Adobe revealed that organizations believed that customer experience (CX) leaders were 3X as likely to have surpassed their 2019 business targets. Another report from Forrester anticipated that in 2020, companies will either learn to utilize customer insights and quantify the market impact of CX initiatives or find themselves in a difficult spot.
While most of the 2020 projections are slightly more than an alternate reality, Adobe and Forrester, among others, were bang on about CX. Customer experience does offer a competitive edge in every vertical, from BFSI to logistics, healthcare, and retail.
On the flip side, big data is essential in developing the tailored experiences customers expect at length, without interruption, and with the “human factor” intact. Organizations are shoring up their investments in advanced CX tools driven by artificial intelligence (AI), machine learning (ML), and advanced analytics that help them understand customers and their shopping journey to enhance the experience.
Although big data is not all-powerful, it can level up businesses to a significant level in a flash. Let’s take a deeper dive to know more about the role of big data analytics in customer experience.
Helping Organizations Strategize as per Revenue Impact
While several market leaders understand the perks of adopting a customer-specific approach, they often fail to quantify the importance of excellent customer experience and how it can create value.
The relationship between customer experience and financial profits can reach a point of declining returns. Case in point, organizations often squander on efforts to pull in customers, which usually cost more than, say, leveraging upselling and cross-selling opportunities or improving retention rates.
Big data can help companies ensure that they are investing their resources where they will see the biggest impact.
A Deloitte’s study provides a blueprint to measure the business value of CX, and it breaks down as follows:
Is the customer experience positive? Here, you will look for review interaction data, complaints, NPS scores, and surveys to measure the sentiments.
Do the customers consider business value? What external factors (such as positive reviews and referrals) support this?
How are the services/products performing? How are the products selling? Are specific services/products associated with more positive experiences compared to others?
Internally, companies will look for measuring churn rate, revenue, average order size, as well as their expenditure on processing returns, marketing efforts, and so on.
Big data enables companies to link what customers say to what they do, examine the most critical behavior of satisfied, dissatisfied, and neutral customers to figure out what boils down to a good or bad experience.
Also, it can be used to target and attract customers having characteristics mutual to an organization’s most profitable customers so that sales and marketing teams channelize their efforts on audiences with the greatest tendency to purchase and the highest potential lifetime value.
Quantifying Heaps of Datasets Effectively
A survey has revealed that 8 out of 10 customers highlight company experience as important as a brand’s services or products.
Gathering, assessing, and acting on customer insights have been an existing challenge for companies. While the so-called “small data” has been accessible over the years in the form of web analytics, sales reports, and social media reporting dashboards, several companies grappled to link transactional information with the emotional one.
As organizations have been accelerating their shift toward digitization, the amount of customer data available has surged expeditiously in just a brief period. Now, chatbot interactions, location data, mobile app usage, and social media content can be integrated with data from transaction histories, phone calls, email conversations, chats, and in-store interactions.
Collectively, these platforms gather heaps of raw data containing crucial insights about where and how customers prefer to connect with brands. Here are a few instances of how companies leverage big data analytics to level up the customer experience.
Break Down CX Silos: Today’s marketers, traders, and customer service executives encounter enormous pressure to reconsider conventional roles, tear down silos, and implement leading-edge technologies to offer distinct, digital-ready customer engagement.
Conventional business models often influenced marketers to focus on a single phase in the sales funnel or a single domain such as lead generation or email marketing, while sales and service teams performed their respective jobs. Now as never before, it is paramount for every customer-facing team to understand a customer’s journey coherently in order to assure a smooth end-to-end experience.
Understand Changing Customer Behavior: Customer expectations and behavior have evolved drastically over the last couple of years. Amidst the COVID-19 pandemic, customers are further maturing following an uncertain, unprecedented period.
Personalization: Personalization can boost marketing efficiency by 10-30% and revenue by 5-15%. Big data analytics enables companies to utilize online behavior insights to develop personalized email campaigns, landing pages, and offer customized recommendations to fuel more purchases.
Improve Service: Customer feedback can be used to inform processes for improving services/products or handling potential issues. A credit reporting firm analyzed its database to figure out what complaints dissatisfied customers the most, then quantified those impacts against their impact on the company’s revenue pool. From there, they could prioritize issues according to magnitude.
Understanding Customer Expectations via Complex Buyers’ Journeys
CX leaders are highly focusing on content strategies that string along the specific touch-points in the shopper’s journey. Big data analytics wards off the guesswork in terms of understanding customer requirements, goals, pain points, and interests and establishes complete transparency into the purchasing process.
Now, organizations can size uploads of data points in real-time that help them comprehend their customers within context.
Advanced big data analytics tools can unveil the reason behind the popularity of certain products or services among millennials or other age groups, or the primary cause for below-par leads of marketing campaigns.
Also, organizations can access total visibility into the shopper’s journey by leveraging purchase histories, transaction data, social media insights, as well as factors such as ecological conditions, market trends, and so on – enabling them to figure out the factors responsible for triggering the events.
Organizations now establish highly specific customer segments and target every group with accuracy, stepping up customer interactions by delivering tailored content and communications at all touch-points.
Big Data and CX Must Go Hand-in-hand
Today, technology is reshaping the relationship between brands and customers. As customer demands keep on reaching new scales, data-led CX is no more the exclusive area of tech giants and well-financed startups.
Companies in retail, BFSI, and healthcare industries, among others, are now competing on experience, and without big data, keeping pace with the emerging CX challenges will not be any easier.
If you are a CX leader it’s time for you to evolve your preferences. Boost your prospects as a CX leader with Advanced Management Certification Program in Transformational Customer Experience Management from IIM Kozhikode & Wiley NXT. A strategically curated program that builds skills to design and implement a winning and measurable customer-centric experience across the entire customer journey.
For over 200 years, Wiley has been helping people and organizations develop the skills and knowledge they need to succeed. They are dedicated to developing efficient learning products, digital transformation education, learning, assessment, and certification solutions to help universities, businesses, and individuals move between education and employment and achieve their ambitions. In 2020, WileyNXT has been recognized by Fast Company for its outstanding innovations in education.
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