15 - The voice of the customer Flashcards
What is the goal of Wave 4: Realize?
To create a culture of continuous improvement based on constant feedback and to realize significant value from investments
This wave focuses on augmenting data, sharing it, and creating analytical capabilities.
What are the three activities in the VBI model for Wave 4?
- Value
- Build
- Improve
What does the ‘Value’ activity focus on in Wave 4?
Integrating internal activities with those of customers and partners to create analytical capability
This aims to significantly improve value.
What is the focus of the ‘Build’ activity in Wave 4?
Building more ambitious data science, AI, and ML capabilities with links to customers and business partners.
What is the purpose of the ‘Improve’ activity in Wave 4?
To capture feedback from customers and business partners and integrate it into business processes.
What is the ‘voice of the customer’ (VoC)?
A company-wide effort to capture a customer’s expectations, preferences, and dislikes to create better products and services.
What does Customer Relationship Management (CRM) involve?
Monitoring and improving interactions with customers using data collected during interactions.
What is a Tracking Survey?
A project to collect consistent information about the market at regular intervals, covering competitor behavior, customer feedback, or market trends.
What is Disruption in a business context?
A process where market entrants with novel business models challenge and replace industry incumbents.
What is the significance of external data in understanding customer behavior?
External data can provide insights into customer actions when they are not interacting with the business.
What is an Application Programming Interface (API)?
A set of procedures and communication protocols that provides access to the data of an application or to other services.
Fill in the blank: The ‘voice of the customer’ was popularized in a 1993 paper by _____ and _____
[Abbie Griffin], [John Hauser]
True or False: Most grocery shoppers in the St. Louis area are loyal to just one store.
False
What is the purpose of web scraping?
To collect structured web data in an automated fashion.
What are some use cases of web scraping?
- Price monitoring
- Price intelligence
- News monitoring
- Lead generation
- Market research
What is the impact of GDPR on customer data collection?
Organizations must obtain explicit permission for data collection and usage.
What can organizations learn from customer feedback?
They can understand customer preferences and behaviors outside of transactions.
What is the role of sentiment analysis?
To assess customer feelings and opinions about a brand or product.
What is the significance of integrating external data with internal data?
It enhances data analysis and strategic thinking by providing a fuller picture of customer behavior.
What is detrimental to the relationship itself?
Not properly explaining data acquisition and insights
What can be discovered by tracking customer behavior?
Insights on when customers shop elsewhere, travel, or eat differently
What data does Kroger track in near-real-time?
Products compared to competitors and anonymized customer behavior by segment
What is social listening?
Monitoring social media channels for mentions of your brand, competitors, or relevant topics
What are the two dimensions of value in social listening?
- Customer service monitoring
- Aggregate public sentiment measurement
True or False: Social media provides fully representative market research data.
False
What is observer bias?
When respondents change their behavior because they are being watched
What is Firehose API?
A stream of real-time data delivered to subscribers
What does the Net Promoter Score (NPS) measure?
The difference between the percentage of promoters and detractors
Who created the Net Promoter Score?
Management consultants Bain & Company in 2003
What are the two questions in an NPS survey?
- How likely are you to recommend us to friends or family? (0–10)
- Why? (Free text)
How can NPS scores be communicated effectively?
By placing them on everyone’s dashboard with a target
What is the problem with comparing NPS across different industries?
Industry averages can vary widely and require careful consideration
What is sentiment analysis?
Using natural language processing to extract and quantify subjective emotions from data
What is a potential issue with social media users regarding opinion representation?
Not all demographics are represented, leading to skewed samples
Fill in the blank: Social media users often express _______ emotions.
exaggerated
What should be monitored to improve customer satisfaction according to NPS?
The reasons behind scores, especially from detractors
What is a common pitfall of NPS surveys?
Over-surveying can reduce data quality
What is a benefit of integrating multiple data sources?
It provides more comprehensive insights
What is a risk when interpreting spikes in social media sentiment?
They may be false positives
What does Goodhart’s Law refer to in the context of NPS?
The risk of manipulating metrics instead of focusing on genuine improvement
What is the significance of having a reliable NPS?
It is a strong predictor of future growth
What is necessary for telling a useful story with data?
Integrate multiple data sets: finance data, sales data, customer data, product breakdown data, historic data, and external websites and social media.
Each data set alone may not provide the needed insights.
What is the role of measurement in organizations?
Measurement must be the basis for action, not just to validate decisions.
Organizations often collect data to confirm existing beliefs rather than to inform improvements.
What does NPS stand for?
Net Promoter Score.
NPS is used to measure customer loyalty and satisfaction.
What is the significance of negative customer feedback?
Negative feedback is crucial as it helps identify areas for improvement and drives continuous improvement in organizations.
Listening to the voice of the customer that highlights issues is essential for growth.
In what scenario could increasing sales be misleading?
When NPS scores for customers go down despite increased sales, indicating potential dilution of customer loyalty.
New products might be less reliable or enjoyable, affecting overall satisfaction.
What does the data acquired during customer interactions represent?
A partial picture that may lead to overestimating loyalty or missing important signals.
It is essential to integrate customer interaction data with other data sources.
What is the importance of external data?
External data provides early warnings of disruptive competitive threats that may not appear in sales or CRM data.
This data enhances understanding of market dynamics.
How should social media data be treated?
It must be handled with care due to sample bias and behavioral effects.
While social media can provide valuable insights, its data quality can vary.
What is the NPS’s role in a business dashboard?
NPS is a powerful tool that must be deployed rigorously and linked to strategic action.
Effective use of NPS can drive business decisions and improvements.
Fill in the blank: The voice of the customer that matters is the one that tells us how to do _______.
better.
True or False: Surveys and trackers are useful only if they are integrated with existing systems.
True.
