The Case For Voice of Customer Programs – Part 1
Apr 9, 2015
We are in an age that is increasingly social, digital, and responsive. These factors play into the renewed focus on the connections between an organization and it’s customers. Customers demand a good experience and many modern organizations are starting to listen. Modern organizations are beginning to operationalize more comprehensive listening and reaction programs–closing the loop on customer feedback and organizational response. If you are not listening to your customers, you should start now.
A good place to start is evaluating roadmaps, integration plans and the process that your company uses to convert customer sentiments into improvements and effective experiences. When we say “effective experiences” we mean that the customer is satisfied with the experience, makes a purchase and even shares their experience with others. If any of this sounds foreign to you, chances are you could benefit from such a Voice of Customer program.
Opposed to simply assuming what the customer wants and needs, research shows that engaging and asking the customers directly what they want is more effective in every way. A Voice of Customer (VoC) program is a method for engaging with customers, capturing business insights from the customer perspective to then drive change that improves customer experiences. With a method for listening to the customers and improving the customer experience, you will soon see how customer loyalty and revenue increase.
A VoC program may involve capturing customer insights from one customer channel, like the web, or it can be more comprehensive and extend out as a multi-channel approach. Think of all the touchpoints you have with your customer. A VoC program can enhance the customer experience across all touchpoints via all channels. This multi-channel approach will provide the greatest results. That being said, we’ve found that some clients prefer taking a small bite first–allowing the effectiveness of a VoC program to prove out and then expand from there. Either approach will indeed show results.
The results of a VoC program may include one or more of the following benefits:
- Reduced churn rate
- Increased customer loyalty
- Enhanced complaint management
- Helped establish protocols for prioritization and escalation of critical customer issues
- Helped sales & marketing by filling in more customer sentiment gaps along the buyers journey
- Helped perpetually refine positioning
- Strengthened an organization’s customer experience program
Additionally, there are mechanisms for personalizing the VoC experience by having a live chat function or intuitive mechanisms for leaving feedback or sharing their effective purchase with friends. Your organization can quickly resolve issues and complaints, turning dissatisfied customers into extremely loyal ones. These engaged customers will buy more products and recommend you to others.
The key to success is what you do once you get that information. Successful VoC programs take steps to turn insights into actionable changes. This may involve changing processes and roles and responsibilities within the company and better understanding and improving the customer experience along the entire customer journey. Customer insights, when acted upon, have the ability to improve the overall customer experience and in turn increase customer loyalty and reduce churn rate. A model from INVESTAURA predicts that customers churn because they are not satisfied with the quality of their interaction with the organization, not because of price. In fact, 85% of customer would pay 25% more to ensure a superior customer service experience.
So the question is: What kind of modern organization do you want to be?
The number of successful modern marketing organizations that have fully operational Voice of Customer programs is growing and hard to ignore. Now that you know why they’re creating these programs, it’s time to roadmap your program. In our next blog post, we will reveal how to start your roadmap.
Learn more about the Marketing Change Management group