Evolution to the Present
Before the era of e-commerce, purchases generally required
some face-to-face interaction between a salesperson and their customer, or in the
case of telephone sales, at least
some verbal interaction. So for
millennia, there was a natural mode through which the customer could provide
feedback regarding the product or service being purchased. This feedback could be used by the vendor to
make improvements in their business.
But, then again, through much of human history, the absence of
mass-produced items and the scarcity of large commercial centers meant that
customers didn’t have any great choice of vendors – if an ancient Greek
plebeian found the quality of their new leather sandals to be lacking, they
might have to walk many hours to log a grievance and request a refund of their
two drachmas. A vendor who failed to
respond to this sort of customer feedback probably experienced little impact on
the success of their business.
Commerce in more modern times brought abundant selection to
the customer by way of the shopping mall; it also brought celebrity
endorsements on radio and television, as well as new channels for spreading
customer opinions concerning quality and degree of satisfaction. Responsiveness to customer feedback began to
play a more pivotal role to the success of any given business. This feedback continued to be available in
the same modes that it had existed for thousands of years, generally requiring
face-to-face (or at least verbal) interaction, with an occasional written
survey or comment card.
But the advent of e-commerce over the Internet has changed
the entire paradigm for sales of both products and services. Now potential customers have the ability to
comparison-shop a multitude of vendor options from the comfort of their
easy-chairs. And just as importantly,
whether a customer is exceptionally pleased or overly disappointed in their
recent commercial transaction, they have the ability to instantly share their
experience with countless others around the world through email, blogs, and
social media, thereby driving widespread perceptions of a business or
product. This new-found consumer power
represents a many-fold amplification of the customer’s opinion; it is important
enough to e-commerce that it has been given a special name: Voice of Customer,
or VoC.
Present-day Paradigm Transformation
VoC as a term referring to the collection of customer
feedback was first coined more than two decades ago[1],
but it has seen special focus and growth in e-commerce facilitation tools over
the past decade. Allegiance is one of the larger players
in the industry of providing such tools; this company has published an e-book[2]
that includes ideas from many thought-leaders in the VoC industry, noting that
the imperative for businesses to utilize VoC arises from the following fact:
The era of the
silent customer is gone for good. Customers will make their voices known one
way or another.
A business that fails to learn from
their customers and adapt to their needs, and
even to their perceptions, will be significantly handicapped in today’s
global marketplace. The Allegiance e-book includes a fairly comprehensive list
of the functionality contained within modern VoC platforms to support such
learning:
- Standard reporting and custom dashboards
- Predictive analytics
- Segmentation
- Classification and regression modeling
- Preset alerts
- Sophisticated text mining
The Web Analytics Demystified organization makes a strong case in a whitepaper[3] (sponsored by OpinionLab, another leader in the VoC
industry) for the fact that simply performing quantitative web analytics leaves
a big gap in a merchant’s understanding of their customers:
When all you have
are clicks, paths, and exits, how are you to determine if your online visitors
are having success and/or a positive user experience?
Again, companies that fail to collect and analyze the
feedback of their customers will find themselves at a significant
disadvantage. Furthermore, Leonard Klie
provides strong justification in a CRM
Magazine article[4]
for the argument that the key to success with VoC is the ability to derive
actionable insights. To achieve this
level of practicality, VoC solutions go beyond surveys; they collect feedback
from a multitude of channels, organizing and prioritizing all of the
information based on business goals.
Future Revolution
And yet, analysis of such unstructured, qualitative feedback
information can be challenging. Simply
the vastness of information from a well-designed feedback-collection program
can leave companies scrambling in too many directions to be effective in their
response. This is the drive behind
Fidelity Investments’ effort to identify “moments that matter”,[5]
specific customer experiences which have the likelihood to create either
detractors or promoters of the product or company. But to make such predictive analytics –
derived from unstructured input, no less – widely available, traditionally
silo-specific functionality will need to achieve a high level of
integration.
The Web Analytics
Demystified whitepaper mentioned here previously refers to this future capability
as an “Integrated Listening Platform” that will combine a number of VoC tools
as well as product and customer management functionality to bridge the gap
between the offerings of a business and the needs of the customer, naming the
following list as just the beginning:
- Web analytics tools
- Customer experience management tools
- Testing platforms
- Customer Relationship Management (CRM) platforms
Recognizing that advances in text mining are crucial to the
inner workings of this integrated platform, “Team Demystified” posits the
following:
These integrations
will take advantage of tool-to-tool interface integrations or pre-built APIs
[Application Programming Interfaces] to exchange data between systems, making
customer feedback more integral to systems that have traditionally been
customer-unaware.
Ultimately, the insights obtained from such integrated
platforms will be without value unless the vendors choose to act in a timely
manner with the needed changes.
Companies that can demonstrate such agility and responsiveness will have
an edge over their competitors. In
today’s hyper-connected world of consumers and ready availability of
marketplace choices, this edge can very easily determine which businesses
thrive and which collapse. And as the
availability of computing resources continues to grow at an increasing rate,
free-market competition will revolutionize the implementation of VoC into
something completely unimaginable just two decades ago when it was born. Such acknowledgement of the value of customer
feedback can only lead to a world where the customer is king and quality reigns
supreme.
[1] Griffin, Abbie and John R. Hauser,
“The Voice of the Customer”, Marketing
Science, 12 (1), 1993, pp 1-27.
[2] Capitalizing on Voice of Customer, a collaborative e-book, 2010.
[3]
Greco, Adam, “The Future of Voice of Customer”, Web Analytics Demystified, Inc., 2012.
[4]
Klie, Leonard, “Listening to the Voice of the Customer”, CRM
Magazine, July 2012.
[5] “Lessons Learned from the 2011 Voice of the Customer Award Winners”, (captured in a
presentation prepared by Rapide) Forrester Research, Inc., 2011.
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