Customer advisory boards best practices

Editor's Notes

1. True differentiation can only be achieved when marketers know who they are selling to and why customers are buying. Understanding the “voice of the customer” is what drives successful marketers to be the best they can be.
2. This is a “voice of the customer” activity sample. It shows a variety of tactics and maps them to the type of content offered or discussed.
3. A company may choose to focus on only one main CAB objective, or all four, or some combination.
4. 1. Invite only your most strategic customers to participate. An advisory board is made up of your best customers – representatives of the 20% who provide you with 80% of your revenue. By having a board comprised of the "20%" you not only find out how to get more customers like them but also coming back. The main reason many boards fail is because they are made up of all types of customers, not just the 20% who make up the core of the business. In this improper case, the feedback is random and difficult to rationalize. Also, avoid inviting competing customers within the same market segment, as competitors will be leery of discussing their challenges in front of one another. 2. Don’t treat the CAB as a sales event. Often times, sales management will want to treat the CAB as an extended sales event. Do not let this happen. There are other formats and events for sales reps to be directly involved with their customers, demo products, and negotiate deals. The CAB is a business-level focus group designed to discuss, debate, and provide honest and direct insight and feedback on industry trends, business drivers, customer issues, and market opportunities that face your company. Treating the CAB as a thinly veiled sales event to a captive audience will be viewed as an unwelcome use of their time. They will likely not return to the next CAB meeting. 3. Set the right agenda. Begin with the end in mind: what vital information do you want to receive during the CAB? Be focused. Many times, companies try to force too much information into the CAB meeting, turning it into a five or six hour lecture from product managers with little time for discussions with customers. Instead, the best CAB sessions are made up of 80% facilitated discussion between the customers, with the executive team politely listening. 4. Invest in a facilitator. Customers often complain that CAB sessions hosted by a company executive are highly biased as they overtly drive the customers to a seemingly apparent conclusion. Using a facilitator can help create an unbiased atmosphere and a safe environment for customers to voice their views and experiences. 5. Be prepared to act on the information you collect. Although the CAB is an input and feedback session, not a decision-making body, customers will be eager to know what actions you will take based on the discussion. It is therefore imperative that you set an agenda that is sincere and that the attending executives are willing to entertain counter points of view. The basic research rule applies: Don't research something that you're not willing to change.