When it comes to finding the right feedback analytics platform, companies often face the classic build vs. buy decision: should they build a solution in-house or opt for third-party software?
If you're in that position right now, you're probably taking your time with the decision. It's important to weigh the pros and cons of both options, understand the scope of your project and decision criteria, and conduct a thorough cost analysis.
With over 10 years of experience in this category, we’ve got first-hand insights from many engineering and product teams who've gone through a similar process. And now, we’re about to share their thoughts and best practices to help you make the right choice.
So, let’s dive in and explore the benefits and drawbacks of custom-built software versus investing in a third-party provider.
The Benefits of Building In-House
Building your own technology stack and analytics capabilities in-house is definitely a viable option, especially for companies with strong engineering teams and a technical mindset.
If you’re leaning towards this approach, be sure to check out our guide on the key factors to consider before diving into an in-house feedback analytics build.
For companies that choose to go this route, there are several key benefits to developing solutions internally:
Control over data
One of the main advantages of an in-house solution is that it gives companies full ownership and control over their data. This can help eliminate concerns about vendor lock-in or sharing sensitive data with third parties.
That said, you might still need external tools, like visualization platforms or AI tools, which could involve sharing data with other vendors. It's also important to ensure your internal feedback analysis tool complies with all data privacy regulations and has the right documentation in place. So, be sure to keep your Data Protection Officer in the loop throughout the process.
Customization
For companies with unique needs that off-the-shelf solutions can’t fully address, building an in-house platform can offer the flexibility to customize analytics to fit specific use cases.
However, it's important to remember that the resource commitment for maintaining such a system is often underestimated. Data quality issues will arise, users will encounter edge cases, and a growing product will demand continuous improvements. Realistically, a team of one to three engineers will need to dedicate at least two to four days per month to maintenance, ongoing support, and system updates.
Potential for cost savings
Building your own system might come with a hefty upfront cost, but some companies find they save money in the long run, especially if the system doesn't need frequent maintenance. In certain cases, the pricing of third-party vendors might not align with the value you're getting or could struggle to scale with your needs.
See our cost estimates for building in-house.
Managing security and compliance risks
For businesses in highly regulated industries, building an in-house solution can offer more control over data security. While modern enterprise SaaS vendors do offer highly secure and compliant solutions that meet strict data protection standards, working with a third party may introduce some level of risk for some companies.
Tailored to Business Needs
Building an in-house solution allows teams to align the platform directly with the company’s unique goals, ensuring it meets the specific needs without any unnecessary features. This flexibility is particularly useful when integrating feedback data with other internal data sources (e.g., transactional data) that the company may not be comfortable sharing with an external vendor.
The Benefits of Buying
If you’re looking to enjoy the advantages of a custom-built solution without the heavy lifting of creating it from scratch, off-the-shelf solutions might be the perfect option.
Today, businesses have access to a variety of advanced feedback analytics platforms that deliver many of the same benefits as an in-house solution—without the need for extensive resources or time investment.
Control over data
With many third-party vendors, businesses can maintain control over their data while benefiting from robust security measures. For instance, some platforms provide APIs that allow businesses to manage how data is handled, stored, and analyzed, giving teams the flexibility to create, delete, or update existing responses as needed.
Customization
Buying a platform doesn’t mean you have to compromise on customization. In fact, many off-the-shelf solutions offer flexible features like custom taxonomies, tailored dashboards, and bespoke integrations. This allows companies to adapt the platform to their specific needs—without the complexity and time commitment of building everything in-house.
Potential for cost savings
Buying a platform eliminates the high development costs and potential budget overruns that come with building in-house. You also avoid additional expenses for separate visualization tools. Plus, many top off-the-shelf solutions scale without charging per user, providing predictable pricing and a more manageable budget.
Managing security and compliance risks
When purchasing a platform, leading vendors offer secure, compliant solutions that meet rigorous data protection standards (such as GDPR and SOC2). These vendors handle certifications, conduct regular audits, and maintain Business Continuity Plans (BCP), taking on the responsibility of security and compliance so businesses can focus on their core objectives.
Tailored to Business Needs
Top-tier vendors ensure that their platforms can be adapted to meet your internal business goals. This might include enriching feedback data with additional parameters—such as customer IDs or transactional data—enabling teams to perform deeper analyses and make data-driven decisions tailored to their specific use cases.
Additional benefits of working with an external vendor include:
Faster time to value
Working with an external vendor allows companies to implement new capabilities within days or weeks, rather than months. This faster implementation cycle enables businesses to realize the return on investment sooner. Operationalizing key insights earlier can easily translate into millions of dollars in additional profits.
Domain expertise
Partnering with an experienced provider gives your company access to expertise built through hundreds of similar projects, shaping product decisions that impact the quality of insights. Top vendors also provide experts who ensure fast, effective implementation, using best practices to drive optimal results and ROI.
Easy access to insights
The right solution should enable everyone in the business to find insights without technical expertise. Best-in-class platforms come with built-in features that simplify uncovering insights without the technical know-how required. These tools are easier to use than traditional BI platforms, leading to higher adoption and a greater actionability of insights.
Low maintenance
Advanced analytical solutions require ongoing maintenance to ensure continued reliability. Working with an external provider shifts the responsibility for maintenance to the vendor, ensuring that they handle updates, security, and data privacy, reducing the burden on your internal team.
Adaptability to the changing world
Feedback data evolves as new issues arise and customer language shifts, revealing details that were harder to capture before. Best-in-class vendors have built their systems robustly, ensuring that they remain effective, secure, and aligned with the organization's changing needs over time.
Innovation
The field of customer feedback analysis is rapidly evolving, driven by innovations in AI, such as LLMs and speech-to-text models. Vendors must integrate these advancements to enhance the value they provide to customers. By scaling these efforts, they can continuously improve accuracy, offer more detailed insights, and increase the actionability of the data.
Beyond the MVP
An internal project typically focuses on an MVP for feedback analytics, such as tagging feedback, storing data, and visualizing it with BI tools.
However, driving value from customer feedback at scale requires additional capabilities not always included in the MVP, like data cleaning, taxonomy adaptation, precision insights, and intelligent alerting, which are crucial for long-term success.
Build vs. Buy: How to Decide?
So, how does building your own feedback analytics solution stack up against using an external vendor's analytics tool?
To Build or to Buy?
In summary, when it comes to building or buying a feedback analytics solution, using a third-party product instead of building a solution from scratch typically provides more value in a shorter timeframe.
Building a feedback analytics tool that can handle millions (or even billions) of customer interactions isn’t easy. It’s a big, resource-heavy project that can take months to complete, require a lot of engineering work, and end up being more expensive than you might expect.
Buying is often the best choice when evaluating key factors such as time to market, ROI, access to specialized expertise, and ongoing software maintenance.
Opting for a best-in-class feedback analytics solution like Chattermill allows companies to save time and money while focusing internal resources on their strengths - creating exceptional customer experiences and solving CX challenges rather than technical ones.
Interested to know how Chattermill can help you make better decisions with exact customer insights? Get a personalized demo.
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