How to Improve Customer Experience with CX Analytics

Business that effectively handle customer experience (CX) are more likely to reach their business goals and help them stand in front of their competitors.

The data received from customer experience will help a business retain its loyal customers, minimize churn rate and improve customer satisfaction. Businesses need customer experience analytics to shape your CX strategy with the necessary insights. Below is everything you need to know about customer experience analytics.

What is customer experience analytics?

Customer experience analytics (CX analytics) is the structured analysis of a brand's customer data to thoroughly understand its customers and their problems and challenges. This data will give you insights into how to optimize current customer experience strategy. 

The CX data analytics process involves reporting on:

• The suitable customer market for your brand, and how to reach both loyal and potential customers.
• Feedback from online/offline surveys, reviews, etc.
• Clear visualization of the customer journey, and customers' problems
• Success ratios of your present offerings, and areas of improvement for the future

Why should brands care about customer experience analytics?

CX analytics is important for both sales and marketing teams to come up with the right marketing strategies to retain customers. The focus is on providing actionable and measurable insights to meet customers on the relevant channels. With such profitable insights, marketers can understand the pain points of customers, build strong brand loyalty and generate ROI for their business.

In short, CX has a close relationship with customer engagement, LTV and buying. Conclusions from CX analytics enable data-driven and smart decisions that produce outcomes. 

Additionally, real-time customer data collected will lead to the development of productive marketing campaigns, effective marketing strategies, analysis of competition and product introduction.  

Different customer experience data sources

• Direct sources: Direct sources cover all data sources collected as a part of direct interactions between you and the customer. Examples of these sources cover interactions by email, text messages, on the phone and survey responses. 
• Indirect sources: Indirect sources include customer viewpoints, feedback and opinions collected from various 3rd party platforms, and websites including consumer pages, review and news sites, forums and social media.  
• Inferred sources: Customer experience data gathering is done by considering customer sentiment from their behavior. The customer behavior involves data received from the website, UI with your web pages, and links, competitor data, and buying history. 

8 most popular metrics to measure customer experience

Customer experience data are collected from both online and offline sources such as:

• Customer surveys
• Use of mobile apps
• Store traffic and in-store sales
• Website browsing patterns
• Repurchase
• Cart abandonment
• Coupon redemption
• Interactions on social media

Benefits of customer experience analytics

With the help of a customer experience analytics platform, businesses can create constant customer experience, and also help product teams to test the performance of upcoming product promotions. 

Let’s look at the benefits of CX analytics:

• Allows a team to visualize the customer journey
• Reduces guesswork in marketing
• Connects the dots, and effortlessly finds out patterns and root cause problems 
• Ignores departmental and interaction silos
• Provides a personalized experience
• Allows the elimination of roadblocks in the whole customer journey 

Why should you use customer experience analytics

Mentioned below are some of the reasons why you should use customer experience analytics to shape your business:

• Data-based decisions: CX data can disclose what customers really need, or advise you on how to maintain a deeper relationship with them.
• Minimizes churn: CX analytics are also used to find dissatisfied consumers and stop brand erosion. In order to automatically analyze consumer comments and support data for opinion, it’s necessary to use text analytics techniques like sentiment analysis. 

Other reasons include enhancing sales conversions, improving public relations, making product enhancements and improving repurchase rates.

3 features of customer experience analytics tools 

Customer experience analytics tools are usually available with multiple features. Here are three of the best features to look out for:

• Executive dashboards: You can analyze, and visualize important customer metrics using a CX analytics dashboard. This tool provides an effortlessly customizable dashboard and summarizes all KPIs to ensure that all executives can understand them and make smarter business decisions. 
• Store data in one location: Nowadays, consumers expect and like personalization from an organization. CX analytics lets you gather and save all customer journey data in a single place for easy access. The objective behind this is to enable marketers to offer personalized content and responses to boost customer engagement. 
• Team performance analytics: CX depends to a certain extent on the performance of both sales and marketing teams. Analytics solution uses chosen KPIs to measure your team performance. This data can be used by your managers for gamification, and to boost individual contribution. 

How is customer experience analysis done?

Analyzing data, interpreting the data and making data-driven decisions complete the whole customer experience graph. 

Here are the steps for collecting, analyzing and measuring customer experience data:

Determine your loyal customer profile 

Loyal customers are a valuable asset and act as the backbone of your brand’s customer base. You can find out such people by tracking the website traffic, surveying customers, getting feedback and studying the present customer base. There are various tools like the voice of customer tools, sentiment analysis and text analytics that will help you to test if they match your criteria.

Knowing your loyal customers can help you alter your CX management strategy.

Mapping the customer journey

To make a proper collection and analysis of your CX data, you have to find out all consumer touchpoints and map their whole journey. This is especially important as  a single contact point can break/make customer loyalty.

These contact points reveal the customer path from the first ad they see all the way to post-product purchases communications. This covers:

• First visit to the website
• Mode of consideration
• Point of sale
• Consumer on-boarding
• Product return

Track major metrics

Once you complete all these steps, use analytics tools to track and analyze major business metrics including CSAT and conversions.

With such platforms, you can use the Net Promoter Score (NPS) and Customer Effort Score (CES) to gather customer feedback to obtain qualified data.

However, you can make use of social listening tools to check how your brand is performing on social media sites including Facebook, Instagram, LinkedIn, etc., and get actionable insights related to the consumer data.