Your Voice of the Customer program (VOC) converts customer data to organizational value

Last Updated on 20 September 2023

The most important thing in any system is the customer, as everything you do is to provide value to the customer. The only way you can create value, is to create something the customer is willing to pay for. To know what this is you need the voice of the customer.

Companies often go wrong by performing actions and putting in effort that the customer doesn’t value, producing waste, and removing variance that the customer isn’t interested in. It is therefore vital to understand what the customer wants, and to do this we get the ‘Voice Of the Customer’, or VOC. You can’t assume what the customer wants, but will need to go out and interact with them to get the VOC.

Once we have the Voice Of the Customer, we need to convert this to actions we can actually take, which is where ‘Critical To Quality’ or CTQ comes in.

Who is the customer?

The first thing you need to work out is who your customer is. If it’s the product your company makes, it will be the customers you sell to or hope to sell to. This itself can be complicated, as there may be distributors and retailers. Usually the ‘customer’ will be the last person to pay for the product, but you need to be clear who you’re improving your service for.

For processes, the customer may be the next process in the chain, and so be internal to the company instead of external.

Benefits of a VOC program

It is a lot of effort and can take a lot of resources for an effective program, so why should you put that effort in?

• Customer insights: your goals are usually to best serve your customers, so the customer feedback you receive can change your organization’s objectives
• Customer retention: it is more expensive to find new customers than keep your current ones, so if you know how to keep them happy, the increased customer loyalty can save a fortune in marketing costs
• Reduce waste: it can help identify activities you are doing that the customer doesn’t value, which is wasted resources for you
• New features / products: with insight into your customer needs, you can develop a new product or service to address this

How to build an effective Voice of the Customer program

To remain competitive and relevant in today’s ever-evolving business landscape, it is essential to understand your customers’ needs and preferences for the best customer experience. A well-structured Voice of the Customer (VOC) program can provide invaluable insights. So how do you put your program together?

1. Define your Goals and Objectives

The first step is to establish your goals and objectives for the VOC program. Are you looking to improve customer satisfaction, increase loyalty, or reduce complaints? Be specific in what you want to achieve and ensure these goals align with your overall business objectives.

2. Identify your Customer Segments

Segment your customers into distinctive groups based on factors such as demographic, geographic location, or the product/service they consume. This allows for a more targeted approach and facilitates the gathering of relevant data from each segment.

3. Select the Right Data Collection Methods

Choose the most suitable methods to collect VOC data from your customers, such as surveys, interviews, focus groups, or customer reviews. It is crucial to strike a balance between quantitative and qualitative methods to get a comprehensive picture of your customers’ expectations. See below for a more detailed look into your options.

4. Utilize Lean Six Sigma Tools

Lean Six Sigma offers various tools that can come in handy for your VOC program. For example, COPIS (the customer focused version of SIPOC), which stands for Customer, Output, Process, Input, and Supplier, can help visualize and understand the different components affecting customer value. The DMAIC (Define, Measure, Analyze, Improve, and Control) methodology can also guide you through the VOC process by systematically collecting data, identifying problem areas, and developing effective solutions.

5. Analyze the Collected Data

Use the data collected to identify patterns and trends among your customers. Perform a root cause analysis using tools such as Pareto Charts or Fishbone Diagrams to understand the underlying factors contributing to customer dissatisfaction.

6. Develop an Actionable Improvement Plan

Create a plan detailing the steps your team needs to take to address the issues identified in the data analysis. Clearly outline the roles and responsibilities of each team member, as well as the necessary resources to implement the plan.

7. Continuous Monitoring and Improvement

An effective VOC program is not a one-time event. It requires continuous monitoring, feedback, and adjustments for sustained improvement. Employ the Plan-Do-Check-Act (PDCA) cycle to ensure that the program continually evolves with the changing needs of your customers.

An effective VOC program should be part of a larger, ongoing Lean Six Sigma process aimed at continuous improvement. By applying proven tools and methodologies, your business can build a tailored program to better understand and address customer expectations, ensuring continued success in a competitive market.

Voice of the customer tools for collecting feedback

You need to reach out to the customer in order to get their voice. You can make use of many methods to get the VOC, and get into the heads of your customer so that you see your organization from their point of view. Some will need a large budget, but others such as paying attention to complaints and internet research can be both effective and free.

• Customer complaints: every complaint you get is incredibly valuable, especially as for each customer that says something, several will not (or will just leave you).
• Warranty data: From looking at what defects lead to a customer returning your product, you can find out what they value
• Customer interview: a priority for internal customers, you can rarely get better information than just speaking to your customer and seeing what their priorities are.
• Surveys: There are two main types: current customer surveys and lost customer surveys. They can take many forms, including phoning, letters, email and web surveys.
• Market research: this can be very expensive (especially if you commission it yourself), or sometimes you can even find it on the internet for free.
• Focus groups: these can be a time-efficient way of getting to the bottom of customer issues and finding out what they really care about.
• Observing your customers: by observing your customers buying habits, activities and their interests when you meet with them, you can often learn a lot about their priorities.
• Mystery shopper – a great way to see your customer’s view of your organization is to actually become one. There are agencies who will do this for you, or you can bluff you way through with a false beard and a wig; online services are obviously easier.