Customer analytics are essential for improving customer experience across all channels. If your goal is to approach your business from a customer-centric perspective you need to know who your customers are, what they do on your website, where they experience issues ad what kind of content they expect to see. No matter how good your customer service is, you should constantly improve it. Customer analytics will give you insight into the customer experience and help to improve it based on various customer data. The following facts will explain why customer analytics really matter.
Improve the overall customer experience
When your customers get what they want fast and without wasting precious time they will enjoy such experience and will continue doing business with you. Customer analytics help to find out the main flaws in your website design and workflow. The same approach should be applied not only to your website but also to every customer interaction. Thus you need carefully analyze each touch point and make improvements if necessary.
Better product planning
Customer data is the precious resource which can help you build the right business strategy and provide products or services your customers will definitely like. Your customers tell you this while communicating with your customer service team or just browsing your website and viewing products they are interested in. If you use the right tools to analyze this type of data, you will meet the expectations of your customers and increase your revenue.
Improve customer loyalty and retention
Nothing is better for business than happy and loyal customers. Data provided by customer analytics help you understand why your customers love you and make repeat purchases. On the other side, it also shows what you did wrong and where you need to improve. Loyal customers leave positive reviews and bring new referrals. They stay with your brand and help your business grow.
Reduce shopping cart abandonment
By analyzing customer behavior on your shopping cart page you will understand why they leave without proceeding to check out. This type of data will help you to improve your website design and make the purchasing process more convenient and smooth.
Make the right marketing decisions
Leveraging technology allows organizations to reduce their operating costs while still gaining actionable, data-driven business insights. However, you need take advantage of this data and make the right marketing decisions to attract more customers to your brand.
Improve your website user friendliness
If your marketing campaign was successful new customers would start arriving to your website. Their first impression will depend on your website user friendliness and effective design. If everything goes smooth and without unexpected issues, new customers will continue making purchases and spread the word about your brand.
Opportunity for personalization
With help of customer analytics you can provide personal experience to different customer groups. You can track inactive customers and offer additional discount to the most loyal ones. This way you will stay connected with your active customers and engage with those who have not made purchases for some time.
Make predictive analysis
By getting an insight into collected data businesses have an opportunity for personalization and predictive analysis to answer the needs of customers. This in turn results into repeated purchases, increased customer loyalty, satisfaction and retention.
Easy customer behavior analysis
By analyzing your customer journey you will understand why they leave the store without purchases or interrupt the check out process. This information will help you to optimize what is working and fix what is not. It will help to understand why the bounce rate is too high or why your customers leave their carts abandoned.
You will notice the increase not only in your revenue but also in customer lifetime value after you start optimizing your business based on customer analytics results. Your customers tell you where you fail and what kind of issues you should fix. You just need to grab those data and make them the basis of your improvement plan.
The following report made by Mckinsey reveals how important the customer anaytics are for business bottom line. It explains why we need to check that data and what kind of actions should be taken to make our customer experience better.
No matter the size of your company there are tools out there that make using and collecting data easy. However, you need to choose the right tools for your company and business size to cover all possible channels where customer data is available.
Olga is a customer service expert and owner at Supportyourcustomer.com. She is writer and blogger on customer service and customer experience excellence.