![]() ![]() This is hard to grasp for our linear-thinking brains, which probably explains why B2B companies substantially under-resource VoC. The more a company commits to becoming a learning organization, the more it will profit from each additional insight. Voice of the Customer investments are non-linear as learning builds upon itself.Īnd like any endeavor of learning, the knowledge builds upon itself. To create a pipeline of new products or to launch an entirely new product strategy. But a unit of time spent understanding customer needs generates something far more valuable: a unit of customer insight. One additional unit per hour spent helping the sales force.Ī unit of time spent understanding customer needs generates something far more valuable: a unit of customer insight.īut what if we spent that same amount of time to understanding customer needs? Peter Drucker reminds us that “The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.” A unit of time supporting sales moves an additional unit for which we have a profit. With 100 hours, an additional 100 units and so on. If this is a linear relationship, then your product manager could spend 10 more hours and expect to assist in selling an additional 10 units. If a product manager spends one hour supporting sales, let’s say that this helps move one additional unit. Linear means that you could plot the input versus output, and the result would be a straight line. To understand non-linearity, let’s make sure that we understand linearity. Voice of the Customer Investment Returns are Non-linear But, behind the power of your distribution and capabilities, the gain from a successful new product could be 100x, 1000x or 10,000x the original investment or much, much more. Your company can only lose the time and money spent. Voice of the Customer investments are like this second case, asymmetric. You only have $1 at risk and with some luck, you could win 10x your investment. ![]() However, you would have the potential for an asymmetric return with your friend if you bet just $1 against his $10. Voice of the Customer provides asymmetric returns. This is “symmetric” because the potential gain or loss is the same. Your losses are capped at a max of $10 and your potential gain is also capped at $10. You’ve wagered $10, so that’s all you can lose. ![]() You bet $10 on the outcome of a baseball game. To understand symmetric returns, think about a sports bet that you might place with a friend. The opposite of asymmetric would be symmetric. Voice of the Customer Investment Returns are Asymmetric The potential is tremendous because VoC returns are asymmetric and non-linear. To realize these returns, a business must invest in a large number of executed projects, and allow for sufficient time. When a business merely dabbles in VoC, it’s because the leaders do not understand the true potential nor what it takes to succeed. For those willing to pay the price, the hidden rewards are amazing. And no, if they do not have time to properly gather customer needs, they should not be spending more time helping sales and support. Well yes, your product management and marketing should be doing Voice of the Customer work. Some would say that investments in Voice of the Customer are “too expensive and time consuming.” After all, does it really make sense for employees to spend time on VoC projects? For them to be on the road, interviewing customers? Instead, shouldn’t they be doing things that “drive sales?” Like working more shows? Assisting sales professionals with customer demos? Helping customer support with current issues? ![]()
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