Last week, we looked at why companies don’t focus on the customer experience. This week we’ll give you some ways to use consumer data to improve the customer experience. But first, a few stats to drive home the importance of the customer experience.
Studies show a negative customer experience would cause 74% of consumers to stop patronizing a business. Conversely, a positive customer experience tends to increase brand loyalty by about 50%.
Customer retention and upsell opportunities are shown to produce more profits than acquiring new customers. So businesses would obviously be doing everything they can to improve their customer experience, right? Not necessarily.
Taking Advantage of Customer Data
With access to so many software programs that capture invaluable customer data, creating a successful customer experience strategy is easier than ever. Yet a Harvard Business Review study shows that 75% of the companies surveyed are unable to act on the data they obtain. This is often due to the fact that companies that use this technology do not know how to make sense of data and share it with others.
Too much data can be overwhelming, especially if a business doesn’t have a sufficient way to organize it. But successful customer experience leaders invest in technology that efficiently sorts their data with automated reporting. This helps them create effective strategies for providing personalized experiences that anticipate their customers’ needs.
Studies show over half of consumers would share their data for a better customer experience. Therefore, it’s in a company’s best interest to take advantage of that information.
But to effectively utilize customer data, this technology must be properly implemented and constantly updated. Companies that use customer data technology must also train employees on how to access and use the data. Or invest in technology, such as speech analytics, that offers implementation training and ongoing support.
Customer Experience and Company Culture
Providing a positive customer experience shouldn’t simply be an ingredient in a company’s recipe for success; it should be part of its core culture. The customer experience needs to be a constant concern for a business, not just something it checks in on sporadically. Every decision needs to take the customer experience into consideration.
Consistently maintaining the customer experience and updating strategies does take some time and work. But with the right tools and approach, any business can give their customers the best experience possible.