The President and the Voice of the Customer

President Obama has provided us with yet another teachable moment. This one has to do with the VOC (voice of the customer) versus the VOM (voice of the market). Now, before I am accused of cynical partisanship, let me say that the point that I am going to make is bipartisan, but the thought has occurred to me during this administration.

As one of the more “speechful” presidents, Mr. Obama has been touring the country speaking in front of groups of people on healthcare reform and more recently on jobs. Based on the friendly response, more than likely the groups with whom he speaks are screened to make sure most are loyal democrats (again, this is a practice that all administrations employ to greater or lesser extents). In Six Sigma Marketing parlance, these groups are his customer base. They are loyal, most likely to recommend him to others, and most likely to vote him into office again. When he listens to what they have to say he is listening to his VOC. What he hears is probably for the most part reinforcing but, can be highly delusional. What he doesn’t hear is probably equally important if he wishes to increase his voter base, or in Six Sigma Marketing parlance, his market share. Even among his customer base there will be disaffection as promises are not kept and policies fail to produce the desired effect. The customer base will dwindle as his brand becomes tarnished. After all, among friends, who is going to provide the much needed kick in the butt to start the change or improvement process? The only thing he will know is what he already knows.

What he is ignoring by solely listening to the VOC is the VOM, the voice of the market. The VOM represents not only his supporters but also those of his competition. These are the voters who do not like him and his ideas as well, are significantly less loyal, and less likely to vote him back into office. Their message is one that challenges his ideas, his views of the world and his approaches to governance. By ignoring the VOM he is gaining a perceived sense of invulnerability at the real expense of increasing his actual vulnerability. He loses a real opportunity to modify his value creating and delivery capacity to attract even more supporters, neutralize his competitors and increase the likelihood of future performance. Most of us can clearly understand this.

Here’s the teachable part. This is what many organizations do. They listen to the VOC, their customers, but ignore or choose not listen to the VOM. This gives them a false sense of well being while at the same time jeopardizing their strategic and financial future. They indicate that they are satisfied with the product or service and promise to buy more. While the praise is wonderful, criticism can be beneficial. That is what the VOM brings to the table – an opportunity to improve and grow.

In Six Sigma Marketing parlance, once again, market share accrues from three activities:

1. The retention of current customers

2. Increasing the likelihood of future business

3. The acquisition of new buyers

All three objectives can only be achieved by listening to the VOM, not the VOC.

Companies that rely on the VOC are only getting a portion of the information they need to drive strategic and operational excellence. Quality and value have no meaning when divorced from the marketplace. Your customers buy from you because they think they are getting good value from you. Your competitors’ customers buy from competitors for the same reason. Your customers will continue to buy from you until they find better value elsewhere and if you are not managing your value, your competitors will.

Companies should go to school on how politicians rely on the VOC. President Obama, and any politician for that matter, is better off subjecting themselves to real town hall meetings rather than screened friendly contrived audiences. This is their market place, the competitive arena in which their ideas compete for votes. Ignoring the VOM reduces the likelihood of reelection.

It’s all about value and how the market defines it. Ignore it at your own peril. Remember, “A wise person learns from others mistakes. A fool learns from his own.”

For a complimentary copy of my new book Best in Market: The New Imperative for U.S. Manufacturing, go to: www.6sigmarketing.com/contact and download it.