15 - The voice of the customer

Question 1

What is the goal of Wave 4: Realize?

Answer 1

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.

Question 2

What are the three activities in the VBI model for Wave 4?

Answer 2

• Value
• Build
• Improve

Question 3

What does the ‘Value’ activity focus on in Wave 4?

Answer 3

Integrating internal activities with those of customers and partners to create analytical capability

This aims to significantly improve value.

Question 4

What is the focus of the ‘Build’ activity in Wave 4?

Answer 4

Building more ambitious data science, AI, and ML capabilities with links to customers and business partners.

Question 5

What is the purpose of the ‘Improve’ activity in Wave 4?

Answer 5

To capture feedback from customers and business partners and integrate it into business processes.

Question 6

What is the ‘voice of the customer’ (VoC)?

Answer 6

A company-wide effort to capture a customer’s expectations, preferences, and dislikes to create better products and services.

Question 7

What does Customer Relationship Management (CRM) involve?

Answer 7

Monitoring and improving interactions with customers using data collected during interactions.

Question 8

What is a Tracking Survey?

Answer 8

A project to collect consistent information about the market at regular intervals, covering competitor behavior, customer feedback, or market trends.

Question 9

What is Disruption in a business context?

Answer 9

A process where market entrants with novel business models challenge and replace industry incumbents.

Question 10

What is the significance of external data in understanding customer behavior?

Answer 10

External data can provide insights into customer actions when they are not interacting with the business.

Question 11

What is an Application Programming Interface (API)?

Answer 11

A set of procedures and communication protocols that provides access to the data of an application or to other services.

Question 12

Fill in the blank: The ‘voice of the customer’ was popularized in a 1993 paper by _____ and _____

Answer 12

[Abbie Griffin], [John Hauser]

Question 13

True or False: Most grocery shoppers in the St. Louis area are loyal to just one store.

Answer 13

False

Question 14

What is the purpose of web scraping?

Answer 14

To collect structured web data in an automated fashion.

Question 15

What are some use cases of web scraping?

Answer 15

• Price monitoring
• Price intelligence
• News monitoring
• Lead generation
• Market research

Question 16

What is the impact of GDPR on customer data collection?

Answer 16

Organizations must obtain explicit permission for data collection and usage.

Question 17

What can organizations learn from customer feedback?

Answer 17

They can understand customer preferences and behaviors outside of transactions.

Question 18

What is the role of sentiment analysis?

Answer 18

To assess customer feelings and opinions about a brand or product.

Question 19

What is the significance of integrating external data with internal data?

Answer 19

It enhances data analysis and strategic thinking by providing a fuller picture of customer behavior.

Question 20

What is detrimental to the relationship itself?

Answer 20

Not properly explaining data acquisition and insights

Question 21

What can be discovered by tracking customer behavior?

Answer 21

Insights on when customers shop elsewhere, travel, or eat differently

Question 22

What data does Kroger track in near-real-time?

Answer 22

Products compared to competitors and anonymized customer behavior by segment

Question 23

What is social listening?

Answer 23

Monitoring social media channels for mentions of your brand, competitors, or relevant topics

Question 24

What are the two dimensions of value in social listening?

Answer 24

• Customer service monitoring
• Aggregate public sentiment measurement

Question 25

True or False: Social media provides fully representative market research data.

Answer 25

False

Question 26

What is observer bias?

Answer 26

When respondents change their behavior because they are being watched

Question 27

What is Firehose API?

Answer 27

A stream of real-time data delivered to subscribers

Question 28

What does the Net Promoter Score (NPS) measure?

Answer 28

The difference between the percentage of promoters and detractors

Question 29

Who created the Net Promoter Score?

Answer 29

Management consultants Bain & Company in 2003

Question 30

What are the two questions in an NPS survey?

Answer 30

* How likely are you to recommend us to friends or family? (0–10) * Why? (Free text)

Question 31

How can NPS scores be communicated effectively?

Answer 31

By placing them on everyone’s dashboard with a target

Question 32

What is the problem with comparing NPS across different industries?

Answer 32

Industry averages can vary widely and require careful consideration

Question 33

What is sentiment analysis?

Answer 33

Using natural language processing to extract and quantify subjective emotions from data

Question 34

What is a potential issue with social media users regarding opinion representation?

Answer 34

Not all demographics are represented, leading to skewed samples

Question 35

Fill in the blank: Social media users often express _______ emotions.

Answer 35

exaggerated

Question 36

What should be monitored to improve customer satisfaction according to NPS?

Answer 36

The reasons behind scores, especially from detractors

Question 37

What is a common pitfall of NPS surveys?

Answer 37

Over-surveying can reduce data quality

Question 38

What is a benefit of integrating multiple data sources?

Answer 38

It provides more comprehensive insights

Question 39

What is a risk when interpreting spikes in social media sentiment?

Answer 39

They may be false positives

Question 40

What does Goodhart's Law refer to in the context of NPS?

Answer 40

The risk of manipulating metrics instead of focusing on genuine improvement

Question 41

What is the significance of having a reliable NPS?

Answer 41

It is a strong predictor of future growth

Question 42

What is necessary for telling a useful story with data?

Answer 42

Integrate multiple data sets: finance data, sales data, customer data, product breakdown data, historic data, and external websites and social media. ## Footnote Each data set alone may not provide the needed insights.

Question 43

What is the role of measurement in organizations?

Answer 43

Measurement must be the basis for action, not just to validate decisions. ## Footnote Organizations often collect data to confirm existing beliefs rather than to inform improvements.

Question 44

What does NPS stand for?

Answer 44

Net Promoter Score. ## Footnote NPS is used to measure customer loyalty and satisfaction.

Question 45

What is the significance of negative customer feedback?

Answer 45

Negative feedback is crucial as it helps identify areas for improvement and drives continuous improvement in organizations. ## Footnote Listening to the voice of the customer that highlights issues is essential for growth.

Question 46

In what scenario could increasing sales be misleading?

Answer 46

When NPS scores for customers go down despite increased sales, indicating potential dilution of customer loyalty. ## Footnote New products might be less reliable or enjoyable, affecting overall satisfaction.

Question 47

What does the data acquired during customer interactions represent?

Answer 47

A partial picture that may lead to overestimating loyalty or missing important signals. ## Footnote It is essential to integrate customer interaction data with other data sources.

Question 48

What is the importance of external data?

Answer 48

External data provides early warnings of disruptive competitive threats that may not appear in sales or CRM data. ## Footnote This data enhances understanding of market dynamics.

Question 49

How should social media data be treated?

Answer 49

It must be handled with care due to sample bias and behavioral effects. ## Footnote While social media can provide valuable insights, its data quality can vary.

Question 50

What is the NPS's role in a business dashboard?

Answer 50

NPS is a powerful tool that must be deployed rigorously and linked to strategic action. ## Footnote Effective use of NPS can drive business decisions and improvements.

Question 51

Fill in the blank: The voice of the customer that matters is the one that tells us how to do _______.

Answer 51

better.

Question 52

True or False: Surveys and trackers are useful only if they are integrated with existing systems.

Answer 52

True.