How customer experience analytics improves your business

86% of customers are willing to do repeat business with your brand if you provide a great experience. The only way you can do this is to collect customer data, and convert it into business insights that you can use to personalize the customer journey.

This makes customer experience analytics necessary for business success.

If you currently aren’t utilizing customer experience analytics, below, we’ll review what customer experience analytics is, explore its benefits, and show how you can start analyzing your customers’ experiences immediately.

What is customer experience analytics?

Customer experience analytics refers to collecting, structuring, and understanding customer data with the aim of improving their experience with your brand.

Customer experience analytics might sound intimidating, but the way it works is simple: All you have to do is collect first-party data through real-time analytics software, transactional records, and surveys. From here, store and organize this data in a CDP (Customer Data Platform), and use it to tailor the customer experience.

Here are some of the types of data companies collect when conducting customer experience analytics:

• Demographic data: This refers to data points like a customer’s name, contact information, gender, and location.
• Interaction data: This measures a customer’s interactions with your business. A few examples include website visits, cost per click, and conversions.
• Customer purchase data: This data type records anything that customers bought from you. This includes average order value, time of purchase, and purchase location.
• Attitudinal data: The last type of data is attitudinal data, and this tracks a customer’s attitude toward your business.

Benefits of customer experience analytics

Ready to implement customer experience analytics into your business processes? Great! Here are a few benefits that you’ll experience:

• Better customer insights
• Reduced customer churn
• Increased loyalty

Better customer insights

Instead of making business decisions based on a hunch, customer feedback analysis presents you with cold hard facts. It tells you what customers think about your brand and how you can improve.

Reduced customer churn

By using Voice of Customer (VoC) to drive your marketing and product development efforts, you’re showing customers that you care about them. You’re personalizing everything around their preferences, and this ultimately reduces customer churn.

Increased loyalty

Research says that customers are more likely to stick with a brand if they provide a personalized experience, even if the competition has lower prices. So when you tailor your product around what your customers are looking for, you increase brand loyalty and customer retention.

Key metrics in customer experience analytics

These are some key metrics to look out for when analyzing customer experiences:

• Net Promoter Score (NPS)
• Customer Satisfaction (CSAT) Score
• Customer Effort Score (CES)
• Churn Rate
• Customer Lifetime Value (CLV)

Net promoter score (NPS)

A net promoter score measures a customer’s willingness to recommend your product or service to a friend. By keeping track of your net promoter score, you’re measuring how well your personalization efforts are going.

Customer satisfaction (CSAT) score

As the name suggests, a customer satisfaction score shows a customer’s satisfaction with your product or service during every step of the customer journey.

You could run surveys and ask questions like, “How happy are you with our product or service?” Customers can pick a number that describes their experience best. From here, you can use text analytics to uncover a customer’s opinion about your brand.

Customer effort score (CES)

A customer effort score estimates how much effort a customer has to go through to solve a problem related to your product or service.

For example, if there’s a shipping delay or a software glitch, this score will show how efficient your customer support and success teams are at dealing with the problem.

Churn rate

Customer churn measures how many customers stop doing business with your brand upon signing up. 

And since bringing in new customers is five times more expensive than retaining existing ones, measuring your customer churn rate is necessary for customer experience analytics success.

Customer lifetime value (CLV)

Customer lifetime value calculates how much money the average customer spends with your brand.

For example, if customers typically visit your ecommerce store, buy something worth $50, and never come back, your customer lifetime value will be $50.

So when conducting customer experience analytics, measure customer lifetime value and aim to slowly increase this number over time.

How Lytics can help implement customer experience analytics

Manually collecting, cleaning, and structuring data is tedious, not to mention it’s prone to human error.

Fortunately, Lytics does all the heavy lifting and automates the entire social listening, customer journey mapping, and data collection and management process. Lytics even uses predictive modeling to predict a customer’s behavior.

This allows you to understand and use your customer data to make business and marketing decisions. Lytics connects to most marketing tools, such as Google Analytics and Facebook Ads, and uses all this raw data to build unified customer profiles within minutes. 

Optimize the customer experience with Lytics

Customer experience analysis allows you to make better decisions, and this benefits every area of your business from marketing to product development and business intelligence. 

So if you’re thinking about getting started with customer experience analytics, consider the Lytics CDP. It makes collecting, structuring, and understanding raw customer data easy, so you can focus on making more informed decisions with this data instead of getting caught up in the management process. Sign up for a free Lytics demo today!