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19 August 2020

Leveraging Data to Improve CX Transformation

In today’s world, it is important to address customers’ needs at the center of your business, and a smart CX is a key to keeping your customers engaged and happy. A recent Forbes Magazine article reports that market leaders share a common approach to improve their customer experience. They are using data, focusing on personalization, and recognizing that when employees and systems know everything about every customer interaction over time, they can provide better service and support. To improve CX transformation, businesses need to start leveraging insights from Big Data. True competitive advantage lies in the use of advanced analytics to create an engaging Customer Experience (CX).

Recognize customers interests and drive success through personalization

Customers today don’t want good products and services. Instead, they want products and services that are personalized to save time, recognize their interests or preferences, and are convenient for them. Businesses are now expected to provide not a market segmentation, but a singular user experience. This expectation from the customers will be impossible to fulfill without Big Data analytics. Business leaders such as Spotify, Netflix, and Amazon have been using the art of personalization perfectly, suggesting books, TV shows, and songs that fit their users’ distinct tastes. Learning from this success story, it is also very important for businesses to recognize customers' interests and drive CX success through personalization with Big Data.

Know what is not working and immediately fix the issues

Businesses today are very competitive. There are simply too many options available for customers to choose in the market, therefore it is unlikely for customers to choose a product or a service with a poor CX. Based on a study by eTouchPoint, while 80% of companies believe they are providing great customer experience (CX), only 8% of their customers actually agree. To close this perception gap, businesses need to better listen to customers’ voices and improve CX. Big Data can be used to help you understand what is not working with your products and services and therefore you can immediately fix the issues and maintain your good CX.

Focus on decision making, not only the data acquisition

Today’s market is moving faster than ever, and your customers are producing data faster, as well. Research shows that 80% of data is “dark and untouched, meaning it is never actually used to make improvements or changes necessary to enhance CX. Many companies are too busy to collect data, without actually using it for data-driven decision making. In a recent study by SAS, they found that only 23% of companies were able to integrate customer insights in real-time. To gain a competitive advantage from Big Data, you need to focus more on the decision making rather than on the data acquisition. Companies like Netflix are using their huge amount of data to determine their targeted advertising by sending viewers recommendations on what movies to watch next based on their past search. Another example is UOB, which is using Big Data to create a risk management system that reduces the calculation time of its total-bank risk (value at risk) from hours to only a few minutes.

In 2020, CX is surpassing the price and product as the top brand differentiator. Therefore it is very important for companies to get the support required from Big Data Analytics in Indonesia. Big Data can help you improve the CX transformation in your company by focusing on personalization, data-driven decision making, and responding to your customers faster.

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