How to Use Analytics Software For Customer Experience
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Do you want to know whether your customer experience strategies are effective? Look at your analytics.
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Sometimes, you can invest many resources to improve your CX but not get the desired results. Data doesn’t lie. It sheds light on what’s working and what isn’t without any form of sugar coating. In customer experience, paying attention to your analytics will tell you what you’re doing right and what you need to improve.
Several businesses leverage technology in the form of analytics software to inform their customer experience strategies. However, it can be confusing, especially if you’re new to it.
In this post, we will explore what CX analytics is and how to use it for your customer experience.
What is customer experience analytics?
Customer experience analytics is the collecting, gathering, and assessing of information about customer experiences and engagement with all your products or services to highlight customer friction and service gaps to boost growth and reduce customer churn. Your CX analysis strategy may look different depending on where your customer is in their journey.
Customer experience analysis has evolved tremendously over the years. Businesses are analyzing more data than ‘call waiting time’ and are focused on deeper insights like customer satisfaction rate (CSAT), etc. Fortunately, several tools now provide businesses with more insight. These solutions track how customers interact with your product page or website, connect with agents, and use CX software like Zendesk, HubSpot, and other Intercom alternatives.
CX analytics can help product managers identify and fix bottlenecks in the customer journey and create a more seamless flow from customer interest to purchase. Customer success teams also use these analytics to improve their processes to boost CSAT rates and promote customer loyalty. Customer experience analytics is vital to the success and growth of any business, and knowing how to use it for your benefit makes all the difference.
Why is CX analytics important?
To prioritize your customers, you must pay attention to customer experience analytics. The insight you get into customer behavior helps you understand their journeys and customize experiences to meet their unique needs. This way, you can design your offerings to target different audience groups effectively.
When done right, CX analytics highlights major customer pain points and allows you to fix them to reduce customer churn. Since CX analysis can also be predictive, you get the necessary tools to forecast future customer behavior and set a proactive plan in motion. With CX analytics, you can increase customer loyalty, boost conversions, and grow your business.
Which data does CX analytics focus on?
Customer success teams analyze different data types when developing strategies. However, customer experience analytics focuses on a specific set of data that highlights customer behaviors, interactions, and satisfaction.
Here are five types of data that CX analytics focuses on.
- CSAT score: Customer satisfaction score depicts customers’ happiness at every stage of their journey. You can get this value by sending surveys to your customers, asking them to rate their experience at different stages of their journey.
- Customer lifetime value (CLV): this metric shows how much you have made from a particular customer over their lifetime patronizing your products or services. A high CLV depicts a high number of satisfied and loyal customers.
- Net promoter score: The NPS score is similar to the CSAT score. This score depicts how likely your customers are to recommend your company to others. The higher your NPS score, the more likely you are to convert existing customers into brand ambassadors.
- Customer retention rate: CRR highlights the percentage of customers that extend their interactions with their business. A high CRR rate shows that your customers are satisfied with your products and are staying loyal to your brand.
- Customer effort score: CES shows how difficult it is for customers to move through different stages of their journey while interacting with your business. You want this score to be as low as possible so customers don’t get frustrated and abandon their journeys. \
The insight these metrics provide will help you adjust your customer service strategies to improve customer experience and reduce churn.
3 Critical Customer Experience Analytics Software
The right CX analytics software will provide deeper insight into your customer service situations and help you make the right decision. A good CX software should be able to track all the critical CX data and create reports so you get a bird’s eye view of what’s working and what isn’t.
Let’s explore three of the best CX analytics software today.
GA4 is one of the most popular CX analytics tools today. Before going on to optimize customer experience, you must understand their behavior. Google Analytics provides the following:
- Behavioral flow chart: This graph shows how your users interact with your website. It highlights where they spend most time and where they bounce or drop off.
- Dashboards: With dashboards, you get a bird’s eye view of how your CX optimization strategies are performing. You can track changes in user behavior across different audience demographics.
- Funnel development: Build and visualize custom audience funnels to see how they behave across different channels.
Google Analytics helps you visualize your customers’ path to conversion so you can optimize their journeys and get them to purchase faster.
A functional website leads to a better customer experience. Google Optimize offers A/B Testing to help identify issues and improve usability testing on your website. This tool helps you improve your content and make it fit users’ expectations when they navigate your website. You can test your product and landing pages to determine whether your users would appreciate it. To increase functionality, integrate Google Optimize with Google Analytics and ads.
Outfunnel helps you see how customers are behaving on your website. This tool provides various information, such as:
- Visit records: records website visits automatically so you can know what leads are working.
- Real-time visitors: See the users on your website at any given moment and track their movement in real-time.
- Email campaigns: Create personalized and targeted emails based on the current lead activity and scores.
- Lead scoring: This tool vets your website visitors based on their previous behaviors.
Outfunnel is a necessary CX analytics tool. It provides a comprehensive insight into customer behaviors, enabling you to implement strategies to target customers better.
How to use analytics software to track customer experience
Analytics software will help streamline and organize your customer experience strategies. However, you must understand how to use them for the best result. This involves focusing on the right components of tracking CX analytics. Let’s explore them below.
- Create your customer journey map.
Map out a clear journey for your customers from product discovery to purchase and note the pain points and friction they experience at every stage. Ask yourself the vital questions – How do customers interact with your website, landing page, or app? Where do the customers come from? At what stages do they get stuck the most?
- Conduct surveys often
Surveys help you understand whether your customers are happy with their experiences. After customers purchase, you should send a survey to determine if their purchase journey was easy and what improvements they would like you to make. You should also set up automatic surveys that customers can take after interacting with customer service agents. This way, you gain insight into how your agents perform and how satisfied customers are after contacting support.
- Employ analytics throughout the customer journey.
Customer experience is more than just surveys after a purchase. It covers the entire buyer journey, from discovery to purchase, and you must ensure the customers have it easy throughout. Customer journey analytics data builds off your already-designed customer journey map and highlights any pain points so you can leverage it to improve your CSAT score.
- Leverage AI
AI informs various business practices, and customer experience is not left out. Businesses are implementing different AI strategies, from chatbots to using this technology to develop actionable strategies from data. AI can help highlight certain CX patterns you may have missed and even assess customer sentiment.
How can you use data to improve customer experience?
The data you get from CX analytics can be used to improve your overall customer experience in several ways. See how to do this below.
Track customer behavior
Analytics will highlight how customers interact with your business and help you track their behavior across all channels. This information will isolate what’s working well and what isn’t and help you improve their overall experience and optimize their journey.
Design an effective customer journey map.
The data from CX analytics will help you create a customer journey map that will almost always result in sales. An easy, seamless, and organized customer-focused journey map will eliminate all bottlenecks and make it easy for customers to interact with your products and purchase without hassle.
Leverage predictive analysis
CX analytics data will provide insight into future customer behavior so you can predict their needs and devise strategies ahead of time. By knowing what your customers need before they realize it, you’re already a step ahead of the competition.
Keep customers loyal
When you make it easy for customers to purchase your product, communicate with support agents, and receive great assistance, they will remain loyal to your brand. Many customers switch to competitors after one bad CX, so you only have one chance to keep your customers happy. Leveraging CX analytics can help you keep customers satisfied and loyal.
The best part about CX analytics is the data gives you the necessary knowledge to create an amazing buying experience for your customers. With these data, you can analyze customer pain points and implement strategies to address them immediately. With so many customer analytics tools available, you have all you need to earn and retain happy, satisfied, and loyal customers.