Published On April 5, 2021
With increasing consumer demands in this era of immediacy, it has become imperative for organizations to keep track of the ever-evolving customer needs and preferences. Companies have begun investing in Voice of Customer platforms or software that provide in-depth and comprehensive insights about their target audiences.
VoC or Voice of the Customer (VoC) provides unique insights into the minds of consumers that no other data source can match. It assists businesses in determining their customers’ interests, preferences, expectations, and pain points as a result of the interactions with their brand, regardless of where they are in the customer journey.
Monitoring the current customer voice patterns and constantly looking for ways to obtain more information through customer feedback is critical for making crucial decisions and driving the growth of customer experience.
What is Voice of Customer?
An analysis methodology known as ‘Voice of Customer’ allows brands to gain a thorough understanding of their customers’ needs and preferences. It gathers information from a variety of sources and integrates it into a single and powerful overview of the consumer, revealing expectations, preferences, and aversions. This helps in creating a data-driven decision-making process for the entire organisation.
VoC softwares or platforms have gained momentum in the recent time and are now speedily becoming an important aspect of a company’s core business strategy. They are especially effective for brands because consumers these days expect more direct communication with them. Additionally, in order to make crucial business decisions, collecting and acting on consumer feedback is very important as it helps in understanding customers’ needs.
Collection, analysis, and execution are the three phases of feedback in an adept VoC platform. Although many businesses just gather reviews, there is much more to the process if they want to better understand their customers and offer true value. In other words, companies should have the right VoC tools in place which helps them not only in gathering VoC data but also facilitating their team to evaluate and act on it.
According to a report by Aberdeen Group, companies that adopted best-in-class Voice of Customer platforms increased revenue nearly 10X faster than those with less capable VoC systems. This is a result of an increase in customer retention by 55%.
What is the importance of Voice of Customer?
Indulging in listening the voice of customers is crucial because it enables companies to turn their product or service into something that consumers genuinely want and look forward to invest their money and time in it. Additionally, it also helps businesses enhance their ROI such as:
- Increasing revenue: By lowering churn and strengthening the potential to attract new customers.
- Cost reduction: By streamlining processes, ensuring compliance, and growing consistency.
The greatest advantage of all is the ability of VoC to provide companies with the insights they need to make positive improvements to the customer experience and, as a result, maintain a customer base which is loyal.
For instance, let’s take the example of gathering customer feedback about a company’s website. One does not view their website in the same light as their customers. In reality, company executives probably have a very different experience with their website, apps, and email campaigns or any other digital channel as compared to their customers and visitors, which means they don’t really know whether these channels are completely meeting the needs of their customers.
This indicates that there is a significant ‘experience gap’ between how companies plan or want their customers to experience their business and how they actually do. As a result, engaging in a discussion with the customers assists the enhancement of customer experience. The unique customer insights that is provided by Voice of Customer platforms helps companies maintain a competitive advantage and set their business apart.
Top Voice of Customer trends in 2021
Here are some top Voice of Customer trends for 2021 that will help businesses enhance their customer experience efforts:
1. Elimination of VoC data silos
VoC is a key component in achieving the elusive 360-degree view of the customer from the start to finish of the customer journey. These insights, on the other hand, are often found within a single department in an organization. According to Forrester, reorganization initiatives will take place in companies that will help eliminate the VoC data silos make it easier to juggle data from various sources internally.
According to a report by Gartner, while choosing vendors, a majority of customers are increasingly prioritizing experiences. As a result, eliminating VoC data silos is becoming more important than ever, in addition to monitoring Voice of Customer trends.
2. Real-time insights with AI
Stakeholders today need the right inputs at the right time in order to provide excellent customer service. A company’s ability to make critical decisions is contingent on a thorough understanding of customers and their experiences. VoC analysis when powered by AI helps companies obtain these insights rapidly and efficiently.
According to a McKinsey & Company report, 50% of companies used AI in at least one business feature by 2020. Text mining is a great example of how AI is being used in customer voice research. Artificial intelligence (AI) and natural language processing (NLP) are assisting with the heavy lifting. Real-time opinion analytics, in which each comment is automatically labeled by subject and sentiment, offers real-time insights that allow key stakeholders to act quickly.
3. Targeted surveys
Every experience is important. Today’s customers have very high expectations. Consider how, according to a PwC report, three out of ten consumers would abandon a brand after only one poor customer experience. Measurement of the consumer experience at all touch points in the customer journey is critical in the era of CX.
Micro-surveys are being used by businesses to fill in inconsistencies in their CX evaluation. These are simple, focused surveys designed to gather feedback during or shortly after key interactions, such as after an encounter with a customer service executive.
4. Enhancement of action management efforts
Problems may arise at any point in a customer’s journey. However, quickly resolving these problems can mean the difference between a customer remaining loyal to your brand or not. In a world where nearly half of US consumers (TalkTriggers) prefer word-of-mouth over any other source of information, brands can’t afford a low net promoter score, let alone dissatisfied customers discouraging others from doing business with them.
Efforts such as closed-loop feedback that are based on focused VoC studies are assisting in preventing negative interactions from lingering too long in the minds of customers. More significantly, effectively closing the loop with consumers results in the rehabilitation of negative interactions, maintenance of consumer loyalty, and smoothing out of speed bumps in the customer path.
Anything companies do should be done having their customers in mind, and it is nonsensical to assume what they want. To stay ahead of the competition and meet your customers where they are, companies must first listen to what they are talking about and then respond accordingly. A well-developed Voice of Customer platform can help companies stay ahead of their competitors as well help them take their CX game to the next level. Voice of Customer data analytics help organizations build robust customer success, product management, marketing, sales and operations strategies by listening, analysing and acting.
iNava is a voice of customer intelligence SaaS platform, developed by SG Analytics, to help business leaders in B2B technology firms get quick access to macro and micro level intel on the voice of customers for their products as well as for competing products in the marketplace. Learn more on how companies can stay ahead of the curve with iNava here.
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