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The Feedback Black Hole: How Customer Success and Product Teams Can Align to Deliver What Customers Want

Stellafai Coaches
November 29, 2024
3
min read
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Every Customer Success VP has been there:

“We’re sitting on gold. Customer insights flow into our team daily, straight from the frontlines. We know exactly what customers want and what’s holding them back. So, why does it feel like we’re shouting into a void when we pass this feedback to the product team? The features they prioritise don’t always help us close deals or keep customers happy. It’s frustrating—and it’s costing us.”

If this resonates with you, you’re not alone.

The disconnect between Customer Success (CS) and Product is one of the most common and costly challenges in scaling companies. When customer feedback disappears into a “black hole,” your team loses confidence in the system. Sales struggles to win new logos, CS struggles to retain key accounts, and product feels the pressure but doesn’t see clear signals on what to prioritise.

Here’s the good news: the black hole isn’t inevitable. With the right strategies, you can turn this problem into an opportunity—one that drives revenue, boosts retention, and fosters trust between CS and Product. Let’s dig into why this happens, what’s at stake, and how to fix it.

Why Does Feedback Disappear into the Void?

Before we can fix the black hole, we need to understand what’s feeding it.

1. Product Teams Operate in a Black Box

Product teams are balancing many priorities—scalability, technical debt, market trends, and long-term strategy. To CS, it might look like they’re ignoring critical customer feedback, but the reality is often more complex. Without transparency into their decision-making, it’s easy to assume the worst.

2. Misaligned Goals Between CS and Product

CS is focused on immediate customer needs: How can we solve pain points, retain accounts, and drive satisfaction today?

Product, on the other hand, is thinking long-term: How can we build features that scale, address broader market trends, or serve the next 1,000 customers?

Without alignment on priorities, CS feedback can feel irrelevant to product’s big-picture goals—and vice versa.

3. Fragmented Feedback Channels

Feedback often comes in from all directions:

  • Slack messages
  • Emails
  • Quarterly business reviews (QBRs)
  • One-off conversations
  • CRM notes

With no centralised system, valuable insights get lost in the shuffle.

4. No Feedback Loop

The final nail in the black hole coffin is silence. When product doesn’t respond to feedback—whether to say “yes,” “no,” or “not yet”—CS assumes the worst: “They’re ignoring us.” This lack of communication breeds frustration and erodes trust.

The Cost of the Feedback Disconnect

What happens when the black hole persists? It’s not just a minor annoyance—it’s a significant risk to your business.

  • Lost Revenue: Without the right features, sales teams can’t close big deals. Your product becomes a harder sell in competitive markets.
  • Churned Customers: When top accounts don’t see their needs addressed, they’ll churn—taking their ARR with them.
  • Demoralised Teams: CS teams lose motivation when their voices aren’t heard, leading to higher turnover and lower performance.
  • Wasted Resources: Product teams may end up building features that don’t move the needle for customers or revenue.

Simply put, misaligned priorities cost money, momentum, and morale.

How to Turn the Black Hole into a Feedback Flywheel

The solution lies in creating a structured, transparent feedback process that aligns CS and Product around shared goals. Here’s how:

1. Centralise Feedback Collection 🛠️

Scattered feedback is hard to act on. Create a single repository where all feedback is logged and categorised.

  • Tools like Productboard, Aha!, or even a well-structured Airtable can work wonders.
  • Include key details like:
    • Customer name and segment
    • Business impact (e.g., revenue, retention, efficiency)
    • Use case and context
    • Urgency level

This ensures nothing slips through the cracks and makes it easier to identify trends across accounts.

2. Frame Feedback Around Business Impact 💰

Not all feedback carries equal weight. The most successful CS leaders frame their requests in terms of:

  • Revenue: “This feature could secure a $150K deal with [Client Name].”
  • Retention: “Three of our top 10 accounts are considering churn because this feature is missing.”
  • Efficiency: “This automation would save CS and support teams 20 hours per week.”

When feedback is tied to measurable outcomes, product teams can see its value more clearly.

3. Prioritise Collaboratively 🤝

Bring CS and Product together in regular sync meetings to discuss feedback priorities. This ensures:

  • CS understands product’s roadmap and strategic goals.
  • Product sees the customer impact of their decisions.
  • Both teams agree on what to prioritise next—and why.

Collaborative prioritisation fosters mutual respect and keeps everyone aligned.

4. Build a Feedback Loop 🔄

Communication is key. The product team should share regular updates on feedback status, even if the answer is “not right now.”

  • Acknowledge feedback when it’s received.
  • Provide visibility into the decision-making process.
  • Share wins: Celebrate when feedback results in a new feature or improvement.

This simple step can rebuild trust and keep CS teams motivated to share insights.

5. Balance Quick Wins with Big Bets ⚖️

Advocate for a “both/and” approach to product development:

  • Quick Wins: Small updates that solve immediate pain points for key customers.
  • Big Bets: Long-term features that drive scalability and market differentiation.

This balance ensures customer needs are met while supporting the company’s long-term vision.

Case Study: How a SaaS Company Fixed Their Feedback System

At one mid-size SaaS company, CS teams were frustrated by the lack of action on their feedback. Top accounts were threatening to churn, and morale was low. Here’s how they turned things around:

  • Step 1: They implemented a feedback tool (Productboard) to centralise requests.
  • Step 2: CS framed all feedback in terms of revenue impact and retention risk.
  • Step 3: Monthly sync meetings between CS and Product were scheduled to review and prioritise feedback.
  • Step 4: The product team shared quarterly roadmap updates with CS, explaining what was prioritised and why.

Within six months, the results were clear:

  • Churn dropped by 20%.
  • CS and Product reported improved collaboration and trust.
  • Two new features directly tied to CS feedback drove $500K in net new ARR.

The Future: A Feedback System That Drives Growth

The black hole doesn’t have to be a permanent feature of your organisation. With the right tools, processes, and communication, you can transform feedback from a source of frustration into a growth engine.

Imagine a world where:

  • CS and Product collaborate seamlessly.
  • Features are built that drive revenue and retention.
  • Customer feedback fuels innovation and trust.

Your Turn:

  • CS Leaders: What’s the most impactful piece of feedback your team has submitted? How was it received?
  • Product Teams: What’s your biggest challenge in managing feedback?

Get in touch with our team here to chat more! 

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