Customer calls are the most direct evidence of demand. They are most useful when they ask about past behaviour and include customers the company did not choose.
10 min read · Level 3
The most informative customer call I know of is with someone who stopped paying. Happy customers tell you the product works for them; a departed customer tells you where it breaks, and that is usually the thing the pitch was carefully designed not to mention.
A company will usually offer references. Those customers are chosen, and they are almost always positive. They are still useful, but they are not a sample.
Better calls combine:
Source What it shows Company-provided references best-case experience Customers found independently typical experience Former customers who left why the product fails some people Prospects who chose a competitor what the product lacks
The questions matter as much as the source. Ask about what people have done, not what they might do:
Weak question: Would you recommend this product? Better: When did you last use it, and for what? Weak question: Will you renew? Better: What did you use before, and what would you do if it disappeared? Better: Who approved the purchase, and what did they compare it with?
Past behaviour is harder to exaggerate than intentions.
Because customers are one of the few sources outside the company's control. Their experience either supports the pitch or it does not, and the gaps are often where the real risks are.
It also catches what metrics hide. A contract can be active while the customer has already decided not to renew.
Educational, not personalised financial advice. Nothing in the Investor Academy is a recommendation to buy, sell or hold anything — what is right for you depends on your own circumstances and the rules where you live.
Eight customer calls.
Five company-provided references: all positive, three use it daily Three customers found through an industry contact: one enthusiastic, two say they are evaluating a cheaper alternative at renewal
The company's retention data shows 95% of customers renewing last year. The independent calls suggest renewal risk is rising. The investor asks for renewal dates and usage data for the next twelve months of renewals before going further.
Relying only on references chosen by the company, or asking hypothetical questions that invite polite enthusiasm.
Use them, knowing they represent the best case.
Use your own network, industry contacts or public customer lists.
Ask former customers why they stopped.
Focus on actual usage, purchasing decisions and alternatives.
During diligence on any company that has customers.
Do not contact customers without the company's knowledge where that would breach confidentiality or damage the relationship; agree the approach first.
Customer development practitioners widely recommend interview techniques that focus on specific past behaviour rather than opinions or hypothetical futures, because people tend to give encouraging answers to questions about ideas and intentions. The approach is commonly associated with the book The Mom Test.
Ask what people did, not what they think they will do.
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