Market Research Meets Customer Experience: Harnessing VoC for Business Growth

by | Aug 7, 2018 | Customer Experience

Many customer experience (CX) professionals began their careers in market research. Both disciplines focus on understanding customer sentiment and leveraging those insights to improve products, services, and overall experiences. While their methodologies might differ, the goals of CX and market research are strikingly aligned: delivering the best possible offerings to customers.

A shared tool that bridges the gap between these two fields is the Voice of the Customer (VoC) initiative. When executed effectively, VoC programs serve as a goldmine of actionable data that can inform both market research strategies and customer experience enhancements. However, the collaboration between these two areas isn’t always seamless, and understanding how to harness VoC fully can mean the difference between missed opportunities and transformative insights.


Where VoC, CX, and Market Research Meet

VoC programs have become an essential strategy for businesses looking to stay competitive. These initiatives are designed to capture feedback directly from customers, offering insights into how they perceive a brand, its offerings, and its interactions. While traditionally a tool in the market research arsenal, VoC is increasingly being recognized for its value in shaping customer experience strategies.

This overlap creates opportunities for collaboration but can also lead to conflict when teams are not aligned. Both CX professionals and market researchers have valid, albeit different, objectives when it comes to using VoC data:

  • Market researchers are often looking for macro-level trends, using VoC to identify patterns across a broad audience that can inform product development or marketing strategies.
  • CX professionals, on the other hand, focus on micro-level insights, using VoC to understand individual pain points and create actionable strategies for improving touchpoints across the customer journey.

When these teams work in silos, the potential of VoC is diluted. However, when CX and market research align their efforts, the results can be transformative.


The Benefits of Collaborative VoC Initiatives

VoC programs, when integrated across departments, provide a single source of truth about customer sentiment. This alignment allows businesses to create unified strategies that address both high-level market trends and individual customer needs.

1. Enhanced Customer Understanding

Collaborative VoC programs provide a 360-degree view of the customer, combining quantitative data from market research with qualitative insights from CX touchpoints. This holistic approach enables businesses to design products, services, and experiences that are genuinely customer-centric.

For instance, a VoC program might reveal that customers find a brand’s checkout process too cumbersome. While market research can quantify the extent of the issue, CX teams can use the insights to redesign the checkout flow and directly address customer pain points.

2. Cost Efficiency

By integrating CX and market research efforts into a unified VoC program, businesses can reduce redundancies. Instead of running separate surveys or focus groups for each department, a single initiative can address multiple objectives. This not only saves money but also reduces the risk of survey fatigue among customers.

3. Actionable Insights Across the Business

VoC programs offer actionable insights that can inform decision-making at every level of the organization. For example:

  • Marketing teams can refine messaging to align with customer preferences.
  • Product development teams can prioritize features that customers truly value.
  • Customer service teams can identify recurring issues and address them proactively.

Best Practices for Integrating CX and Market Research in VoC

While the benefits of a collaborative VoC program are clear, implementing one requires careful planning. Here are some best practices to ensure success:

1. Define Clear Objectives

Before launching a VoC initiative, align on what each team hopes to achieve. Market researchers may want to track brand sentiment over time, while CX professionals might be looking to address specific pain points in the customer journey. By defining these goals upfront, you can design a program that meets everyone’s needs.

2. Ask the Right Questions

The quality of your VoC data depends on the questions you ask. Avoid generic or overly broad questions, and instead, focus on specific areas of interest. For example:

  • Instead of asking, “Are you satisfied with our service?” ask, “What aspects of our service do you find most valuable, and what could we improve?”
  • Instead of a binary yes/no question like, “Do you like our product updates?” ask, “How do our recent product updates align with your needs?”

These nuanced questions provide richer insights that can inform both CX and market research strategies.

3. Use a Mix of Quantitative and Qualitative Data

Quantitative data, such as Net Promoter Scores (NPS) or satisfaction ratings, offers a high-level view of customer sentiment. However, qualitative data, such as open-ended survey responses or customer interviews, provides the context behind the numbers. Combining these two data types ensures a comprehensive understanding of customer needs.

4. Leverage Technology

Advanced VoC platforms can streamline the data collection process and provide real-time insights. Tools that incorporate artificial intelligence (AI) and machine learning (ML) can analyze customer feedback at scale, identifying trends and sentiment with minimal manual effort.

5. Close the Feedback Loop

One of the most important aspects of a VoC program is showing customers that their feedback matters. This means not only implementing changes based on their input but also communicating those changes back to them. For example, if customers complain about slow response times, let them know when you’ve increased your support team’s capacity to address the issue.


Real-World Applications of VoC in CX and Market Research

1. Retail Industry

A retail chain used its VoC program to identify that customers were dissatisfied with long checkout lines during peak hours. Market research quantified the issue, while CX teams used the insights to implement self-checkout kiosks and a mobile app for faster payments. The result? Higher customer satisfaction scores and increased sales.

2. Tech Industry

A software company leveraged VoC data to understand why users were not renewing their subscriptions. Through a combination of surveys and customer interviews, they discovered that many customers found the onboarding process too complicated. By simplifying the onboarding experience, the company reduced churn and increased customer retention.

3. Hospitality Industry

A hotel chain used VoC insights to identify that guests valued personalized service above all else. This led to the implementation of AI-driven personalization tools that allowed staff to tailor recommendations and services to each guest’s preferences. The initiative resulted in glowing reviews and repeat bookings.


The Future of VoC in Business Strategy

As technology continues to evolve, VoC programs will become even more integral to business success. Innovations such as predictive analytics and real-time sentiment analysis will enable businesses to anticipate customer needs before they arise, further enhancing both CX and market research efforts.

Moreover, as more businesses recognize the value of a unified VoC approach, we can expect to see greater collaboration between CX and market research teams. This alignment will not only improve customer satisfaction but also drive innovation and growth across industries.


Conclusion

Voice of the Customer programs have the power to bridge the gap between market research and customer experience, creating a unified approach to understanding and serving customers. By aligning their efforts and leveraging VoC insights, businesses can deliver exceptional experiences, foster loyalty, and stay ahead in a competitive landscape.

If you’re ready to elevate your VoC strategy and unlock its full potential, Interact RDT is here to help. Contact us today to get started.

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