The Importance of Defining Desired Outcomes in Your VoC
The Importance of Defining Desired Outcomes in Your VoC Journey
Determining your desired outcomes is a critical first step in launching a successful Voice of Customer (VoC) program. Clearly mapped-out goals not only guide your strategy but also streamline stakeholder buy-in, aligning cross-departmental efforts toward a common objective. Here, we explore some typical outcomes businesses aim for with VoC programs and their corresponding business value.
Increasing Customer Loyalty
Why It Matters:
Customer loyalty is a potent driver of revenue, as loyal customers are more likely to purchase again, often spend more, and act as brand advocates.
Business Value:
According to research by Bain & Company, a 5% increase in customer retention can lead to a profit increase of 25% to 95%.
Reducing Customer Churn
Why It Matters:
Customer churn is costly and can significantly impact business performance, particularly in competitive markets where acquiring new customers is expensive.
Business Value:
Studies indicate that improving customer retention by just 10% can lead to a reduction in annual marketing costs by as much as 15% to 30%.
Increasing Customer Satisfaction
Why It Matters:
High customer satisfaction results in higher spending, reduced churn, and enhanced customer lifetime value.
Business Value:
The Customer Experience Impact Report by Oracle shows that 86% of buyers are willing to pay more for a better customer experience.
Increasing Customer Advocacy
Why It Matters:
Advocacy can significantly amplify your marketing efforts. Customers who advocate for your brand act as powerful, credible marketers.
Business Value:
Nielsen's Global Trust in Advertising Survey found that 92% of consumers trust recommendations from friends and family over all other forms of advertising.
Improving Product or Service Offerings
Why It Matters:
Feedback from VoC programs can drive meaningful enhancements to products and services, ensuring they meet or exceed customer expectations.
Business Value:
According to a PwC report, 73% of all people point to customer experience as an important factor in purchasing decisions, highlighting the importance of aligning offerings with customer expectations.
Conclusion
Mapping out desired outcomes at the onset of your VoC journey facilitates goal alignment across your organization and serves as a compelling foundation for securing stakeholder buy-in. Whether you focus on increasing loyalty, reducing churn, enhancing satisfaction, or boosting advocacy, each outcome delivers significant business value and drives strategic success. Your VoC program can transform customer insights into impactful actions through clear objectives and aligned efforts, ultimately leading to measurable business growth and a stronger competitive position.
