How To Get Relationships With Investors And Customers Through User Research

By Serge Gusev

Customer feedback can be considered one of the most important factors for improving or building a product. It can also significantly boost your retention.

My company has seen a 96% retention rate for 2023. I’ve learned that one of the best tips for achieving that metric is to remember that people want to be heard.

Here are some insights on the role of client feedback and its impact on business retention.

Proactive communication

The first strategy is proactive communication with the client, meaning regularly asking for feedback about pain points and the product itself. This way, you offer an easy path to improve the end user experience.

According to a Salesforce 1 report, 73% of customers expect companies to understand their unique needs and expectations. This should not happen intrusively; it is enough to build a regular system aligned with your business goals.

Incoming funnel

Alternatively, there is the “incoming funnel” method, where users do not yet know the product.

The dialogue is built on the level of user research, where you learn about problems users have already encountered and tried to solve but couldn’t. If the same issue is mentioned repeatedly by different people during the interview process, it is a strong indicator that the problem is relevant to a broad audience. As a rule, users who encounter problems with a product are often interested in solving the problem and are willing to invest in a solution that works.

From clients to investors

In the early stages of communication with users about the product, some of them may become not just clients but investors, which further confirms the prospects of the solution.

The important aspect here is direct communication between the founder and potential partners. It is also critical to demonstrate progress in product development.

Seeing the passion and competence of the founder may spark their own passion and encourage them to support the project financially. Therefore, the secret formula is a combination of regular user research and successful execution.

Building connections

An entire network can be born from feedback, and those connections with professionals from related fields will improve the functionality of your product. Usually, we interact with operators — people who are associated with the operating activities of the company. They have a fairly close network and are always ready to recommend your product to someone in the industry.

Expanding your social networks can help product development. LinkedIn has filters to find suitable connections and reach the right people. It helps to understand what a person is interested in, study vertical trends and target the right people — this is even stronger than conferences because it is a targeted connection.

As a result, it’s essential to maintain and develop professional connections after first contact so they continue to be useful in the process of creating a product. A user is not just a statistic — otherwise we get this: 56% of consumers say most companies treat them like numbers. Empathy, sympathy and sincerity are essential keys to solving user problems and achieving long-term retention.

Serge Gusev is the co-founder and CEO of Approveit, a startup based in Warsaw and San Francisco. His entrepreneurial journey began in his university years when he launched a chatbot development business. He also gained valuable experience in project management, sales and strategic marketing at Ernst & Young and Reckitt. Gusev graduated with honors from the joint program at the University of London and the London School of Economics. His mission is empowering businesses through innovative automation tools that boost performance and competitiveness.

Illustration: Dom Guzman