Using Data & Analytics to Deliver Better Customer Experiences

Posted by on December 18, 2018

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Customer experiences have evolved through a combination of data and analytics that provide insight and information to make better decisions, stronger engagement and enriched interactions. This requires finding new ways to assess customer needs, pinpoint their preferences and embrace changing trends. The key is to use data in the smartest ways for the best ROI.

According to a report from Forbes Insights and SAS, data analytics have helped deliver superior customer experiences across the board. This explains the shift in many organizations who now make data and analytics a top priority to gain competitive advantages in improving customer experiences. One of the main factors in accomplishing this has to be a focus on aligning people, technology and processes across the entire organization. This includes key departments aligned to deliver these customer experiences, such as production, information technology and purchasing.

How should data be used for better customer experiences?

There should be an integrated approach using both data and analytics to have the greatest impact. Every area of the organization who touches the customer at one point or another must be involved. This helps spot customer behaviors and preferences which open opportunities for the organization. This adds value, indicating purchase sequences, the best times to release new products, when to send discount offers, how customers interact with the brand, and other useful information. This information should be visible throughout the organization to ensure everyone works together for the best results.

Advantages of using data

There are three main advantages for using data to improve the customer experience:

Reduction of customer churn

One of the main obstacles organizations face when addressing customer experience is churn. When customers are not engaged, they may or not return. Businesses use predictive analytics to anticipate at-risk customers, giving them an opportunity to enhance the customer experience in hopes of retaining their business. This data also helps focus on retention efforts for those customers who have been identified as “on the fence” and have a likelihood of staying with the right engagement tactics.

Increase selling opportunities

Many businesses thrive on cross and upselling. When running campaigns, data is used to identify potential customers that will act on these offers. This helps optimize spending by focusing on a select group who show the most promise instead of using those dollars across the entire customer base.

Customize product recommendations

Customers love a personalized experience. This includes SMS offers, email and other tactics used. According to Forrester Research, an average of 10-30% of sales can be attributed to product recommendations. Analytics are used to examine customer behaviors, comparing these findings to data extracted from other customers. The result is customized product recommendations based on viable data in a real-time setting which enhances the customer experience, increasing sales.

Data use for enhanced customer experiences must continue to be a collaborative effort across the organization to realize the best gains. With each department using the data to specifically address their point of contact with each customer, experiences will become more enriched, engaged and value-added with each interaction.

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