How to use CX analytics to improve ROI?
Most companies are drowning in CX data. Earlier, all you had to monitor was in-store and service experience. You could focus on CX data from CRM, the website, and maybe emails. Now, as customers become increasingly omnichannel, you need to track and analyze CX data from digital (or app), website, social media platforms, stores, post-sale, service center, and many more touchpoints. How do you transform this data chaos into an engine for growth? The answer is- customer experience analytics.
What is customer experience analytics?
Customer experience analytics is the process of collecting and analyzing CX data to derive useful insights that will help achieve business goals. Companies produce a ton of data. Every time a customer interacts with the app, website, chatbot, support staff- customer experience data is produced. This data is chaotic and not very useful on its own.
Transforming this data into insights and action plans to boost revenue is the goal of customer experience analytics.
Why is customer experience analytics important?
Customer experience analytics can help you understand your customers’ needs, expectations, experience, and satisfaction with your product or service.
It can help you understand and improve various important touchpoints of the customer journey. It can also guide the actions and strategies that you develop to boost satisfaction, retention, and revenue.
Customer experience analytics helps you-
- Take targeted action
Customer experience analytics removes the guesswork from your CX strategies. For instance, we perform drivers analysis for our clients to show them factors that have the highest impact on customer satisfaction. This empowers them to take action that’ll give them the most bang for their buck.
- Obtain better customer insights
The biggest advantage of customer experience analytics is that it gives you cold, hard facts about what your customers think about your business. Advanced analytical features such as comment analysis tell you deep insights that are often missed in a traditional CX survey.
- Predict customer churn
The ultimate goal of a CX program is to increase revenue. One of the simplest ways of increasing revenue is to reduce customer churn. As we all know by now, aquiring a new customer is 5 to 25 times more expensive than retaining an existing one.
Any good CX analytics program must have a prediction engine built into it. Predicting which customers are most likely to churn will give your team enough time to retain them.
In fact, we helped our insurance client lower churn by 28% simply by predicting it.
- Understand customer experience trends and patterns
Observing CX trends over time can identify and remove bottlenecks in the customer journey. For instance- you consistently observe drop-offs at a specific touchpoint. With CX analytics, you can identify the why and deploy strategies that solve it.
- Discover opportunities to improve experience
Consistently improving experience is the mark of a successful business. While it’s important to prioritize triggering issues, it’s also necessary to identify opportunity points so that you’re always ahead of the curve.
By observing customer behavior patterns, CX analytics can help you identify friction points that you can improve proactively to boost customer loyalty.
- Increase revenue or ROI
CX analytics gives you data-backed insights about the impact of every action on the overall customer experience. This helps you find and prioritize improvements that’ll have the highest impact on your revenue.
What are the common metrics used in customer experience analytics?
There are many metrics that we use to measure customer experience. Ultimately, the metric we choose depends on the touchpoint and the business goal. But there are some universally accepted metrics that almost all companies use. These are-
1. Net Promoter Score or NPS
NPS measures customer loyalty based on how likely they are to recommend you to their friends and family. It’s a great indicator of your relationship with the customers.
2. Customer Effort Score or CES
Customer Effort Score or CES tracks how easy it was for a customer to transact with you. It can be used for all interactions- from service calls, looking up information, purchasing, signing up for a free trial, after-sale service, or more.
3. Customer Satisfaction or C-Sat
C-Sat is an old-school method that measures how satisfied your customer is with your product or service.
4. Churn Rate
Churn Rate measures the rate at which your customers have stopped doing business with you over a given time period. It indicates the health of your business. A lower churn rate often corresponds to higher growth. Keeping churn low is an organic way for steadily building your business.
Deepen customer relationships with CX analytics
Most companies collect customer experience data. Where they struggle is transforming that raw, unorganized data into insights that can improve their business. What’s even more crucial (and difficult) is-
- turning these insights into action
- sharing them with the right department and team member, and
- tracking improvements and impact over time
Automating workflows, democratizing dashboards, and training the service team are necessary steps of a good customer experience analytics program. Ultimately, the goal of a CX program is to improve revenue by deepening your relationship with the customer. Customer experience analytics shows you exactly which steps to take to reach this goal.
Looking for a customer experience analytics solution that will do all the heavy lifting for you? Contact us.