GUIDE
Advance Your Organization’s Voice of the Customer Strategy
Learn how your organization can build and mature voice of the customer programs to improve business performance and outcomes.
Take the Digital Consumer Intelligence AssessmentCustomer retention and loyalty are more important than ever in 2021. The pandemic has taken a toll on consumer demand across many industries with people becoming more careful about their spending beyond necessities such as groceries. In this environment, customer retention is paramount, especially for recurring revenue businesses.
Fully engaged customers not only spend more across a longer customer life cycle, they can also be responsible for significant segments of business income. “These regular customers don’t simply show up and help boost business when sales are low. Studies show they are the ones driving most business profits because they spend more at a higher frequency than new customers do,” writes Victor Ho, CEO of Fivestars, in Forbes. They cite an Adobe report that says around 40% of a business’s revenue comes from repeat customers, who represent only 8% of all visitors.
When businesses anticipate and meet customer needs, they can convert them into loyal fans and advocates.
To keep up with these customer expectations and to grow, organizations must invest in and develop voice of the customer (VoC) programs. Why put so much focus here? A recent survey by Gartner showed that companies that have seen a positive revenue growth collect more customer experience data than ‘nongrowth’ companies.
VoC programs should focus on:
- Gathering feedback about customer experiences with a product or service
- Developing strategies around meeting customer needs, based on a deep understanding of their pain points and preferences
- Delivering product improvements and making decisions that are informed by the voice of the customer
VoC strategy plays a vital role in an organization’s maturity journey within digital consumer intelligence (DCI). It’s one of the six key pillars set out in the DCI Maturity Model, and something we ask about in our DCI Assessment, both of which have been developed to help organizations identify their strengths and weaknesses, and provide guidance on improving their performance.
In this guide, we’ll talk about how organizations at the different stages of maturity operate in relation to VoC strategy and advise on how your organization can advance.
We’ll also share thoughts from Brandwatch’s internal VoC expert and Director of Consumer Insights Kelly Autenrieth. She has been with Brandwatch for over eight years, three of which she has spent working in research and helping clients get closer to their customers in order to make better decisions.
“Voice of the customer programs aim to listen to consumers and make positive changes that alleviate their pain points, heighten their experiences, and increase advocacy. By implementing VoC programs, organizations can build better relationships with their consumers that, in turn, will translate into better ROI.”
If you haven’t already, we encourage you to take the DCI Assessment that will help you identify exactly where your organization stands on VoC strategy and how you can improve in this area.
What is VoC all about?
VoC strategy is essentially about customer-centricity within an organization. But what does it mean to be truly customer-centric?
The idea of customer-centricity is not exactly new. Many businesses declare the customer to be at the heart of their operations and core company values. Some of those companies go to great lengths to monitor customer preferences and pain points, investing in the associated human resources and technology while trying to be ever-receptive to feedback across all channels and touchpoints. Others might claim to be customer-centric but don’t engage in any kind of listening, effectively blocking their ears to valuable customer input.
When we talk about the voice of the customer, we’re not just talking about the ways part of your organization might monitor the conversation and keep a finger on the pulse of what customers want. A great VoC program helps integrate the voice of your customer into existing business processes to ensure that customer feedback is not only heard but also acted upon and that customer voices echo across all areas of your organization. It’s something that’s built into your organizations’ values and long-term plans.
“When we talk about customer-centricity as part of VoC strategy, we ask about the approaches to measuring customer satisfaction, and the value placed on consumer insights, as well as the role played by consumers in informing future planning.”
What VoC strategy looks like across different stages of DCI maturity:
There are four key stages of DCI Maturity:
- Monitoring (earliest stage)
- Developing intelligence
- Digital consumer intelligence
- Embedded digital consumer intelligence (mature stage)
Here’s what VoC strategy typically looks like for organizations at each of these stages.
1. Monitoring
At the earliest stage, we’d expect organizations to have only a vague or limited connection between customer insights (CI) and their overall mission statements.
This is a discovery stage, at which teams can begin to recognize and identify the ways customer information and data are currently captured. With an audit, an organization will start to understand how diverse voice of the customer data is, where and how the information is being captured, and what, if anything, is being done with the data. This initial evaluation shows the gaps in how customer insights are collected and processed, and can open up room for fresh ideas and opportunities. For example, what could product developers get out of accessing support ticket data?
Real client example
Let’s look at one of our healthcare brand clients through the lens of the DCI Assessment. This client is in the early stages of maturity as they engage in standard social monitoring, capturing what is being said about the brand (whether the feedback is negative or positive) and listening to topics they already anticipate. The opportunity here would be to go beyond their current monitoring and pivot into discovering what consumers say beyond brand-focused conversation. For the company’s research and insights experts, this is a chance to shift their approach from reactive monitoring to proactive listening. This new approach may involve establishing best social listening practices across the organization, as well as reviewing the existing toolbox and potentially considering an upgrade. Another key area of focus would be to start building a better culture of data within the organization and making sure consumer insights are increasingly accounted for in the decision-making process.
2. Developing Intelligence
At this stage of DCI maturity, the voice of the customer is beginning to play a more important role in informing business decisions. Businesses at this stage are also beginning to tie customer insights to ROI, but there is still plenty of work to be done.
At this point, an organization can begin to explore new data sources and different ways to blend them to get even deeper insights about what their customers need. For example, what could be achieved by blending social data with an organization's Net Promoter Score (NPS)?
Real client example
We reviewed another Brandwatch client – a healthy snacks brand – on their performance within the VoC pillar. This client is aware of the importance of data and is already actively gathering a fair amount of insights from various sources. The challenge is that the collected data is fragmented and comes from different partners – there’s no single system in place to organize, process, and analyze the consumer insights at scale.
How can the company advance its VoC efforts?
We recommend putting together frameworks around how the data is managed, and unifying this process across the organization. Data is fundamental to the decision-making process and, again, building a strong culture of data is a crucial part of maturing within digital consumer intelligence.
3. Digital consumer intelligence
At this ‘advanced’ level of maturity, the voice of the customer starts playing an active role in most strategic projects.
“With the initial results of voice of the customer programs leading to more buy-in of customer insights across the organization, it's likely a dedicated individual or team is primarily responsible for collecting, analyzing, and centralizing consumer insights. With clean, historic data coupled with an ongoing collection of data, the types of analysis being completed are probing deeper questions,” Autenrieth explains.
“Examples include audience segmentation based on customer demographics, and understanding motivations and perceptions,” says Autenrieth. At this point, the organization will start identifying competitive opportunities as well as white space opportunities (eg social selling and research) as it moves beyond brand centrism.
Real client example:
A global fashion brand is already getting granular, segmenting different audiences and monitoring changes in conversations and trends within each specific segment. The challenge the brand is facing is linking these efforts to key business objectives. In order to close that gap, the organization needs to establish new practices for better measuring ROI.
Determining answers to the following questions can be helpful with this process:
- What are the goals of our programs (what does good look like?)
- What are we measuring already and what would we like to measure?
- Once we have the right measurements in place, how can we go about establishing a baseline as a frame of reference for comparing our results?
Answering these questions will often need a multi-team effort, and establishing these relationships is part of building the status of the voice of the customer throughout the organization. It’ll help everyone become more aligned and work towards the same goals.
4. Embedded digital consumer intelligence
At the ‘mature’ stage, VoC is integrated as a requirement in all strategic decisions. Customer insights are explicitly tied to hard ROI metrics that are easily quantifiable.
“At the mature stage of VoC, any major initiative that is set to kick off will first need to be informed by VoC programs and data. That means robust, integrated datasets that can be dissected are also required.”
This provides a balanced, contextual, and qualitative understanding of the customer. Practically, these programs may include journey mapping with customers during a new app or product launch, designing personas based on ethnographic or behavioral data, creating a jobs-to-be-done framework that informs a product or service, or looking at best-in-class brands to analyze behaviors or strategies to replicate or avoid.
Here are some quick real-life examples of companies and their VoC programs in action:
- A large healthcare organization used integrated datasets such as support emails, chat logs, customer feedback, and surveys, and ran a text and sentiment analysis over thousands of different data sets to discover influencers and identify health trends.
- A well-known retail corporation assigns a Guest ID number after the first consumer interaction with the brand, and then continues to build a customer profile by adding demographic information and tracking purchasing history. This program enables the company to make accurate predictions based on consumer purchasing patterns. This popular e-commerce business is truly customer-centric and heavily data-driven. It actively studies social media data to establish customer sentiment trends, and it's continuously listening to customer feedback from returns, refunds, customer service conversations, and product reviews. All customer insights are accessible across the organization via the Customer Insights Center of Excellence, and they feed into the company's strategic and operational planning processes.
How does the VoC pillar relate to the other pillars of DCI?
Governance
It's crucial that the data captured about customers online is in line with global and local regulations. Data management practices and processes have to be put in place to ensure an organization is gathering high-quality data throughout the data life cycle and to prevent data integrity issues. Such practices include consistent segmentation and personas, and standardized metrics across the organization. You can read more on creating an excellent data governance program here.
Insights flow
Consumer insights should be readily available and distributed throughout the company to inform strategic and tactical decisions. As Autenrieth explains: “We all know that the best decisions are made based on data. And we need to make sure that consumer insights are readily available throughout the organization.” You can read more about improving insights flow here.
Speed to insight
To achieve excellent speed to insight, organizations need to create a process that enables them to get valuable consumer data into the hands of decision-makers. By accelerating in the area of speed to insight, customer complaints, potential reputational crises, or new trends can be picked up and acted on early to mitigate any risks or to take advantage of potential opportunities. The results of improving in the areas of speed to insight and VoC can be greater loyalty, increased customer lifetime value, and revenue growth, all based on a company taking customer feedback seriously and acting on it swiftly.
Culture of data
For digital consumer intelligence to help direct strategic and tactical decisions, a strong culture of data needs to be encouraged at all levels of the organization. A good culture of data means an organization fosters respect for the voice of the customer.
Experimentation
Experimentation should be conducted with the consumer or customer in mind. “Remove the guesswork from your strategic decision-making,” says Autenrieth. “Think in the terms of ‘what do I need to find out about my consumers?’, and that should lead to the best research method.”
5 quick tips for a better VoC strategy
1. For organizations in the early stage
Audit existing opportunities that capture customer feedback. You have to know where you are currently to get where you want to go, so use this opportunity as a roadmap to identify what channels already exist, and where there are clear gaps or a lack of healthy, trusted data.
“Think about it – what’s one thing you could do that would have the biggest impact on capturing customer data with the least amount of resource needed to get started?”
2. For organizations at the developing stage
Monitor different sources of data (eg social, search, reviews, sales) to build a breadth of quantitative and qualitative customer data sources, which have sound methodologies and could be used by multiple stakeholders. Remember, one datapoint only tells one side of the story.
3. For organizations at the advanced stage
Begin segmenting audiences and create KPIs that are supported by your VoC programs. Now that you have a breadth of data, start to create segments to identify differences in customers’ needs and pain points, which will ultimately give these customers a more targeted, fulfilling experience.
4. For organizations at the mature stage
Develop holistic personas and jobs-to-be-done frameworks that center around these different audiences. That means bringing your customer to life, incorporating a more sophisticated ethnographic and behavioral understanding.
5. For all organizations looking to improve VoC strategy
From the very beginning, it’s important to highlight the biggest business challenges as anchors to go back to. How can VoC strategy help the organization overcome them?
Next, get leadership buy-in and support. VoC takes time to develop, refine, and evolve, and it may not immediately provide measurable results or increase profit. Understand which part of your VoC strategy would initially provide the biggest impact and interest, and use that as a gateway to expand.
With that buy in, look to create a center of excellence that can provide real-time access to all customer insights across your organization.
Learn more about DCI Maturity
- Maximizing Speed to Insight at Your Organization
- How to Improve Insights Flow Across Your Organization
- Building a Culture of Data at Your Organization
- Creating an Exceptional Data Governance Program
- How to Encourage a Culture of Experimentation Across Your Organization
- The Digital Consumer Intelligence Maturity Model