Are big business decisions really driven by the customer experience?
While big business decisions have traditionally been determined by metrics, facts, or figures, big data has now turned its gaze on the customer experience (CX) as the top priority for real business growth. Customers are moving away from product, price or brand loyalty, and now support businesses based on the customer experience they receive. How do we know this? Big data.
What is big data?
Big data refers to the wide range of often complex data that businesses collect over time from different sources- websites, social media, advertising, market research etc., giving them insights into exactly who, what, where, when and how customers are interacting with their business. Wikipedia says it best- ‘the term big data tends to refer to the use of predictive analytics, user behaviour analytics, or certain other advanced data analytics methods that extract value from data’. And the key is in those last few words- ‘extract value from data’, which in turn leads to actionable insights to improve the customer experience.
What sort of data is collected?
This is not a trick question- whatever technology allows us to do and whatever the customer is prepared to share. Without going into a privacy debate, we’ll focus on the collection of customer experience data which the customer has actively provided. Depending on the method of data collection, even the simplest data can identify:
- exactly when a customer had an experience
- where that experience took place
- if the experience was positive or negative
- how many other customers had a similar experience
- how many other customers had a different experience
When this seemingly simple data is collated and analysed over time, it becomes rich data, which is extremely valuable for actionable insights which inform big business decisions.
Case Study: Netflix
Big data is even more serious for big players like Netflix. With over 100 million subscribers, Netflix has a wealth of data they can analyse to improve the customer experience. Data algorithms have helped Netflix save $1 billion a year in value from customer retention and they attribute big data to helping them become the ‘King’ of streaming services. Big data really does mean big dollars for Netflix. Read more about Netflix’s love affair with big data here: https://insidebigdata.com/2018/01/20/netflix-uses-big-data-drive-success/
Big data for actionable insights
Big data is driven by the need for meaningful business insights to support strategic growth, through comprehensive data analysis over time. But all the data in the world won’t be any use unless it’s used effectively.
Firstly, a business has to be clear about what they are trying to achieve, or specifically what they are trying to find out. Defining objectives which are aligned to business needs with clear key performance indicators (KPIs), gives data collection and analysis a focus- although these objectives and therefore the focus of the data collection will evolve over time.
Data then needs to be extracted, cross referenced and compiled for analytical reports and meaningful and actionable insights to improve the customer experience. But these insights aren’t powerful unless action is taken!
It’s easy to get caught up in the mechanics of data collection and the rich information that is gained. But these insights need to be leveraged for real customer experience improvements that impact a business’s bottom line- to be responsive in real time, for long-term business strategy, as well as supporting overarching marketing goals.
More bang for your buck
This is where it gets interesting. While the focus of data collection can be on long-term strategic business development, data collection is also extremely powerful in real time. Real-time data collection gives businesses actionable insights so they can immediately respond to customers’ needs which improves the customer experience, increases business efficiencies and potentially averts expensive disasters.
Read more here about how data collection can help your business mitigate big insurance claims: https://www.drvoxx.com/are-wet-floors-sinking-your-business/
You can listen to the voice of your customers in real time with comprehensive data collection at the point of experience. With this immediate feedback, you ensure your customers feel valued, while you improve customer experience as well as overall service delivery. And the benefit is twofold- you gain quality data for actionable insights in the moment, and for future analysis.
You can also save on costs by monitoring staff in real time- to identify whether contractors are fulfilling their service obligations, respond immediately to service issues, evaluate staff services over time, and get the data you need to improve overall operational efficiency in the long-term.
The value of big data for businesses of all sizes lies in the consistency of collection, the depth of the analysis and the ability to gain actionable insights now and into the future. With a genuine focus on customer experience, companies can cultivate customer loyalty, identify new business opportunities, predict trends, optimise operations and ultimately generate more profit. What’s more, customers know that their feedback is having a big impact.
Acknowledgments:
https://en.wikipedia.org/wiki/Big_data
https://insidebigdata.com/2018/01/20/netflix-uses-big-data-drive-success/