Customer Insights
Where, why, how, and what to do with your customer data
By Robin Anderson
The speed in which customers can access information on the internet puts pressure on companies to make it as easy as possible for customers to find them and get access to the desired content which then encourages them to take action. Any obstacle or delay, which includes simply loading your site, and they will quickly move on to the next thing. For companies looking to gain a competitive advantage, they have turned to using tools and data to help them plan, implement, and monitor their customer experience.
A strong customer experience is no longer a luxury, it’s an expectation. Even for startups. To become a customer-centric company requires you to take advantage of your customer data and to turn that into customer insights. Use this to improve your customer experience. Organizations that are leveraging their customer behavior data to generate insights outperform peers by 85 percent in sales growth and more than 25 percent in gross margin.
What are Customer Insights?
Customer insights are interpretations of quantitative and qualitative data gathered from customer feedback and other informational sources, which are then compiled and analyzed to inform business decisions. The goal is to identify behavioral trends to improve the effectiveness of marketing, sales, and service initiatives.
Why you need them
The purpose of using customer insights is to help you make better business decisions. Capturing and analyzing data can help you tailor your product so that it more closely meets the needs of your customers. Decisions such as what features to include and what features to hold for a later date can make a big difference in your development cycle.
Use data to help you see what messages resonates with your customers and what gets little to no response. Extend that effort to provide customers with a personalized purchasing experience - making recommendations for additional consideration. Take a look at how well your customer support is able to help resolve a customer’s issue.
We know it costs 5 times more to attract a new customer than to retain, and customers today expect to have a positive experience, keep them happy and save money. Companies that analyze their customer data to glean insights outperform their competitors by 85% in sales growth and 25% in gross margin.
Benefits of capturing customer data
Today’s customers are more informed - they are looking for that authentic and personalized experience. The good news - they will pay more for a great experience. 9 out of 10 customers (89%) would walk away following a poor customer experience and began doing business with a competitor. And with the prevalence of social media, that poor experience is likely to be shared with many. Capturing and using data to improve the customer experience is essenti
In addition to delivering a better customer experience, additional benefits of having customer insights include:
Being able to better plan your inventory levels
Predict churn
Learn which marketing tactics compel customers to buy
Find out what obstacles your customers are encountering when it comes to purchase
Drives customer loyalty which leads to repeat purchases and greater referrals.
“If you don’t listen to your customers, someone else will.”
What insights can you gather?
There are a number of ways you can gather feedback from your customers. Look at customer feedback such as product and service reviews. And while customers may be hesitant to respond to requests for feedback, consider the various approaches available to find the one that will best suit your customer. Other customer feedback approaches include:
Send an email following purchase
Use a pop-up when they complete a purchase
Send a survey to your e-newsletter list
Encourage your social media followers to share/respond
Conduct 1:1 interviews
Review live chat transcripts from your customer support team
How to turn your insights into action
Taking advantage of market automation systems can help you to track the status of your customer, where they are in the customer journey. Look for areas of obstruction, then find ways to make the process as they move through the funnel more seamless and enjoyable.
Example
How McDonald’s is using customer feedback
McDonald’s was experiencing a decline in customer satisfaction and sales in 2013. In 2014 they focused their efforts to improve customer service. Using customer insights, they learned that customers wanted innovation and customization (ie. gluten-free hamburger with locally grown produce). Based on the data, McDonald’s implemented burger customization with premium ingredients, self-order kiosks, improved their mobile-ordering services, and included table service in some locations.
One of the best ways to gain a loyal customer is to provide great customer service. Use data to ensure that your support is meeting their needs. This includes:
Rapid Response Times
Provide self service tools such as a knowledge base/FAQs
Know the ideal way for your customer to reach you (phone, email, social media)
Example
See what Santa Cruz Bicycle did when it experience sudden growth and their support team maxed out.
Santa Cruz Bicycle added customer service tools to help their support team. They recorded data on customer issues, and highlighted the most common problems. The created an email alias with a shared inbox so customers could reach them easily. The new tools also allowed the company to monitor their customer satisfaction level as they continued to grow.
With customers increasingly looking for personalized experiences, using analytics to customize that experience and make it a priority.
Example
Read how Sephora uses data to ensure their marketing is on target.
Sephora personalizes a customer’s digital experience. Their customer loyalty rewards recommends products based on the customer’s past purchases as well as browsing activity. They also provide an area of ‘new products’ specific to each customer’s history. Their approach to using data to drive their efforts have led to great customer loyalty.
Don’t miss out - the data is there, along with plenty of free tools that allow you to capture and analyze that data. Take a step back and determine what you need to do to make sure you provide a positive customer experience at every touchpoint with your company. From the time they become aware of your product, your brand, to completing a purchase, along with obtaining customer support. Talk to your customers, listen to what they have to say. Interact with them. Then use data to make their experience remarkable. It’s no longer a luxury, but a necessity.
“Listen to customers and you will hear them. Look carefully at customers and you will see them. Do both and you will understand them.”
Need help understanding what marketing and website data you need to capture and track? Take a look at our blog, The KPI’s every startup should track - Marketing KPIs and Web Analytics.
FunFact Friday
Starbucks debuted their pumpkin spice latte (PSL™) in 2003 as a way to extend the success of their limited edition winter drinks such as Peppermint Mocha. Some may wonder why Starbucks continues to rollout the PSL earlier and earlier in the calendar year. After 18 years since it was introduced, Starbucks continues to experience an increase in weekly foot traffic into their store fronts. CNBC has estimated that Starbucks has sold over 424 cups of PSL.