According to Gartner's research, over 80% of companies expect to compete in the CX part. A customer's impression deeply influences the entire business reputation, attracting potential customers or making them avoid the brand. For 73% of customers, CX is a crucial aspect of the purchasing journey. It pushes businesses to invest in CX and use customer experience analytics to detect and fix weak workflow parts and stimulate business growth.
Simply Contact is an expert in actively working with customer experience and developing effective strategies for its improvement. With this article, we hope to help you better understand the role of customer experience and its analytics, the range of benefits, and methods to measure and improve CX.
Want to cooperate with experts in the CX analytics field? Get a quote in a few clicks and start your journey of improvements.
Request a quote
Analytics in the customer experience area refers to the collection, interpretation, and deep analysis of information related to interactions between customers and your company. The analytics approach helps better understand the interactions' results and improve customer experience. It leverages qualitative and quantitative data to evaluate customer engagement and successful use of the company's products and services.
In simple words, analytics is a powerful source for detecting anything that goes wrong for customers and the base of insights that give you direction and guidance for upgrades.
Approximately 90% of customers think that the customer's experience is as important as the products and services themselves. Analyzing and understanding the state of CX can help build more effective marketing strategies, gain better positions in a competitive market, and predict reactions to future offers. Enhanced and improved customer experience will increase customer satisfaction, loyalty, and retention.
Customers with positive experiences with your company will more likely recommend your brand to their relatives and friends, attracting more clients and building trust and loyalty. Analyzing interactions and their results, your staff can see when they were successful and where they need prompt improvements.
As you can see, analytics gives you more control over the CX situation and allows you to know your target audience better, but there are a few more key benefits to consider. Let's look at these benefits and aspects that offer special value to your company.
Customers do not always have an opportunity to express what exactly they expect from your company, products, or services. Analytics provides insight into their interactions. The data allows you to see customers' pain points during their purchasing journey and fix issues before escalating. It will help adjust the workflows, making them faster and more efficient.
McKinsey's report shows that over 70% of customers expect personalized interactions from product and service providers, and 76% get frustrated if they can't get them. Collected and accurately analyzed data from different channels will help form the all-covering picture of customers' expectations. Behavior analysis will show the most common trends and help prepare more customer-oriented offers and recommendations.
Analysis is a highly effective method to detect inefficient processes and areas where the workflow can be optimized for maximum results with minimum effort. For example, process analysis will show where manual, repetitive tasks need less human agents' attention and can be replaced with automated solutions. Work optimization will help increase productivity and reduce costs, offering more effective human resource allocation.
By analyzing customers' data, you can find out what channels work best for sales and customer support services and concentrate on them in the future. Insights from analytics reports will help you make data-driven decisions and develop efficient marketing, sales, and service strategies tailored to target audiences. Also, with KPI monitoring, you can further evaluate customer satisfaction, interest level, loyalty, and the company's outcomes.
Monitoring and regular analysis will help identify employee performance gaps during service delivery and guide your staff to the required training. Supplied with valuable insights, you can develop more efficient scripts for customer support services and empower teams with tips on acting in challenging situations. As a result, employees will experience lower stress levels and better productivity, ultimately improving customer satisfaction.
Need an expert help? Simply Contact offers professional customer support consulting services.
Read more
Key performance indicators, or KPIs, are used to monitor and evaluate teams' performance, customer satisfaction, and achievement of CX goals. Having analyzed KPIs for customer support services, our experts defined a list of the key indicators that most affect customers' impressions and brand reputation.
Digital customer experience analytics often refers to CSAT during customer satisfaction evaluation. CSAT stands for customer satisfaction score, a metric that demonstrates how happy the customer is after interactions with your staff, products, or services. Usually, you can get CSAT data from surveys and feedback mechanisms, which are triggered after the interactions end.
The mechanisms allow customers to choose the rate that best describes their impression, using a simple scale from 1 to 5 (or more) stars. The survey often allows for adding text comments after evaluation; however, in most cases, only very happy or frustrated customers participate in surveys, which hampers an objective assessment due to insufficient sampling.
You can use AI tools to transcribe and analyze phone calls and online interactions to empower CSAT transparency. Deep sentiment analysis studies tone of voice and reactions and interprets them to evaluate how successful the service delivery was.
NPS, known as net promoter score, is a popular survey assessing how well you interact with your target audience. The feedback mechanism for the NPS part of experience analytics asks customers to evaluate on a scale from 1 to 5 or from 1 to 10 how likely they will recommend your company to a friend.
Based on the feedback you receive, you can divide your customers into three groups: promoters, passives, and detractors.
Businesses strive to get as many promoters as possible. These people spread passive advertising and news about a business, attracting more potential new customers.
Passives represent customers with neutral opinions, meaning they are not positively or negatively impressed. They can still recommend your brand but do so less actively than promoters.
The detractors' rate shows the number of customers with a bad experience. Any business wants to avoid many distractors, as they will most likely suggest avoiding your brand and not buying any products or services. Pay special attention to detractors' feedback to know what exactly ruins the CX and find out how to fix this to reduce the number of unhappy customers.
Meanwhile, feedback from promoters and passives will help you understand what works best with your target audience.
CES or customer effort score demonstrates how easily the interaction went for customers and if it was simple for them to solve the issue or achieve the desired goal. CES is a common KPI for customer service analytics to study how easily it was to get help and fix the problem. After the interaction with your customer support team, the customer will get a simple scale from 1 to 10, where they can mark the difficulty level.
The main goal of CES is to detect the areas that cause more difficulties for customers and to achieve an effortless customer experience. You can get the average difficulty level by getting the total number of customers with high difficulty marks and dividing it by the total number of survey participants. If it is high, you can focus on simplifying processes and making your services more user-friendly.
Customers don't want to waste their time fixing long issues, so they are more likely to get attached to brands that require less effort and offer better effectiveness.
Churn rate metrics measure the percentage of customers who stop using your company's products or cancel their subscriptions over a specific period. Simply put, it is a way to calculate how many customers are leaving your business. A high churn rate signals that you are losing your customers faster than gaining new ones and serves as a sign to change marketing or customer service strategies.
Retaining current customers is usually more cost-effective than hunting for new ones, so you need to pay attention to the reasons why you may lose the loyalty of your audience. Remember that churn rates are not a reason for panic but a method to indicate issues that cause customer dissatisfaction and reduce engagement levels. Use it to detect the areas that require your immediate attention.
When you know your churn rate, you can predict possible revenues for the future, plan your marketing budget more effectively, and improve services to keep your customers loyal.
To deal with high churn rates, you need to understand the pain points of your target audience. Pay attention to a few aspects:
Simple but true: knowing why customers leave, you can change the situation faster, and regular data and customer experience analysis will empower you on your journey.
CLV, or customer lifetime value, is an approximate amount of revenue your company can expect to earn from a single customer using your product or service. In rough words, it is a way to evaluate how much a customer is worth specifically to your company. CLV helps to focus more on the long-term value of the customer base rather than single or short-term revenue.
A high CLV rate shows that your business has solid ground, and you can expect stable outcomes from your products or services. It helps identify the customer categories that contribute the most to your revenue and focus on supporting and developing these relationships. Knowing your highest potential value enables personalized offers, loyalty rewards, and building connections with customers to maximize lifetime value.
You can implement predictive analytics solutions to forecast which customers will likely stay longer and keep spending. Tracking CLV changes will also help evaluate the results of CX initiatives and adjust customer journeys to gain a better customer experience and encourage repeat purchases.
Once you know what you want to measure and detect your business's weak points, you can develop a more efficient strategy for using your analytics data. Here are a few tips on how to make analytics work for you.
In our experience, understanding your goals is the basis for successfully implementing any technology, and CX analysis is no exception. Decide what exactly you want to achieve.
For example, if you are working on your churn reduction, the metrics can show how successfully the new initiatives work and measure your progress.
You must collect data from several sources to better understand the current situation. We recommend paying attention to:
Good sources for data collection are CRM platforms, survey tools (for example, Qualtrics and Google Forms), analytical tools (Google Analytics), and social listening tools.
Use data cleaning and transformation processes to organize all collected data into a simple and easily analyzable structure. Use statistical methods to provide CX analysis and uncover trends and patterns. Such methods include descriptive statistics, regression and correlation analyses, clustered and sentiment analyses, etc. Add predictive analytics and advanced artificial intelligence algorithms for more accurate analysis.
Pay special attention to analyzing customer journey maps and identifying the key moments during the interactions—for example, why customers drop off and sources of greatest satisfaction and dissatisfaction.
Once analysis is done and you know the problematic areas for your business, you can develop a new strategy based on results and your goals. Use data analytics to improve customer experience by implementing new CX initiatives, developing marketing strategies, and providing additional customer support training. Consider digitizing customer experience to enhance your strategy using various CXA streamlining tools, including AI-powered analytics.
Consider the insights you analyzed to improve your services. For example, if you see inefficiencies in a workflow, you can optimize the services, automate part of the tasks, and consider chatbots for FAQs. Tailor communication through personalized offers based on preferences and encourage feedback both from customers and employees on process effectiveness.
In our experience, working with CX metrics and analysis is most effective when it is not a one-time deal. Initially, you can use CX analytics to set a course. Still, in the future, it will help you indicate the success and progress of your adjustment, new strategies, and company development. Anything you add to your work processes will show the results in future measurements, helping you to tailor your business plan even more.
Repeat the analysis regularly to detect changes in current market trends, customer behavior, and the interests of your target audience. The more prepared you are for the future, the more satisfied customers you will get, enabling a stable ground for the business and future growth.
Ready to make your first steps into the world of CX monitoring? Simply contact us to get started in productive cooperation!
Contact us
Customer experience analysis is a procedure that allows you to measure how happy your customers are with your products, services, customer support, and their journey. Paying attention to pain points and satisfaction levels will help you tailor your business strategy to customers' needs, optimize processes, and stay competitive. Use it to see the problematic areas, fix them in time, and build a strong and loyal customer base.
At Simply Contact, we specialize in transforming CX data into meaningful improvements that boost satisfaction, loyalty, and business growth. Let us help you optimize every touchpoint and create lasting connections with your customers.
Get fast answers to any remaining questions
Thank you.
Your request has been sent successfully.
