Listening—to employees, team members, or customers—has always been a key competency for leaders. It is unlikely today that anyone would claim it is not important to be “customer focused.” The prescriptive advice instructing us to listen to and leverage the voice of the customer is compelling, offering companies ways to gain market share by innovating, building loyalty, and improving quality. Research has shown that customers have more respect for and trust in companies that actively listen, and that feeling heard by companies is related to positive business outcomes such as intent to purchase and the likelihood to recommend (Lerman & Austin, 2006).
There has been a proliferation of writing in recent years around the topic of listening to customers and acting on what they say—evidence of this growing awareness of the importance of the topic. For example, search results from Amazon.com reveal more than ten times the amount of material about the voice of the customer than was available fifteen years ago. In 1993, there were thirty-three books published on the voice of the customer; since the new millennium there have been on average thirty-three books a month published on the same topic. Additionally, the revolution in online social media—blogs, wikis, communities, and corporate websites, for example—has given consumers new ways to stay connected, gain information, share experiences, and trade advice. These virtual conversations often contain pertinent and timely information relevant for products, services, or brands, and it is up to companies to figure out how to participate in them.
The imperative to “listen” is obvious, but what challenges does it pose for organization and leadership development?