Voice of the Customer (VOC) Analysis - Part I

A previous post defines what VOC (Voice of the Customer) is and highlights its importance. This article intent is to emphasize the value of the VOC analysis and better describe some of the tools available to achieve customer segmentation. Although VOC may be perceived as a simple trivial analysis its usefulness should not be underestimated.

Every business manager or leader should strive to know their customers. Moreover, all understanding of customer behavior, interests, and necessities must be equally explained and understood by all business associates at all levels. Voice of the customer is to not just to offer a communication channel to the customer, but take an active interest in the customers’ opinions too.

 

Depending on the business sector and type of customer, internal or external, there may exist various customer categorization and segmentation. That is because different types of customers view your products or services differently. This only means that to adequately identify and treat each type of customer multiple approaches may be needed. This is better known as customer segmentation. A common illustration of customer segmentation is how credit card companies distribute their customers into different classes such as Gold, Platinum, etc.

Customer interviews and customer satisfaction surveys are two of the most common methods on capturing VOC. Face-to-face interviews, either one-on-one or with a group of customers, is a common method of capturing customers feelings about a particular business product or service. Interviews may be conducted with a focus group or on the spot. It is really important questions to be carefully chosen. However, the effectiveness of the interviews may be impacted depending on customers’ mood at the time of interview, or people getting influence over others point of view when conducting group interviews. Therefore, the question and answer session should be complemented with adequate body language interpretation to successfully capture VOC through the interview process. Another common method of capturing VOC is by means of customer satisfaction surveys. If you survey your customers, chances are good that you’ll spot a number of areas for improvement. These improvements will turn into increased customer satisfaction, loyalty, and retention.

A common question is how many customers should be talked to when gathering VOC input? Quantity depends on complexity of the product, variety of market, product use, and the sophistication of customers. The goal is to get to the 90-95% level in capturing customer needs. Research for a range of products indicates that, on average, this is 20 customers.

Existing consumers are the first source of information if the product is aimed at current market. Also, it is essential to include potential customers in the VOC analysis as they are the principal source of information if the product is aimed at new market. A third segment of customers are the competitor’s customers. They make available a good source of information on strengths on competitor's products and how they perceived our products compared to competitors. Last but not least there are the lead customers. This segment is a special class of clients who are the most advanced users of the product, usually pushing the product to its limits, or customers who are adapting an existing product(s) to innovative uses.

VOC analysis can be a rewarding as well as painful experience. Tools need to be adequately defined and applied in order to obtain valuable information. A number of techniques and tools are used to analyse the data captured from customers. Some of these analysis tools are Affinity Diagrams, Kano Model, and Critical to Quality (CTQ) tree among others. These are to be discussed in a subsequent article.

Have your business implemented VOC tools? Which tools were put in place? What information was obtained from the process? How simple or complex became the VOC analysis and reporting?

Feel free to contact me directly to discuss how you might improve your efforts to capture voice of the customer (VOC).

An Introduction to Voice of the Customer (VOC)

VOC stands for the Voice of the Customer, method of identifying customer requirements and prioritizing them in terms of relative importance to the customer. Some common methods of capturing VOC are market research, focus groups, surveys, verbal communication, e -mails, service agreement documents, and data reports. These methods may be helpful in capturing information and some expectations, but they are not enough to drive improvement activity.

Do we really understand where the information is sourced, how it is gathered, and what the information is really telling us? Moreover, do we really understand why the voice of the customer is important?

Simply put, if we fail to meet our customer’s requirement the impact could be significant. It could mean poor or lower quality, incorrect quantities, inadequate lead times, customers moving to other suppliers to fulfill their needs. VOC is not merely about identifying customer necessities, it is about “listening” to the voice of the customer.

Capturing the Voice of the customer can be attained in a variety of ways from customer surveys, interviews, marketing research, audits, focus groups, service issues, quality issues, customer complaints etc. The important thing is not just offer a communication channel to the customer, but to take an active interest in the customer opinions too. A customer need is the customer requirement in their own words. At times what we identify, as the customer need isn’t the same thing that the customer expects.

Research attests that the majority dissatisfied customers don’t even complain. While most of them simply choose to never return to your business, it is only the really irritated clients, who take it upon themselves to make their opinions known. When that happens having a functional VOC system in place provides one last chance to even win those enraged customers trust back.

Feel free to contact me directly to discuss how you might improve your efforts to capture voice of the customer (VOC).

Color: A simple yet effective visual control tool

Color visual controls are considered a basic component of the Lean initiatives usually implemented through the application of the 5S strategy. The 5S, discussed in a previous post, is a methodology adopted by many big and small organizations, manufacturing and services alike, aiming reduce costs, eliminate wastes and achieving overall improvement. Among the steps followed through the 5S, one of the simpliest and yet very effective approches is color coding. Color based visual control tools are, if adequately implemented, one the fatest and clear ways to convey meaning and direction in the organization.

Although some color conventions have been defined as general practice, what is important is that the color coding that is used within the workplace is based on using specific standards for the company. Consistency the the key to send the message and it to be received and applied. Below are some color conding standard commonly used:

• Red bins/labels: used for defective products
• Green bins/labels: used for products that met quality control requirements and are ready to be shipped out
• Grey bins/labels: used to indicate storage areas
• Blue bins/abels: used to indicate machines and equipment areas
• Yellow bins/labels: used for inventory

Color coding is a way to failsafe/mistake proof, hence impacting in a favorable way overall quality. Additionally, besides any cycle time reduction and/or waste elimination the color coding tool will bring to the organization, it is important to acknowledge that an organized workspace perk up employees productivity and whay not to say, employees morale.

In summary, color coding method is so effective as it communicates a message in less time than any other method (standard procedures, training slides, ...). A color visual tool is easy to implement and can be used almost any place in the workplace baing one of the least expensive ways to organize a company and reduce overhead costs.

Have you implemented color coded visual tools in your workspace? Share your experiences and before/after results.

Should you need assisstance identifying the rigth visual tools for an overall improvement in your company contact us.

5S Overview -- A simple tool with significant impact

What is 5S? A brief definition is it is a practical 5 step process to help organize and maintain organization throughout your workspace. However, 5S is much more than housekeeping; it is effectively a tool to organize and visualize the workplace.  The 5 steps are:  

Step 1: Seiri (Sort)
• Clearing and classifying through everything in the work area. Separate the clutter from the needed items.
Step 2: Seiton (Straighten)
• Set in order the items in a way to improve efficiencies, safety and quality. Designate a specific correct location for the items.
Step 3: Seiso (Shine)
• Clean everything and keep it that way. Define ways to keep clean areas.
Step 4: Seiketsu (Standardize)
• Develop the routines and standard practices for regularly and systematically repeating the first three S’s. Generally this is accomplished through the use of visual management and standard operating procedures.
5: Shitsuke (Sustain)
• Engage your organization to ensure that 5S becomes part of the culture of your workplace.

The 5S is a simple easy to adopt lean tool with proven results including: defines standards for consistent results, reduction in required floor space, and reduction in iventory.
Although 5S requires to develop a discipline and deploy training to the organization on the tool details, it is true it is an initiative of minimal investment other than time. Have you implemented 5S your organization? What was your biggest challenge? What was your greatest achievement as a result of the 5S implementation?

Should you need further details on the 5S tool implementation (worksheets, training) contact us at qualityintegration@gmail.com.

Quality is everyone’s… as long as...

It is common to find businesses expending vast amounts of time and money on implementing a “quality system” on their organizations. The problem is executive management can’t “do” quality all of the sudden and expect people to stick to whatever plan, process or new pledge they have come up with.

As Dr. Deming stated in one of his publications “Quality is made in the board room” . That does not means quality is to be planned by executives in a four-wall room to later deploy latest tool in the trend. The solution is to ensure quality is the foundation of the management system; a system that respects people and one that is built over the capacity of the organization over time. Only after this basics are clearly defined, planed and followed it is reasonable to state Quality is everyone’s responsibility. That certainly is not an easy and short path to follow. Moreover, as Dr. Deming also stated “A worker can deliver lower quality, but she cannot deliver quality better than the system allows…” Take a look at your organization, whatever general perception management has over their people performance or engagement is without doubts a reflection of the system provided to them to “play” with.
Have you being involved in a quality cultural change in your organization? Was it a book plan or a people oriented plan? What worked? What didn’t?

3 ways of keeping HAPPY customers = 3 best ways to MAKE NEW ones

Customer service is an art, and a key one for businesses success. Customers are the most valuable asset any business (small, medium or big) could possess. Commonly we hear about how easy it is to make a new client when compared to the big challenge of keeping an existing one. I rather like to see it as completely dependent events. It has been demonstrated that an inadequate customer service is critical on creating a lasting impression that will spread by "word of mouth", and not necessarily on business behalf. Moreover, on today's world where customer satisfaction is amplified by the virtual network of global impact customers can and are taking an active role on building businesses perception as a direct result of customer service provided; and this valuable and unlimited feedback is far more truth worthy to prospect clients then any Mision, Vision, or Testimonials the business may come up with. Being said so, why not take time to auto-assess our businesses and determine how we are doing on the so long preached foundation of customer service:

1.       Are you listening to customers’ feedback/suggestions? Listening to both, satisfied and unsatisfied customers is the most reliable input on what is being done (right and/or wrong). Moreover, make sure you have established mediums for customer to communicate and that they know they exist. Ensure customers are aware of your available mediums that may include suggestion cards, and contact mediums such as email, customer service line, and social media/rating.

2.       How are you reacting to customer input? Acknowledge your mistake and make sure a resolution is agreed where customer left the transaction feeling that the dispute is no longer “a mistake”. Make sure employees are engaged in and trained on adequate customer service techniques.

3.       Are you “meeting” customer expectations? If so, then your business has areas of improvement. Any business should strive on promising less (the minimum expected) and then deliver more in a way customers are “shocked” in a good way and become loyal customer instead of casual customers.