What is a Customer Advisory Board?

A Customer Advisory Board (CAB) is a select group of customers who provide feedback, insights, and advice to a company. These key customers are invited to share their perspectives on products, services, and overall strategy.

A CAB creates an open space for dialogue, serving as a valuable resource for companies to test new ideas and gather input directly from those who use their offerings.

CABs play an important role in Customer Success. They help companies understand customer needs better, prioritize product improvements, and ultimately strengthen relationships with their most engaged customers. 

While companies of any size can benefit, CABs are especially useful for B2B SaaS companies aiming to make customer-focused decisions. This blog will explore what a CAB is, why it's valuable, and how to create one.

Purpose of a customer advisory board

A Customer Advisory Board serves several important purposes. It goes beyond a simple feedback mechanism, offering deeper insights that can guide your company’s strategy and growth. Here are some of the key reasons companies invest in CABs:

1. Customer-centric feedback

CABs are a great way to get direct and honest feedback. Participants often provide more detailed insights than a survey or regular check-in, giving companies a clearer picture of what’s working and what needs improvement.

2. Strategic guidance

A CAB can act as a sounding board for future plans. It helps validate product roadmaps, anticipate market shifts, and fine-tune strategies based on input from trusted customers who understand your space.

3. Building brand advocacy

CAB members often feel a sense of ownership and exclusivity, turning them into advocates who are more likely to promote your brand and products to others.

4. Deepening customer relationships

Involving key customers in strategic discussions strengthens trust and loyalty, fostering long-term engagement that goes beyond a transactional relationship.

Up next, we'll explore the advantages of maintaining a CAB.

Key benefits of a customer advisory board

A well-run Customer Advisory Board can provide several tangible benefits. It creates a unique channel for understanding customer perspectives and driving your business forward. Here are some of the key advantages of having a CAB:

1. Direct access to customer insights

CABs allow you to go beyond surface-level feedback. Regular discussions with key customers provide a deeper understanding of their needs, challenges, and expectations, leading to more informed decision-making.

2. Influence product development

When CAB members share their thoughts, it can directly shape your product roadmap. Their insights often highlight features or improvements that are most valuable, making product development more customer-driven.

3. Early warning system for issues

CABs can help you catch potential problems early. By maintaining close communication, you can identify pain points before they escalate, allowing you to address them proactively.

4. Improved customer retention

Involving customers in strategic decisions shows them they’re valued. This sense of partnership boosts loyalty, leading to stronger retention rates.

Next, we’ll dive into best practices for managing a Customer Advisory Board to ensure you’re maximizing its potential and keeping members engaged over the long term.

Best practices for managing a customer advisory board

Managing a Customer Advisory Board effectively requires a thoughtful approach to keep members engaged and ensure the board's long-term value. Here are some best practices to consider:

1. Keep it small and intimate

A CAB should typically have 8-12 members to allow for meaningful conversations. This size keeps discussions focused and ensures that each voice is heard.

2. Regular cadence of meetings

Aim to meet quarterly or bi-annually. Consistency helps maintain momentum and keeps members invested in the process, while also allowing enough time to implement feedback between sessions.

3. Transparency is crucial

Always share the outcomes of CAB discussions, even if you can’t act on every piece of feedback right away. Openness builds trust and shows that their input is valued.

4. Reward participation

Acknowledge CAB members' contributions with rewards like early access to features, discounts, or exclusive events. Recognizing their effort keeps them engaged.

5. Evolve the CAB over time

As your company’s needs change, your CAB should adapt. Rotate members periodically to keep perspectives fresh, and adjust the agenda to align with new goals.

Next, we’ll cover some common challenges of managing a CAB and how to overcome them.

Common challenges with customer advisory boards

Managing a Customer Advisory Board comes with its own set of challenges. It’s essential to keep discussions productive and ensure that every member feels their time is well spent. Here are some common challenges and how to handle them:

1. Getting customers to commit

Securing time from busy executives can be tricky. Make the value clear from the start – highlight how the CAB benefits them, not just the company. Schedule meetings well in advance to fit into their calendar.

2. Balancing diverse perspectives

Different customers will have varying opinions. Ensure all voices are heard by facilitating discussions carefully. Acknowledge conflicting viewpoints, and find common ground or areas for further exploration.

3. Avoiding groupthink

Encourage independent thinking by asking open-ended questions and seeking input from quieter members. Consider conducting anonymous surveys to gather candid feedback.

4. Keeping discussions productive

Create a structured agenda and stick to it. Use a facilitator to steer conversations back on track if they drift off-topic.

5. Maintaining engagement

Keep members involved between meetings with online forums, follow-up surveys, or brief updates. Regular touchpoints help maintain momentum.

Effectively managing a Customer Advisory Board requires thoughtful planning and active facilitation. By addressing common challenges, you can create a productive and valuable CAB experience for everyone involved.

Key takeaways 

• A Customer Advisory Board (CAB) is a group of key customers who provide valuable feedback and guidance on a company’s products, services, and strategy.
• An effective CAB should be small, with 8-12 members, to maintain focused and meaningful engagement.
• Regular and structured meetings help keep momentum, allowing time to implement feedback while keeping participants involved.
• Transparency in sharing outcomes, even if feedback isn't immediately actionable, is crucial for building trust with CAB members.
• Evolving the CAB over time, including rotating members and adapting agendas, keeps the board relevant and aligned with company goals.

‍

‍