Customer Experience (CX) Analytics is an emerging customer experience and data science topic in the marketplace today. Research shows that the majority of companies – a full 90% – will use customer experience as a key differentiator. The predicted CXM market will experience an 85% growth rate from $8.5B in 2020 to $15.9B in 2025. Combine that with the rapidly expanding digital transformation taking place to enable experience excellence, and we can clearly see that CX analytics will become even more important to company success in the future.
In this three-part series on CX Analytics, we’ll discuss the value, strategy, and RevGen Partners’ approach to creating a framework that successfully drives customer loyalty and brand trust with CX Analytics. We’ll also review how success can be achieved holistically across the company with executive alignment, governance, and a culture that empowers the competitive strategy of customer experience.
While there is rapid growth in this area, there are also challenges. Even the definition of CX analytics can be confusing. Often, it’s defined in dozens of conflicting ways, and generally not tied to relevant CX goals. It’s not a surprise, then, that while companies understand the importance of CX analytics, they grapple to make sense of how to prioritize these investments, understand the value they bring, and implement them across the company.
At RevGen, we understand this challenge. Our novel approach to CX Analytics is grounded in the foundational relationship of CX investment and return. We define CX Analytics as:
“The practice of turning customer feedback into novel insights about customer needs, sentiment, preferences, behaviors and trends that are used to inform decision-making and target specific actions that drive customers’ success and company performance.”
CX Analytics is essential to cutting through the biggest challenges companies have faced for years. Challenges that slow progress in the very area that is essential to growth and success.
With the help of data science, companies can:
Define the right CX metrics to measure. Standardized CX metrics exist, however, through our years of working across various industries, we’ve learned several approaches to CX measurement that better reflect a company’s performance. Ensuring CX metrics are tied to customer success and company value requires nuance and a deeper understanding of business.
Align insufficient, disparate, and disconnected data sets. It’s important to have data, but it’s critical to have connected, integrated, and holistic information that offers deeper and broader insights that tell the true story of the customer’s experience.
Uncover novel insights for targeted decision making. Thorough analysis uncovers specific root causes and effects and dives into the impact they have on the business. These novel insights are then used to address your unique CX problems and capitalize on opportunities – with the intention of delivering both qualitative and quantitative outcomes.
Identify and prioritize highest value CX investments. One of the biggest challenges we face in CX is sorting through the myriad of best practices to implement. With improved analytics capabilities, it’s far easier to identify which initiatives will have the largest positive impacts for customers and the company.
Improve confidence in CX return on investment (ROI). Another big concern for CX leaders is being able to prove that the dollars invested in CX initiatives individually and collectively across the company achieved a financially sound return on that investment.
Address lagging technology infrastructure. The fast paced, competitive nature of technology evolution places a demand on companies to accelerate the innovation of their digital environments. This allows you to simplify the customer experience, automate where it makes sense, and gather new insights about the customer.
Define cross-organization alignment and governance. Success for CX initiatives often depends on cross-company alignment. Without it, efforts can remain disconnected and will struggle with legacy technology, metrics, or siloed environments.
Stay tuned for part 2 as we explore customer experience challenges and share our common sense methods, innovative frameworks, and modern approach to Customer Experience Analytics. Want to speak with a RevGen CX expert? Contact us to schedule a quick chat.
Stephanie Caravajal is a manager at RevGen Partners specializing in customer experience. She is passionate about helping organizations create and manage successful CX programs while aligning CX initiatives to digital transformations.
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