Customer Feedback Is Not a Business Model !


 

In 2017, Netflix removed its 5 star rating system. Users said they wanted high brow documentaries and foreign films. But when Netflix looked at the data, users were actually watching lowbrow comedies and true crime. The company didn’t just change how it rated content, it stopped listening to what people said they wanted and started watching what they actually did.

That wasn’t just UX optimization. It was a strategic product decision to limit feedback’s power and trust internal direction instead. Because here’s the quiet truth no one likes to admit: customer feedback only reflects what exists not what should exist. And when product teams let it lead, rather than follow, they enter a dangerous loop.


The Trap of Reactive Product Thinking

Customer feedback loops tend to optimize usability, not strategic direction. When companies react to surface-level input, they drift away from their core value.

Twitter’s “While You Were Away” timeline was built to address user complaints about missing important tweets. But it compromised Twitter’s real-time experience and alienated loyal users. The company eventually rolled it back not because it didn’t test well, but because it undermined the product’s essence.
(Source: The Verge)

A similar story unfolded at Clubhouse. The app exploded during COVID, but user feedback pushed them to expand room types, notification systems, and interaction features. In trying to accommodate everyone, Clubhouse diluted what made it focused and compelling. By 2022, it had lost over 90% of its user base.
(Source: Forbes)

This isn’t about bad execution. It’s about mistaking feedback for strategy. Unfiltered input leads to feature bloat, brand confusion, and positioning collapse. And worse, it makes product teams reactive instead of intentional.


Vision Must Lead Feedback, Not Follow It

Customer feedback is a signal, not a compass. Without a clear product vision, that signal becomes noise. But when there’s strategic clarity, feedback becomes a valuable tuning tool rather than a decision-making engine.

Take e-commerce platforms as an example. The feedback loop works well because the system is already well-defined. You track clicks, abandoned carts, and returns. You A/B test product descriptions, pricing, and CTA placement. You optimize based on customer behavior analytics. And all of this feeds into one obvious goal: sell more, convert faster, retain better.

Here, feedback improves a known machine.

But in tech innovation, feedback becomes far less reliable. Your customers live within current mental models. They can't articulate what hasn’t been invented yet and they often fear what doesn’t feel familiar. That’s why user-led product development is a trap for emerging technologies. If your customers could invent your product, they wouldn’t need you.

A great example of staying true to vision is Figma. Despite receiving overwhelming feedback to build offline mode, Figma resisted for years. Its entire product thesis was about real-time collaboration in the cloud. To break that, even for good reasons, would undermine its identity. Only when the company had scale and leverage did it introduce a limited offline mode on its own terms. That’s not arrogance. That’s product strategy clarity.


The Real Role of Feedback

Product managers, founders, and growth leaders should absolutely collect feedback. But not all of it deserves action. Because when there's no decision-making framework, feedback turns into chaos.

A solid product strategy asks:

  • “Does this request align with our long-term vision?”
  • “Does it improve core value, or just satisfy a segment?”
  • “Are we iterating from insight or out of fear?”

When those filters don’t exist, the product roadmap becomes a customer service inbox. Everyone’s input gets a feature, and no one knows what the product really stands for anymore.

That’s not growth. That’s drift.


Final Advice

Customer-centric thinking doesn’t mean you follow every voice. It means you listen with discipline. Yes, collect feedback. Yes, use data. But filter everything through a clear strategy. If you build based on everything users say, you’ll eventually ship something no one actually needs.

The best companies are relentless in gathering input but ruthless in protecting their direction. They use feedback to sharpen execution, not shape identity. Because in the end, successful products are not built by polling.

They’re built by vision.

You don’t need to ignore your users.
But you do need to lead them.
Your customers are not your product team.

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Farhad Hafez Nezami

Tech & Sports Entrepreneur | Growth Strategist

 

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