Not so long ago, companies could create new businesses simply by listening to their investors and advisers and following their advice. Today, to remain successful, companies must work directly with their customers, who are the most important stakeholders.
By launching a “Customer Advisory Council” program, companies can identify new business opportunities and use them to serve their customers before the competition better.
Listening to customers
A customer advisory group is a representative group that agrees to share and evaluate their experiences in buying, using, and evaluating new products. A company can gather feedback on a regular basis from a larger group of clients, unlike traditional focus groups. Since these participants are willing to participate, companies can capture valuable customer insight and input with less effort and expense.
To create a customer advisory program, the first step is to set goals. Participants in a program may be asked to guide the product planning by one company. Participants can be used to refine marketing messages and ensure they are effective.
Companies can measure their impact based on the insights they gain by defining program goals from the beginning.
Companies identify customers who can provide the necessary insight after determining the goals of their Customer Advisory Council program. If a company decides that participants will provide feedback on its products, it will recruit users. A company that wants its customers to respond to marketing messages invites product buyers to the program.
Companies use additional criteria in addition to customer roles to select members of the program. For example, companies that sell to businesses may choose their participants based on company type, revenue, size of the employee base, past purchases, and purchasing history.
Companies can increase the contribution of customers to business growth by carefully managing the composition of the Customer Advisory Council. It is important to maintain the council, adding or removing members based on the relevance of their contributions to the direction of the company. This also includes selecting the right subset of clients for each session when their profiles match the discussion’s topic.
Customers agree to certain participation requirements when they join the Customer Advisory Council. The customer advisory council rewards them for their continuous contribution. This may last a year or longer. Participants are asked to respond to potential strategic partners, new product or service ideas, and possible programs. Participants engage in face-to-face and phone-based discussions and provide feedback through online surveys. Their responses influence the company’s marketing, partnership, and product strategies.
After the goals and participants have been determined, an outside or inside customer specialist will be appointed to plan and facilitate the sessions and engage the participants on a regular basis.
Customer specialists will ensure that…
- The program is designed with the customer in mind (e.g., the goal of the program, frequency of contact, and sequencing of contact methods). ).
- Customers are ready to take part in the right number.
- During the customer conversation, concepts (e.g., products, services, or programs) are presented clearly, and concept parameters are explored.
- The company uses actionable feedback to guide its marketing and sales initiatives.
Does Your Company Need It?
If your company sells to both consumers and businesses, it can benefit from having a customer advisory board if you have two or more of these characteristics:
- Competition is fierce. Many businesses grow by destroying their competitors. How can you make your business the preferred provider of your products and services?
When you gather competitive intelligence from customers, you have an advantage. You can find out what your customers think about the offerings of your competitors, uncover gaps in their services and products, and identify unmet needs.
- There are many options for growth. You may want to consider new partnerships, products, or markets as you look for ways to expand your business. Your customer advisory council can help you identify, evaluate, and prioritize your options. You can also validate your planned development and launch activities by drilling down.
- Impact on the customer’s business. If your customers feel that your products have a greater impact on their business, they will be more willing to help you.
- Intuit, for example, has a program called “Professional Advisory” that engages CPAs. CPAs are constantly using QuickBooks with their clients, and they see the value of providing feedback to Intuit about new features and functions.
- A large customer base. When your business had only a handful of customers, do you remember? You could stay close to them and hear their feedback first-hand. You knew exactly what they wanted and liked. You noticed that as your customer base grew, you faced the challenge of staying connected to their needs. Your customer advisory program can act as a link to your customers and help you stay informed about their needs.
- Add-on opportunities. Are you looking for new ways to increase your share of the business from your customers? Do you have any additional products or services to offer them? A customer advisory council can help you prioritize your list of products and services and determine the best way to target them and sequence their launch.
Drive Business Success
Businesses with limited resources need to involve customers in their business decisions. This reduces the risks of going in the wrong direction. A customer advisory program is an effective way to use existing customer assets in order to advance business.