Voice of the Customer
The Benefits of Implementing an Effective Voice of the Customer Program
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
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)
Lower Acquisition Costs
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?
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.
Stop losing leads! In this post, we dive deeper into what you could be doing wrong and how to make the corrections necessary to improve your process…
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