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.
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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.