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Why predictive analytics is integral to the future of CX
CloudCherry | Featured | January 22, 2018
Customers today expect brands to be one step ahead of them. That implies that they are looking for experiences that are accompanied by the ‘wow’ factor. To deliver on these expectations, however, the pre-requisite is that organizations need to be proactive. More than having the ability to understand what customers need today, brands have to predict what customers want tomorrow. Sounds tricky but this is a core differentiator in the marketspace. It is also one of the few ways you can make the customer go ‘Wow! This brand knows what I need every single time!’.
So, how do you anticipate customer needs, trends and behavior? How do you stay on top of what’s in and out of trend, and what’s about to become the next big thing? The answer lies in predictive analytics!
Historically, analytics has been serving as a conduit between brands and customers. It helps brands get to know their customers, their shopping patterns, and much more. Analytics as a function has been evolving, just like the customer, over time. It incorporates various technologies to give organizations the decisive edge they need today. And predictive analytics is one of the tools that aims to do exactly that.
For modern-day CX programs to be successful in the long run, it needs to be backed by a powerful analytics engine. As much as accuracy and speed of customer insights are critical in creating great experiences, so is the nature of insights. So, if the insights you generate aren’t future-looking, your CX strategies might soon turn obsolete.
A staggering 87% of customers want to be contacted proactively by a company, in matters relating to customer service. This was revealed in a study initiated by inContact. The same study also showed that 73% of those who were contacted proactively and had a positive experience on the call with the representative felt a positive change in perception towards the brand.
Hence, the need to go predictive!
Predictive analytics involves analyzing existing customer data and delivering futuristic insights that instruct you tangibly on how CX initiatives will impact financial outcomes.
It goes deeper than saying ‘doing X will result in Y’. Assess individual CX improvement strategies to map its wider impact on customers, employees, loyalty, as well as profitability. An effective predictive engine takes into consideration multiple factors – ranging from product quality to staff efficiency – that influence customer experience to help elaborately plan out strategies that drive customer loyalty, retention and revenue.
How does improving online website experience influence customer repeat purchase? What if you work on staff efficiency and improve it by 15%? How does this impact revenue? Attach metrics to every decision that impacts the end consumer and study them to see if they are viable in the short as well as the long run.
Furthermore, identify the potential business detractors, passives and promoters can bring to the table. Is it worth the time and effort to turn your passives into promoters? Or would your organization be better off at turning a larger profit by following up with detractors instead? Also, map your strategic investments with specific customer cohorts. For instance, derive insights such as ‘improving variety and quality of products by 50% at your retail store can turn 60% of detractors into promoters’
With predictive analytics, the possibilities are infinite.
–> Generate pathbreaking insights that help you stay ahead of the curve in terms of customer behavior and purchase patterns–> Create multiple what-if scenarios, and analyze tangible end outcomes before deciding on the most profitable CX initiatives–> Prioritize follow-ups and driving engagement with customer cohorts to improve customer loyalty and retention–> Serve customers proactively by taking accurate data-driven decisions and knowing what they exactly need well in advance
Knowing in advance what your customers want is a strong and definitive weapon to possess in the CX battleground. It not only gives more reason for the customer to stay with your brand but also puts you miles ahead of competition. Investing in predictive also helps save resources (time and money) since you’ll be well aware of the financial outcome associated with a particular CX investment. What better time to race ahead and ace customer experience?