4 Ways Data Analytics Can Improve Customers' Satisfaction and Experience
Customer experience management (CEM) is increasingly important in industries including telecommunications, financial services, retail and even the public sector. It has been driven by the growing expectations of customers that their experience with an organisation be personalised and satisfactory. Organisations are focusing on CEM to help generate new revenue streams and maximise profits.
1. Manage product or service delivery. Customer satisfaction is driven by the product or service working as advertised. This is determined by elements such as how well the product is engineered and how reliable the service is. For example, if a customer uses an ATM to withdraw cash but the machine malfunctions, this can cause significant stress and dissatisfaction for the customer.
Using Path Analysis, organisations can predict failures of consumer premises equipment and/or infrastructures before they arise, and help to proactively manage customer expectations. Path Analysis is also useful to predict ‘path to purchase’ and ‘path to out-of-stock situations’ during the customer acquisition phase.
2. Tailor product development. Many organisations create service products that are ‘one size fits all’. Examples include mortgage financing and mobile phone price plans. A customer with a phone plan that includes more data or calls than they need is likely to be overpaying the service provider and therefore not as happy with the service as they could be.
Analytics can help organisations understand customers’ buying decisions and behaviours to tailor products that are aligned with their needs. For example, a telecommunications provider can use customer usage details to create a product that fits the user’s needs precisely, with pricing to match. This kind of agility can drive customer retention.
3. Improve customer service. Customer service quality depends solely on the skills of staff and/or partners and the results are instantaneous in every single interaction. Better managing customer expectations is the key to increasing customer satisfaction.
Read related articles from Business Review Australia:
Six Key Actions For Retailers Who Want To Put Customers First
Feel the Customer Love this Valentine’s Day By Providing Great CRM
Discovery analytics performed using text analytics and sentiment analysis functions on both call centre contact notes and social media data means new insights can be gained about competitors as well as the organisation’s own perception in the market. The results can flag a customer’s intention to contact the call centre well in advance of the call itself, letting organisations get out in front of issues and resolve them proactively. This type of service encourages ongoing customer loyalty and positive word of mouth.
4. Streamline channel management appropriately. Organisations that look to cut channel costs by creating low-cost channels without considering customer preferences risk alienating customers. Response rates can be low via these channels, which can include telesales and online.
By contrast, organisations that use geospatial analytics to spot customers that frequently visit retail stores compared with those that don’t can more accurately tailor offers for those customers. Additionally, knowing where online customers live makes it simple for organisations to direct them to a retail store nearby to bridge the online-offline gap.
Why Alibaba Cloud is doubling down in Southeast Asia
Alibaba has announced expansion of its cloud business within Southeast Asia, with the introduction of a digital upskilling programme for locals alongside acceleration of its data centre openings.
This doubling down of its cloud business in Southeast Asia comes as the company faces stiff competition at home in China from rivals including Pinduoduo Inc and Tencent and seeks to up its game in a region considered to be the fastest-growing in cloud adoption to compete with leading global cloud providers AWS, Google and Microsoft.
Alibaba Cloud, the cloud computing arm of Chinese e-commerce giant Alibaba and second biggest revenue driver after its core e-commerce business, finally turned profitable for the first time in the December 2020 following 11 years of operation, thanks largely to the pandemic which has spurred businesses and consumers to get online.
Southeast Asia growing demand for cloud
In 2020, there was a noticeable increase in interest towards cloud in SE Asia, with the population embracing digital transformation during the pandemic and SMEs across the region showing increased demand for cloud computing.
Such demand has led to the expectation that Southeast Asia is now the fastest-growing adopter of cloud computing with the cloud market expected to reach US$40.32bn in Southeast Asia by 2025 according to IDC.
And there are plenty of players vying for a slice of the cloud pie. While AWS, the cloud arm of Amazon, is the leading player in Southeast Asia (and across all of APAC apart from China), Microsoft and Google are the next two most dominant players in Southeast Asia with Alibaba coming in fourth.
“There is no doubt that during the past year we have seen the acceleration of digital transformation efforts across all industries,” explains Ahmed Mazhari, President, Microsoft Asia. “Asia now accounts for 60% of the world’s growth and is leading the global recovery with the digitalization of business models and economies. Cloud will continue to be a core foundation empowering the realization of Asia’s ambitions, enabling co-innovation across industries, government and community, to drive inclusive societal progress.”
Alibaba’s commitment to Southeast Asia
At its annual Alibaba Cloud Summit, the Chinese company announced Project AsiaForward, an initiative designed to upskill local developers, small-to-medium-sized companies and connect businesses with venture capital. Alibaba said it would set aside US$1bn over the next three years to develop digital skills in the region, with the aim of helping to develop 100,000 developers and to help grow 100,000 tech startups.
But that’s not all. The company, which recently opened its third data centre in Indonesia, serving customers with offerings across database, security, network, machine learning and data analytics services, also announced it would unveil its first data centre in the Philippines by the end of 2021.
Furthermore, that it would establish its first international innovation centre, located in Malaysia, offering a one-stop shop platform for Malaysian SMEs, startups and developers to innovate in emerging technologies.
“We are seeing a strong demand for cloud-native technologies in emerging verticals across the region, from e-commerce and logistics platforms to FinTech and online entertainment. As the leading cloud service provider and trusted partner in APAC, we are committed to bettering the region’s cloud ecosystem and enhancing its digital infrastructure,” says Jeff Zhang, President, Alibaba Cloud Intelligence.
What other cloud providers are pledging in the region
This pledge by Alibaba to upskill both individuals and businesses follows Microsoft’s announcement in April that it was planning to upskill Malaysia’s population and would invest US$1bn over the next five years to build a new data centre centre in Malaysia.
This is the latest in a long line of pledges to the region by the US tech giant, which is fast accelerating the growth of its cloud datacenter footprint in Asia, expanding form seven 11 markets, and recently adding three new markets across Asia – Malaysia, Indonesia and Taiwan. Back in February, it announced plans to establish its first datacenter region in Indonesia and to skill an additional 3 million Indonesians to achieve its goal of empowering over 24 million Indonesians by the end of 2021.
And recent research by IDC shows that Microsoft’s most recent datacenter expansions in Malaysia, Indonesia and Taiwan alone are set to generate more than US$21bn in new revenues and will create 100,000 new jobs in the next four years.
Also last month, Tencent announced it has launched internet data centres in Bangkok, Hong Kong, Tokyo to add to its second availability zone opened in Korea last year and plans to add an internet data center in Indonesia, and Google has also been pushing into the enterprise space in Southeast Asia for several years now.
Expanding data centers allows cloud providers to boost their capacity in certain countries or regions.