"Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway," says Geoffrey Moore, Management consultant and author of ‘Crossing the Chasm.’
You might have heard about the advantages of data analytics several times, but have you ever thought about how it can help you become more customer-centric? Today, organizations must establish real connections with the audiences to convert them into potential customers. And for that, traditional methods need to be replaced by data-driven methods to cater to a customer's wants.
Using outdated techniques can prove quite expensive in this modern world because they will certainly not allow you to reach the right audience. It will be of no good even if you offer a precise service or product. So, viewing the customer experience from a data-driven angle is crucial.
Data analytics assist you in making sound business decisions. Further, leveraging data analytics allow us to avoid guessing game at every stage. Companies can develop customized strategies as they will be well aware of the conscious steps they need to take.
Understand Customer Journey With Customer-Centric Data Analytics
With customer-centric data analytics, you can instantly streamline your functions based on the report findings indicating the latest trends that took the form of a gigantic wave in the consumer industry. Also, it provides you with competitor analysis, where you can discover your strengths and where your competitor is ahead of you.
Customer data analytics facilitate you to walk on the plotted tread, leaving behind the competition as you can even view their weak points. And it entitles you to track and toil on your movements that impact customer journey the most. Eventually, putting energy in a suitable direction by employing data analytics increases customer loyalty, customer lifetime value, and ROI.
Leaders are bringing substantial modifications built on customer analytics that create a peaceful journey for your consumers with your products and services. They can now efficiently identify the exact places where the business demands more grind. You can effortlessly align business goals in accordance with changing customer preferences accompanied by strategic decisions taken under the prominent influence of customer-led data analysis.
4 Ways To Use Data Analytics To Improve Customer Experience
Digital transformation has allowed companies to collect and analyze large amounts of data from their customers across the border. Brands should keep an eye on their customer acquisition and customer service approaches and implement them carefully.
The customer journey is constantly widening as digitization allows customers to become more informed of opportunities surrounding them. So, reaching out to target customers is not an easy task anymore. When combined with customer-centricity, analyzed data offer great value to both parties - The brand and its customers. Here are four ways brands use customer-centric data analytics to improve customer experience.
1) Recognizing Changing Customer Expectations
There is a drastic change in the customers' expectations of businesses today. There are several reasons behind the shift in customer behavior, such as evolving technology, the Covid-19 pandemic, and many more.
In this crowded market, serving fast and reliable solutions to the consumers must be the priority of a business as they always have another option for the same product or service.
Real-time customer insights generated using data analytics benefit brands. You can quickly figure out frequent changes in your customers' wants and act accordingly in a short period of time.
According to a Hubspot study, after analyzing 330,000 call-to-actions (CTAs) for over six months, it demonstrated that personalized CTAs convert 202% better than default versions.
Nowadays, customers want brands to address customer complaints in a customized way. Customer-centric data analysis helps organizations to study their customers well and enforce customer experience personalization systems.
A brand can increase customer acquisition and customer retention rates through bespoke email campaigns, offers, landing pages, etc. Ultimately, big data analytics brings effectual momentum to customer-centered operations.
3) Take Down CX Silos
“Nail the basics first! Whether it's a website, mobile app, content, payment integration, delivery, packaging, and product discovery - all experiences and touchpoints play a unique role. They need to work well individually and connect seamlessly with each other. This is hard usually because these functions are siloed. Connecting them is critical and will need a consumer-first mindset, deep consumer insights, and instrumentation to measure consumer impacts in real-time.” says Priyanka Jha, Former Global eCommerce Capabilities Lead, Johnson & Johnson Consumer Health, in Clootrack's customer experience study report.
To consistently enhance customer interaction, the modern data-based methodology requires alignment of all the organization's processes. So, The union of the different teams, such as marketing, sales, and tech, is essential to bring relevant customer-focused outcomes.
In the end, data analytics breaks the silos as coordination at every customer touchpoints require incorporated efforts backed by data-directed plans. Moreover, real-time data analytics convey results immediately. So if any changes are necessary, the teams can communicate faster and work on them.
4) Enhance Products and Services
Online portals have allowed customers to express their feelings and thoughts about products and services openly. Data analytics support you in getting more profound knowledge of customer feedback and customer behavior. An organization can leverage readily available data to produce fundamental customer insights.
The valuable insight will let you know what features your customers are happy about and dissatisfied with while using your product or service. Consequently, you can utilize that to refine your product/service.
Furthermore, it guides you in the prioritization of completing the tasks. You can calculate the urgency by acknowledging what your customers are concerned most about through analysis of their responses.
Allocate Resources In Right Place With Data Analytics
An enterprise can cut down the excessive spending of monetary resources. You will not need to please your customers with tactics appealing loads of work and cash. Using cx data analytics, you can handle your relationship with your new customer nicely since you can rigidly invest all organization's resources in targeting the audience who most likely can make a purchase.
Big data analytics allow digitization of planning, management, and execution through a data-focused channel which is more reliable than other modes. And that is due to transparency in the performance of different teams as data analysis break silos. On top of that, it also drives accurate allotment of sales and human resources.
For sales, cx analytics enriches the methods of lead generation by letting sales staff meticulously examine customer engagement data. Additionally, customer profiling done via analysis empower you to predict the level of interaction a customer can possibly make with your offerings.
Similarly, big data plays a pivotal role in human resource management. The in-depth introspection of what employees contribute to the organization determines tangible returns that make positive differences. Data analytics encourage a business to take visionary actions based on future projections.
HR managers can reasonably recognize the ROI on HR practices and monitor business performance by analyzing the employee database. Data analytics highlights every section where you can uncover high potential that brings profitability to the business.
With customer experience analytics, optimization of the distribution processes becomes smooth to a greater extent as technology and data-based activities advance day by day. Aside from that, it improves the accuracy of customer-related decisions taken for revenue growth.
Technology Is Transforming Customer Experience And Data Analytics
The consecutive shift in consumer behavior and constant increase in data availability have made it challenging to trace customer journeys. Advanced technology has come forward as a helping hand to tackle such difficulties for organizations.
Undeniably, Artificial intelligence (AI) and Machine Learning (ML) are the technology behind the notable transformation in the customer experience and data analytics field. These technologies are the escape from traditional methods that are no longer sufficient to process large datasets and bring desired outputs.
AI renders a brand in forging actionable customer insight. And the actionable insight facilitates you to finalize the next step. The reports clearly convey which path should be ignored or followed.
Nowadays, AI-enabled third-party platforms are getting more preference as they assist you in obtaining detailed consumer analysis reports. AI-driven platforms identify valuable customer sentiment and measure emotional intensity from customer testimonials. Listening to consumer emotion and acting on it makes the customer journey free of trouble and provide an unforgettable customer experience.
In this fast-moving world, brands have an ample amount of raw data available that needs processing. Data analytics acts as a customer experience analytics tool that adds value to your customer's life and attracts them to your business. It identifies your customer needs, helps a brand to create personalized offers, and breaks silos for better organizational communication.
Customer analytics is a great way to map your customer journey and bring reasonable changes to the operations of your business. It abets you to amend the resource allocation in ways that bring customer satisfaction and more revenue to the firm. Such technology that includes AI and ML related operations never fails to bring value to an organization. Customer-centric data analytics is the backbone of customer experience enhancing processes.