The process of gathering and analysing customer feedback to understand their needs is called Voice of Customer or VoC.
What does Voice of the Customer do?
Voice of Customer (VoC) is the term used to describe the collection and analysis of customer feedback, complaints, and suggestions. It gives organisations a deeper understanding of what customers want and how they feel about the company’s products or services.
The goal of Voice of Customer is to capture the feedback of customers so that businesses can improve their products and services. This is done by analysing feedback surveys, focus groups, interviews, and other forms of data collection. Voice of Customer helps companies understand what their customers want and need. It also identifies areas where the company could be making improvements. Lastly, it provides a way for companies to identify gaps in their business processes.
Voice of Customer is used by many large organizations, including the Consumer Financial Protection Bureau (CFPB). The CFPB uses VoC so that it can better meet its mission and statutory objectives. It also helps them serve as an effective advocate for consumers while promoting market efficiency.
Benefits of measuring Voice of Customer (VoC)
The main benefit of measuring VoC is that it helps organisations to improve existing products or services and also discover new growth opportunities. Using feedback collected via VoC, businesses can identify ways to better meet customer needs which will help achieve long-term organisational goals.
VOC gives an insight into what customers are thinking about a company and its products, which can help with marketing decisions. It can also provide information about customer satisfaction, and loyalty, as well as identify any potential issues before they become a bigger problem.
The difference between Voice of Customer (VoC) and Voice of Market (VoM)
Voice of Market (VoM) is the term used to describe the collection and analysis of market feedback. In other words, it’s the study of what customers want and how they feel about what is available in the market. VoM can be used to understand customer needs, desires, and trends.
The main difference between VoC and VoM is that VoC focuses on the needs of a particular organisation’s customers, while VoM looks at what customers want in general (across all organisations). VoC also provides feedback about customer satisfaction and loyalty, while VOM does not.
When to use Voice of Customer (VoC) for your business or organisation
There is no one-size-fits-all answer to this question, as the timing of VoC will vary depending on the needs of each business or organisation. However, there are a few times when VoC is particularly useful:
- During product development – VoC can be used to make sure that new products and services match customer needs.
- During the initial stages of a business or organisation – VoC can help understand what customers want from the product, which will provide valuable insight before too much time has been invested into developing it.
- After launching a new product/service – VoC is important because consumer feedback about existing products/services will provide information about how to improve them.
VoC is also useful for businesses or organisations that are looking to make changes, such as entering new markets or adjusting their business model in some way.
How Voice of Customer (VoC) is used by Customer Insights and Marketing teams
Customer Insights teams use VoC to understand customer behaviour, needs, and wants. They then use this information to help departments within a company (such as marketing or sales) make better decisions about what products or services to offer customers.
The insights gained from VoC can also be used to improve customer experience – for example, by making changes to how a company communicates with customers or by redesigning products and services.
One example of VoC being used successfully within marketing was by New Zealand airline company Air New Zealand, which used VoC to develop their new ‘stretch’ seating arrangement. They asked customers about the kinds of things they would like (and not want) in a more spacious seat and then created their design using this information.
This approach was successful because it allowed customer needs to be considered from day one rather than trying to make changes after the product had already been designed and released.
Voice of Customer (VoC) is a valuable tool for understanding customer feedback and using it to make better decisions about products and services. By collecting and analysing VoC, businesses can improve their customer experience as well as identify new growth opportunities.