Data-Driven Customer Experience
Written by Support EXP
Instead of trying to figure out on your own what your customers want, consider a more effective, objective, and streamlined option: a data-driven approach to customer experience.
What role can data play in improving CX, and how can you leverage it for your business?
This article discusses the ins and outs of a data-driven experience.
Key Takeaways:
- Data-driven experiences are strategically shaped by information about your customers.
- Four types of data are valuable for informing a customer experience strategy: Identity, Engagement, Behavioral, and Attitudinal Data
- Determining CX goals is a prerequisite to identifying the data needed to achieve them.
What Is a Data-Driven Experience?
A data-driven customer experience prioritizes knowing more about your client base.
You’ll achieve this through collecting information about customers, building profiles, and ultimately analyzing that data to determine the best customer experience for your base.
Throughout this process it is crucial to stay organized with a data management strategy or data-driven predictive system that sorts through information and generates data points.
What Are the Four Types of Customer Data?
Not all customer data is created equal—you can use different types of information for various purposes or change the type of information you’re getting by tweaking surveys and collection models.
Here are the four main types of customer data you should be valuing and how you can use them in a customer experience strategy:
1. Basic/Identity Data
This type of data is straightforward and easy to understand.
It’s the most basic information about customers, like their name, age, gender, and industry. You might get these details from a short survey or a filled-out checkout form.
This data is instrumental when building a demographic picture.
When you combine the identity data of thousands of customers, you’ll get a complete picture of your average audience, which you can use to target those in your demographic or expand your reach to appeal to a different group of people.
2. Engagement Data
Engagement data takes the information further, asking how well customers connect with your company.
How long do they stay on your website? Are people sharing your social media posts?
Engagement information helps you create a more data-driven customer experience by understanding how visitors interact with your brand and designing your marketing to accommodate their needs and encourage them to stay engaged.
3. Behavioral Data
Behavioral data is similar to engagement data but focuses more on the actual purchasing process.
How many people follow through with a purchase after filling their shopping cart? How many orders are in an account’s order history?
Behavioral data helps you understand who’s following through when it comes to the actual sale.
You can use this data to pinpoint any issues (lots of abandoned shopping carts, subscriptions don’t get renewed after introductory sale price) and work to solve those issues.
4. Attitudinal Data
Attitudinal data focuses on the subjective: how do customers feel about your brand or their experience? Did they leave a good review? Give you a glowing survey response? Recommend your company to others?
This data is usually collected by survey or pulled from store reviews.
Be careful, however: because this data is subjective, not all four or five-star reviews are alike. Each customer might have their own idea of what constitutes a good customer experience.
Which is the best type of data for measuring the customer experience? Depending on your goals, the answer is different.
Identity data is your best option if you’re looking to discover and target a specific demographic. Engagement data is your best option to boost customer engagement across platforms.
The bottom line? Determine your goals for data-driven customer experience before you start collecting information. It will allow you to conduct the most targeted and effective collection campaign.
How Does Data Improve the Customer Experience?
Data collection is a great way to improve customer experiences. However, just having a lot of information at your fingertips isn’t enough. You must first collect the correct data and then analyze it properly to improve your CX.
To leverage your data, consult with managers within your company and get outside help to determine your most important goals in the customer experience.
Do you want to create more repeat customers instead of one-time buyers? Are you looking to launch a targeted marketing campaign? Do you want to improve purchase satisfaction?
Once you’ve created your goals, you’ll be able to decide which type of data would best help you achieve them.
After you’ve collected the data, create actionable points based on your information and follow through. You’ll be able to create the optimal customer experience.
If you’re a bank or credit union looking to optimize your CX, Support EXP can help.
We offer the data-driven analysis and actionable information essential to getting you to your goals.
If you’re interested in learning more, contact us below.