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Aug 01, 2019 11:55:40

Segmenting customer feedback

by @hum | 865 words | 237🔥 | 320💌

Sarah Hum

Current day streak: 237🔥
Total posts: 320💌
Total words: 157614 (630 pages 📄)

At Canny, we strive to make the end-user experience as simple as possible. This is to ensure your team gets as much feedback as possible.

However, you shouldn't just build what has the most votes. There's other information you should factor in when planning your roadmap. One of the most important things is who the votes are coming from. 

Not all users are created equal. For example, you probably care more about paying customers than freemium customers. Ask yourself which customers you should be focused on right now.

There are many ways you can segment your customers:

  • Customer status (free, paying, churned)
  • Business type (consumer, B2B, etc.)
  • Role (sales, engineer, founder, etc.)
  • Industry
  • Company size
  • Number of web sessions
  • Location
  • Some other metric unique to your product

This customer data that something you already have. We fill in some of the blanks with Clearbit. Married with your feedback data in Canny, you can gain some incredible insights.

What might be your top voted post overall might be a lot less popular depending on the segment.

Here's how segmenting your customer feedback can help you reach your goals.


New Customers

Growth is probably at the top of all of our minds. How do we attract more qualified leads in a profitable way?

Your target audience

The key here is identifying your target audience. Recall your buyer personas and see what are the important traits. Are your customers mostly B2B? Are they all similarly located? Are they SMBs or enterprises? 

With Canny segmentation, you can create segments that combine multiple traits.

For example:

  • B2B businesses in North America
  • E-commerce stores with less than 50 employees
  • Support agents at B2C companies

You can enhance the segment even further with engagement metrics. That way you can target people who are active in your product (e.g. companies with more than 20 web sessions).

We have identified the traits that our target customers have and set them to "qualified" in our database. This enables us to segment by "qualified: true".

Now, filter your feedback by the segment with those important traits. The list of ideas you see has great potential to attract new customers.


Retention

You work so hard to acquire new customers. Make sure you're doing what you can to keep them.

TIP: Look in particular for features that would make your product "stickier".

Paying customers

This is a great one to start with, especially if you have a free plan. People paying less will greatly outnumber your high-value customers. Because of that, your feedback data is likely skewed towards your low-value customers.

Keep and eye on what requests are popular among your paying customers. Continuing to provide them increasing value will increase the chances of them sticking with you.

Churned customers

For us SaaS companies, it's important that we keep churn as low as possible. There might be some commonalities in why people are churning. Segment your feedback by churned customers to see if there are any quick wins to address.

When our customers churn, we always ask them why. If the reason was something in our control, we add it to Canny.


Expansion Revenue / Upsells

New customers are great but acquisition is very expensive. Upsells are about 4x more affordable. A good benchmark for expansion revenue is around 30% of your total revenue.

[https://www.priceintelligently.com/hs-fs/hubfs/PI-GraphSlides-v1upsell.001.jpeg?width=1280&name=PI-GraphSlides-v1upsell.001.jpeg from https://www.priceintelligently.com/blog/saas-subscription-expansion-revenue-is-crucial]


Paying customers

What big-ticket items are your paying customers asking for? What areas can you focus on to provide more value to them? 

If you can identify and execute on some key projects, you'll have a much easier time doing upsells. Expansion revenue is key to increasing your ARPU.


NPS (Net Promoter Score)

Your NPS score is a good metric for measuring customer satisfaction. We've written about the basics of NPS and action step for each group. 

With user segmentation you can uncover ideas with the potential to boost your NPS scores.

Current customers by NPS score

For example, create a segment with all your "passives" – people who gave you a 7 or 8. Apply that filter on you feedback and you get a list of ideas to push these customers into "promoters".

There are many different factors that influence your NPS score. SurveyMonkey did a study where they identified four factors that affect NPS the most: reliability, security, integrations, and a functional user interface. 

Look out for ideas that specifically fall into any of these categories. 


Engagement Metrics

Engaged users are the ones actively using your product. Strong user engagement means you're solving a problem for them in a significant way. 

However, engagement metrics will differ from company to company.

Consider:

  • Engagement with specific features
  • How often people are performing certain actions
  • Checkpoints in their customer journey

Now that you know who you consider an active user, you can create a segment for inactive users. Filter your feedback with this new segment to see what your team can work on to increase engagement.

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