5 REASONS WHY CUSTOMER DATA IS IMPORTANT

Introduction

Customer experience (CX) has fast become a top priority for businesses and 2021 will be no different. Customers no longer base their loyalty on price or product. Instead, they stay loyal to companies due to the experience they receive. If you cannot keep up with their increasing demands, your customers will leave you.

Customer experience is your customers’ perception of how your company treats them. These perceptions affect their behaviours and build memories and feelings to drive their loyalty. In other words – if they like you and continue to like you, they are going to do business with you for a long time and recommend you to others.

Improving Customer Experience through Customer Data

For your customers to like you, you need to get to know them. You need to invest in the long-term relationship (also known as relationship marketing) because you can deliver a personalized experience across the entire customer journey when you understand who they are. Gaining this in-depth knowledge about customers isn’t something that just happens. You need to collect customer data and bring out valuable insights from that data with speed and precision.

Using both active and passive data to better gauge your customer and their journey is imperative to creating the optimal customer experience (CX) experience. Companies must collect, analyse, understand — and most importantly use — customer data to learn how to make CX better.

customer data

Why customer data is important

1. It Allows You to Get Personal:

Customers today don’t just want to spend money. They want personalized service, an interaction that is personalized to save them time, recognizes their interests or preferences, and one that does those things seamlessly, without them even realizing it.

2. It Shows You What’s Working — And What’s Not:

From the customer data collected, you can easily identify what your customers want, how your products and services are performing in the market, who your largest customers are, and where they come from. This can inform any strategic business decision you have to make.

Read more about what your customers deserve: https://csmng.org/customer-service-experience/

3. It Helps You Respond Faster:

Today’s market is moving faster than ever, and your customers are using their voices faster, as well. Within moments of a negative experience, they can hop onto social media and spread the news. The only way to arm yourself in such a market is to use analytics to speed up your response time, and proactively fix CX issues before they start.

4. It Helps You Succeed — But Only If You Use It:

Today’s biggest pitfall is to get so focused on collecting data that you never actually use it. The beauty of data is not just in what it tells you, it’s in what decisions you make based on those insights. Successful companies will focus more on the end-game than on the data acquisition.

5. Customer-Centric Data Analytics Helps Brands Prioritize & Act on Issues Based on Revenue Impact:

companies often overspend on efforts to attract or delight customers, which typically cost more than say, improving retention rates or taking advantage of upselling and cross-selling opportunities. Big data allows organizations to connect what customers say to what they do, analyse the most significant performance of satisfied, neutral, and dissatisfied customers to identify what factors into a good or bad experience.

If you want to succeed in today’s market, 1) embrace data and 2) follow where it leads you. Remember: your customers are on the journey right along with you.