Customer Experience Analytics
Customer experience analytics is a methodical approach to collecting and analyzing customer data through which brands tap into rich customer insights to understand the needs and wants of their customers and provide them with the best relevant solution possible.
Brands now have access to more data than ever before, allowing them to customize every stage of the consumer experience. In today’s market, using client data touchpoints to improve their customer experience (CX) is critical for distinction. Consumer expectations are stronger than ever before – they want to obtain what they want when they want it.
Brands that provide the proper kinds of experiences – ones that are helpful and personalized to the individual – find a 20% increase in business impact.
In other words, customer experience is one of the most effective strategies to attract and keep consumers. This is due to the importance of the consumer experience. But how can you quantify it?
Let’s take a look at customer experience analytics to see how they may be used to measure and improve customer satisfaction and customer retention.
What is Customer Experience Analytics?
Customer experience analytics is the systematic examination of a company’s customer data to understand the customers, their pain points, and their experiences which will, in turn, give you the confidence to update and optimize existing customer experience solutions.
What is the Importance of Customer Experience Analytics?
Customer experience analytics provides useful insights that enable brands to make data-driven, informed decisions that could enhance the shopping, care, and service experiences of their customers. Furthermore, the data gathered will aid in the development of optimized marketing campaigns, Go-To-Market strategies, product creation, and more.
Many companies hit a roadblock when it comes to getting valuable insight from customer experience due to poor systems that do not help in gathering customer feedback and analyzing them.
What if I told you how I felt about a pizza’s taste without ever eating one? You’re not going to trust me if I told you. Similarly, without looking under the hood, we can’t say how well our customer experience plan is performing.
Taking a closer look at CX data allows marketing teams to determine whether or not their strategies are successful. They are left to work under the presumption that the team is on the right track without it.
Customer experience analytics is a form of customer experience technology. An organization can only use the true power of customer experience analytics to boost customer experience if it has the right technologies. To conduct CX analytics a company should have access to real-time customer data to resolve customer problems.
CX analytics offers valuable consumer insights that enable brands to make data-driven, intelligent decisions, potentially enhancing the customer experience. Furthermore, the data gathered will go a long way in the development of successful marketing campaigns, market strategies, understanding of competition, and product innovation.
Example of Customer Experience Analytics
A Clootrack customer experience analytics on banking, Top Factors of Customer Experience: Traditional Banks vs Neobanks reveals top delighting and concerning factors that affect the decisions of new and loyal customers in the banking industry. The report indicates leading factors that influence customer satisfaction in both types of banks:- traditional banks and neobanks.
Similarly, the banking report mentions the major concerns that bother customers of both banks.
The report is full of exciting customer insights that help a bank in targeting customer pain points. Working on outcomes of this CX analytics, any bank can improve its customer experience and increase customer acquisition and customer retention rates.
Benefits of Customer Experience Analytics
Customer experience analytics should not be overlooked if you want to create a consistent customer experience. The following are some of the numerous benefits of CX analytics:
Allows teams to test the performance of future product promotions with identical “mock” ads ahead of time.
Connects the dots and quickly recognizes patterns, trends, and root causes of problems.
The team is given the ability to enhance the customer experience at every touchpoint.
In marketing, it eliminates the guesswork.
You’ll be able to pinpoint particular encounters and correlate them to consumers.
Breaks departmental and inter-departmental silos.
Considers the whole customer experience
Facilitates the removal of roadblocks in the entire customer journey
Top 3 Reasons for Using Customer Experience Analytics
Using cx data and experience analytics to reduce customer churn, increase customer journey engagement and customer lifetime value, provide more tailored content/product suggestions, or just provide a more consistent CX is the never-failing approach to achieving these goals.
Here are the main reasons why you should employ CX analytics when it comes to the broader picture of your organization.
1. Data-Driven Decisions
Companies that have a culture of data-based decision-making are more likely to succeed than those that depend heavily on gut impulses. Consumer experience analytics connects customer behavior to measurable measurements that may be used to make better business decisions.
It’s not enough to estimate your next move based on a few anecdotal pieces in order to evolve into a brand that actually responds to the demands of each consumer.
CX data might reveal what consumers really want or what they’d want to be advised to them in order to deepen their relationship. Customer experience analytics is the process of using data to create business decisions that increase customer experience and, as a result, customer retention.
2. Minimize Customer Churn
Customer experience analytics may also be used to identify unsatisfied customers and avoid brand erosion as you can precisely determine customer churn rate. Text analytics techniques such as sentiment analysis may be used to automatically analyze customer comments and support data for opinion polarity (positive, negative, neutral, and beyond).
Relevant cx data is information (such as feedback/ content from genuine purchases/ customers) organized and structured in a way that aligns with analytics platform requirements, whereas data noise is any irrelevant data, seasonal spikes in occurrence, or unstructured/ disconnected information that machines cannot understand and interpret correctly.
Organizations have rich actionable data and frameworks for essential decision-making—or actionable analytics—based on consumer behavior and expenditure patterns to alter their product or service offerings, increase customer loyalty, and decrease customer churn.
3. Delivers Company Profitability
Customer satisfaction is substantially improved because of cx data gathered over time. Large enough data sets can provide an accurate picture of customers’ experiences over a period of time.
The point is large amounts of customer experience data help business owners ask the right questions, to create a strategy that works for them to create an excellent customer experience that increases profit over time.
Customer Experience Analytics Solutions
So far, we’ve gone through what customer experience analytics is, why it’s relevant, and how to use it to your advantage.
But how do you go about conducting such a thorough and effective investigation? Not every business has the financial means, resources, and skills to pursue such a project.
And this is exactly where Customer Experience Analytics Solutions come into the picture.
A customer experience analytics platform is used by businesses to gather, process, and analyze humongous customer data, and use artificial intelligence converting it into actionable insights.
Customer feedback is the backbone of such a CX analytics platform. Data is available either from online sources or through the internal data maintained by the business. These CX analytics solutions can monitor a host of data sources and are not limited to a defined set of sources.
Online data sources supported are social media, eCommerce websites, review websites, blog comments, domain-specific sites, and peer-review forums. These platforms have self-learning algorithms that can analyze customer reviews and segregate based on positive and negative sentiments as well as identify market trends.
As a result, the CX analytics platforms will offer highly accurate and granular analysis of customer reviews used for making highly effective and data-driven marketing decisions thereby taking the company’s image to new heights.
5 Top Features of Great Customer Experience Analytics Solutions
Customer experience analytics tools are here, and many organizations are reaping the benefits to the utmost. These tools collect customer data to help you understand customer behavior and how customers engage with your business, what their expectations are, and which aspcollects of your CX need to be improved. But the tools are no good if they do have the most important features that may be useful for some companies.
Here are the top 5 features of great CX tools:
1. Customer Analytics
Customer analytics refers to information on customer journey from a variety of online and enterprise sources, social media, eCommerce websites, surveys, forums, mobile apps, and in-app purchases. This feature leverages data to provide you with a broader picture of your consumer’s likes and dislikes when it comes to your product. It also establishes consumer risk criteria and identifies potential threats.
Related Read:- How The Top Companies Implement the Right Customer Experience Analytics?
2. AI and Machine Learning
Customer experience management becomes more flexible and targeted thanks to the role machine learning and Artificial Intelligence (AI) plays for CX. Machine learning algorithms and predictive analytics retrieve data about customer touchpoints in order to identify patterns and make changes with little human intervention. This feature uses previous experiences to improve current and future customer interactions and boost efficiency.
3. Text Analytics
This feature is the backbone that searches the whole internet for relevant text feedback, collects it, and analyzes it for customer opinion and sentiment. It helps in collecting customer feedback from online and enterprise sources to segregate and analyze the themes and sub-themes of the conversations. The text analytics function is a must-have if you want to remain on top of customer satisfaction with your products.
4. Real-Time Dashboards
CX practitioners can stay up with current consumer trends by using the informative real-time customer data that is presented in the form of dashboards. This feature is at the core of any customer experience platform with customer analytics serving as the brain. It can track customer conversations, NPS (Net Promoter Score) over time, Customer Effort Score (CES), Customer Satisfaction Score (CSAT), campaign performance, online vs in-store transactions, and a variety of other metrics. Visualization of the entire metrics in the form of pie charts and Venn diagrams makes it easy to interpret the CX data at a glance.
5. Brand Analysis
With CX tools brands can have access to more data than ever before, allowing them to customize every stage of the consumer experience. The brand analysis feature allows companies to compare and contrast against the competitors and learn what is working well or not working well with other brands.
Top 10 Factors while Choosing a Good Customer Experience Analytics Tools
What factors should you consider while selecting a CX Analytics solution?
It’s crucial to ask yourself a few questions before jumping the gun and choosing a solution.
Consider the following scenario:
What’s driving your decision to deploy a customer experience solution?
Do you wish to keep track of your customer’s online activities in general? Or are there any specific issues that you’re concerned about?
What types of sources do you intend to use?
What type of information do you need (e.g., user experience, customer conversations, Brand Analysis, etc.)
How easy is it to customize the tools?
Is there built-in analytics and reporting in the solution?
How simple is it to set up the software?
Is it a good fit for your marketing strategy?
What are the disadvantages?
Once you ponder over these questions, you will have a clear view of the type of solutions that are needed for your organization.
Here are the top 10 factors that you should consider while choosing a good CX Analytics Solution:
1. Intelligent with Minimum Supervision
The tool should be able to provide intelligent insights even with minimum human supervision.
2. Crawl Variety of Data Sources
The analytics platform should be built to crawl external data sources as well as integrate enterprise data.
The CX Analytics tool should be able to track the insights back to the original customer conversations thus providing transparency.
4. Proven Market Research Frameworks
The tools should be built using proven market research frameworks that offer results that are actionable without the need for further analysis.
The insights should have the least manual intervention thereby making them highly unbiased.
The solutions to analyze CX should not be too expensive and should offer cost-effectiveness. The tools should be well worth the investment of company resources.
7. Expertise & Skills not Required
The tools should be built in such a way that it does not require special skills or expertise to run and maintain.
8. Minimum Set-Up Time
The CX analytics tool should come with an easy and fast setup solution. There should be no time lost in configuring and integrating the tool with the internal departments.
9. Compliment Existing Systems
Any new CX tools that you implement should complement your existing systems and blend in well without having to completely change the way you function.
And the most important of all factors is that the tool should provide real-time analysis. The tool should be able to continuously generate insights based on the most real-time data.
Who Can Use Customer Experience Analytics Solutions?
CX analytics solutions can be used by various executives and officers who wish to understand the customer experience and take an active part in the overall improvement of CX and customer loyalty.
Using data from a CX analytics tool, Senior Executives of a company may make crucial strategic choices about the company’s direction, marketing, sales, and product development. The indicators from a CX analytics tool can indicate which specific, in-demand features a product is missing, allowing them to be included in the product development plan.
Customer Experience Manager (CMO)
CX analytical solutions bring powerful business insights to the surface. They help the CX Manager to identify key factors that significantly move your customer journey satisfaction. With the help of the insights, the CX manager can align stakeholders with data-driven transparency. Overall it helps a CX Manager to take focused actions.
The Brand Managers in an organization can benefit from the use of CX Analytical Solutions as they get to track their brand on a real-time basis. It offers solutions to understand your brand health and brand equity and allows comparison and contrast with your competition. CX Tools leads you to the source of customer feedback and also offers direction for your marketing efforts. With the help of CX analytics, Brand Managers can understand the needs f the customers and thereby plan campaigns like never before.
With a lot of eCommerce sites coming up, it’s become very important for eCommerce Managers to understand how your brand is performing compared to their competition on online retail channels. A CX Analytics Platform brings the smartness of filtering customer conversations and picking the right feedback for the analysis. It also helps to keep a tab on emerging products and trends. Above all this, it helps to understand the drivers or factors that influence the entire customer journey.
Related Read:- Customer Experience Analytics In Retail: How Customer Data Drives Sales.
Market Research Analyst
Not just the executives or a company, a CX Analytics Solution helps Market research analysts as well to conduct super-fast market research. Research Analysts may interpret distinct customer emotions and discover genuine consumer views of product categories and brands.
5 Customer Experience Analytics Use Cases
Here are the best 5 use cases of CX analytics that help brands increase customer satisfaction:-
1) Refine Marketing Strategy
CX analytics assist your brand in revising and restructuring marketing endeavors. With analytics, you can generate a super-effective marketing strategy that not only attracts customers but make them aware of the value you provide through your solutions. Customer journey analytics reports indicate what customers respond to the most, and accordingly, you can revamp your CX strategy for marketing to promote your brand better than before.
2) Develop a Targeted Sales Process
CX analytics bring clarity about who exactly is your target audience, which furthermore assists in creating a well-performing sales process. Customers feel more comfortable when sales processes are structured according to their behavior, attitude, and opinion. CX analytics help you generate a not-too-pushy environment for your customers that drive them to collaborate more often with your brand.
3) Innovate Products
Customers always speak about what they would like to have in your product. CX analytics reveals what exactly customers want to see in your product. You can comprehend whether the customer demand can be added as a new feature or a new line of products you can put in place through the intensity of customer demand and market fit with the help of customer analytics.
4) Enhance Customer Service
With CX analytics, you can optimize services in your omnichannel setup that serves customers as per their requirements. You can pre-plan an end-to-end customer experience pathway with the help of CX analytics to smoothen the journey throughout the customer interaction. The customer service your brand provides affects customer perception of your brand, and CX analytics help you deliver experiences that customers cherish in the long haul.
5) Align Business and Customer Goals
CX analytics help you understand what customers demand, with which you can streamline your business operations in such a manner that caters to the customers' wants and needs. Customer insights you get through analytics make it easy for businesses to interpret their procedures with respect to customer expectations and operate seamlessly to improve customer experiences, customer satisfaction score, and customer lifetime value.
Top 10 Customer Experience Analytics Solutions
Clootrack is the fastest Customer Experience Analytics platform. It helps you understand the actionable qualitative customer priorities, in real time. Clootrack obtains these insights from customer conversations, feedback, and reviews.
Clootrack obtains open-ended customer conversations from a wide range of data sources – both online and private enterprise data. Online data sources include eCommerce sites, forums, blogs, social media, etc. Private enterprise data can be any data source including customer care tickets, open-ended NPS surveys, website/app feedback, chatbots, etc. Clootrack insights are unbiased, require minimal configuration, and support 55 languages. The time to go live is in 7 days!
2. Qualtrics XM
Qualtrics Experience Management (XM) helps brands continually assess the quality of their four core experiences—customers, employees, products, and brands. With Qualtrics XM, organizations can be at every meaningful touchpoint, for every experience, and predict which changes will resonate most with stakeholders. At Qualtrics, our mission is to close the experience gap.
Zendesk is a CRM company that builds software designed to improve customer relationships. Zendesk offers a platform for customer service and customer engagement. It can be used by businesses of any size. Zendesk offers the features of security, help desk software, a ticketing system, a knowledge base, and community forums.
4. Verint ForeSee
Verint Foresee is a customer engagement company that helps companies improve the CX for more customer engagement, customer loyalty, and efficiency. ForeSee Voice of Customer solutions. This platform listens to customer signals — across web, mobile, location, and contact center — then connects data for deeper insights.
5. NICE Satmetrix
NICE Satmetrix is a CX software for companies to manage their CX programs. It enables companies to collect, integrate, and analyze customer feedback data; close the loop with customers, including action management and tracking, escalation management, and comprehensive reporting. It includes reporting and data delivery. It is purpose-built for managing the entire CX management process. Business outcomes for customers include higher rates of growth, improved retention and upsell, reduced churn, and lower cost to serve.
ResponseTek for Telco is a cloud-centric Customer Experience Management (CEM) solution based on Amazon Web Services, enabling customer feedback to be captured as close to the CX as possible, delivering accurate information and optimal response rates.
Medallia captures experience signals created on daily journeys in person, on calls and digital channels, customer interactions over video and social media, and IoT interactions, and applies proprietary AI technology to reveal personalized and predictive insights that can drive action with tremendous business results.
Verint Opinion Lab is a tool that captures customer-initiated feedback via web and mobile channels throughout the digital customer journey that helps to make business decisions. You can configure comment cards. The feedback is sent in a concise daily email. This tool works on both the app and the web.
HubSpot’s customer service platform offers features that can be used for CX management. The tool offers a help desk and ticketing to assist in the recording of customer inquiries and tracking recurring support cases. It helps to identify common customer problems and implement changes that help users overcome them and reduce customer effort score.
Clarabridge is a CX tool that helps brands to understand and improve their CX. With text analytics, Clarabridge transforms survey, social, voice, and all other forms of customer feedback into intelligence that can be used for decision-making.
Leverage Customer Experience Analytics to Its Fullest
Customer experience analytics is a structured path to understanding customer demands and acting accordingly to fulfill their desires. Not only that, CX analytics when used organization-wide fosters a customer-first mindset, helping your brand increase customer lifetime value. The analytics report reveals insights on several different aspects that allow your brand to target opportunities that help you provide relevant solutions to customers.
Today’s brands want to actively leverage the outcomes of customer journey analytics and are on the lookout for the right solution that works best for both customers and the brand. Also, as CX is now a competitive factor, CX analytics assist your brand to stand apart from the competition and generate the desired ROI.
And to generate preferred ROI you must know how CX analytics influence the returns. Read Customer Experience Analytics to Provide Top-notch CX That Brings Desired ROI!