A survey of 1,000 respondents from the US shows that 70% of customers prefer to buy from companies that understand their needs.1: However, ~55% do not think companies can achieve this goal. Understanding customer behavior can be challenging, as implementing an effective voice of customer program requires a strategic approach and adherence to best practices.
This article delves into the process of implementing a truly impactful Voice of the Customer (VoC) program. We’ll share 10 best practices to help businesses turn customer feedback into a strategic advantage that drives your company forward in today’s dynamic and customer-centric environment.
What do most companies get wrong in their voice of customer programs?
Companies often struggle to fully utilize Voice of the Customer (VoC) for a variety of reasons. Some common mistakes and challenges businesses face when collecting and analyzing customer feedback include:
- Lack of structured VoC program. Many companies do not have a well-defined VoC program, resulting in scattered and inconsistent collection of customer data.
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- Inability to integrate data. Companies can collect VoC data from multiple sources, but fail to effectively integrate the data, resulting in disjointed insights.
- Inadequate data analysis tools and methods. Some businesses struggle to analyze and interpret the vast amount of VoC data they collect. They may not have the necessary customer data analysis tools or expertise to uncover meaningful insights from the data.
- Inadequate action plan. Companies that don’t take quick and meaningful action based on customer feedback may not be able to realize the full potential of VoC insights.
- Not measuring KPIs. Some companies find it difficult to measure the effectiveness of their VoC programs, making it difficult to optimize and improve them over time.
10 votes for the best customer experience
Source: Lucidchart
Figure 1: An example of how to turn customer voice into actionable insights.
1. Set clear goals
Define the goals of your VoC program to collect customer feedback, ensuring they are aligned with your overall business strategy. Set Specific, Measurable, Attainable, Relevant and Timely (SMART) goals to guide the direction of the project and facilitate evaluation of progress.
If you’re not sure where to start, here’s our article on the best data sources for gathering customer insights.
2. Engage stakeholders
Gain buy-in from your organization’s key stakeholders by highlighting the importance of VoC in driving business growth and customer satisfaction. Organize meetings or workshops to present your plans, discuss benefits, and address concerns to create a collaborative atmosphere.
3. Choose the right tools and methods
Assess your needs and resources before choosing the most appropriate data collection methods and tools to effectively capture and analyze customer feedback. When in doubt, experiment with different methods to determine which provide the most effective customer insights in your context.
You can check out our article on the basic steps of customer analysis.
4. Create a core VoC team
Invest in training and development to equip your team with the skills and knowledge needed to execute the VoC program. Encourage cross-functional collaboration to foster a broader understanding of customer needs and facilitate well-informed decision making.
5. Visualize the results
Create a transparent communication strategy to communicate the results and insights of your VoC program to relevant stakeholders. Use data visualization, reports, or presentations to communicate complex data in an easily digestible format, ensuring that insights are accessible and actionable for all parties involved.
For those interested, here is our article on the best data visualization tools.
6. Act on insights
Create an action plan to implement improvements based on the insights gained from your VoC program. Prioritize initiatives based on potential impact, resource requirements and feasibility. Assign clear ownership and timelines to ensure timely execution and tracking for a better customer journey.
7. Watch and repeat
Regularly evaluate the impact of implemented changes by tracking key performance indicators (KPIs) and customer feedback. Be prepared to make further adjustments and regularly monitor your VoC program to ensure it remains effective and relevant. Foster a culture of continuous improvement by celebrating successes and learning from failures.
8. Ask for customer input
Engage customers in your VoC program by inviting them to participate in surveys, interviews or focus groups. Make it easy for customers to get feedback by offering multiple channels, such as email. email, phone, social media or chatbots, and express gratitude for their valuable input. This will help understand if the customer experience changes over time and make customer relationship management easier.
9. Integrate VOC data
Use data analytics tools to combine VoC data from various sources to provide a comprehensive view of customer sentiment and needs. This holistic approach enables more accurate and insightful decision making.
Here you can find our comparative study of customer feedback analysis tools.
10. Maintain an ongoing commitment
Source: LinkedIn
Figure 2: Cycle of VoC programs
Treat your VoC program as an ongoing process, not a one-off project. Periodically review goals, methods, and objectives to ensure they are aligned with your evolving business needs and customer expectations. Maintaining a strong commitment to VoC will help you stay ahead of the competition and drive sustainable customer success.
If you have any questions about Voice of the Customer, please contact us.
Find the right vendors
- Ackerman, Laura. “On the holiday wish list of consumers again this year. Stop receiving inappropriate shopping offers.” Redpoint Global. September 15, 2020. Retrieved March 14, 2023.
Begum is an Industry Analyst at AIMultiple. He holds a bachelor’s degree from Bogazici University and specializes in sentiment analysis, survey research and content writing services.
