Voice of Customer (VOC)
It is well known that if a business wants to know its bottom line, it must first assess the current performance of its business. Based on that, businesses get comparative statistics against the future results of their business. Which basically makes it easy to understand the needs of customers, market conditions and end product requirements. Through which the business can improve its products. But it is also important to understand what the business has?
Businesses may have a lot of information about customers, or they may have little information.
Both of these situations are similar, meaning that there is a challenge for the business.
How much information? It is not important, how meaningful and actionable the information is.
Fault Tree Analysis (FTA)
Hence the voice of the customer, which allows us to directly understand the customer's needs, preferences, and end application requirements. Which can be known from general data and analysis.
What is Voice of Customer (VOC)?
In simple words, this is a method through which the business checks the needs and expectations of the customers and understands what needs to be improved in the product. In this, the business interacts and communicates directly with the customer, in which the actual experience of the customer interaction will be recorded. Which will be a complete graph of the current requirements and feedback received from the customer.
"A Voice of the customer (VoC) is a product review in the form of feedback from a customer, including the customer's requirements for the end application, and their Point of view about product."
Voice of the Customer (VOC) helps in understanding and analyzing not only current needs, but also potential future needs. Analysis is necessary to keep up with the changing situation, new technologies and market dynamics. Using Voice of the Customer:
- We can clearly understand all types of needs of every customer.
- Customer satisfaction is the ultimate goal of every business, it is natural that by understanding the needs of the customers, the business determines its priorities and goals.
- As with any for-profit business, monetization naturally requires understanding and determining customer needs.
In short, a business needs to first listen to what the customer has to say and act on the feedback they give.
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How is VOC beneficial to business?
Voice of the customer is a practical system, taking the business out of its assumptions, thoughts and beliefs to present a real picture of what the customer expects from the business. In my view, Voice of the Customer is a critical method to understand customer needs.
- Customer satisfaction is the ultimate goal of every business. It is likely to be accomplished only if the needs of the customers are well understood. Customer satisfaction can only be achieved by developing relationships with customers, through which customers have good perceptions of the business and benefit from "word of mouth advertising".
- By this you can increase the retention rate.
- Whether you want to improve a product or launch a new product in the market, it is important to understand what the customer wants. Obviously, business is for profit, so business decisions are facilitated by VOC.
- If there is a complete understanding of what the customer wants, can the business also understand what we have to do? In short, a business can make its internal processes more reliable and efficient.
Analysis of customer requirements
- A group of customers. By this the business can easily understand what type of user, how and where their product is being used. This makes it easy to analyze the various needs of the customers.
- Customer information. Here the customer information is collected, which is categorized by the types of information and information obtained through different sources.
- Using the Kano method. In fact, it is a tool by which to understand what characteristics the customer has towards the product, which is really meaningful.
- Critical to Quality (CTQ) - Facilitates how customer requirements are converted into product or service characteristics.
A group of customers
When you are analyzing the voice of the customer, it is extremely important who is being analyzed. That is why segmenting each customer into groups gives a true picture of the situation as each customer is different. which establishes distinct values for the business.
Let us take an example here, where a steel pipe manufacturing company segments its customers as illustrated in the table below:
The objective behind this process is to determine which group actually brings the most value to the business. Here we can clearly see in the above example, the highest value is found in the hit exchanger segment. Thus, the business becomes clear as to which group needs to focus more.
This is just a general example, but the actual analysis can be more complex than this, which can be difficult to understand and analyze. So, for segmentation a few points have to be understood. like:
- Group each group according to its characteristics, and understand the effects of how this group of consumers perceives the product.
- If necessary, also group products that are similar.
- Prepare an outline of each segment, which will help in this task.
- The business should describe the representatives of each segment engaged in.
- Document the results obtained which may be useful for analyzing other products or a second time.
Collecting information about customers is an important task, which should be combined with sales information to provide in-depth information about customer interaction, feedback, and their final application.
The source of information can be any such as interview, phone call, online feedback form etc... It is not necessarily how you collect the information; it is important what is in the information? And how to analyze it. Because this collected information can be used to understand what the customer actually wants.
Using the Kano method.
Kano's model is an analysis process that analyzes the product based on customer information to ensure that a product is not offered with overrated features that are not really important to the customer. Which is important to reduce the risk. In this method, customer needs are grouped into three categories. A Mandatory Requirements, Variable Requirements and Specific Requirements. About which you can get complete information on the article about KANO model.
Critical to Quality (CTQ).
First of all, it should be understood that what is important for quality? This describes the characteristics required for quality to address customer needs that point to factors that are characteristic and measurable factors.
To do this we first have to collect information from the customer, and convert that information into deliverables. Along with this, using affinity diagram to shorten the information, and to make the information socially usable by rotating it as needed. with that:
- Defining customer requirements.
- Setting measurable goals and tolerances.
- It should be ensured that there is no gap left.
- Understand that the information is directly related to the product.
Voice of the customer is helpful in keeping customers engaged with the business. By this the preferences and needs of the customers can be understood easily and accurately. Yes, the business has to do some exercise that pays off in the long run. In particular, listen to customers, collect information, analyze information and improve products, processes or necessary locations based on that information.
First Published On Date: Sunday, March 18, 2018 04:10 AM