Customers are the lifeblood of any business, which means companies are deeply invested in keeping them as happy as possible. But to improve the customer experience, business leaders need a clear understanding of what their customers want and need. Relying on assumptions rather than facts about customers is a costly mistake businesses in 2023 simply can’t afford to make. So what do they do? They turn to customer experience software.
This software gives companies unprecedented insights into their customers’ thoughts and feelings throughout the customer journey. Leaders within those companies can then use that information to take direct action toward improving the customer experience. Given the popularity and potential of customer analytics applications, it’s worth exploring them in greater depth.
How Businesses Use Customer Analytics Applications
Businesses use customer analytics applications in a wide variety of ways. Some of the valuable use cases for customer analytics applications include the following.
Real-time Product Feedback
It’s one thing to create products that you think your customers will like. It’s another thing to hear what your customers actually think about your products. Customer experience monitoring software allows you to gauge your customers’ response to products in real time so you know exactly how they feel. No more guesswork.
This product feedback is used to tweak your current product offerings or simply incorporate the feedback into future product development. It tells you what aspects of your current products are important to your customers and which they ignore or dislike. Say one of your products is performing well, for instance, you might increase its price to capitalize on that popularity.
By collecting and analyzing real-time shopping behavior, customer experience software can predict trends in demand for your various products. The software finds trends in broad customer shopping behavior as well as trends in each customer’s buying patterns. You can apply these insights to forecast demand, first and foremost, but also to better tailor your sales and marketing efforts.
Present your most profitable customers with special offers for products they’re likely to enjoy, for example. Without this software, you’d essentially just be guessing, but customer analysis software helps you make data-driven decisions.
Separating customers into smaller groups — called segments — based on shared characteristics like age, location, purchase history, or interests is a tried-and-true marketing strategy. Of course, to effectively segment customers, you need to gather and analyze data on customers so you can group them into meaningful categories. Customer experience monitoring offers new data analysis of customer behavior for additional segmentation opportunities.
Group customers into segments of those who had largely positive, largely negative, or neutral interactions with your brand in the past, for example. From there, you can tailor your marketing efforts to address their different perspectives on your company and hopefully address any issues they have for better customer retention.
Improving the Sales Process
No two leads are created equal. While some leads are promising offering high customer lifetime value (CLV), others are less likely to amount to a sale. The problem for businesses is that it can be difficult to tell these types of leads apart at first glance. Luckily, customer analytics applications can give you this information. These applications offer unique insights into which leads are most promising so your sales team can focus their efforts accordingly.
You can also use these applications to gain other insights into your sales process such as your average close ratios, the expected revenue you’ll make off of leads current in your sales pipeline, and more.
Perhaps one less obvious application of customer experience monitoring software is competitor analysis. You need to understand what your competitors are doing well and where they’re struggling just like you need to understand what’s working and what’s not within your own company. Customer experience monitoring software can help with that.
Use the software to gain insight into how customers feel about your competitors. How do your competitors’ customers respond to their marketing tactics? What features of their products do customers care about? Which of their products do customers review negatively? All of this information can help you stay ahead of your competitors and ensure your company positions itself properly in the market.
Where are Customer Analytics Applications Rising in Popularity?
It’s safe to say that in 2023, customer experience monitoring software is on the rise. The industry was valued at around 21 billion in 2022 and is projected to reach a market size of over 70 billion by 2028. That’s an incredible compound annual growth rate (CAGR) of 22.09%, much higher than the average across industries. More and more enterprises are adopting this software and incorporating it into the way they do business.
Some key players in the industry include Oracle, IBM, Cisco, Qualtrics, and Live Earth as Customer Experience platforms for enterprise organizations. But why are customer analytics applications like these rising in popularity? With the growth of big data, business leaders are increasingly recognizing the value of data and, more specifically, data analytics. All this data on customers and how they feel about brands and their products is out there, but it’s not easy to extract value from that data alone. Brands are turning to customer analytics applications because they offer a simple, accessible solution for gathering and applying that data. Their businesses benefit, and the initial investment pays tangible dividends.
Customer analytics software can provide invaluable insights into your customers’ thoughts and feelings about your business. Companies across industries are increasingly adopting this software. Enterprises that don’t take advantage of its potential risk getting left behind by their competitors. You have to make the most of your data to stay ahead in business in 2023, and customer experience monitoring is a key part of that. Contact Live Earth to learn more about the power of real-time data analysis to improve the customer experience and, with it, your overall business performance.