Some entrepreneurs just get it. They don’t need focus groups or market research reports—they know exactly what their customers crave. Steve Jobs knew people were tired of clunky computers that required a degree in rocket science to operate. Oprah Winfrey tapped into the emotional pulse of women everywhere, showing them the power of self-worth. And Henry Ford? He put an end to the era of the horse-drawn carriage by delivering quality, reliable cars people could actually afford.

Today’s companies recognize the importance of customer feedback but often struggle to capture (and use) customer insights to guide business decisions. They throw out a few surveys, maybe stalk a couple of online reviews, and call it a day. That’s a problem, considering that by 2032, the big data analytics market will surpass $840 billion. If you’re not leveraging customer insights to steer your business decisions, you’re not just behind—you’re irrelevant.

One strategy for collecting data? Customer advisory boards (CABs), sometimes also called Customer advisory councils. These groups give companies valuable insights about current and potential customers’ desires, requirements, and perspectives. They offer a more structured format for customers to share their feedback honestly and openly via formal and informal interactions.

The best part? CABs don’t follow a one-size-fits-all formula. Formats, styles, durations, and even meeting locations are flexible and can be tailored to match your company’s goals and resources. So, keep reading if you want to learn how to build a CAB that doesn’t just collect feedback, but actually uses it to make smarter business decisions.

The Magic of CABs

A well-executed CAB is like having a crystal ball for your business. It shows you exactly what your customers need—even before they know they need it. It’s not just about gathering feedback; it’s about getting the kind of insights that make you rethink your entire strategy.

CABs are the secret weapon B2B companies use to:

• Build brand loyalty that actually lasts
• Validate product ideas before wasting money on flops
• Extract market insights
• Fine-tune marketing strategies that speak your customers’ language

A great CAB isn’t just a room full of ‘yes’ men. It’s a dynamic mix of executives, tech experts, marketers, and—most importantly—your customers. Together, they:

• Collaborate on product development that hits the mark
• Troubleshoot technical or product issues before they become PR nightmares
• Give you the cold, hard truth about how they actually use your products (and what frustrates them)
• Reveal the professional services they need that you’re not offering—yet
• Debate industry trends, dissect challenges, and brainstorm solutions that could redefine the game

Ready to build a CAB that gives you more than just polite nods and canned answers? Keep reading. We’re just getting started.

Why Companies Need CABs

Most companies say they listen to their customers. But let’s be honest, most don’t listen well enough to act on it. They nod, smile, and then carry on with business as usual. That’s a surefire way to get blindsided by a competitor who actually pays attention. Customer Advisory Boards (CABs) are about harnessing the unfiltered truth and using it to dominate your market.

When you bring together a diverse group of customers, partners, and stakeholders on a CAB, you get something that’s hard to buy—perspective. These aren’t just people who like your product—they’re the ones who’ve found its flaws, hacked their own workarounds, and figured out how to make it work for them. Listen to them because they hold the key to your strategic direction. Want to know why customers picked you over the competition? Curious about what they secretly hate about your product but don’t tell your sales team? Your CAB knows, and they’re ready to spill.

Innovate with your customers

Once you create and launch a new product or service, it’s tempting to wipe your hands, congratulate yourself on a job well done, and feel steadfast in your belief that yours is the best, most amazing product out there. But even when you blow the competition out of the water, inviting a dialog with your customers and requesting actionable feedback identifies opportunities to improve in the future. 

The best CABs are breeding grounds for “Why didn’t we think of that?” moments. Maybe a customer at a roundtable meeting casually mentions a productivity hack that involves using your platform in a way your dev team never intended. That’s not just a neat trick, it’s an opportunity to innovate. Maybe it’s a signal that one of your features isn’t as intuitive as you thought. Or maybe it sparks an idea for a brand new feature that solves a problem your customers didn’t even know they had.

If you’re not innovating with your customers, you’re just guessing. And in today’s hyper-competitive landscape, guessing is a death sentence. CABs challenge you to look at your product through fresh eyes, revealing gaps and sparking ideas that can lead to your next big breakthrough.

Foster open communication (aka radical transparency)

Transparency is a competitive advantage. When your execs sit down with customers, they’re doing more than shaking hands and nodding at feedback. They’re building trust. They’re showing customers that they’re not just interested in selling more stuff—they actually care about making their lives easier.

Let your customers see behind the curtain. Let them ask the tough questions about why certain decisions were made. Not only will you build trust but you’ll also gain powerful advocates who feel invested in your brand’s success. People defend what they help create. When you invite customers into your decision-making process, you transform them from buyers into believers.

Uncover industry trends (before your competitors do)

Ever wonder how industry giants always seem to be one step ahead? They’re paying attention to the right voices. When you bring together people from diverse industries, you start to see patterns that others miss. Different fields, similar challenges. And in that overlap is where innovation lives.

Your customers are doing more than using your products—they’re dealing with industry changes, new technologies, and shifting priorities. When they talk, they’re giving you the playbook for the future.

Create customer communities (that do your marketing for you)

Word of mouth is still king. When you build a thriving CAB, you create a community of brand evangelists who are going to talk—to their peers, to their colleagues, and on social media.

CAB members are networking, brainstorming, and solving each other’s problems. They’re building connections that last long after the meeting ends. And when they see your company as the common link that brought them together, you become more than just a vendor.

Deliver exceptional customer experiences (and get paid for it)

CAB members spend 9% more than non-CAB members. Why? Because they feel heard. They see their feedback shaping your products and influencing your strategy. They’re insiders. When you use the actionable data from your CABs, you’re creating a customer experience that your competitors can’t touch. And that’s good for both your loyalty and  your bottom line.

How to Create a Successful CAB

Let’s get one thing straight: Slapping together a few Zoom calls with your best customers doesn’t make a CAB. If you want a Customer Advisory Board that actually drives growth and innovation, you need a strategic approach. Here’s how to do it right.

1. Define your goals: If you don’t know what you want from your CAB, you’re wasting everyone’s time, including your own. Are you looking to improve user experience? Validate product concepts? Gain industry insights? Or maybe you want to build a community that evangelizes your brand. Whatever it is, get crystal clear on your goals before you send out a single invite. 
2. Create bylaws or draft an agreement: CABs need structure. Without clear operating rules, you’ll end up with chaos, and nobody has time for that. Draft bylaws that define:

• Membership Eligibility: Who gets in and who doesn’t. Not all customers are created equal.
• Selection Process: Are you handpicking members, or are they applying? Make it clear.
• Term Length: No one’s sticking around forever, and that’s a good thing. Fresh perspectives keep it dynamic.
• Activities & Meeting Frequency: Monthly? Quarterly? Biannually? Decide upfront, so there’s no confusion.
• Compensation: Are you paying them in cash, swag, or early access to products? Decide before you recruit.

3. Create your dream team and get them in the room: Your CAB is only as good as the people in it. You want customers who not only use your product but are invested enough to care about its future. Look for:

• Power Users: They’ll give you the good, the bad, and the ugly. You need all three.
• Decision-Makers: CTOs, CIOs, and VPs bring strategic insights you won’t get from end users.
• Diverse Perspectives: Don’t stack the board with carbon copies of the same customer. Mix up geography, industry, and company size. The more diverse the group, the more well-rounded the insights.
• Pro tip: Personalize the invites and send them from someone high up like a C-suite executive. Make it clear that they’re being handpicked because their insights matter. Aim for 10 to 20 members—enough to get a variety of viewpoints but not so many that it becomes a circus.

4. Develop your agenda. You wouldn’t walk into a board meeting without an agenda, so why would you do it with your CAB? A well-structured agenda keeps the conversation focused and ensures you actually cover the topics that matter. For the first meeting, consider this format:

• Introductions: Break the ice without wasting time.
• Strategic Plans & Goals: Let members share their company’s vision and how they see your product fitting in.
• Challenges Your Product Solves: Get them to talk about real-world problems you’re helping them solve—this is gold for your marketing team.
• Competitive Landscape: Let them spill the tea on how they view your competition.
• Product Roadmap & Challenges: Show them where you’re headed and get their unfiltered opinions.
• Open Floor for Feedback: This is where you get the hard truths if you’ve built enough trust.
• Pro Tip: Don’t wing it. If you’re going to ask for their time, respect it by having a structured plan. And be prepared to listen more than you talk. A great CAB is about getting challenged, called out, and inspired. It’s about hearing the hard truths that spark innovation and growth. And if you’re ready to do it right, &Marketing is here to help. We’ll help you figure out the right format, the right people, and the right questions to ask. We’ll even help you create agendas that don’t put people to sleep. So if you’re serious about building a CAB that drives real business impact, let’s talk.