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growth team m e m b e r s h i p™
Harnessing Voice of the Customer
for Incremental Innovation
The contents of these pages are copyright © Frost & Sullivan. All rights reserved.
growth team m e m b e r s h i p™
1
Harnessing Voice of the Customer for
Incremental Innovation
Best Practice Guidebook
Note: Data are illustrative and do not represent actual data.
• Establish the Customer Insights team as a service center, rather than as a mandate from above. This will increase buy-in, open up access to business units data, boost the use of Customer Insights’ work, and avoid territorial behavior by divisions with revenue targets.
• Ensure the Customer Insights team has access to companywide data. This allows the team to integrate cross-business insights, support decision-making at all levels of the cross-business, and link customer feedback to measurable changes in customer behavior (such as increased revenue, retention, and loyalty).
Citrix needs to improve customer retention in an economically feasible way.
Citrix
INDUSTRY
Information and
Communications Technology
REVENUE (2012)
$2.59 billion USD
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Citrix develops a comprehensive program to collect, prioritize, and embed the voice of the customer in the innovation process to drive meaningful product improvements and increase customer retention.
Citrix’s Key Lessons Learned
Solution
Challenge
Corporate Strategy Corporate Development Marketing Competitive Intelligence Market Research Sales Leadership R&D/ Innovation Investors/ FinanceCEO
R&D/ Innovation Market ResearchApplicability to
Executive Functions
Collect and Analyze
Customer Voice » Embed Insights within Product Teams » to Innovation »Apply Insights
2
The contents of these pages are copyright © Frost & Sullivan. All rights reserved.
best practice guidebook
growth team m e m b e r s h i p™
Source: Citrix; Growth Team Membership™ research.
Overview Page . . . .3
Customer Insights (CI)
Department . . . .4
Collect and Analyze
Customer Voice . . . .5
Embed Insights within
Product Teams . . . .6
Apply Insights
to Innovation . . . 10
Business Results . . . 12
Key Lessons Learned . . . . 13
Supporting Tools
& Resources . . . 14
Design Matters
Initiative 14
Customer Experience Survey 15
Net Promoter
Score® (NPS) 15
Contents
• Dedicated centralized program manager or analyst
• Buy-in by key stakeholders to take action on primary insights
• Funding for tools, resources, and research: - If an in-house effort—a survey tool, method for
sending the survey invitations, a text analytics tool to categorize open text comments, and a tool to aggregate and analyze the data (such as a spreadsheet tool)
- If an outsourced effort—vendor will handle the survey tool and contact process
• Approximately 45% of customer-driven business cases become new products or product features
• 30% reduction in cost-per-lead for some segments
• 100% adoption of VOC process by product teams
Business Results
Resources Required
HEADQUARTERS Santa Clara, California, United States GEOGRAPHIC FOOTPRINT Global
OWNERSHIP Public EMPLOYEES (2012) 8,212
Contact the Growth Team Membership™ (GTM)
3
The contents of these pages are copyright © Frost & Sullivan. All rights reserved.
best practice guidebook
growth team m e m b e r s h i p™
Source: Citrix; Growth Team Membership™ research.
Citrix uses a three-part process to capture and translate customer feedback into insights for product teams
From Customer Voice to Product InnovationCollect and Analyze Customer Voice Embed Insights within Product Teams Apply Insights to Innovation
Objective
Capture the voice of the customer and translate it into usable insights
Objective
Package and deliver customer data and
insights to influence product development’s
decision-making
Objective
Apply insights to improve products’ features and performance
Activities
• Assign ownership of stakeholder needs by analysts’ specialization
• Develop qualitative and quantitative customer feedback mechanisms
• Assess and prioritize customer needs based on their frequency, value, and impact
Activities
• Develop customer personas to bring to life the needs and preferences of customers for stakeholders
• Illustrate the impact of customer perceptions and use of products
• Provide usable insights (needs and trends) for new products and/or features
Activities
• Collaborate with product teams to use customer insights for a new product business case
• Track and communicate the ROI (as measured by revenue, retention, and brand loyalty) of insights-based innovations
• Use Virtual Customer Advisory Boards to collaborate with customers on high-priority projects
from voice of the customer to customer retention
Voice of the Customer
Insights
Incremental Innovation
Increased Customer Loyalty and Retention
Customer engagement depends upon two-way communication: customers provide feedback to the company, and the company reports back to the customer on how the feedback was used. Voice of the Customer (VOC) is a key component of this engagement cycle because it enables companies to harness customer feedback to drive incremental innovation (existing product enhancements that maintain or increase competitive advantage), thereby contributing to customer satisfaction and retention.
The contents of these pages are copyright © Frost & Sullivan. All rights reserved.
growth team m e m b e r s h i p™