In the age of instant chat and social networking, consumers are now increasingly demanding of brands, from whom they continually expect something new and different.
To keep up with their expectations and meet them, brands assiduously focus on programs Voice of the Customer (VoC), a marketing approach that relies on software with closed-loop process to control customer feedback.
The analysis of the so-called Voice of the Customer does no more than. gather insight On people's behaviors, their likes and dislikes, and what they hate. In simple words, you go to intercept experiences, preferences and what the consumer thinks.
Brands that rely on Voice of the Customer listen carefully to the customer and are often able to develop winning insights That will give an advantage over competitors.
Let's try to understand how Voice of the Customer works, what it is based on, and what benefits it has to offer businesses.
What is Voice of the Customer (VoC)?
Le bad experiences of customers toward a brand quickly result in the loss of these consumers and their circle of acquaintances and relatives due to the bad reputation acquired.
In fact, word of mouth in a negative sense is further amplified by new technologies and social media, where a bad review can trigger a domino effect very dangerous for companies, undermining their credibility.
Anyone who works in marketing knows that the era in which you could communicate with customers one-way, that is, without feedback back, is over.
Today, companies are reorganizing their strategies thanks to the Voice of the Customer (VoC) programs. which are of enormous help in retaining as many people as possible.
Going into detail, VoC is the process by which customers' lived experiences are collected and analyzed. In this case, it is studied a wide variety of sources, including e-mail, social media, surveys, CRM systems, transcripts of call center conversations, and more.
All this is combined into a single overview of customers, they identify tastes, preferences, opinions and desires. The Voice of the Customer is therefore a key part of the Customer Experience and plays a decisive role in guiding corporate marketing strategies.
With VoC, you will be able to get a more accurate view of what consumers like or dislike, aligning your offering with their needs. Embracing such a process will greatly benefit not only the marketing department, but also the sales, public relations and consumer service departments.
The importance of the Voice of the Customer
In today's digital world, customers can easily compare companies to each other to make sure they are investing their money correctly. Relying on the Voice of the Customer approach is important to find out what consumers want and how to communicate with them in an engaging way.
In the post-pandemic phase, the economy has changed dramatically, and a decrease in purchasing power is expected in the years to come. Here, then, VoC can help the brand to To capture a larger share of the available market.
This is vital as the Voice of the Customer is able to detect defects in the customer experience, sensing what customers expect from the brand and where they are not satisfied.
Not surprisingly Customer Experience produces 2/3 of consumer loyalty and it is quite obvious how loyalty is essential to increase sales and profits.
In fact, when purchasing power declines, people always rely on the brands they know to play it safe. Efficient monitoring of the Voice of the Customer will then go on to define the "brand loyalty", that is, loyalty and trust toward the enterprise.
If this were not enough, it should be considered that Voice of the Customer is also a valuable ally in some business segments:
- Product development: packaging, colors, services and more can be changed according to what customers think, perhaps by submitting new ideas to them. The more their tastes are catered to, the greater the gains;
- Product concept: users often discuss on social media the products or services they would like to see on the market. So, from their voice one can draw inspiration for devising concepts and launching something much desired into the market;
- Crisis Management: listening to the customer allows complaints and problems to be intercepted quickly and efficiently. The advantage is that crises and difficulties can be stopped before they can spread and cause damage.
How Voice of the Customer works
There are many different ways to collect customer experience data. These methods are mainly based on an interview/survey That will go to collect the necessary information.
The Voice of the Customer can be managed simply through the web and special online surveys, ensuring a larger and faster collection based on An individual conversation with the individual client.
The system for collecting the Voice of the Customer will change depending on the customer. Some will respond upon request through e-mail or SMS, while others will voluntarily share their opinion via social.
By intercepting consumer feedback, data can be shared with other departments in the company, starting with shareholders and stakeholders who need to make decisions according to circumstances.
It will thus go to compose a continuous and closed loop which provides:
- The collection of feedback,
- feedback analysis
- actions carried out according to the analysis performed
- return to the Voice of the Customer
Voice of the Customer tools
Voice of the Customer is essentially based on the use of software, applications or methodologies that enable the company to analyze the consumer's point of view and preferences.
Useful tools for VoC can collect data directly or indirectly. Let's see what are the most important tools available.
Net Promoter Score (NPS)
This is a very valuable metric that companies use to quickly monitor their performance and customer satisfaction. It involves posing questions with a rating scale of 1 to 10.
Customers will then be faced with a kind of survey in which each question asks them to assign a specific score. In this way it is easier to understand the liking in a direct form and less demanding for the participants.
Social media as Facebook, Twitter and Instagram are a valuable source of customer information. It is mostly real-time raw data revolving around current trends and tendencies.
With the social media listening you will get real-time feedback on what you want to know, perhaps by questioning followers specifically about certain issues. Listening to the voice of customers via social is perhaps the most immediate way to stay one step ahead.
Interviews and focus groups
Focus groups and interviews help to obtain more specific information than, for example, Net Promoter Scores. Each questionnaire includes. questions studied in detail to understand liking or disliking.
Surveys such as these have a more personal and engaging aspect in that they the questions are open-ended and not numerical. On the other hand, however, these data have a limited shelf life due to crises and global changes and need to be supplemented with other systems.
The classic surveys are. A middle ground between focus groups and social media. They can be used in automatic form for faster responses, and you can tailor them to different stages of purchase to receive data relevant to your purposes.
The survey must be carefully defined and can be set up with features Midway between interview and Net Promoter Score. The goal is to gather as much information as possible, but without overdoing it and boring consumers.
Online reviews shared by customers are important to know what they think about a product or service. Many times feedback is left in written form or with an evaluation on a numerical scale (stars or other).
From the sum of these scores, an overall rating is composed with a mathematical average that will be useful to know the overall liking towards the brand. Currently there are many sites that collect reviews and feedback, Trustpilot and Tripadvisor over all, and it can be really difficult to consistently monitor this immense amount of information.
The benefits of Voice of the Customer
Voice of the Customer software has proven utility in exponentially increasing consumer loyalty while providing better service that is in line with customers' desires and tastes.
Implementing such a program can prove extremely important because of a long list of benefits VoC can bring to companies:
- Optimizing the Customer Experience: Taking in customer feedback allows you to identify the guidelines needed to offer a quality product and ensure greater satisfaction and propensity to repeat the buying experience. In fact, satisfied and happy customers can generate a positive word of mouth, also attracting friends, relatives and acquaintances to the brand;
- Improved brand management: understanding how consumers perceive brands is critical to taking care of your own Brand Reputation. So, listening to the voice of customers not in a public form avoids discussions that could damage the brand image;
- Advantage toward competitors: Customers' expectations are constantly changing and shifting over time. Here then, the collection of feedback can lend a hand in the Recognize industry competitors and understand how these are able to attract your own target audience;
- Increased revenue: Voice of the Customer gives the opportunity to provide a better customer experience, reducing the dropout rate. Loyalty converts to greater trust and thus greater economic revenue for businesses;
- Risk abatement: when launching new products or a new company in the market, it is necessary to keep the following to a minimum the risk of failing in goals, tapping into customers' opinions and preferences from the start. If applied from the beginning, Voice of the Customer can steer the company toward better efficiency and a bright future.