Forbes

Daniel Newman

Improving Customer Experience Through Customer Data

Customer experience. User experience. Data and analytics. What do these things really have to do with improving the bottom line? Today, more and more companies are realizing that true competitive advantage lies in creating an engaging customer experience – one that is personal, fast, easy, and useful. The only problem: many companies are not quite sure how to create it. By using advanced analytics, companies can make better use of their customer and user experiences, leading to higher satisfaction – and loyalty – in the long term.

Why does customer experience (CX) matter? In the digital marketplace, customers are even more demanding than ever before. More than half of customers today say they’ve switched companies solely because of poor user experiences. Companies who fail to embrace CX as strategic path to growth won’t just be lagging, they’ll get left behind.

But where to start? The ability to use both active and passive data to better gauge your customer and their journey is imperative to creating the optimal CX and improving journey mapping. Companies must collect, analyze, understand – and most importantly use – customer data to learn how to make CX better. The following are a few reasons data-driven CX can make the difference.

It Allows You To Get Personal
More than 85% of mobile marketers report success with personalization – higher engagement, revenue, conversions. Customers today don’t just want any app that works. They want an app or website that is personalized to save them time, recognizes their interests or preferences, and one that does those things seamlessly, without them even realizing it. I’m not just talking about segmentation; I’m talking about singular user experience. Netflix, Spotify and Amazon have the art of personalization down perfectly, suggesting books, TV shows, and songs that fit their users’ distinct tastes. None of this would be possible without analytics. The issue remains nearly 70% of users don’t trust retailers with their data (Opinion Lab Survey 2015). The only way to get them to share it is through consistent ongoing stellar CX that provides tangible benefits in exchange for the share.

It Shows You What’s Working – And What’ Not
Of 1.6 million apps on the market, just 200 make up for 70% of use. That means more than 1.5 million did not pass the CX test. Either they were too slow, too clunky, or didn’t perform as described. And ultimately, they did not fix those issues when presented with them. Your company is just like those apps. If you don’t look at the data showing what you’re doing wrong in CX and UX, customers will leave your site, store or app. It’s no longer a question. There are simply too many other options available to accept a less-than-stellar experience.

It Helps You Respond Faster
Today’s market is moving faster than ever, and your customers are using their voices faster, as well. Within moments of a negative experience, they can hop onto social media and spread the news. The only way to arm yourself in such a market is to use analytics to speed up your response time, and proactively fix CX issues before they start.

It Helps You Succeed – But Only If You Use It
Research shows 80% of data is “dark and untouched,” meaning it’s never actually used to make improvements or changes deemed necessary by the customer. Today’s biggest pitfall is to get so focused on collecting data that you never actually use it, in fact, in a recent study by SAS, they found only 23% of companies were able to integrate customer insights in real-time. The beauty of data is not just in what it tells you, it’s in what decisions you make based on those insights. Successful companies will focus more on the end-game than on the data acquisition.

It Helps You Map your Own Forward-facing Journey
Clearly, data can help dramatically improve the customer journey, but only for companies who are willing to be led where the data tells them to go. Those focused on holding on to legacy structures, or even past visions or products, will not find as much success in CX enhancements, simply because of their resistance to change. If you want to succeed in today’s market, 1) embrace data and 2) follow where it leads you. Remember: your customers are on the journey right along with you.

 

This article was written by Daniel Newman from Forbes and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.