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Voice of the Customer

The Benefits of Implementing an Effective Voice of the Customer Program

Written By:

Stephanie Lanik;  Strategic Marketing Coordinator

In today’s competitive and technology-driven market, businesses need to use every tool at their disposal to stay ahead of the game. One of the best (and proven) ways to so, is to provide the best customer experience (CX).

But how can a company cultivate a winning CX effectively and consistently?

Enter the Voice of the Customer (VoC) Process

Now more than ever, customers demand a more direct and personalized engagement from their business of purchase. Meaning that not only is your business being compared to your competitors, but also to the experiences they’re having. This is why it’s crucial that you are able to really know and understand their needs, expectations, preferences, experiences, etc.(.) Successful companies understand their customers and know how to leverage the feedback received to continually improve customer experience.

Becoming a More Cusotmer-Centric Organization

By implementing the right VoC program, companies can evolve as a customer-centric organization. This means that you put the customer at the heart of your goals and activities. Companies need to recognize the importance of being customer-centric and actually delivering experiences that align with the voice of the customer.

In fact, according to a study conducted by Bain and Company, 80% of companies assume they’re consistently giving customers what they want. However, only 8% of those customers agree.

Customer-centered teams value the Voice of the Customer. It provides a direct opportunity to identify particular pain points in the customer journey. It also helps prioritize improvements that directly impact the customer experience which, in turn, sets them apart from their competitors.

But wait, the benefits don’t stop there…

Implementing a Voice of the Customer Program can Lead to a Number of Benefits Including:

Higher Customer Retention Rates

The voice of the customer is a truly very powerful customer retention tool and contributes greatly towards sustainable growth. A study conducted by the Aberdeen Group, called “The Business Value of Building a Best-in-Class VoC Program” discovered that companies with an effective VoC program had 55% higher customer retention than those without.

Therefore, organizations with a VoC program can ensure their customers feel they’re being heard and appreciated. Which in turn, leads to higher customer retention and lower churn rates. The more loyal customers you have, the more likely they will act as a reference. Generating a positive word of mouth contributes to new acquisitions.

Decreased Customer Churn

Retention and churn rates go hand-in-hand. If you are retaining your current customer base, you are decreasing the number of customers leaving.

While some churn must be expected, a high churn rate can cripple the growth of an organization. But that risk can be lessened. How? By implementing a more personalized and engaging VOC technique into your strategies. In fact, 80% of customers say they are more likely to stay and do business with a company if it offers personalized experiences. (Source: Forbes, 2019)

As a general rule, the best way to reduce churn is to successfully address the needs of a particular customer at the right time, with the right tone, with minimal effort and disruption to the customer.

Lower Acquisition Costs

Most businesses find themselves spending most of their marketing dollars on finding new customers instead of nurturing the ones they already have. There’s no denying that acquiring new customers is another facet to sustainability and growth for any business. However, there can be a major (costly) downside when it comes to finding them.
According to Harvard Business Review, regardless of the industry, it costs organizations anywhere between five to 25 times more to attract a new customer than it does to retain an existing one. Meanwhile, the success rate of selling to those existing customers is 60-70% — while the probability of selling to a new customer hovers around 5-20%.
Therefore, it’s crucial for businesses to nurture and engage with their existing customers and deliver above and beyond customer experience. In fact, Forbes mentions that 71% of customers would recommend a product or service because they received a “great experience”. Meaning that businesses that have a strong CX program can increase the number of referrals and reduce the efforts and costs that it takes marketing and sales to acquire a new customer.

Increased in Revenue

Findings in the Aberdeen Group study called, “Voice of the Customer: How to Convert Feedback into Better Results” highlights how the best-in-class VoC users achieve a 10x greater increase year-over-year in annual company revenue. This is because by capturing VoC, you can connect, engage, and nurture your customers at every touchpoint in the customer journey. Ultimately increasing the Customer Lifetime Value (CLTV) of your customers.

Putting the Customer First

A company is nothing without its customers. This is why the only way to deliver a fantastic CX is to understand how your customers feel about you and what they like and dislike about their experiences. However, listening to your customers is only one part of a truly effective Voice of the Customer program.

With that being said, take the steps to source more feedback from your customers and improve your survey response rates. This will help you become more customer-centric, retain your existing customers, increase revenue. More importantly, it will set you up for more successful customer engagements in the future.

How does Techtonic Sales Value the Voice of the Customer?

Did you know that today, 64% of U.S. consumers and 59% of all consumers feel companies have lost touch with the human element of customer experience? And 71% of Americans would rather interact with a human than a chatbot or some other automated process. (Source: PwC, 2018)
We get it. New technology tools are enticing and sometimes necessary, but the human touch remains enormously important. That’s the element that sets us apart from the rest.

Combining technology and the human touch—our team will discover, engage, and nurture the relationships with your customers. We simply bridge the gap between your customers’ expectations and their experience… gaining valuable insights into your customers.

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