How To Improve Customer Experience With Data
⏱ Reading Time: 8 minutes
Two concepts seem to be making a major influence on businesses worldwide – customer experience and big data. You probably hear a lot of professionals and industry thought leaders talking about the importance of these two phenomena, but do you know what makes them so special in 2020?
The short answer is simple – customer experience and data have the power to make or break your business. But do you know the longer answer? Can you take advantage of big data to improve customer experience strategy?
If you are not sure, you better keep reading as we are about to explain the benefits of data analytics and show you how to improve customer experience using your data resources. Let’s take a look!
Customer Experience and Big Data Defined
Before we delve deeper into the subject, it is necessary to explain the two concepts and eliminate possible misunderstandings. So, what are customer experience and big data?
By definition, customer experience is the impression you leave with your client. It results in how they think of your brand across every stage of the customer journey. Customer experience has turned into a quintessential business parameter. Moreover, it is projected to overtake price and product as the key brand differentiator by the end of 2020.
When we say data, we usually mean big data. What does it mean? It is defined as extremely large datasets that may be analyzed computationally. The goal is to reveal patterns, trends, and associations, especially relating to human behavior and interactions.
Picture 1. Big data
Big data is a groundbreaking business feature because it enables you to make meaningful conclusions based on seemingly irrelevant datasets. Of course, you can use to maximize consumer satisfaction and improve the results of your business in the long run.
But this is only one benefit of big data analytics. So, let’s move on to the next part and check out the main reasons why you should think about embracing this type of cutting-edge technology.
3 Key Reasons to Improve Customer Experience
If you are not sure whether to invest in big data technology, perhaps you should reconsider the benefits of improving customer experience. There are so many reasons to increase consumer satisfaction, but we will point out the three most significant benefits.
1. It Boosts Customer Loyalty
According to the well-known Pareto principle, 80% of revenue comes from just 20% of customers. How come? Well, the point is that loyal clients always come back for more, while they also spend more money than the average first-time purchaser. In such circumstances, it is important to improve buyers’ experiences and boost customer loyalty long-term.
Picture 2. Pareto principle
2. It Boosts Brand Authority
If your company is able to keep a high level of customer satisfaction in the long run, rest assured it will make you look like a more authoritative brand. Satisfied consumers will spread the word about your business and you will grow professional authority slowly but surely.
3. It Boosts the Profit
The main purpose of every business is to generate revenue. This task is much harder if you don’t pay attention to customer experience, so you better keep an eye on this aspect of the business through data analytics.
Picture 3. Generate revenue
9 Ways to Improve Customer Experience Using Big Data
Big data is not almighty, but it can elevate your business to a much higher level very soon. You can make the organization more productive using lots of different strategies, but here are nine ways to do it most conveniently.
1. Strategic Decision-Making
The first way to utilize big data for customer experience purposes is to encourage strategic decision-making across all teams. Instead of making decisions based on sheer intuition or feeling, you can now take advantage of big data tools to make trustworthy business conclusions.
After all, customers leave all sorts of digital traces online, so all you have to do is collect and analyze information. It will help you to take customer experience to a brand new level by taking a number of well-planned steps continuously.
Picture 4. Strategic decision-making
2. Customer Mapping
The second tip goes hand in hand with the previous one. Namely, data analytics makes it possible to identify all touchpoints and create accurate customer maps. You can use it to pinpoint the strengths and weaknesses of your business and make the necessary adjustments accordingly.
For example, an eCommerce store can use customer mapping to learn that visitors have a hard time locating certain products. In this case, online retailers can simplify website navigation and reduce the number of product categories, thus improving the overall visibility and discoverability of their products.
3. Improve Customer Service
You don’t have to be a business analyst to know that customer service represents the essence of your customer experience strategy. With big data at your disposal, it gets easier to solve buyers’ demands and answer their questions and inquiries.
This is particularly the case with companies that combine big data and Artificial Intelligence to deploy chatbot technologies. A chatbot is simply a digital assistant that can answer the vast majority of users’ inputs.
Users love chatbots because smart assistants are available around the clock. On the other side, businesses love chatbots because digital agents reduce operating costs and create vast databases with relevant information about each prospect individually.
4. Big Data Triggers Personalization
Modern consumers hate being treated as members of a larger cohort. They demand the highest level of customization and expect you to treat them as real persons with all of their unique needs and peculiarities.
That is where big data steps in to save your day. The system is capable of analyzing enormous datasets, so you can learn all there is to know about a given client and create a perfect offer accordingly.
This is exactly what helps Netflix to save more than $1 billion annually. Namely, one of the most popular media streaming providers relies on big data algorithms to display personalized content recommendations. Instead of bombarding subscribers with irrelevant offers, Netflix shows suggestions based on the history of content consumption.
5. Tailored Marketing Campaigns
Speaking of personalization, big data also enables you to customize marketing campaigns. It’s a super useful feature as you can analyze consumers based on various factors such as:
- Demographic traits like age, gender, and location
- Average income and education level
- Technology they use
- Personal beliefs and interests
- Position within sales funnels
All those insights give you the chance to tailor marketing activities in a way that perfectly suits each customer group or even individual buyers.
Picture 5. Tailored marketing campaigns
6. Make Real-Time Price Adjustments
Without big data, it would be impossible to make real-time price adjustments. If you don’t think this is important, you better take a look at any booking and accommodation website or airline company.
You will instantly notice that their prices are changing on the go depending on supply and demand. This is not only a way to improve user experience but also a precious tactic to make your company more profitable long-term.
7. Analyze Online Reputation
Online reputation management is getting increasingly difficult, especially if you understand the sheer magnitude and diversity of communication platforms. Social networks like Facebook gather more than two billion users daily, but there are other communication channels such as business directories, email platforms, online communities, forums, and so on.
No human being is able to monitor and analyze all those channels single-handedly, which is why you should use big data systems to keep track of your online reputation. That way, you can understand the sentiment of each comment and learn about new insights almost instantly.
Such a tactic gives you the opportunity to react timely and answer every comment, both negative and positive.
Picture 6. Analyze online reputation
8. Predict Forthcoming Trends
Another way to improve customer experience with big data is through trend prediction. After all, who says you can and should only analyze the existing needs of your target audiences? The situation is quite the opposite as you can behave proactively and try to predict the forthcoming trends as well.
Modern data resources are so massive that you can evaluate users’ needs and identify new trends and market demands. It will help you to act promptly and outperform competitors with fresh products or services.
9. Use the Right Big Data Tools
The last tip on our list is rather technical, but it can make or break your customer experience efforts. Big data analytics cannot be done manually, which makes the platform selection process extremely important.
There are hundreds of more or less interesting options available online, so it’s easy to get lost in the crowd of similar solutions. However, we can highlight some of our favorite programs and help you to narrow down the focus. Here are some platforms you should check out:
- Apache Hadoop
- Panorama Necto
Up to You!
Customer experience has definitely become a critical business factor in the last few years, but you can hardly improve it without data analytics. The two concepts overlap and force entire organizations to figure out the way to exploit their information resources.
In this article, we explained to you the benefits of data analytics and showed you nine ways to improve customer experience with big data.
Have you ever used data for customer experience purposes? Which aspect of data analytics do you believe to be fundamental sales-wise? Share your ideas in the comments so we can discuss this topic together!
Leon Collier is a blogger from Edinburgh who works for the professional writing service. Leon is interested in a variety of topics, ranging from big data and finance to personal branding and self-improvement. He loves reading and playing tabletop games on Saturday nights with his friends. Follow him on twitter @LeonCollier12
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