By: Kathy Kent Toney, President of Kent Business Solutions
Did you know, that regardless of the industry, it costs organizations five to 25 times more to attract a new customer than it does to retain an existing one?
In this strange new world we live in, keeping existing customers has become even more essential. That’s why Voice of the Customer (VOC) approaches are so valuable!
Not sure what VOC is? Then check out my last blog on this subject.
Here's another great fact: according to the Aberdeen Group, best-in-class VOC users enjoy an almost 10x greater increase year-over-year in annual company revenue.
The good news is that you can started on reaping these benefits. Check out these techniques that can help you improve your bottom line, some of which you can start today:
1. Customer Interviews
These are one-on-one conversations with customers that use a predetermined interview guide that often take place at the customer site. These usually center around a particular customer point-of-view about their product or service issues, attributes and performance measures. Although more expensive, this is often the most useful way to build-in customer loyalty.
2. Focus Groups
Focus groups involve a collaborative experience with a small group of customers so that feedback can build upon each other’s input. These can be especially effective as a last step after surveys and interviews to further understand VOC for each of their company’s touchpoints.
Also known as Ethnographic Market Research (EMR), this involves interviewing and observing the customer while they interact with products. This is one of the more expensive methods, but can often uncover customer needs that the customer isn’t even aware of.
4. Informal Conversations
This technically is not a traditional VOC technique, but how many of us have amazing conversations with our clients and we forget to document what we've learned? One client of mine made it a standalone model in their process, since they want to ensure they capture important content from these conversations.
5. Customer Surveys
I’m sure we’re all painfully aware of surveys, but they can be a quick and dirty way to gather feedback from customers. One especially impactful survey type is Net Promoter Score (NPS), which measures customer loyalty.
6. Social Media & Online Reviews
It goes without saying how important it is to monitor how customers interact with your business and to respond quickly to negative responses and reviews. Did you know that 86% of people hesitate to purchase from a business that has online negative reviews? Having a process in place, or even just one person fielding customer feedback, can make a world of difference!
As I mentioned earlier, you can implement some of these techniques right away. However, when used in a complete VOC program, the benefits can be exponential.
When every customer-facing employee has at their fingertips the ability to gather feedback across multiple channels using multiple methods, companies can consistently gather, analyze and use the feedback to create products and services that customers want and expect.
When that happens, companies can’t help but improve their bottom line. And who doesn't want that!
Are you ready to improve your bottom line through improved customer feedback strategies, but you don't want to do it yourself? Then let’s have a chat! I'd love to learn what your challenges are to help you determine a path forward.
Click here to schedule a 15-minute virtual coffee.
Thanks for tuning in!
Kathy Kent Toney
I'm passionate about helping organizations grow profitably in ways they haven't imagined!