Product Managers: Embrace Customer Co-Creation for Product Success

Product managers have a set of strategies to be successful in their toolbox, one of which is Customer co-creation. In this model, customers become partners, working with managers to produce an effective product. Customers have numerous valuable insights that product managers need, and it would be unwise to neglect their input. That’s why customer co-creation is a valuable strategy.

We have practical examples of companies that have blossomed using customer co-creation. A famous case study is Zoom, which progressed in its industry with customers as its partners. Together with customers, they create and improve on existing products. Customers become motivated to market to others because they feel part of the process. The numbers say it all. Zoom grew by 326% in 2021 thanks to this strategy. Customer satisfaction also grows with this model.

In the following paragraphs, we will examine customer co-creation, its benefits, and how it can be operated. For additional knowledge, read our comprehensive guide on SaaS Feedback.

Understanding Customer Co-Creation

What is customer co-creation? We hinted at it above, but here’s a working definition from Forbes: “[Customer co-creation is the] purposeful action of partnering with strategic customers, partners or employees to ideate, problem solve, improve performance, or create a new product, service or business.” The customer runs alongside the product manager in the development process.

The customer co-creation model takes a different approach from the usual, user-centered style. While the latter prioritizes customers, developers are the more active party. By contrast, customer co-creation brings customers into the creative moment.

Customer co-creation makes customer needs a core part of production or an update. As a result, you release what people need. Their suggestions turn into features, and requests become granted. Check out our guide on feature requests to gain a better understanding of how customer co-creation works.

Benefits of Customer Co-Creation

Customer co-creation is an invaluable source of success, bringing many benefits. Here are a couple:

Customer Loyalty and Trust

People are more loyal when they feel like a part of something. That’s what customer co-creation does for customers. They become a part of the company, at least for the product. Why would they want to leave?

Furthermore, they trust it because they contributed to the product or feature. They are likely to use it and recommend it to others. The loyal customer is a force that should not be underestimated.

Increased Product Adoption

Customer co-creation makes the public eager to embrace the new product or update. It is connected with loyalty and trust. When customers trust your product, they are encouraged to adopt it. Furthermore, a product with the customer’s input better meets market demand. The product manager knows the customer’s pain points and directs his priorities accordingly. Thus, new and old customers will be drawn to the product.

Problem-Solving

When customers work with managers, potential and real issues are more easily detected. This is true for both new and existing products. For new products, customers can suggest challenges they face with competitors and how to overcome them. Existing products may develop bugs or have hindrances that affect user experience. With customer collaboration, solutions come quickly.

Reduces Cost

Customer co-creation is good news for your product budget because it helps you reduce costs. With this model, you don’t have to rework ideas and be stalled because you realize you took the wrong path. This is because you involve customers early and know the best idea. Honestly, customer insights are valuable. Our Guide to Customer Feedback Management for SaaS offers strategies to maximize the benefits of customer insights.

Customer Co-Creation Models and Frameworks

Within customer co-creation, there are several models and frameworks to forge this partnership with customers. In this section, we will explore four common ones:

1. Crowdsourcing

The crowdsourcing model involves two stages. First, you allow users to share ideas, which you then gather. After that, users vote on these ideas and offer their thoughts. Crowdsourcing ensures that customers are your source for ideas and the filter. In the end, you work with a concept that’s customer-approved. For feature voting, you can learn about some tools for user engagement.

2. Customer Advisory Boards (CABs)

This model works with a more specific group instead of a larger one. In the Customer Advisory Board (CAB), a select number of customers work with the manager. The partnership here is more focused and personal and may occur over continuous sessions. Some managers compensate the customers, while others call for volunteers to be on the board. Either way works. The important thing is to gather customers with strong knowledge of the product.

3. Design Thinking Workshops

Design thinking workshops are similar to the Customer Advisory Board but with a more interactive twist. While CABs are more concerned with gaining advice, the workshops offer a hands-on experience. The workshop starts with an “empathy” phase, where the participants seek to understand user problems. The latter is then clearly defined, after which the participants brainstorm solutions. The interactive aspect comes with creating a prototype where ideas are tested.

4. Innovation Games

Our last customer co-creation model is the innovation game. While other models have a serious undertone, innovation games function in a lighthearted atmosphere. There are several structured activities through which users show their needs. For example, users can purchase their preferred features using a mock budget. They can also imagine their satisfaction as a speedboat and visualize obstacles. You can maximize the benefits of feature requests from our feature post on the Feature Prioritization Matrix.

Final Thoughts: Implementing Customer Co-Creation

Customer co-creation is the ingredient behind many companies’ excellent products, and we expect it to become more prevalent in the future. When you make customers a part of the process, you get an improved product and happier customers.

So, start implementing! Start with goals as your foundation, then select the suitable model. The model influences the people and strategy you choose.