What does voice of customer research mean?

What does voice of customer research mean?

The term Voice of the Customer (VoC) summarizes systematic research and analysis procedures, the results of which give your company insight into your customers’ thoughts and behaviors. Ideally, these results summarize all of your customers’ needs, desires, expectations and demands. These then flow back into the development of your products, services and Customer Experience Management. The goal: a continuous improvement process.

Why is a voice of customer research program essential?

• A voice of customer research program is always the first step when launching new products. Management can sense that a product will do very well in the marketplace. The program replaces a “good market feeling” with valid data about the market, product features, your customers’ wants and needs and the meaning of your brand!
• The fact is that when you truly know your customers and their needs and wants, the chances of failure are significantly reduced. In a highly competitive environment where products and services are almost interchangeable, it is extremely important to listen carefully to your customers and understand their voice. Regular customer feedback helps you make informed decisions that actually meet your customers’ needs.
• Another very important reason why a VoC program is important is to realize that with data extraction through market research, any risk can be identified. Whenever quantitative or qualitative research is conducted, statistical data is obtained based on customer opinions. The data collected make it easy to understand whether a product or new market placement poses a risk.

Here are the key benefits of a good voice of customer research program

Significant improvement in service

A good voice of customer research program will help you improve your service: customer feedback is a very important tool to improve not only the product, but also the brand’s services. Really good, fast and solution-oriented customer service will make your customers stay with you. Moreover, your customers will recommend your brands and products to friends and family

You will gain a better understanding of your brands, products and your business itself

Regular customer feedback provides you with data that gives you an objective view of yourself. After all, who, if not your customers, can tell your company who you are? Because what ultimately determines is the perception of your customers and not how you think you position yourself.

Develop new innovations faster

A voice of customer research program helps you stay on top of the latest developments and innovations or even stay one step ahead when it comes to understanding what your customers really want and what they are willing to innovate for a fee. Only customer feedback can help you improve your product and identify future trends.

Increase sales, acquire new customers, prevent customer turnover

Ultimately, consistent and continuous Voice of the Customer thinking also affects your sales. When you understand and meet your customers’ needs and expectations, your customers will continue to buy from you. They also recognize if there is a risk of potential customer turnover and can immediately react and take measures to retain their customers. And if your customers are so satisfied with your products and services, they will make that known on rating portals and social media platforms.

Also read about product management prioritization matrix!