Nowadays, you have to understand what the customers need if you want your business to succeed and grow. If you don’t put some effort into doing that, you might miss out on crucial details about what customers are looking for in businesses. It will force them to look for other alternatives. In this article, we’ll discuss three ways to use data analysis to help your business boost customer loyalty, among other things.
Customer Experience and Why It’s Vital in Business
Customer experience is the customer’s interaction with your business at different touchpoints. It refers to how customers will engage with your online ads, websites, mail, social media, commercials, visiting your store, phone calls, buying and using your products and services, etc.
So, customers always think about the kind of experience a company offers before checking on the quality of goods. It means that if your business offers great products but sucks at offering excellent customer experience, then people will start buying from your competitors. Therefore, you must always do some data analysis to ensure your business delivers exactly what the customers want.
Your customers will always observe a brand’s performance and compare it to their expectations. So, every interaction a customer has with your business and its products leaves a long-lasting impression, which then creates a certain opinion about your company. It explains why it is vital to keep a customer’s needs first to help get better results at the end of the day.
Many companies now agree that using data analysis helps boost customer experience hence more sales. However, measuring customer experience and applying it to your business to get results are two different things, and most businesses struggle with the former.
So, how do you measure customer experience effectively?
There is no one perfect way to measure the customer experience. However, here are the three most effective ones you can trust:
1. Customer satisfaction (CSAT) – It method involves reaching out to your customers after a certain sale, asking them to rate the service. You will get results ranging from not satisfied to very satisfied.
2. Net promoter score (NPS) – In this one, you ask a customer to rate your business on a numerical scale. Here is the most common one you might have come across, “How likely are you to recommend us?”
3. Customer effort score (CES) – It one helps to find out how much effort a customer needs to fulfill a certain task on, let’s say your website. Most businesses use a defined scale to do this, which also acts as a small survey. It contains options such as I agree, and I strongly disagree.
Redefining Customer Experience Through Data Analysis
Once you have mastered how to capture customer data and measure their experience, you can improve your services and delivery. These are some of the ways how data analysis refines customer experience.
1. It Helps You Understand How to Respond to Your Customer’s Needs Intelligently
Quality data is the biggest foundation of developing a great consumer experience. Customers and prospects usually generate a lot of data by engaging in different online activities, especially when engaging with your business.
Most leading businesses today tap their prospect or customer data from the activities generated through indirect or reseller channels. You can gain some insight by combining the views of your data sources with detailed demographic information.
The first step you must take is developing a good strategy to help you access and integrate customer data. Choosing to focus on one touchpoint to get data can be a good idea, but it’s always best to try and use several sources. The main goal is to understand one common view that all customers have. It will give you a good view of your customers’ experiences and interactions across different channels. That way, you can easily respond intelligently to what your customers need.
With this information, you can easily determine the relevant goods and services your customers need from your business. A link building agency can also help to bring more targeted potential customers to your website, who you can then study to see what you can do to win their loyalty.
You can also work with your IT experts to help turn the customer data into an EDW (Enterprise Data Warehouse) that will serve different functions or servers. However, most businesses find this quite challenging, not just technically but also financially. Luckily, there are pre-configured platforms you can use today to help make the data consolidation easier.
Therefore, you should evaluate some relevant approaches to determine which one is more relevant. Also, check for one that can provide the best data to better fulfill the customers’ needs.
2. It Helps You Determine Customer Behavior
Predictive analysis can allow you to anticipate your market and customer behavior and respond accordingly. Its analysis involves data mining or statistical tools and methods that help to develop predictive models. OLAP and BI are some of the most effective systems you can use as they enable you to assess past and current events.
So, doing data analysis can help you employ excellent tools and methods to explore patterns and trends in data to determine things that can happen if certain factors change. With that information, you can easily tell what most customers have in common, making it easier to fulfill their needs.
Some predictive analytics solutions can also use software computing power and automation to help you get insights faster. Using powerful algorithms can help mine plenty of data and rapidly analyze patterns, correlations, and affinities. Additionally, combining software automation with great data access can help your company evaluate performance more effectively.
You can see much success by implementing some predictive data analysis using data sources such as transactions or any other application data. Doing this can help your personnel in stores, contact centers, or those managing e-commerce sites to easily adjust marketing offers accordingly.
3. Helps Build Better Customer Relationships
A good company-clients relationship is a vital factor you must always consider if you want your business to thrive. Data analysis provides you with different ways to build a great one. If you want to be the go-to business for people looking for the services you offer, you must be a good listener. What does that mean?
You can use social media to help conduct some sentiment analysis, which can show you how customers regard your services. You can also check your help-tickets to see what your customers complain the most about. This information can show you where to improve hence allowing you to provide exactly what people need and better customer experience.
Some customers might also indicate in the help ticket the kind of services they expected to find from your company but didn’t. You can use this data to ensure your company has everything customers in your niche are looking for.
A good example is how a shoe store can observe the size of shoes that get more purchases or those that get many returns. That way, they can easily ensure the highly demanded product is always available hence boosting the customer experience because they never miss what they planned to purchase.
Summing it Up
We are living in a world where everything is analyzed. Your customers look at how you treat your clients and the quality of the goods you sell. You must always make data analysis a huge part of your business because it allows you to study crucial trends in the market and your customer’s behavior. Doing this helps to understand everything you need to do to ensure you meet people’s demands.
When customers visit your business to purchase a good or service and get what they need, you automatically become their favorite place because you have proven to be reliable. However, if potential clients come to you and don’t get something they wanted or your employees don’t act professionally, then you can easily lose them. Since you cannot provide customers with the great customer experience they expected, your competition will take over.