3 Ways Data Can Drive A Great Customer Experience.

Customer experience (CX) is essential for company success. This correlation is stronger than ever before due to increased competition and the peaked variety of choice present in the online marketplace. Consumer demands are unwavering and the expectation for companies to integrate a seamless experience into their strategy has become the new norm.

Companies such as Netflix, Waze and Pandora are prime examples of companies that understand the importance of customer experience and, they all do it exceptionally well.

Customer experience is so important to online consumers that:

  • More than ½ of customers today say they’ve switched companies solely because of poor user experience
  • 87% of customers think brands need to put more effort into providing a consistent experience and
  • 52% of customers say that they are less likely to engage with a company that offers a bad mobile experience

By 2020, it is expected that customer experience will become the largest determining factor, outcompeting both price and product, as the key brand differentiator. What this means is that companies who choose not to invest in creating a customer experience strategy will get left behind.

If you look at your company’s marketing plan and are unsure of the loopholes that could be hindering customer experience, that might be setting your company back from achieving success like Netflix, that’s acting as a blindspot, don’t be alarmed. Just as consumers have an overwhelming amount of access to information, companies have an infinite amount of access to data. This is where the true competitive advantage lies.

So how can data drive customer experience?

1. More & Better Engagement on Social Media

Social media is not what it once was. Ultimately, it has become a game changer in the marketing landscape. With the ability to now have two-way conversations between companies & their consumers, the disruption approach is obsolete and has been replaced with the engagement approach. This is positive in so many ways.

Instantly, companies can learn about the products that their customers like and why. The different social media platforms can be used to drive individual conversations about different areas of a company, all at the same time. On the flip side, social media has given consumers the opportunity to raise their voices, louder and quicker. Within minutes a brand can be destroyed. Also within minutes, poor customer dissatisfaction can be resolved. They key to the latter is being active on social media, consistently engaging with your customers and above all [social] listening.

Collecting and analyzing the data from social media over time will give you the ability to be prepared for peace talks and resolution because you’re going to understand what is making your customers tick and what they want.

2. Data-Driven Product Innovation

What is your website’s most frequently visited pages? What products and/or services are commonly purchased? What content is top performing? What is not?

If you’ve decided to become a plebeian of the digital world & your company has a space reserved in the marketplace, with 100% certainty you’ve been exposed to its fast-moving, real-time & non-stop requests for more. Data has given companies information on how to strategically manage these expectations while creating the next big thing.

As part of product development, the insights gathered on pre-existing company products should be analyzed and used to help guide creative development. This way you can avoid exploring new ideas that the data clearly shows won’t work and avoid venturing down paths that seem unrealistic for your audience. This doesn’t mean creativity should stop, but merely be guided. (Nothing’s worse than investing into a new venture to only be pockets-empty by launch date with no guarantee there will be a ROI. Data can help avoid this).

3. Increased Personalization

A “one-size-fits-all” approach can no longer be used to target an audience. Target audiences have micro-niches and those niches have small clusters formed within them. What I’m really getting at is that people want a customized experience, just for them (talk about being high-maintenance!).

It is estimated that approximately 85% of mobile marketers have reported success with personalization: higher engagement, more revenue & conversions.

Using data to understand preferences to save customers time and serve their interests is a promising long-term objective. No doubt some of our favourite online services such as Netflix, Spotify and Amazon have perfected the “art of personalization.” This would not have been possible without data.

Coming out Ahead

Using customer insights to create a great customer experience is no longer a unique competitive advantage, but is essential for company success. Consumer demands are unwavering and the expectation for companies to integrate a seamless experience into company strategy is the new norm. “Build it and they will come” does not hold true on its own, you must build it well, and continuously improve.