What are Customer Experience Insights?
Customer experience insights are the conclusions drawn after examining customer feedback and their interactions with your company. They encompass any kind of research or poll that may be used to find out how your clients engage with your company and how they see your brand.
In a recent study where 102 CX experts participated, 14.8% of survey participants say everything about a healthy customer experience starts with a good foundation of insights. Great insights open the ways to figure out how the brand fits within a persona and into a customer journey map.
See what Rick Mans from the study says -
To understand what customer experience insights are, one needs to understand the basic meaning of an insight.
An insight is a deep and accurate understanding of any given thing. So, customer experience insights are those insights uncovered through customer feedback analysis and other business interactions.
What is the Importance Of Customer Experience Insights?
Analyzing the overall customer insights, brands will get to know what are your customers’ expectations from your brand and are they satisfied with the current experiences. Real customer experience information may help businesses reach more consumers, build brand awareness, boost customer happiness, and ultimately boost revenue.
Let's examine several uses of consumer insights.
1. Performance monitoring
Customer experience insights may be a useful tool for the performance analysis of your company. As an illustration, you may use your present customer experience as a baseline. Analytics will enable you to determine the impact of process and operational improvements on your customers' experiences. The ability to track and monitor your CX continuously so that it may be routinely modified to meet the shifting demands of the market is another benefit of using numerical performance indicators.
2. Break into new markets
Understanding the customer insights of markets you would like to enter will help frame your brand perception and its marketing strategy accordingly, and know the target customers and locations.
3. Product upgrades
Delivering superior products that exceed those of your competitors is essential in a competitive market. You must be aware of the pulse of your target audience in order to understand what these preferences and demands are. In other words, you must be able to hear the consumer. Insights on client experience are crucial in this situation.
4. Understand the reason for churn
Many brands struggle with churn rates and cannot find the reasons. Insights will help them understand the significant customer concerns, and analyzing them will help to know what leads to the churn.
5. Enhance customer satisfaction
Understanding your consumers' shopping habits, product preferences, and the preferred message is key to providing a positive customer experience. You may precisely adjust your offers to fit your customer’s wants and preferences using these insightful discoveries.
6. Assist in personalized marketing
Mass marketing has been replaced by personalized marketing since people need products that satisfy their tastes and preferences. Understanding different customer personas and designing marketing campaigns for each persona will help in more conversions. One of the examples of this is Spotify's 'Wrapped' marketing campaign.
7. Competitor analysis
The customer experience insights provide you with in-depth information on what your rivals are doing, the effectiveness of their marketing strategies, how the public views them in comparison to you, and how your past data stacks up in terms of client loyalty and retention. This information is crucial for helping you enhance your goods and services so that they remain competitive and relevant.
8. Increased sales conversions
You may make your product more individualized for your clients if you are aware of their needs, expectations, and wants. Simply said, you know which clients are more likely to purchase your goods and which goods may be used in cross-selling tactics. When you're able to accomplish this, you may increase sales conversions, which directly affects your marketing and customer acquisition expenditures and, ultimately, your bottom line. Your company will be more lucrative in the long run when all these expenditures are reduced.
9. Increase brand awareness and customer engagement
Insights from the customer experience report will help brands know the current brand awareness, boost it further, and build more engagement. Also, understanding customer requirements and expectations will help brands frame personalized experiences, thereby improving customer engagement with the brand. Many real-estate and automobile companies have successfully increased their customer engagement with insights. Also, Amazon, Costco, and Target are a few brands that utilize their customer insights to enhance engagement.
10. Plan influencer programs
Social media are great channels to market your products and increase product awareness through influencers. The customer experience insights can be used to determine who will be the right influencer for your niche.
Influencer programs on platforms like YouTube, Tiktok, and Instagram can provide relevant insights to understand the customer reaction to your influencer programs. Also, customer experience insights will help you find customers' demography, age, and other factors. These data will help you choose the right influencers to reach your target customers.
How to Get Customer Experience Insights?
Below are a few sources through which a business can acquire customer experience insights.
1. Online reviews
Online reviews are an authentic source of customers' opinions on a business. Here, customers have the liberty to clearly articulate their views straightforwardly, unlike a survey where customers have to choose an option. Reviews can be gathered through business websites, like Google, Yelp, and social media platforms like Facebook, Twitter, etc.
From the reviews, valuable insights can be fetched, whether positive or negative. In addition, analyzing reviews of competitors can also provide valuable insights such as their weaknesses and strengths.
2. Customer surveys
Customer surveys can collect massive amounts of customer insights since they can cover many customers in different stages of their customer journey, and it won't consume much time. These surveys can be NPS, CSAT, etc. Some questions which can be included in a survey are:
- On a scale of 1-10, how likely are you to recommend us?
- What was the best feature of our product?
Through surveys, businesses can gauge the general outlook towards a business and identify strengths and weaknesses. These serve as valuable insights.
The disadvantages of this are that customers may skip the survey, and they may choose some random score. Also, a set of scores can't reveal the reasons for their likes and dislikes.
3. Social media
Many brands fetch abundant customer opinions and reviews about them from social media platforms. Because people are not afraid to share their opinion about a product on social media with their own words and emotions. The brand can monitor comments under their posts or the post which tagged them. Feedback can also be gathered from polls and questions on these platforms.
The type of language used in comments and opinions on social media is a valuable insight, and the business can understand customers' real emotions.
With Google Analytics, businesses can gather and compile a wealth of data. Some might include demographical data such as age, gender, and location or behavioral data such as the user's interests and the visited pages.
Here, insights such as the keywords they used and the interactions with the landing page can be gathered and used to understand customer personas' behavior patterns and preferences.
5. Third-Party data
If you don't have access to a lot of client input, you can learn from market research carried out by larger firms that have access to a broader audience. Understanding the difficulties and issues your customers encounter may help you create marketing campaigns, create new products, and provide your consumers with more empathy and understanding. Being aware of customer trends in your business can help you do all of these things.
What is a Good Customer Insight?
There are three characteristics we can see in robust customer insights. They are:
1. Targeted: A powerful insight would be targeted around specific activities. Brands should be able to narrow down their research into a particular segment in customer experience into insight.
2. True (Problem): At the core of every insight, there should be a problem or issue. Because there is no point in looking for a solution without identifying the real problem.
3. Fresh: We look into an insight to understand the rising problems or problems we identified in the past but have not yet resolved. Brands should ensure that the insight contains a new problem or an existing issue specified in a new way.
Getting Customer Experience Insights Using AI
It's pretty simple to gather customers' scores and ratings since they are simple and quantitative. And, it isn't easy to extract insights manually if there are many survey scores and customer reviews.
Even if you do so, it's hard sometimes to get the right emotions of customers. What if a customer gave 10/10 in a CSAT survey and submitted a review, "even though the product is in good quality, they delivered it in a broken box without a seal." See, there is no issue with the products, but there is another primary concern of customers regarding the poor delivery quality.
If a brand only uses survey scores and checks some random reviews, they can't understand the real emotion of customers and the problems they encounter at each point of their journey. In such cases, AI-based customer insight tools are their life savers!
These tools deal with customers' emotions from their words, voice, and actions with NLP technologies. The devices will segregate the reviews into positive and negatives and dig further to spot the aspects that cause the main issues and delighters in customer experience.
Examples of Customer Experience Insights
1. Top drivers that influence the experience of makeup customers
In Clootrack’s insight of makeup brands, we found that there are five factors makeup brands should consider improving since they are the top drivers that influence the experience of makeup customers. Clootrack, the AI-integrated platform, has listed and ranked them in the descending order of the number of customer reviews.
In this image, it is evident that ‘Color’ is the most crucial driver that plays a key role in choosing a makeup product. Further drilling down, we have found the most liked colors by customers from customer reviews.
From this image, we can see that Pink is the favorite color of customers. Using these insights, makeup brands can reconsider giving more importance to the color of their products, especially, Pink and Blue colors!
2. Insights from food and beverage company
Another example is the food and beverage company “Organic valley.” They used customer experience insights to develop an innovative breakfast dish called Egg Bites. The company identified the top 3 flavors through insights. Also, they understood that customers identify products with their flavors so they named the flavors properly. For example, ‘Spicy tomato salsa egg bites’ reminded consumers of the Mexican dish Huevos Rancheros.
In conclusion, by leveraging customer experience insights, businesses can gain a deeper understanding of their customers' needs, preferences, and pain points. This understanding allows them to tailor their products, services, and interactions to provide a truly personalized and exceptional customer experience.
Furthermore, in today's fast-paced and technology-driven world, businesses need to adapt and constantly evolve their customer experience strategies. This means staying updated with the latest trends and technologies, investing in the right tools and platforms, and continuously listening to customer feedback. Customer experience insights are a great solution for these activities done in the right direction.
So, let's all strive to put ourselves in our customers' shoes, listen attentively, and deliver better results using CX insights!
Read More: Product Differentiation Using Consumer Insights To Build the Most Profitable Strategies!