Customer-centricity is a business imperative, which makes understanding the voice of customer (VoC) critical to success. VoC insights provide a deep understanding of customer needs, preferences and pain points, guiding the strategic direction of a business.
The value of VoC, however, isn’t merely in its collection, but in the ability to quantify it using the right metrics, KPIs and analytics. By focusing on the metrics below, companies can track progress, identify trends and make data-driven decisions.
Not employing these metrics effectively could lead to misguided strategies and missed opportunities, underlining the need for expert advice on this critical subject.
Third-party resources, such as those BluWave connects you with, offer businesses the expertise to measure, analyze and make strategic use of VoC data. Having access to such proficiency could mean the difference between having a wealth of customer data and leveraging it for business growth. Let’s explore the potential of VoC data.
Essential Voice of Customer (VoC) Metrics and KPIs
Understanding and implementing standard VoC metrics and KPIs is the first step toward a comprehensive customer-centric strategy.
READ MORE: Voice of Customer Methodologies
Keenan Kolinsky, BluWave’s co-head of research and operations, says working with specialized third parties can uncover insights the company wouldn’t be able to on its own.
“Before determining your growth strategy or any commercial strategy, you should get targeted insights from your customers and potential customers,” he says.
Sometimes clients will have very specific questions they want included in the scope. Other times they will look to the third party to advise.
Net Promoter Score (NPS)
NPS serves as a barometer of customer loyalty and satisfaction. It is determined by asking customers a single question: “On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?” NPS provides valuable insights into your customers’ overall perception of your brand and their willingness to endorse you to others.
Customer Satisfaction (CSAT)
CSAT is a key metric that measures customer satisfaction with a specific product or service or an overall experience with your company. Typically measured on a scale, CSAT helps businesses understand how well they meet or exceed customer expectations, guiding improvements in product or service offerings.
Customer Effort Score (CES)
CES gauges the ease of interaction with your company. It measures the effort a customer must exert to obtain a product or service, resolve an issue or get a query answered. Low CES indicates smooth interactions and processes, directly contributing to higher customer satisfaction and loyalty.
Customer Loyalty Index (CLI)
CLI is a composite metric that gauges multiple dimensions of loyalty, including repurchasing, upselling and recommendation likelihood. A high CLI indicates strong customer loyalty, suggesting repeat business and customer advocacy.
Customer Lifetime Value (CLV)
CLV predicts the net profit associated with the entire future relationship with a customer. It helps businesses allocate resources efficiently for customer retention and acquisition strategies.
While business may be able to answer some of these questions on their own, Kolinsky says getting an outside perspective can be invaluable.
Sometimes clients will have very specific questions they want included in the scope. Other times they will look to the third party to advise,” he says. “One of the insights they’re looking to get is buying drivers. What influences that customer to purchase that service or product?”
Advanced Voice of Customer (VoC) Metrics
With a strong foundation in place, businesses can progress to more advanced VoC metrics that delve deeper into customer sentiment and behavior.
Learning Opportunities: Improving Products Based on Feedback
This metric identifies specific areas where your product or service could improve based on customer feedback. By proactively spotting and addressing these opportunities, you enhance your offerings and customer satisfaction.
Repurchase Ratio: Evaluating Customer Retention
The Repurchase Ratio measures the percentage of customers who have made repeat purchases. This metric is critical for assessing customer loyalty and informing retention strategies.
“Would You Miss Us?” (WYMU): Assessing Customer Dependency
WYMU assesses the extent of customer dependency on your products or services. High scores indicate significant customer reliance, which is indicative of a strong customer-business relationship and often results in brand loyalty and advocacy.
READ MORE: What is Voice of the Customer?
Integrating VoC Metrics into Your Strategy
Accumulating VoC metrics is just the beginning; integrating these insights into your business strategy is where the real value lies. A tool that proves vital in this integration process is the Customer Journey Map, a visual representation of your customers’ experiences across all touchpoints. A well-constructed journey map can guide you on where to collect VoC data, adding to your voice of customer strategy.
Amplifying Results with Voice of Customer Analytics
VoC metrics and KPIs provide vast amounts of data, but it is the role of VoC analytics to interpret this data and glean actionable insights. Analytics facilitate the understanding of complex customer behaviors and sentiments, allowing businesses to make strategic decisions that drive customer satisfaction and business growth.
Companies often find interpreting and actioning VoC data a complex task, calling for specialist expertise. BluWave can connect you with an exact-fit service provider to navigate this complexity and help you amplify your VoC strategy, based on proven voice of customer methodologies.
Focusing on voice of customer metrics, KPIs and analytics is not just a best practice, but a necessity. They offer quantifiable measures to track progress, understand customer behavior and preferences and make strategic decisions that lead to enhanced customer satisfaction and business growth.
Looking to strengthen your VoC strategy with expert third-party resources? Get in touch with BluWave today. Our dedicated research and operations team will connect you with an exact-fit service provider to aid your journey to customer-centric growth.