What is Voice of Customer Marketing and Why Is It So Important to Your Business?
Today, marketing is shifting towards listening and quicker response mechanisms as Voice of Customer initiatives represent a massive opportunity for driving loyalty and increased sales. In the United States alone, Enterprises with poor customer experiences lose an estimated $83 billion every year because of defections, and people are 30% more likely to share or post about a negative experience than a positive one.
To be a true industry leader, you must be listening to your customers. Ruchika Sharma said it perfectly, “Customer-perceived value is one of the leading drivers of business success.”
The one, clear method that enables this is Voice of Customer Marketing. But what is that exactly?
What is Voice of Customer Marketing?
Voice of Customer Marketing is a full-cycle marketing approach that involves utilizing customer opinions, comments, and feedback by effectively incorporating it into your marketing strategy. This creates a customer-centric culture that builds the trust and loyalty of your current customers and establishes a positive brand for future customers. Voice of Customer Marketing helps marketers utilize their greatest resource - their customers.
Why is Voice of Customer Marketing important?
1. Customer Retention
A study found that on average it costs companies up to 25% more to attain new customers than it does to retain existing ones. A company that is actively engaged in seeking customer input, valuing that customer’s opinion, and proactively sharing insights are seen as customer-centric.
The beauty of having an active Voice of Customer Marketing strategy is that in addition to capturing priceless feedback that can be adopted in marketing outreach, you will spot early warning signs and brand crises that can help you get in front of emerging product-related issues.
2. Future Customers & Buyers Journey
The buyer’s journey consists of three stages, awareness, consideration, and decision. Here’s how Voice of Customer Marketing should be used in each stage:
In this stage, future customers are only starting to experience the symptoms of a problem and are actively seeking to define it. As a result of your strategy with current customers, you know your buyer persona and you understand what pain points they possess.
How do you market to future customers in this stage?
Address the pain points of your buyer persona’s, put out content that is problem-focused, and use assets that focus on outlining the issues your future customers are facing.
Now the problem is defined, your future customers need a solution and enter the research phase. This is where you should use Voice of Customer Marketing that is focused on the solution.
This is all about positioning yourself as an expert that knows how to solve problems. Who better to tell this story than your customers? Don’t have your future customer take your word for it, have them hear how you have solved similar problems right from the mouth of your very best resource, your customers.
The shortlist has been put together and it’s down to you and one of your competitors. You will have a leg up on your competitor if you've already successfully marketed to the buyers during the early stages of the buyer's journey.
You have addressed the pain points of your buyer persona’s, you have shown yourself to be a proactive problem solver with your current customer base, and now its time to close the deal. Here’s where Voice of Customer Marketing comes into its own. By using targeted assets that harness the voice of your customers and their experiences, you are going to leave future customers in no doubt that they need to work with you.
3. Sales Enablement
Sales objections are unavoidable. If your future customer didn't have reservations about your solution's price, value, relevance to their situation, or their purchasing ability, they would have bought it already. As an example, you are in talks with a future customer who works for a large enterprise. Your company has a stigma associated with it that it only caters to SMB’s and therefore the future customer is hesitant to sign with you.
Voice of Customer Marketing allows you to overcome that objection. Enable your sales team by utilizing the voice of your current enterprise customers correctly to remove that stigma and close more deals.
The bottom line on the importance of Voice of Customer Marketing
There is no doubt that in today’s business world, companies must be totally customer-centric to engage and retain existing customers and to excite future customers.
A successful Voice of Customer Marketing program will provide you with all the necessary insights to utilize your greatest resource - your customers.