A PWC report states that a little more than half of the consumer population feel the need to improve the service experience they go through at most businesses.
An impeccable consumer experience works to every business’s advantage by creating a positive human experience instead of a transactional experience. This principle then generates positive feedback, consumer referrals, and loyalty in your clientele. The use of analytics gives you a lot more benefits. Let’s discuss analytics metrics that perform well and corresponding improvements that will give you long-term gains.
Understanding Customer Experience Analytics
CX Analytics, also known as Customer Experience Analytics, analyses customer experiences and behavior data to improve company interaction experiences for the customer. With CX Analytics, a business owner can gain insight into consumers’ behavior patterns and preferences to enhance their experiences. This information will, in turn, help the business owner to improve customer experience by updating designs, marketing strategies, and delivery of services or products. An analytics expert from professional UI UX Design Companies like DSEO Chennai, uses various ways to collect data on customer experience and behaviour. These, in turn, capture data from various sources like visits to contact centres, social media data, website visits, and purchase histories.
Why use customer tracking?
With a good tracking system in place, you can perform a lot of different functions, including:
1. Understanding and evaluating user experiences
By using analytics, you get insights into which parts of your products and services create positive user experiences and what needs improvement. This valuable information will help you increase sales and levels of customer loyalty.
2. Lowering expenditure and enhancing core value
Predictive CX analytics is a powerful tool that uses consumer satisfaction data to predict which customers are potential lifetime value additions to your business. Through this tool, you can also look at the pain points of high-value customers and thus determine where your money is best spent. It is a great tool to cut unwanted expenditures and use your resources better.
3. Identifying roadblocks to optimise customer experiences
The best services and products can encounter obstacles and raise pain points for some customers. Analytics data offers you a window into these roadblocks so that redressal can happen quickly. With the generated data, you can personally reach out to customers and resolve their pain points to increase their customer experience.
4. Lowering incidence of customer-churn situations
Optimal use of the analytics tool helps increase customer retention by bettering CX and lowering churn rates. As an example, when the same problem is being reported to customer service by many customers, it is important to address the issue satisfactorily. This move will lead to positive customer feedback and is mandatory if you want to increase CX satisfaction for your company.
5. Understanding levels of customer satisfaction
Analytics can help you evaluate how satisfactory your products, services and other factors are and how much they enjoy using your brand. It can also help you gain valuable insight into their expectations to modify your products or services to meet those expectations.
CX Analytics data sources
CX Analytics tools form a reliable picture of customer satisfaction by looking at data for various components that affect user experience. These data can be sourced from both direct and indirect sources. Direct sources of data could include:
- Customer satisfaction points (CSAT)
- Voice of the customer (VOC)
- Customer Effort Score (CES)
- Net Promoter scores (NPS)
- Customer feedback comments in survey forms
- Social media feedback and responses.
Indirect feedback sources collect feedback, but not directly from the customers. These data are sourced by analysing points like:
- Monitoring of customer reviews
- Analysis of how much a customer spends
- The lifetime value of the customer to the company
- AHT figures are also called the “average handle time.”
- Churn rates
- Renewal rates of customer
- Data from analysis and transcription of metadata from voice and chat interactions
- Data from “social listening” tools
8 Metrics Categories for Understanding CX Data
A large number of metrics form a CX picture, but almost all fall into the following eight categories:
1. CSAT – satisfaction
This metric is where most businesses get their data. Analysis of CSAT scores has now become a tradition and even an old-fashioned metric to gain data. These are data collected from customer satisfaction surveys that explicitly capture satisfaction or implicitly captured scores like mystery shopper data, review ratings, satisfaction ratings on delivery, etc.
2. Customer metrics on retention, loyalty, or churn
Other customer behaviour analytic metrics can be retrospective by calculating tenure rates or predictive by calculating the customer’s tendency to browse and move on or stay a customer. Data analysed could include frequency of purchase, multiple channel use, order size on average, frequency of returns, and repeat-order frequency.
3. The Net Promoter scores
The NPS numbers depend on customer loyalty points and customer feedback scores. A scoring system that rates your services on a scale of 1 to 10 is presented to the customer, where 1 denotes the least satisfaction, while 10 denotes the best experience. This is the most common method of generating an NPS score. You’ll get the truest response to this questionnaire if you include questions on how likely they will promote your brand or product.
4. Brand reputation scores
These data analyse the levels to which customers are likely to promote your brand and products/services. Social media sentiment figures, price sensitivity, event participation levels, and trust ratings are examples of these metrics.
5. Operational quality
These metrics are often overlooked and underestimated. A product or service that fails to meet customer expectations after purchase is very likely to bring CX analytics down, despite efforts to improve the experience or make up for the unpleasant one.
6. Customer effort scores
The CES metric measures the levels of effort your customers feel they must make to acquire the goods or services you offer. It is calculated as the average of scores given to customer responses on questionnaires dealing with their experience and difficulty levels during their interaction with the brand.
7. Social Media Engagement Numbers
These numbers reveal how customers engage with the brand’s social media space. Common metrics for gauging social media engagement include comments, clicks, shares, and likes.
8. Engagement with employees
We’re putting this last, but it’s certainly not the least important metric. Employee engagement forms only about 10% of data included in CX analytics. But a Gartner survey found that about 86% of companies voted on employee engagement as having a major impact of equal or greater effect than other customer experience challenges. This metric has been identified as a major contributor to CX improvements and needs to be given the needed priority.
In short, CX analytics gives you valuable feedback and insights into trends you need to spot, pain points you need to address and identify good opportunities to create better customer experiences and grow customer sentiment. It is important to identify the right kind and time of feedback.
Recommended Steps on Use of CX Analytics for CX Improvements
1. Draw up a profile for your ideal customer.
This should be one of the first steps to improving CX analytics. This exercise is done by studying surveyed customers, researching existing consumers, tracking traffic on the website, etc. The ideal customer profile will have characteristics of the candidate that will find the most use of your product or service and is likely to generate big points on loyalty and returns for purchase. This is the perfect customer for business growth and is immensely valuable. They form the backbone of your existing customer base.
Through this method, you come to identify your target audience and generate products, experiences and services that are exclusively catered for them. This kind of data helps businesses analyse customer experience and enhance this factor through improvised marketing strategies, customer support, and other methods.
2. Map out a typical customer-interaction journey.
Put yourself in the customer’s shoes and try to visualise or experience customer satisfaction from their point of view at different stages. Right from initial contact until post-sales care, there are many points of contact in this journey. Any single stage or point of contact could turn badly and negatively affect the customer’s experience. So it is important to include these figures in analytics and CX improvement.
3. Track critical metrics.
Once the initial metrics have been addressed, it is time to move on to more critical data like Conversions, CSAT, etc. Use the analytics platform to keep track of things like Customer Effort Score and Net Promoter Score.
4. Make a detailed plan after metrics evaluation.
Once these stages are crossed, it is time to analyse all the collected data to understand the customer experience comprehensively. Be sure to use various sources for data collection and identify strengths and weaknesses. You are now ready to formulate an action plan focusing on customer experience and CX analytics improvement.
5. Improve CX based on the metrics.
Finally, analytics will help you identify and address obstacles like areas where customers experience high effort levels or other difficulties. Companies need to study these and improve on them for better customer satisfaction. Also, remember that churn rate depends on many other factors which can be studied through CX analytics. Include service support options and be sure to identify the customer’s exact needs and fulfil them.
Concluding thoughts
Customer experience analytics provides a valuable service to businesses who want to improve their customer’s experience. They use the data to strategise product or service improvement through data analytics about customer interactions. Using apt tools and relevant data, most businesses can further drive their sales and enhance customer service. The importance of using the right tools and data cannot be underestimated in this field. The sheer number of metrics to focus on can seem overwhelming. But concentrating on the points discussed in this article is a great starting point for any business.
DSEO Chennai is among the best UI UX Design Companies based out of Chennai, India. Call us for the best CX Analytics services.
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