Voice of the Customer (VOC)
What is the Voice of the Customer?
Voice of the Customer (VOC) describes the process of obtaining customer feedback about their experience with a company. The purpose of implementing a VOC plan is to figure out what customers care about, to set priorities and goals consistent with customer needs, and to determine what additional needs can be met. The goal of the VOC process is to get information direct from the customer in order to obtain unbiased and reliable insights that can be used to assess the strengths, weaknesses, and opportunities of a company.
The VOC process can be implemented in a company's ongoing operations plan, can be used to improve products and services, better relate to customers, and identify opportunities. VOC is also an important element in the due diligence process for buy-side acquisitions. The value of direct customer input cannot be overstated regardless of the reason and the goals for obtaining it.
Features of the VOC Process
The VOC process is focused on efficiency and accuracy so that disruption can be minimized or avoided. A VOC study is conducted prior to taking any action in order to identify the target's top customers and avoid contacting an entire customer database. Streamlined questionnaires and surveys are designed and implemented that can capture both quantitative and qualitative feedback. Finally, the insights gathered are aggregated and analyzed in order to process the results and provide actionable data.
Benefits of the VOC Process
Aside from data gained from direct customer insights, the VOC process itself is beneficial, especially when conducting market due diligence ahead of an acquisition. For the acquiring party, they often want to research and assess their own data, and do not want to simply rely on data provided by the target that may be biased and potentially inaccurate or incomplete. Additionally it is often critical for both the acquiring firm and the target to ensure that the process of obtaining the information is not disruptive to customers or employees, and the VOC process utilizes tools to obtain data while maintaining discretion.
VOC in the Due Diligence Process
VOC is used during the due diligence process to confirm valuation estimates, reduce uncertainties and risk, and build deal confidence. In order to assess the strength of current customer relationships, as well as to identify opportunities for growth post-acquisition, implementing a VOC study is an invaluable tool in the due diligence process. The insights gained through the VOC study assists in evaluating current acquisition targets and can also be used to help identify other target opportunities.
VOC Methodologies
There are several methodologies that may be employed depending on the goal of the VOC study. The goals may include identifying customer segmentation, assessing customer loyalty, and determining critical product requirements. Customer segmentation involves identifying customer subgroups who generate the highest value from the product or service. Assessing customer loyalty requires assessing the satisfaction customers have in the product or service, what the available alternatives are, and how likely they are to continue to remain with the target's products or services. Lastly, determining critical product requirements seeks to identify the wants and needs of customers, and distilling this information down to actionable data that can be used to profitably improve the products or services offered.
Depending on the goal and timeline of the VOC process, one or several techniques may be used, such as:
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Customer Interviews
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On and Offsite Surveys
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Point-of-Use Observation
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Focus Groups
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Emails
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Live Chat
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Collecting Public Feedback (such as from Social Media and Review Sites)
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Implementing Feedback Forms