you keep it depends<br />

on your preference. Some<br />

companies will create a<br />

spreadsheet​ and log the<br />

feedback in there. Others<br />

create a ​Trello​ board with lists of potential features to build.<br />

RECEPTIVE • Two Ears, One Mouth 22


Some use a system like ​Receptive ​where customers can add,<br />

vote for, and prioritize their requests ongoing.<br />

The main things to consider are how easy it is to update<br />

with new feedback, how easy it is to organize and<br />

manipulate the information, and how accessible it is to<br />

everyone in your company.<br />

If you can implement a system that scores highly on those<br />

criteria, then you’re good to go.<br />

And always, always, always, remember Epictetus and his<br />

sage advice.<br />

Lesson 1​ - Centralize your data. Map all the places you<br />

gather demand from your customer base and ensure it’s<br />

flowing into a single system. Educate your teams so they<br />

know what to do when they receive a customer request.<br />

Lesson 2​ - Consider opening a channel for customer<br />

requests within your SaaS product to capture the<br />

day-to-day annoyances that can collectively transform<br />

how your customers feel about your product.<br />

RECEPTIVE • Two Ears, One Mouth 23


RECEPTIVE • Two Ears, One Mouth 24


Who’s Responsible For Customer<br />

Feedback?<br />

The simple answer is: ​everyone​.<br />

In the past, customer feedback has been the domain of<br />

customer support and account management teams. This<br />

makes a lot of sense; they’re the ones on the frontline after<br />

all.<br />

But where this falls flat is communication. The customer<br />

support team can’t do a thing with a customer’s feature<br />

request. So when it comes in, they then have to somehow<br />

pass on the message to the product teams.<br />

Unfortunately, a lot of the time things get lost in<br />

translation, or even just lost altogether.<br />

This is, of course, a huge problem because you’re missing out<br />

on data which will potentially transform your product<br />

roadmaps and your organization’s growth trajectory.<br />

It can lead to a lot of missed ideas and insights that could be<br />

extremely important when it comes to designing an effective<br />

product roadmap. Not to mention the fact that your<br />

customers will feel like they’re being ignored.​ As you should<br />

already know by now, that is a big no-no.<br />

There’s also another issue.<br />

RECEPTIVE • Two Ears, One Mouth 25


Sometimes members of teams other than customer support<br />

will receive customer feedback in some form. If they don’t<br />

have access to the feedback system, then the information is<br />

essentially falling on deaf ears.<br />

They need to be able to input the feedback into the system<br />

themselves rather than pass it on to another team.<br />

The obvious solution here is to brief everyone in your<br />

company on customer feedback. Make sure they know<br />

the procedure you’ve put in place, how to receive<br />

feedback, how to submit it, how to act on it.<br />

You could even give them a copy of this book... (Nudge<br />

nudge, wink wink!)<br />

If you don’t have all of your internal teams on board with<br />

customer feedback, then it’s an uphill battle.<br />

Think about the lifecycle of a feature request.<br />

It starts with a ​customer inputting their feedback​ into your<br />

form. Next, that request needs to be ​processed and put into<br />

your system​. The product teams then need to ​see whether<br />

it’s worth building ​or not and they need to review whether or<br />

not the request fits the organization’s strategy. Finally, you<br />

need to ​close the communication loop ​and make sure your<br />

customer is up to date with their feedback.<br />

RECEPTIVE • Two Ears, One Mouth 26


Now think of all the gaps in that cycle that need to be<br />

plugged. At any stage, information can be lost or forgotten.<br />

Feature requests can be reworded or instantly rejected.<br />

There’s a lot that can go wrong.<br />

For the customer feedback cycle to work perfectly, you<br />

need to ensure everyone knows what their part is. They<br />

need to know the bigger picture.<br />

By involving your internal teams with all stages of the<br />

process, you can streamline and improve the efficiency.<br />

You’re able to gather multiple points of view on feature<br />

requests, ideas, feedback and general insights.<br />

Customer facing teams, such as Customer Success, Support<br />

and Sales, will be in the know about which features are in the<br />

process of being built and can communicate that to existing<br />

and potential customers too.<br />

To remove the problem of shoulder tapping - whereby other<br />

team members are constantly asking their product manager<br />

for the latest information - you can share a high-level<br />

roadmap and a release log which everyone in your<br />

organization has access to.<br />

It makes everything so much easier.<br />

When it comes to customer feedback, it’s best to get all<br />

hands on deck.<br />

RECEPTIVE • Two Ears, One Mouth 27


Lesson 3​ - Involve your teams. Adding transparency &<br />

communication to the process by having one accessible<br />

place where everyone can view the status of requests,<br />

understand what is on the roadmap and what has already<br />

been released will drive your efficiency through the roof.<br />

Go team!<br />

RECEPTIVE • Two Ears, One Mouth 28


RECEPTIVE • Two Ears, One Mouth 29


If You Ignore Your Customers, Then<br />

They’ll Ignore You<br />

POP QUIZ: Can you remember the stat given in the last part<br />

of this book?<br />

If you can then congratulations, you get a cookie. If you can’t,<br />

then let us remind you...<br />

25% of customers would cease all contact with a brand if<br />

they were ignored on social media. This figure really is worth<br />

repeating.<br />

Customers want to be heard. ​They demand to be heard.<br />

But this can be easy to forget when you receive a new idea,<br />

piece of feedback, or feature request.<br />

If you aren’t careful, you might receive the request and focus<br />

on getting that feature built and rolled out without so much<br />

as a thank you note to the kind customer who spent time<br />

giving their feedback. We call this the Black Hole. ​(Ooh!<br />

Scary!)<br />

The SaaS world is fast-moving, dynamic, constantly ebbing<br />

and flowing. You have the ability to roll out new features as<br />

quickly as you can make your engineering team work….but<br />

that doesn’t mean you should.<br />

RECEPTIVE • Two Ears, One Mouth 30


And in the midst of this whirlwind, your poor little customer<br />

can be forgotten.<br />

Whether you choose to explore a customer request in more<br />

detail, go ahead and add a new feature, or simply decide it’s<br />

not right for your product, the tragedy of this story is that if<br />

the customer doesn’t realize you’ve reviewed their request,<br />

then they may pack up and head elsewhere.<br />

Sure, you might have shiny new features, but if you’ve lost a<br />

customer because you don’t communicate well then was it<br />

really worth it? ​(The answer is no, if you’re wondering.)<br />

So, what’s the solution?<br />

RECEPTIVE • Two Ears, One Mouth 31


The key is communication. ​The second part of Epictetus’s<br />

wisdom involves speaking. We have two ears and one mouth.<br />

Yes, you should be listening twice as much as you’re<br />

speaking, but that doesn’t mean you should remain silent.<br />

You need to maintain an appropriate level of communication<br />

with any customer who has taken the time to contact you<br />

until the issue is no longer an open request.<br />

We call it ​“closing the feedback loop”​, and it’s crucial if you<br />

want to keep your customers happy. And we’re sure you do.<br />

You aren’t monsters.<br />

Now, there are two ways you can go about closing the<br />

feedback loop: manually or automatically.<br />

If you do it manually, then you should assign one of your<br />

customer support team members ​(or anyone in the know)​ to<br />

be in contact with the customer when there is an update on<br />

one of their requests.<br />

We aren’t talking about waking up and sending a good<br />

morning text, that would be overkill. We just mean that<br />

whenever the status of their feedback changes that you<br />

should let them know.<br />

It could be you tell them that you’ve started work on their<br />

feature. It could be that you’ve fixed a bug they found. It<br />

RECEPTIVE • Two Ears, One Mouth 32


could be a polite dismissal of their feature request once it’s<br />

been reviewed by your product teams.<br />

For larger, or scaling SaaS organizations it’s best to automate<br />

this process. When you work at scale it’s much harder to keep<br />

everyone in the loop. Knowing that updates are sent<br />

automatically as requests change status is a huge weight off<br />

your mind.<br />

Your product and customer-facing teams can act in<br />

confidence knowing that customers are kept informed every<br />

step of the way and you can even combine this with a<br />

personal call for that extra flourish at any time during the<br />

process.<br />

But regardless of method, or whether the news is good<br />

or bad, you need to tell them… they’ll thank you for it.<br />

Staying silent will damage your company far more than<br />

giving some bad news. Sure, you might expect a customer to<br />

be angry if you reject their feature or idea, but at least you’ve<br />

let them know. We’ve seen over & over again that if you add<br />

transparency and communication to your feedback process,<br />

customers ​don’t actually care​ if you don’t implement<br />

everything​ they’ve been asking for.<br />

When you were a kid and you made a big, long list for Santa,<br />

you weren’t disappointed when you woke up on Christmas<br />

Day and only had some of the toys that you’d asked for. You<br />

RECEPTIVE • Two Ears, One Mouth 33


appreciated the fact that you had at least some of them to<br />

play with.<br />

The same feelings apply to feedback and feature requests,<br />

only with no awkward family gatherings or your drunk uncle<br />

telling borderline offensive jokes.<br />

A good process gives your customers something really<br />

valuable - a window into how your product is developing. If<br />

they can view the status of appropriate features and<br />

feedback, they are less likely to contact you for updates<br />

directly. They can understand that even if you aren’t building<br />

everything they request, you ​are​ making progress and<br />

actively developing your product.<br />

We’ve all had bad customer feedback experiences, where<br />

we’ve suggested some improvements or spotted an issue<br />

only to never hear back from the company. ​We know how<br />

that feels.<br />

The aim here is to avoid your customers ever having to feel<br />

that way.<br />

Avoid the Black Hole of Customer Feedback. Keep them<br />

in the loop. They deserve it.<br />

Lesson 4​ - Put a process in place for keeping your<br />

customers updated on the status of their feedback. It’s a<br />

game changer.<br />

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Part 3<br />

I’m An Actor, Darling<br />

Where Customer Feedback Goes To Die<br />

Walt Disney​ was an amazingly practical man.​ 10​ If something<br />

needed doing, he’d just do it. Perhaps that’s why Disney are<br />

where they are today.<br />

They understand the importance of acting ​(pun most<br />

definitely intended)​.<br />

Walt once said,​ “The way to get started is to quit talking and<br />

begin doing.”​ 11<br />

SaaS companies understand this too. Here at ​Receptive​, we<br />

aim to roll out new features, fixes and content as fast as<br />

possible. We call it GIFRO ​(Get It F***ing Rolled Out)​.<br />

We could talk and plan things out for ages, but where<br />

would that get us? Have a strategy, but make sure you<br />

execute.<br />

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“<br />

The way to get started<br />

is to quit talking and<br />

begin doing.<br />

- Walt Disney


The software industry moves fast, as we’ve already<br />

mentioned, and you need to stay ahead of the curve.<br />

This makes it all the more shocking when we hear of<br />

companies who have painstakingly collected feedback, only<br />

to leave it gathering dust on the shelf.<br />

Why?<br />

Why waste time listening if you aren’t going to act on it?<br />

Netflix’s​ near-death experience came about as a result of not<br />

acting. They listened to their customers. They went out and<br />

they researched the hell out of their proposed changes. But<br />

then they appeared to have forgotten all about the feedback<br />

they’d received. ​They put it on the shelf.<br />

And because they refused to act on the data, well, we all<br />

know what happened next. ​(Unless you’re reading these<br />

parts in the wrong order, in which case you need to head<br />

back to Part 1.)<br />

Netflix are definitely not the only ones guilty of letting<br />

customer feedback die. It happens all the time.<br />

There are a lot of reasons why this happens.<br />

Sometimes you receive feedback but you don’t understand<br />

it. The answer here is to communicate with the customer.<br />

Ask them to clarify or explain further. ​They won’t mind.<br />

RECEPTIVE • Two Ears, One Mouth 38


Or maybe the issue is that you have so many feature<br />

requests scattered all over the place that you don’t know<br />

what to do with them. The solution is to centralize the data<br />

and prioritize.​ (We’ll have more on that later.)<br />

The final reason could be that you don’t trust your<br />

customers. You don’t believe that they really know what they<br />

want, or, on the flipside, ​you think that you know what they<br />

want more than they do.<br />

To that, we simply say to try and step into your customer’s<br />

shoes and see things from their perspective.​ (Again, we’ll go<br />

into more detail later.)<br />

For now, we want to really drive home the point that<br />

collecting all this data, from customers, internal teams,<br />

and the market, is a pointless activity if you aren’t going<br />

to act on it.<br />

Parts 1 and 2 of this book mean nothing if you won’t<br />

implement Part 3.<br />

Don’t let all of your hard work go to waste. Don’t leave your<br />

customer feedback to die a horrible death. Don’t hide behind<br />

the curtain.<br />

Get up on that stage and act!<br />

RECEPTIVE • Two Ears, One Mouth 39


Lesson 5​ - Actually go ahead and use all that glorious<br />

customer demand data, balancing it with demand from<br />

your internal teams and the market.<br />

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Get Your Priorities Straight<br />

If you’ve ever been faced with a multitude of different tasks,<br />

all competing for space on your to-do list, then you’ve<br />

probably employed some form of system for prioritizing<br />

those tasks.<br />

You might rank them by deadline, or maybe the effort<br />

required, or perhaps the importance of them.<br />

Organizing things in this way helps you to deal with the<br />

tasks at hand.<br />

Likewise, when you’ve opened up your ears and listened to<br />

what your customers have to say, you’ll likely be left with a<br />

long list of feature requests, ideas and general feedback.<br />

Unless you have an army of developers, you can’t possibly<br />

everything. And even if you did have some sort of developer<br />

army, you really shouldn’t be building every feature that is<br />

requested.<br />

If only there was a way to organize all of these ideas,<br />

feedback and feature requests….<br />

Well, you’re in luck, because there are two ways to do just<br />

that.<br />

First up: ​Prioritization​.<br />

RECEPTIVE • Two Ears, One Mouth 42


Chances are, your customers would happily want everything<br />

from your feature backlog, much like a kid in a candy shop.<br />

But if you ask them to prioritize, then it changes everything.<br />

(And you also spend a lot less on sweets.)<br />

If you put in place the opportunity for your customers to<br />

constantly prioritize features, and re-evaluate those<br />

priorities, then you have an up-to-date log of what your<br />

customers truly want.<br />

As for stakeholders, a lot of discussions aim to unearth some<br />

sort of miracle framework with which they can prioritize<br />

feature requests.<br />

Here’s our two cents… ​Your stakeholders shouldn’t be<br />

prioritizing.​ We know, it’s weird, but bear with us.<br />

RECEPTIVE • Two Ears, One Mouth 43


Most of the frameworks heap all the work on one person. We<br />

know that a lot of Product Managers are superhuman but<br />

that’s beside the point.<br />

A Product Manager is one person. And one person can’t<br />

possibly balance all of the demands from different<br />

departments. Not to mention that each department will have<br />

a variety of different individuals, each with their own<br />

demands and perspectives. It’s exhausting just to write it.<br />

On top of that, priorities are always changing, sometimes on<br />

a daily basis. Using these old frameworks results in you<br />

working with outdated, and possibly irrelevant, data.<br />

But by allowing everyone ​(customers, internal teams, the<br />

market)​ to constantly update their priorities, you free up a lot<br />

of time.<br />

This allows Product Managers to focus on the strategy and<br />

decision making parts of their job. And we’re willing to bet<br />

they enjoy that more than burying their heads in boring old<br />

spreadsheets.<br />

This brings us onto the second method of organization:<br />

Segmentation​.<br />

Like an orange, you should be breaking up your customers<br />

into chunks. Unlike an orange, you shouldn’t be eating them.<br />

RECEPTIVE • Two Ears, One Mouth 44


Instead, you should be segmenting your data in order to<br />

glean insights into what different types of customer want,<br />

and then use that to work towards your goal.<br />

Imagine, if you will, that your big goal for the next quarter<br />

was to gain more Enterprise clients. You could then segment<br />

the data so that you can only see what you high-paying<br />

clients want. It follows that if your current Enterprise clients<br />

want certain features, then prospective Enterprise clients<br />

will want them too.<br />

Segmentation enables you to focus in on specific data which<br />

is relevant to your current goal or strategy.<br />

Using both prioritization and segmentation to organize<br />

your data means you can be sure you’re making the best<br />

decisions.<br />

Lesson 6​ - Reader beware! Lists of feedback and votes for<br />

feature requests are dangerous. Unless you understand<br />

priorities​, the data can do more harm than good.<br />

Lesson 7​ - When you segment demand data from your<br />

customers, internal teams and the market you can<br />

understand ​what ​you are building, ​why ​you are building it<br />

and ​who​ you are building it for.<br />

RECEPTIVE • Two Ears, One Mouth 45


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The Guiding Light Of Customer<br />

Feedback<br />

When sailors are forced to navigate close to the shore in the<br />

dark of night, they rely on lighthouses to keep them oriented.<br />

Without those beacons of light they’d be lost. They might sail<br />

right by the land or, even worse, end up smashing into the<br />

jagged rocks.<br />

It wouldn’t be a pretty sight.<br />

But an even uglier sight as far as we’re concerned is when a<br />

company crashes and burns because they’ve failed to use<br />

customer feedback to the best of their ability.<br />

Even with the methods of prioritization we discussed in<br />

the previous section the path isn’t always clear.​ It can be<br />

full of hidden rocks waiting to sink your ship if you get too<br />

close.<br />

As our painful analogy should make clear, you need a guiding<br />

light, your own lighthouse, to help you reach the shore.<br />

But what is that light? How do you find it?<br />

The key lies with your product and company strategy. (We<br />

could write a whole separate book on this topic and maybe<br />

we will…)<br />

RECEPTIVE • Two Ears, One Mouth 47


If you don’t have a strong strategy, you have no focus and<br />

those amazing customer insights you’ve gathered will be<br />

useless.<br />

Never forget that customer feedback is one of three inputs<br />

into your product roadmap. You also have internal demand<br />

and prospect demand. Any data which is relevant to you<br />

today may not be tomorrow.<br />

The underlying reason you make your product is to solve<br />

your customer's problems, right? They’re the reason you do<br />

all of this. To please them.<br />

RECEPTIVE • Two Ears, One Mouth 48


Your customers are your lighthouse. ​Let them guide you<br />

within the framework of your strategy.<br />

Of course, if you’ve gathered enough customer feedback,<br />

then you’ve got a pretty good insight into exactly what your<br />

customers want.<br />

They’ve literally told you the problems they need to<br />

solve.<br />

Sure, some customers want certain features or<br />

improvements more than others. There won’t always be a<br />

consensus. But hoarding all of this data in one place enables<br />

you to easily spot any glaringly obvious pain points.<br />

You have your light source. Now you just need to focus it.<br />

And that’s where your judgement comes into play. Don’t<br />

worry, it’s not as scary a responsibility as it sounds.<br />

We suspect that most companies reading this will have an<br />

idea of their target customer. The ideal person who would<br />

buy your product. Some of you may even have gone all out<br />

and found a photo of this person.<br />

If you don’t have a target customer, then think about one of<br />

the customers you currently have instead.<br />

RECEPTIVE • Two Ears, One Mouth 49


As long as you have someone relevant in mind for this<br />

process, then you’re good to go.<br />

The trick is to put yourself in their shoes. ​Become that<br />

person.​ And once their shoes fit you perfectly, then ask your<br />

new persona some questions.<br />

Why do you want<br />

that feature? What<br />

will it help you<br />

achieve? Which pain<br />

point does this<br />

solve? How often will<br />

I use it?<br />

Could I do without<br />

it? Are there other<br />

features which are more important?<br />

Seeing things from your ideal customer’s point of view<br />

will show you the route you need to take. ​It will focus that<br />

beam of light, enabling you to traverse those dangerous<br />

rocks.<br />

If you’re ever feeling lost, even with all your customer<br />

feedback, even with all your prioritization, then the solution<br />

lies with your customers.<br />

You need to act like your customers to see what they<br />

really want.<br />

RECEPTIVE • Two Ears, One Mouth 50


If you’re ever feeling lost, even with all your customer<br />

feedback, even with all your prioritization, then the solution<br />

lies with your strategy. ​No strategy, no plan, no progress.<br />

Lesson 8​ - Without a strong product and company<br />

strategy, customer feedback data isn’t very useful. You<br />

have to know where you are going and why so you know<br />

which data to explore.<br />

RECEPTIVE • Two Ears, One Mouth 51


RECEPTIVE • Two Ears, One Mouth 52


Part 4<br />

The Storm Is Clearing<br />

The end is near. And so we face the final curtain.​ Or<br />

something like that.<br />

Our time together has been short and sweet, and we hope<br />

you’ve learned a lot about how to utilize customer feedback<br />

to its maximum potential.<br />

This final section is going to summarize what you’ve learned<br />

using the rather obvious analogy of sailing a ship through a<br />

storm.<br />

We’ve tried our best not to go too overboard​ (apologies)​ with<br />

the analogy. But we may well have done, so we’re afraid<br />

you’ll have to live with it.<br />

RECEPTIVE • Two Ears, One Mouth 53


Chart Your Course<br />

Before you set sail across the ocean of customer feedback,<br />

you need to know where you’re going.<br />

In this case, your map is your strategy. Once you have a<br />

strategy in place, you can think about the best method of<br />

gathering your feedback.<br />

Think about how you’re going to manage the various<br />

aspects of it.<br />

How will you collect the data? How will you store it and<br />

access it? How will you decide what to act on? How will you<br />

communicate back to the customer? How will your frontline<br />

handle customer requests? What is the feedback process<br />

between different teams?<br />

If you know the answers to all of these questions, then you’re<br />

good to go and the customer feedback ocean won’t seem<br />

half as scary.<br />

But steady on Captain, you aren’t quite ready to set sail just<br />

yet.<br />

RECEPTIVE • Two Ears, One Mouth 54


Gather Your Crew<br />

For a ship as big as yours, and an ocean as dangerous as this,<br />

you need a strong crew.<br />

Remember that customer feedback is everybody’s<br />

responsibility.<br />

Every member of every team should realistically be able to<br />

access your customer feedback system, understand the<br />

processes involved, and be able to chip in where necessary.<br />

As a wise sea urchin once said, your ship is only as good as<br />

your crew.<br />

Once you get your internal teams on board, all hands on<br />

deck, then you’re finally ready to set off into the great<br />

unknown.<br />

RECEPTIVE • Two Ears, One Mouth 55


Set Sail<br />

Okay, we’re finally here. ​The exciting bit.<br />

This is where you start collecting your customer<br />

feedback, acting on it, and communicating back to your<br />

customers.<br />

This is where you set sail.<br />

You’ll be standing at the wheel, watching as your crew man<br />

the sails. We’ll be stood at the harbor tearfully waving you<br />

goodbye.<br />

You know that you need to listen to what your customers<br />

have to say. You know that you need to prioritize your<br />

feedback and feature request lists. You know that you have<br />

to maintain open lines of communication at all times.<br />

You’ve got this.<br />

And so, as you sail off into the sunset, becoming a distant<br />

dot on the horizon, you’re ready to rock customer feedback<br />

like never before.<br />

Good luck on your journey, Columbus, and don’t forget to<br />

send us a postcard…<br />

RECEPTIVE • Two Ears, One Mouth 56


Lesson 9 ​- Never stop learning. Head over to our<br />

Resources​ section to learn more about Product Demand<br />

Intelligence.<br />

RECEPTIVE • Two Ears, One Mouth 57


Bibliography<br />

1: ​How long does one bad experience last in a customer’s mind?​ -<br />

http://bit.ly/2m8dvQR<br />

2: ​United Breaks Guitars​ - ​http://bit.ly/1p6Adjq<br />

3: ​Conversocial Study​ - ​http://bit.ly/2lyCQR1<br />

4: ​Netflix’s Lost Year​ - ​http://cnet.co/2mdbl2S<br />

5: ​Is Netflix Worth More Than CBS?​ - ​http://bit.ly/1OjtPC3<br />

6: ​How Netflix Rose From The Ashes​ - ​http://bit.ly/2lTgiNx<br />

7: ​How Netflix Uses Analytics​ - ​http://bit.ly/1f3HthQ<br />

8: ​Epictetus, Wikipedia Entry​ - ​http://bit.ly/2k9UmLn<br />

9: ​Epictetus Quote​ - ​http://bit.ly/2m80zub<br />

10: ​Walt Disney, Wikipedia Entry​ - ​http://bit.ly/1ha7YTE<br />

11: ​Walt Disney Quote​ - ​http://bit.ly/2mEEyBk<br />

A: ​Netflix Logo​ - ​http://bit.ly/2mnfjmz<br />

B: ​Reed Hastings Image​ - ​http://bit.ly/2miD7H8<br />

C: ​Epictetus Image​ - ​http://bit.ly/2nvQrZK<br />

D: ​Walt Disney Image​ - ​http://bit.ly/2nl9YwZ<br />

RECEPTIVE • Two Ears, One Mouth 58


About Receptive<br />

Receptive are the leaders in Product Demand Intelligence<br />

enabling companies to make data-driven product decisions<br />

by translating demand from customers, internal teams and<br />

the market into actionable insights.<br />

If you're interested in finding out how you can use Receptive<br />

for your own business, then please get in touch to arrange a<br />

demo or start a trial.<br />

Head over to our website and get started right away!<br />

https://receptive.io/<br />

RECEPTIVE • Two Ears, One Mouth 59


About The Author<br />

Joe Daniels is the lead Content Strategist at Receptive,<br />

having joined the company in February 2017.<br />

This book is the first piece of long-form content he's created<br />

for Receptive so be nice.<br />

Joe regularly blogs on both Receptive's site and his own<br />

Medium profile.<br />

You can find him skulking around on Twitter (@receptivejoe)<br />

so feel free to follow him and tweet your thoughts on his first<br />

swim in the ocean of SaaS.<br />

RECEPTIVE • Two Ears, One Mouth 60

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