Voice of the Customer (VOC) FAQs (Frequently Asked Questions)

 

 

What is customer experience management?

Customer experience management refers to the strategies an organization uses to continually improve its performance on the drivers that influence customers' purchase behavior, thus enhancing its competitive position.

What are the components of customer experience management?

Customer experience management has two components—Voice of the Customer (VOC) and customer value analysis (CVA).

What is the difference between VOC and CVA?

VOC refers to understanding customer needs and providing products and services that satisfy these needs. CVA refers to the methods and tools needed to ensure that customer needs are satisfied in a way that gives the organization a competitive advantage.

Why are VOC and CVA both important components of an organization's improvement toolkit?

VOC ensures that an organization stays in business by focusing on products and services that are important to customers. CVA ensures that an organization excels by providing these products and services in a way that maximizes customers' perceived value.

How is value defined?

Value can be quantitatively defined in different ways, but it is usually a measure of whether what a customer received is worth what the customer paid—a trade-off between quality and price.

Is there a sequence in which an organization should implement VOC and CVA?

Organizations first conduct VOC studies to understand their customers' needs. The VOC is usually followed with CVA analysis to assess the organization's competitive position.

Can VOC and CVA be implemented at the project level?

VOC can be implemented for individual projects or at the enterprise level. Because CVA deals with customers' perceptions of the company as a whole, CVA studies are carried out at a business-unit or product-line level.

What is a value map?

A value map is a picture that represents customers' perceptions of an organization’s value. Value maps have two scales: One scale is always price, and the other is either quality or performance. As part of a CVA study, the value map displays customers' perceptions of the value of both the organization and its competitors. This helps the organization to determine the strategy it should employ (i.e., improve quality, reduce price, or both) to improve its relative value position.

What kind of data is needed for a VOC analysis?

A VOC analysis requires qualitative and quantitative data on stated and latent needs by customer segment.

What is the difference between stated and latent needs?

Stated needs are those that customers are willing and able to articulate in an interview or focus group discussion. Latent needs are those that customers do not state, either because they think that the needs are obvious or because they are unaware that these needs exist.

How can my organization get data to identify latent needs?

Data that identifies latent needs is obtained through observational analysis instead of inquiries.

What kind of data is needed for CVA analysis?

For CVA analysis we sample the entire market, not just an organization’s customers. Because of this, the data collection process is more complex than it is for VOC analysis.

How do VOC and CVA support Lean Six Sigma and other process improvement efforts?

VOC and CVA are important tools for Lean Six Sigma professionals. VOC analysis helps organizations to identify Critical to Quality requirements (CTQs). This is key, because every Lean Six Sigma project must focus on improving CTQs.

CVA identifies improvements that are needed for organizations to achieve a competitive edge. Therefore, CVA results provide information that is crucial to Lean Six Sigma project selection, which in turn is vital for implementation of successful Lean Six Sigma programs.