Our guide to understanding what is customer experience analytics
Customer experience analytics is a relatively new field that has come into prominence in recent years. The term "customer experience" (CX) refers to the totality of emotions, attitudes and behaviours that customers have before, during and after their interactions with your company.
Understanding what CX analytics are, why they're important for your business, and how to use them can help you make smarter decisions about how to manage customer relationships.
What Is Customer Experience Analytics? (Definition)
The term "customer experience" (CX) refers to the totality of emotions, attitudes and behaviours that customers have before, during and after their interactions with your company.
Customer experience analytics is the process of using data and insights from customer interactions to improve those experiences. It's a way of understanding how customers interact with your company, what they like and don't like, and what makes them happy or unhappy.
Why Is Customer Experience Analytics Important?
Managing customer relationships is essential for any business. The better you understand your customers, the more effectively you can connect with them and provide what they want.
Customer experience analytics is important because it gives you a holistic view of customer interactions that goes beyond traditional customer surveys or feedback forms. It helps you see how all aspects of the customer experience - from marketing to sales to support - impact customer loyalty, satisfaction and advocacy.
Customer Experience Analytics is important because it can:
- Make valuable decisions
- Reduces customer churn
- Increases customer satisfaction
Now let's expand on each reason
Make valuable decisions
Customer experience analytics can help you make better decisions about how to deal with customers and improve your business.
For example, let's say that one of your customers has a problem with their order. They call customer service but the agent they speak to is rude and unhelpful so they leave an angry voicemail instead of calling back.
The agent's manager sees the customer feedback and gives them a warning. The agent is upset because they didn't mean to be rude when they spoke to the customers - it just slipped out in their frustration with another complaint from the same person that morning.
Using this example, you can create a training plan to deal with customer complaints in a professional manner to prevent further negative customer interactions
Reduces customer churn
Customer experience analytics can help you identify trends and problems that contribute to customer churn. It helps you understand which customers are likely to become dissatisfied so you can take steps early on to retain them as loyal customers.
Instead of waiting for customers to leave, you can take proactive measures that reduce churn.
For example, let's say a customer has had several calls with technical support and they're dissatisfied with how long it takes their call to get picked up or transferred around the company and how difficult it is to speak to an agent who speaks their native language.
You might decide to offer those customers a discount on their next purchase or a free month of service.
Increases customer satisfaction
Customer experience analytics can help you track the success of your efforts to improve customer satisfaction. You can see which initiatives are working and which ones need more work.
For example, let's say that you run a campaign to increase the number of returning customers. You track the number of people who come back to your website as a result of the campaign and compare it to the number of people who came back before the campaign.
You find that more people are coming back to your website, but they're not spending as much money as they did before. You might decide to change the campaign or keep it but tweak the wording or design.
3 Customer experience analytics to track and measure
Now that you know what customer experience analytics is, what metrics should you track and measure? Here are 3 customer experience analytics to track and measure:
- Customer feedback
- Customer satisfaction scores
- How they interact with your website
Customer feedback
One of the most important aspects of customer experience analytics is listening to feedback - both good and bad. You can track customer feedback in a number of ways, such as:
- surveys
- social media monitoring
- review sites
- contact center data.
You can use this data to find out what customers like about your company and what they don't like. This information can help you improve customer satisfaction scores.
Customer satisfaction scores
One of the most common metrics for customer experience is customer satisfaction scores. Customer satisfaction scores like:
- CSAT (customer satisfaction score)
- Net Promoter Score (NPS)
- Customer Effort Score (CES)
You can use this data to find out how satisfied your customers are with different aspects of your company, such as the customer service, products and website.
How they interact with your website
You can also track how customers interact with your website. This data can help you understand which pages are most popular, where people are dropping off on their journey and how long they're spending on each page.
This information can help you improve your website design and make it easier for customers to find what they're looking for.
You can see how customers are interacting with your website using Google Analytics and Session recording. Session recordings are a great way to get a visual representation of users are interacting with your website.
You can download Moment's sessions recording for free
How companies use analytics to give customers a great experience
Now that you know what customer experience analytics is, why it's important and which metrics to track and measure, let's take a look at how companies use analytics to give their customers a great experience.
Netflix is a great example of a company that uses analytics to give their customers a great experience. To track customer satisfaction scores they use data from:
- customer surveys
- social media monitoring
- contact center data
They also use this data to understand which shows are most popular, what genres people like and how satisfied customers are with the service. This information helps them decide which shows to keep and cancel, as well as improve customer satisfaction scores.
2 major uses of customer experience analytics are:
- Personalizing the customer's experience
- Better understanding of consumer behaviour
Personalizing the customers experience
One of the best ways to use customer experience analytics is to personalize the customer's experience. You can use data from surveys, social media monitoring and contact center data to track customer satisfaction scores.
You can also use this data to understand which products or services are most popular how satisfied customers are with the service. This information can help you decide which products or services to offer customers and personalize their experience.
Using Netflix as an example, they are able to find recommendations that they think the viewer will like based on what the customer has watched. This gives the viewer a more personal experience.
Better understanding of consumer behaviour
The other major use of customer experience analytics is to better understand consumer behaviour.
Once you understand the consumer behaviour, you can tailor your product, services and marketing plan that will appeal to their behaviour.
Closing thoughts
As you can see, there are many different ways to use customer analytics. By using these 3 customer experience analytics and tracking the metrics that matter to your company, you will be able to give customers a great experience every time they interact with your brand. Try implementing one of these best practices in your business today - it may make all the difference!