Today, investing in intelligent solutions has become mandatory for enterprises to stay ahead of the competition. More and more solutions are leading to increased customer interactions via digital and physical channels which are making it difficult for Customer Experience (CX) leaders to meet exceptional customer expectations. This article throws light on easing the process by strategically analyzing the CX with customers’ feedback, measuring CX analytics, and using such metrics to enhance the development of products and services along with driving the business outcome.
Customer experience (CX) analytics provides valuable insight into customer sentiments, sales, and expectations. By collecting relevant data and evaluating customers, brands can now easily make data-driven intelligent decisions improving their customer support and experience, and consecutively boosting their marketing campaigns, product innovations, and much more.
Growth Drivers Of Customer Analytics Market
Newer technologies have led to an increase in real-time data availability, and there are growing developments in analytics about customer behavior. According to Grand View Research, the global customer experience management market size was valued at USD 7,540.6 million in 2020. It is anticipated to increase by (CAGR) of 17.5% from 2021 to 2028.
As per the Forrester consumer survey of CX quality conducted in 2020, it was witnessed that 14% of brands improved their CX quality by finding and fixing problems primarily in their back-end systems and processes. In 2021, the number of brands improved CX and reached 27%.
The PwC Global Consumer Insights Pulse Survey 2021 states that the three top-ranked attributes in online shopping are Fast and Reliable Service which amounts to 42% and 36% for easily navigating the website, and 38% for in-stock availability of items.
These statistics show positive results on CX driving business growth and how by improving CX businesses can drive business sales and attract more and more customers. But before diving into a comprehensive understanding of imbibing CX analytics into the workflow, let us first study the challenges in the CX segment.
RoadBlocks in Meeting Enriched Customer Experience
Though the evolution in technology is providing respite in business operations, organizations face major restraint in choosing a befitting technology to stream big data analytics.
Evaluating ROI of CX: CX leaders face hardships in getting budgets approved as customer experience Return on Investment (ROI) is not always calculated and measured, and without metrics like revenue, turn-around times, and value, ROI cannot be quantitatively predicted. The pain points in this arena are:
- Existence of discrepancies in data
- The unorganized structure where different departments have different needs
- Prevalence of traditional methods in data handling
- Lack of comprehensive schemes
In order to design a modern and responsive CX framework, CX metrics should be used in the current operations.
Identifying CX Problems: The growing customer base is causing everyday hindrances for CX professionals as they are drifted in all possible directions and finding it highly daunting to cater to vast customer expectations. Which is to be prioritized? Which areas need improvement? Which is the right strategy? Which is the right resource? Which is the best platform? Such concerns are piling upon CX leaders and consecutively are seizing the company’s opportunities to grab new businesses.
Lack of end-to-end Customer Experience: Often departmental and functional objectives plan and prioritize their goals with a single business focus in mind. There also stands a dearth of a seamless transition from one department to the other and a lack of transparency across business verticals. A proper mapping should be initiated keeping in mind the overall end-to-end customer experience.
Measuring CX Analytics
How are customers thinking? The current customer behavior trends have to be observed and the metrics should be considered before defining one’s organizational goals.
Identifying Customers and Touchpoints: Businesses can narrow their focus on customers by evaluating data such as who has purchased at a higher frequency, who have recently purchased, and the ones who are likely to purchase if offered customized deals. Such an overview of ideal customers helps enhance customer experiences. Companies can improvise on their customer service by catering to customer problem areas such as new customer onboarding, renewals, cancellations, website footprints, product returns, retracted customers, etc.
Customer Surveys: Customer Satisfaction Surveys help companies in strategically improving their products and services. Different types of customer experience survey aids in giving insights into the current market demands. For example, an enterprise can analyze its customers’ loyalty based on their recommendations made to their friends, colleagues, or acquaintances. This data helps to understand the current standing of the company and can help to predict the company’s future. Companies should periodically study customer feedback throughout their lifecycle.
Web Analytics: Web analytics helps companies in collecting, reporting, measuring customer website data and plenty of other contextual data. They can now map and improvise their entire website ecosystem by the medium of vital analytics such as page views, website traffic, click-to-action implementation, purchase behavior, drop-offs calculations, and other patterns.
Using Intelligent Data: Intelligent data provides knowledgeable insights into the latest market trends by analyzing details of the current CX status of the company and data related to roadblocks, campaigns, etc., which helps executives to better access the marketing activities and ROI across places, segments, services, products and many more. Using Intelligent Data helps to gain transparency in the work structure, plan future activities, effectively streamline operations thereby reducing advertising costs, strategically introducing a new stream of activities amid others.
Benefits of CX Analytics
Customer Experience is the backbone of any company’s growth and affects each and every aspect of marketing and business KPI.
CX analytics data helps in studying customer details pertaining to their demographics, behavioral patterns, and purchase history allowing the company to map their next product and service in line. Sales agents can use this data to enhance conversion rates wherein executives can make informed decisions to boost marketing, sales, and product development.
Central Database: CX Analytics defines itself as a centralized system that incorporates customer behavior analytics, and touchpoints across all platforms. It involves front-end interactions coupled with back-end data that are transferred from various tools that a particular enterprise is using to attract and engage customers. Here a customer journey’s footprints are cohesively collected into one central database system. The additional benefits include:
- The recorded time of a particular customer’s action on the channel
- Customer actions like data of a number of page views by a particular customer followed by their product purchase, transaction made, etc.
- A robust identifier to tie the activity to the user
Unique Identifiers: Companies embed in their systems newer tools to engage customers which help track unique identifiers. Data scientists spend long hours and efforts collating data from various tools and places which makes it highly time-consuming and tedious. However, CX Analytics uses a centralized ID graph system that analyzes customers’ journeys throughout and saves customers’ interactions in a data format as a whole. It evaluates a customer footprint from the first moment, for example when he/she visits the website to become an identified customer, with details through click-to-actions like forms, email, phone numbers, internet accounts, cookies, etc.
User Case Study
A retail company leveraged data and marketing channels that weren’t being used and CX analytics provided added resources that helped drive the most out of digital transformation and customer experience management. By creating a customized Customer Data Platform(CDP), the company was able to enhance its advertising and marketing internal culture. CX analytics helped this retailer with benefits such as:
- Unified customer views
- Complete and accurate, real-time customer data
- Personalization across platforms
- Smart segmentation
- Agile internal culture
Business interactions with customers can now be constantly analyzed with analytic tools helping them measure the products, services, and offerings of a company. CX teams can better evaluate current metrics, KPIs and challenges, and work towards prioritizing and tactfully investing in the growth strategies of the organization.
Sources: Grand View Research, Forrester, PwC.