Customer experience is the alpha and omega of a successful customer-centric project, company, or enterprise. And if you want your CX to really hit the spot, it should translate the direct pains, likes/dislikes, and traits of your target audience—the voice of the customer.
If you truly “listen” to that voice, i.e., systematically gather, analyze, and act on what your customers are saying (and often, what they aren’t expressing openly), you are pretty much guaranteed to get better retention, stronger brand position, more growth opportunities, and overall revenue boost.
There’s evidence: brands with well-tailored Voice-of-the-Customer programs report a 55% higher customer retention rate and up to 10x annual revenue growth, while spending 25% less on retention efforts than peers without a dedicated VoC strategy.
Where should you start to leverage such numbers for your case? This article provides a deep dive that helps figure out the essentials of VoC, its importance, benefits, and applications for today’s businesses, as well as how you can set up a custom program of your own.
What are VoC/Voice of Customer programs?
A VoC, aka Voice of the Customer, is a tech-driven customer feedback analysis philosophy in which you systematically capture customers' feedback, examine it, and then turn the derived insights into tangible improvements for products, services, and processes.
For this, CX specialists, managers, and admins adopt and use various custom sets of VoC tools, approaches, and strategies.
A specialized Voice of Customer framework can be designed to centralize a company’s customer feedback-focused efforts. And the purpose of such a framework wouldn’t be just to collect comments, but rather to:
Gain details and insights into the customer journey stage-by-stage, gauge the experience your product or service offers;
Discover more unresearched user pain points and highlight CX stages and features that can be further optimized, expanded, or reworked;
Find and introduce more unique selling points by inspecting unmet user needs and using innovation to widen the outreach;
Capture and analyze customer sentiment, behavior traits, satisfaction metrics (CSAT), and loyalty levels;
Make best-informed decisions regarding new products, workflow, or business structure decisions.
Voice of the Customer programs can help separate user-centric optimization efforts, centralizing and dedicating to customer feedback inspection and analysis. But there’s more to it: for a business striving to stay competitive today, having a custom VoC in place can be a real driving factor.
How today’s customer-centric businesses can use Voice of Customer (VoC)
Voice of customer can be used by a working team or a whole company to achieve some highly important, overarching goals, like:
Matching product/service planning with real needs
Before introducing a new font or interface dimension, a designer may leverage VoC features to validate concepts with real users. This will help avoid expensive corporate missteps and give users exactly what they like from the start.
A fast and sensible response to relevant and pressing feedback shows how much a brand trusts its customers, which can help generate positive word-of-mouth.
Benefits of a Voice of Customer (VoC) Program Explained
Reportedly, workflows automated with VoC tools cut response times by up to 23%. But to further support the ultimate VoC meaning in business, here are the benefits and potential results they can bring to your company or startup.
Benefit
Description
Potential Impact
Better customer retention
Understanding why customers stay (or leave) helps you deal with issues extensively.
55% higher retention rates when VoC is embedded in operations.
Brand reputation boost
Actively listening and responding to feedback shows you care.
More customer advocacy, positive sentiment, and word-of-mouth.
Faster complaint resolution
You can identify root causes of common complaints and fix systemic issues.
Fewer complaints in the long run.
Insights for innovation
VoC feedback is a goldmine for new ideas.
Display of feature enhancement ideas and unmet user needs.
Direct CX improvement
You can address pain points directly and even research hidden user desires.
Smoother, more enjoyable customer journeys achieved organically.
Revenue growth potential
Happy, loyal customers buy more, more often, and refer others.
VoC tools rapidly collect and analyze huge amounts of customer data.
Multichannel feedback capture via dedicated tools.
Satisfaction measurements
VoC data delivers good quantifiable metrics (like CSAT, NPS, CES).
Efficient tracking of the progress and results of CX initiatives.
In-depth metrics analysis
VoC goes beyond what is happening to understand why it's happening.
Tendencies like cart abandonment are analyzed in-depth, enabling targeted solutions.
Design and concept validation
Ground for testing new ideas, product designs, or marketing messages.
New concepts can be validated risk-free with the target audience before a full-scale launch.
How businesses are using VoC to drive impact
To give you some practical examples of how VoC is used in action (and just how impactful it can be), here are several scenarios of applying Voice of Customer tools in completely different cases:
E-commerce
Suppose an online retailer notices frequent cart abandonments. Through VoC methods like exit-intent surveys and recorded user session analyses, one can discover that customers could be surprised by the final shipping costs, which are revealed only at the final step of the checkout.
Action: Highlight transparent shipping cost information earlier in the process making a purchase and offer a free shipping threshold.
Result: Users can now go to the cart confidently, without abandoning it due to an unexpected price shock.
Software as a Service
A SaaS company can use in-app feedback widgets and regular user surveys to understand feature requests and usability issues. Keeping in tune with the user base also helps find where users encounter certain features that may be overly complex or under-optimized.
Action: Develop targeted tutorials, redesign the feature's UI for simplicity, and offer custom support.
Result: Better feature adoption efficiency, improved user satisfaction, and less churn.
Hospitality
Every hotel chain monitors its online reviews (e.g., on TripAdvisor and Google Reviews) and conducts post-stay surveys, thus implementing a Voice of Customer process to some extent. For instance, one of the common complaints that VoC feedback helps uncover in this niche is a slow or confusing check-in for newly arrived guests.
Action: Invest in staff training for efficiency, explore mobile check-in options, and adjust staffing during peak hours.
Result: Improved guest satisfaction scores and more positive online reviews.
Real-world examples
Fiserv integrated conversational AI into surveys, boosting detailed feedback by 40% and increasing NPS by 10 points, which translated into millions in added revenue
J.D. Power revamped its annual CSI study to include in-dealership repair data, which now provides granular insights that automotive brands can use to improve service.
Building a successful Voice of the Customer program
Because this article’s purpose is to arm you with knowledge, we will point out that a truly successful Voice of the Customer program requires preliminaries.
Cross-functional engagement: Insights from VoC must be shared and acted upon by product, marketing, sales, and support teams.
Continuous listening and learning: VoC isn't a one-off project. It's an ongoing process of collecting feedback, analyzing it, acting on it, and then iterating.
Patience and long-term commitment: Meaningful change takes time. A Voice of the Customer program builds momentum and delivers increasing value over the long term.
Build customer trust through transparent action. Book a consultation with CX experts.
To sum up and guide your next steps, here’s how your basic VoC strategy can look: the four essential stages, which you can further adapt to your business specifics.
1. Define your business objectives
What are you trying to achieve? (e.g., boost loyalty, cut service costs, improve product adoption).
How will VoC help you get there? Link VoC to specific business outcomes.
Use the right KPIs: for user-base tracking, these would include conversion rates and churn rates, CSAT, and click-through rates (in all clickable areas).
2. Gather feedback from many sources
Use a mix of direct (surveys, interviews), indirect (social media, reviews), and inferred (website behavior, support tickets) feedback (all described below).
Make sure you're capturing feedback at various touchpoints along the customer journey (e.g., after registration, post-purchase, post-cart abandonment, after customer support interactions, etc.).
3. Analyze customer insights
With the help of VoC tools and tech specialists, leverage common techniques, including:
sentiment analysis
root cause analysis
trend identification
Segment feedback by customer demographics, journey stage, or product/service used.
Look for patterns, tendencies, and emerging issues, then, start to optimize and personalize the CX accordingly.
4. Act on findings
Prioritize: You can't fix everything at once. Prioritize the areas that have the biggest impact on your customers or business workflows (like the high cart abandonment rate mentioned).
Communicate: Share insights and action plans across relevant departments.
Implement changes: Make the necessary improvements to products, services, processes, or policies.
Close the loop: Inform customers (where appropriate) about exact changes implemented based on their feedback.
Measure impact: Track your KPIs to see if your VoC strategy is pushing your business in the desired direction.
Three key questions before building your VoC strategy
How do I understand which success metrics to use for my case?
This is exactly what a custom Voice of Customer framework will help you figure out, mostly through benchmarking. But for starters, see in which user-facing areas your business is lacking at the moment (e.g., sales or engagement) and put down respective KPIs.
Without a clear “why,” your VoC program risks becoming a data collection exercise with no real impact. The goal dictates the questions you ask, the data you collect, and how you measure success.
What data and feedback do we need to collect? (surveys, interviews, analytics)
Consider both quantitative data (e.g., ratings, scores, frequencies—the “what”) and qualitative data (e.g., open-ended comments, interview transcripts—the “why”).
Think about different customer segments. Do you need specific feedback from new customers versus long-term loyalists? High-value customers versus occasional buyers?
The data you need depends entirely on the business goal. If you want to improve onboarding, you'll focus on feedback from new users. If you want to reduce churn, you'll analyze feedback from customers who have left or are at risk.
What technology or platform will help us capture and manage that feedback?
There's a wide array of VoC tools available, from simple survey platforms to sophisticated experience management solutions like Qualtrics, Medallia, Zendesk, to name a few.
Consider features like: multi-channel collection, analytics capabilities (text analytics, sentiment analysis), reporting dashboards, integration with your CRM or other business systems, and scalability.
The right technology can automate collection, streamline analysis, and make insights accessible. However, the tool is only as good as the expertise and strategy behind it. Don't let the technology dictate your approach, and make sure the tech supports a well-defined strategy.
How to collect VoC data
You can collect data useful for VoC-powered customer experiences of any sorts, in industries from finance and eCommerce to customer service and entertainment. For that, you can source data from numerous channels, each having its own uses and requiring certain analytical efforts.
VoC meaning in business can vary a lot depending on which sources you choose to use. Here’s a cheat sheet:
Data Collection Method
Type
Description & Use Case
Pros
Cons
Customer interviews
Direct
One-on-one conversations (phone, video, in-person) to delve deep into individual experiences, motivations, and pain points.
Rich, nuanced insights. Ability to probe deeper.
Time-consuming, expensive to scale, potential for interviewer bias.
Surveys
Direct
Questionnaires (NPS, CSAT, CES, custom surveys) sent via email, in-app, website pop-ups post-interaction.
Scalable. Quantifiable data. Easy to track trends over time.
Survey fatigue, low response rates, may not capture full context.
Livechat transcripts
Indirect
Analyzing conversations between customers and support agents to see common issues, questions, and sentiment.
Reactive data usually overshadows positive experiences.
Usability testing
Direct
Analyzing how users complete tasks, where they can be confused or frustrated.
Direct observation of user struggles. Uncovers design flaws.
Can be resource-intensive and typically involves small sample sizes.
The most powerful insights often come from combining data from a number of sources. For example, if a survey shows low satisfaction with a website feature, website heatmaps might show where users are getting stuck, and interview snippets can provide the qualitative “why.”
VoC best practices
Given all the above, a Voice of Customer process should be focused on leveraging data from different sources for analytics and clarification of sentiment, insights, and direct opinions to act upon and improve.
To maximize the effectiveness and impact of your VoC program, you can also leverage these best practices:
Identify key customer touchpoints
Map out your customer journey and pinpoint the moments that matter most. Focus your feedback collection efforts there.
Connect feedback across all data channels
Create a unified view of the customer. If you already run a CRM or other business systems, integrate VoC data with them to get richer data for customer profiles.
Use dashboards and reports to share insights
Make VoC data accessible and understandable for all stakeholders. Visualize trends and key findings.
Integrate employee feedback (Voice of Employee, or VoE)
Your frontline employees often have invaluable insights into customer pain points and potential solutions. Listen to them too!
Seek measurable outcomes
Double down on how VoC initiatives are impacting customer retention, lifetime value, cost-to-serve, and other KPIs.
Monitor trends and act on CX signals
Don't just collect data; actively look for shifts in sentiment, emerging issues, and opportunities. Be agile in your response.
Close the loop
Whenever possible, let customers know you've heard them and what you're doing in response. This builds tremendous goodwill.
Ready to start listening closely to the voice of your customer?
The way you heed your customers’ words is fundamental. A well-tuned Voice of Customer process can transform your business from the inside out, giving you sturdy blocks to build up a customer-centric culture, innovate in the most relevant directions, and nurture lasting customer loyalty.
How Simply Contact can help
As CX experts, we understand that building an impactful VoC program can seem daunting. That's where we come in. We can help you:
Plan out, estimate, design, and implement a custom VoC strategy shaped by your business specifics and issue areas.
Pick the relevant, best-fitting tech stack that will help you capture and analyze customer impressions at peak efficiency.
Structure out and develop multi-channel feedback gathering systems, real-time monitoring dashboards, and AI helpers.
Integrate custom tools and strategies with existing platforms, onboard users, and optimize the performance of multi-channel sources.
Find business-changing insights and tips for new implementations in raw data through focused analytics and data reporting.
Train your own team on VoC best practices and principles, leveraging firsthand expertise and years of professional experience.
With the right VoC program in place, you will have clarity, direction, and the insight needed to deliver the experience your customers expect.
The voice of customer must not be left unheard!
Book a consultation to learn how you can amplify your customers’ voices with tools and strategies tailored to your business or project.
