How much can you rely on the Voice of the Customer?

VoC Customer Experience Vendors Are Doing Well

A significant component of Customer Experience improvement is getting access to the voice of the customer.  A whole software based industry has sprung up to provide access to that voice; according to The Temkin Group customer experience vendors are doing rather well:  A Good Year for Customer Experience Vendors.

How much can you rely on the Voice of the Customer?

Which brings me to a key question: how much can you rely on what the customer tells you?  My experience suggests that you have to be careful with how you interpret and use the voice of the customer. Allow me to illustrate using personal examples.

During the course of writing this blog I have expressed feelings and then made claims as to what I was going to do in the future.  Did I do what I said I would do?  Lets take a look:

So on this sample of one, you can count on the voice of the customer being an accurate guide to customer behaviour (what the customer will do) only one third of the time.

Why have I continued with Sky?

When I wrote what I wrote, I meant it.  Yet when it came around to terminating the two contracts I had with Sky I found myself doing something bizarre: I terminated the SkyTV contract yet continued with the Sky Broadband.  Why is this bizarre?  Because I had a perfect experience with SkyTV.  My issue, my upset had been with Sky Broadband.  Later I signed up for SkyTV again.

So why have I continued with Sky?  Because I made a poor prediction of the future.  Specifically:

  • I had not taken into account the fact that pleasing my family and keeping them happy is more important than getting back at Sky and so I ended up subscribing to SkyTV;
  • I had not realised that a part of me would not welcome the task and emotional issues (risk of it going wrong) associated with switching my broadband to a new supplier;
  • That Sky would make me an offer that was so financially attractive that it just made good sense to take it up.

Why have I continued with Ascot Chiropractic Clinic?

First, convenience.  I did not switch because it was too inconvenient to visit the Harrsion Clinic: it is out of the way whereas the Ascot Clinic is practically next door.

Second, the hassle involved in switching.  The fact is that my chiropractor had been working with me for over six months and had got to know my body, my condition, really well.  As such I did not want to have to start all over with a new chiropractor.

Why did I terminate the British Gas Homecare Agreement?

Compare to the Clinic and Sky I found it easy to terminate the British Gas Homecare Agreement.  Why?  First, the decision was entirely up to me and so I did not have to convince anyone else.  Second, it was easy to find a new supplier.

What are the lessons to be learned

The voice of the customer will give you access to what specific customer like about you or do not like about you. It will give you insight into which of your touchpoints, processes, products and services are not working for your customers and how they are falling short.  And which are working well and leaving customers delighted.

The voice of the customer is not necessarily a good guide to what specific customers will do in the future.  The fact is that we are really poor at predicting what we will do in the future.  This has been shown time and again through studies.  This is a subject I intend to explore in the future.

Why companies are struggling (and will continue to struggle) in cultivating customer loyalty

Only 17% of companies scored ‘strong’ or ‘very strong’ on customer loyalty

I read the following post – ‘Customer loyalty – does anyone care? and that got me thinking.  The author is highlighting the research carried out by the Temkin Group that shows that only 17% (24) of the 143 companies surveyed scored a ‘strong’ or ‘very strong’ loyalty’ rating.

Many underestimate what it takes to be strong/very strong in customer loyalty

In my opinion a lot of people who write on customer experience, customer loyalty and customer-centricity simply do not get how hard it is for large established companies to deliver on this stuff.  For these companies becoming customer-centric, delivering a great experience and generating loyalty is as likely as goals in the average soccer match – a rare event. Why is that?

An old quote that sheds light on the matter

There is a really good quote that gets to the heart of the matter, let me share it with you:

” A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it”   Max Planck

What am I saying?  I am saying that a big change in the customer-centric direction is highly unlikely until there are changes in the following domains:  business models, business leaders, management mindset and organisational structure.

Plenty of companies are doing well without being customer centric or delivering great customer experience

The fact is that plenty of companies do well without being customer-centric.  I explored this topic in the following post: Who says you have to be customer-centric to thrive

You can do well because you have strategic assets and I gave an example here: Bewleys shows that an organisation with strategic assets can deliver a poor customer experience and get away with it.

Existing business models are a huge obstacle in generating customer loyalty

I explored the issue of business models and how they get in the way of any customer-centric initiatives in the following post: ‘Contrary to popular opinion it is easy to become customer centred’

The organisational climate – mindset, culture, structure – is another big obstacle

If you are a gardener you will know that you simply cannot throw seeds anywhere and expect them to sprout into healthy, tall plants.  It is the same with organisations.  The way that organisations are structured, led and managed has a big influence on what kind of initiatives flourish and which struggle to take root.  I explored this in the following posts:

Do the customer experience designers have what it takes to design experiences that generate loyalty?

And finally I took a look at the customer experience designers themselves and questioned whether they have what it takes to actually design customer experience that work for customers: The problem with Customer Experience is the designers

Conclusion: the heart of the challenge is  leadership and ‘change management’

The heart of the challenge in cultivating customer loyalty is one of leadership and change management.  Specifically, giving up the existing ways of thinking about, organising and doing business.

This challenge is a difficult one at the best of times.  It is especially difficult when the people who have to change are the people at the top of the organisation.  Yet there is good news:  Gerstner managed to bring about a transformation at IBM.  It helped that he really had nothing to lose as IBM was a basket case and headed for oblivion!