Customer experience has a huge impact on your company’s popularity, success, and revenues. If you are looking for an effective way to increase customer loyalty and lifetime value, smart measurement can help you do it. What is customer experience analytics and how can it benefit your business? Keep reading!
Customer experience analytics – what is it?
What is customer experience analytics? CX analytics is the process of collecting, processing, and evaluating customer data in order to determine areas for improvement and increase the quality of provided services.
CX analytics makes it possible to obtain reliable data and monitor key performance indicators that determine the effectiveness of customer service. Typically, customer experience analytics includes reports discussing:
- customer markets tailored to your business,
- effective ways to reach brand ambassadors, and potential customers,
- positive and negative reviews, feedback, surveys, testimonials,
- the complete customer journey and pain points,
- the effectiveness of your current offerings,
- elements that might be improved in the future.
Why should you invest in customer experience analytics?
As mentioned in the Forbes Insights Report, even 65% of customers state that they are likely to build lasting relationships with a company if it provides positive experiences throughout the entire customer journey. Therefore, measuring and analyzing available data can help you make informed business decisions tailored to the expectations of the target group.
Creating a customer-oriented culture and business structure that cares about the experiences of buyers is the best way to understand your customers and their needs. CX has a direct impact on customers’ engagement, purchasing decisions, and lifetime value. Thanks to quality analytics, you can obtain measurable and actionable insights.
Customer experience analytics is related to each and every area of business, including marketing, sales, or even customer retention. Thanks to it, you are able to devise valuable marketing strategies, determine which aspects are important to customers, and ensure that you use the right channels to reach potential recipients.
So, what is customer experience analytics? It’s an efficient way to get profound insights into the satisfaction, habits, and engagement of your buyers.
How to measure CX?
As you already know, customer experience is an extremely important factor that significantly affects the operation of your business. How can you measure CX and what should you take into account?
- store traffic,
- in-store sales,
- customer reviews and surveys,
- social media shares and interactions,
- web session time and users’ behavior on the website,
- coupon redemption,
- the number of customers who join loyalty programs,
- shopping cart abandonment rate.
Analyzing all these pieces of information will help you estimate how your brand is perceived by the customers. Understanding what customer experience analytics is will help you make informed decisions based on actual data, not on predictions.
Customer experience analytics – what is the main benefit?
Customer experience analytics benefits both customers and organizations. With its use, you can increase the satisfaction of buyers and boost the productivity of employees working for you. Analytics data is used mainly by executives and chief officers who determine strong and weak points of the offerings based on the reports.
It’s important to mention that CX analytics frequently includes information about specific parameters and elements a given offer is missing. Looking at customer experience holistically is the best way to draw valuable conclusions that can ultimately translate into ideas that will increase your company’s revenues.
What CX metrics should you monitor?
Knowing the answer to the question “what is customer experience analytics?” is one thing, but determining metrics and parameters to monitor is a completely different story. CX analytics can comprise a wide range of data, so if you want to take action and track elements that may benefit your business the most, you should consider:
- customer effort score – this KPI indicates how much effort customers exert to finalize transactions, resolve potential complaints, or get answers to their questions. To obtain such data you may use special surveys. Just sum up the total number of respondents who stated that their experience with your brand is effortless and divide it by the number of all the participants of the survey. The higher the score, the greater your chance for success.
- customer satisfaction score – this metric checks if buyers are happy with the purchase, service, or interaction. To verify it, send out a simple email asking your customers whether they’re satisfied with the experience.
- net promoter score – it checks if your customers are willing to recommend the product or service to others. Just ask buyers how likely they are to share the brand with friends and colleagues.
As you can see, knowing what customer experience analytics is and using simple surveys can provide you with valuable CX analytics that may help you make wiser decisions tailored to the actual expectations of buyers.
Want to learn how digital technology is employed in managing the customer experience? Check out our blog!