“Whoever understands the customer best, wins” – Mike Gospel
In this VUCA environment, companies must incessantly innovate and find newer ways to adapt to the changing customer needs. One of the major challenges faced by businesses these days is that they are non-conversant about their customers’ necessities. This is where Voice of Customer analytics comes into the picture, enabling companies to know exactly how the consumers perceive their product, brand and services. Voice of customer analytics, abbreviated as VoC analytics, helps companies increase customer life-cycle value and provides valuable data & insights through customer feedback.
What is Voice of Customer and the role of Analytics in VoC?
According to SixSigma, Voice of Customer is “the customer’s expectations , voice and comments, preferences, of a product or service.” The voice of customer process includes collection of feedback, analysis of data and strategy planning. Data analysts utilize VoC data for several purposes, including data mining, statistical analysis of the feedback collected through surveys and analysis of computable data rendered from customer care. Analytics provides organizations the proof they require i.e. the quantifiable metrics which helps them calculate their ROI on customer investments. Voice of customer analytics is usually used along with customer journey analytics to assess customer experience.
VoC has become one of the core business strategies for businesses, working fabulously for brands as it helps in precise capturing and acting upon customers’ feedback, providing valuable insights about the prospect’s complex decision-making process. A research by Bain & Co. states that companies grew their revenue 4-8% above their competitors just because they were excelling at customer experience.
Capturing ‘Voice of Customer’
The process of voice of customer starts with collecting customer feedback. Surveys are one of the best ways to collect VoC data. The best data analytics companies, equipped with the apt resources, are able to make this process of data collection, data analysis and evaluation of key insights seamless for businesses. Another incredible way of collecting voice of customer data is through social media. Consumers send nearly 350,000 tweets per minute and almost 5 billion Facebook comments every month. This data, when combined with surveys and other data collection sources can prove to be a gold mine for brands.
Obviously, the human mind is incapable of analyzing such huge amount of data hence, we have AI and machine learning to save the day! The market research and data analytics companies are equipped with precisive voice of customer analytics programs that analyze and churn out valuable insights & information.
Businesses can’t afford to be ignorant of the fact that the voice of customer is a game-changer. Collecting valuable data through surveys, focus groups, interviews and social listening can help companies uncover unexplored growth opportunities by exactly knowing what didn’t work out. Key areas where companies fail to deliver according to the customers’ expectations are highlighted by the VoC analytics process. Analytics in voice of customer helps in improving customer retention rates which in turn increases the year-on-year revenue.
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