How to use customer experience analytics for boosting CX
The age-old maxim ‘Customer is King’ highlights the importance of customers in every business and holds even today. The increasingly competitive landscape has got organisations focusing on customers' attention now more than ever. A 2021 Digital Trends report by Econsultancy and Adobe shows that over 70% of committed customer experience (CX) leaders outperform their competition.
Offering personalised CX has become more important than ever before to remain relevant in the digital marketplace. And, CX analytics is the foundation on which marketing strategies are built.
CX analytics is a synergetic collaboration between technology, data, and analytics to understand customer needs and viewpoints to deliver superior experiences via actionable insights. It helps marketers stand out in a crowd, and improves customer engagement, satisfaction, and retention, leading to increased revenue and business growth. Temkin Group’s research claims that businesses that earn $1 billion annually can expect to earn an additional $700 million in just three years by investing in enhancing CX.
These figures reiterate the significance of CX in today’s digital marketplace where there are so many players. Customers have several options and customer engagement is a key aspect of success. Analytics provide valuable insights such as customer demographics, pain points, and more. These insights enable marketers to develop customer experiences that address the specific needs of the customers.
Technologies such as Big Data and Artificial Intelligence (AI) are leveraged by marketers to access data that can be leveraged to create effective marketing strategies to enhance CX.
Key Strategies For Boosting CX Through Analytics
The five key strategies for boosting CX through analytics are as follows :
- Optimise Customer Journeys: Mapping out the customer journey and identifying customer pain points, preferences, and behaviour allows organisations to understand consumers’ buying process and build a comprehensive business strategy. It provides opportunities for improvement, leading to better end-to-end customer experiences, retention rates, higher sales growth, and lower operating costs. An analysis by McKinsey for a period between 2016 to 2021 indicates that businesses that prioritise CX achieved more than twice the revenue growth than those that did not. This is affirmed by a study by Zendesk that indicates “75% of customers are ready to pay more for a personalised experience.”
- Offer Personalised Results: In this digital era, customers are surrounded by personalisation as is done in Netflix, Amazon, etc., and expect the same from all business organisations. Customised insights make it easier for consumers to navigate endless options and choose the fitting ones. Highly personalised solutions are difficult to imitate but maximise customer satisfaction, resulting in higher response rates and loyalty. A survey conducted by Accenture shows that “75% of customers are more likely to buy from a company that knows their name and purchase history, further recommending products based on those preferences.“
- Use Predictive Analytics:Discover patterns with the help of analytics to make better sense of what lies ahead. Predictive analytics assist companies in making strategic decisions, spotting market trends, and forming proactive campaigns. It also helps forecast customer journey issues, provides personalised solutions, and decreases attrition. Uberflip and Ascend 2 claim that “58% of B2B marketers believe predictive analytics is the most effective AI-powered technology to create hyper-personalised strategies.”
- Follow A Customer-Centric Approach: A customer-centric approach involves designing business strategies around the customer. Putting customers at the core of the business aligns their needs with the business goals. Amazon is the best example of a customer-centric company. Employee empowerment and effective training create personalised and seamless solutions for enhancing customer experience. A study by Deloitte and PwC found that companies that prioritise customer experience are “60% more profitable than companies that don’t. Also, customer experience is a key factor for 73% of consumers in their purchasing decisions.”
- Engage With Customers:Constant communication is the key to improving customer engagement. Companies are expected to meet high standards for product quality, service performance, and price by their customers. Monitor customer interactions and feedback along with data to track and implement improvements in areas such as product development, customer service, and marketing. Understanding customer needs and preferences is key to gaining a competitive advantage in today's marketplace. Investing in customer experience analytics is essential for businesses looking to provide purpose-driven solutions, create a customer-centric approach, increase their returns, and improve their overall CX strategy & business growth.
In conclusion, leveraging excellence in customer experience analytics and execution can boost CX and benefit businesses in multiple ways.
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