From big data to actionable customer knowledge – still a challenge for most companies
The intelligent use of customer data in order to optimize customer experience management and to increase the effectiveness of marketing and sales campaigns is of rising importance – pushed by a new generation of analytics solutions in this field.
Admittedly, analyzing the customer experience is not a new topic. There has been a broad range of data analytics tools available in the market for years, supporting companies in identifying customer groups and gaining insights into their shopping activities. But while earlier solutions mostly made use of past customer interaction data, a new generation of Customer eXperience Analytics (CXA) solutions can be found today which show a tremendous potential to support companies in their data-driven approach.
- Real-time and predictive analytics tools can, for example, help to track customer actions with the aim to provide the right offering at the right time.
- Cognitive data tools can assist in drawing the most relevant conclusions from data and automatically initiating the right actions.
- Chatbots and robots may help customer service professionals to become more efficient and more proactive as some simple and standard tasks are taken over.
Technological AND organizational aspects to be considered
However, the potential of these advanced big data analytics technologies is far from being exploited. Due to entrenched internal IT landscapes, organizational structures and the existence of data silos, many companies are not yet well-prepared to make full use of sophisticated customer data analytics solutions.
And the adoption of CXA solutions should of course be an integral part of a holistic customer experience management approach. In this regard, it is worth noting that many customers still want to talk to a real person when making a request or a complaint. Thus it might be better to enhance customer service employees (with chatbots, robots e.g.), instead of replacing them by IT-only tools.
Last, but not least, there are data and privacy concerns to be considered. The more data is collected, the more customers are concerned about its use. If data leaks spotted by hackers or unauthorized use of customer data become public, CXA may even cause considerable damage to a company's image and lead to a substantial loss of customers.
Therefore, the successful implementation of CXA approaches requires a holistic strategy that addresses technical and organizational issues.
CXA trends, solutions and success factors
If you would like to find out more about trends, solutions and success factors related to customer experience analytics, please refer to PAC’s Market InSight report “Customer experience analytics – new ways to profound customer knowledge”. The report identifies the potential of data analytics technologies in customer experience optimization, describes some of the most important current and future technologies and trends in customer experience analytics (CXA), gives the major investment areas of IT user companies in CXA, and helps to understand the key success factors for applying CXA technologies.