Are you wondering how your competitors are doing great when both of you are sharing the same marketplace? Well, the secret lies in having a better understanding of the customers’ pain points and providing right solution for their challenges.
Today’s businesses are facing higher competition than ever before and are at constant risk of losing both clients and money if they don’t add value to customers, provide them personalized experience, or solve their challenges. This is where “customer data” is taking center stage.
You Need the Right Data, Not Just Any Data
So, here’s the catch: it’s paramount to understand which data needs to be analyzed and for what. Businesses need a Big Data strategy in order to identify what should be improved and develop effective strategies accordingly.
But What is Big Data?
Big Data refers to the large volume of raw data, both structured and unstructured. It is comprised of the 3Vs: volume of information, the velocity at which it is collected, and the variety of the data points covered.
Customer Experience (CX) is Imperative to a Business Success
As per a report, by 2020 customer experience (CX) will overtake both price and product as the key differentiator for brands1.
Customer experience can be defined as the overall perception customers have of each touch-point, from navigating the website to talking to the customer service desk.
It has always been one of the most buzzed-about topics of all-time for businesses all over the world. As customers these days are hyper-informed, enterprises are trying hard to personalize a customer’s journey by putting them at the center of digital transformation. However, the challenge is to not only provide a personalized experience but to also provide a seamless experience on a massive scale.
Data is Critical to Customer Experience
Reports Suggests- 97 percent of businesses are using data to power their business opportunities, and 76 percent of businesses are using data as an integral part of forming a business strategy2.
Those numbers are astounding, aren’t they? In order to improve your customer experience, it’s crucial to understand the customer journey in relation to your brand. Only then can you identify the points of friction to be fixed, or moments of delight that can be further built upon. Analyzing data is paramount to gleaning these insights and building out future business possibilities. Here’s how harnessing data helps to improve the bottom line of your business:
1. Identifying customer’s needs & preferences- the only way to understand a customer’s needs and offer them personalized choices is through data. Using polls and surveys to collect real-time data can help to understand a customer’s preferences.
2. Easy understanding of a customer’s behavioral pattern- it is crucial to learn about the target audiences, as well their behavioral patterns when it comes to offering them personalized customer experiences.
3. Enables you to respond faster- responding to qualitative data such as customer feedback, reviews, social media comments, recommendations etc. make a customer feel that their opinion matters, and businesses are considering their feedback seriously.
4. Better understanding of the market-
Businesses can harness the power of data to have a better understanding of the market and what is or isn’t working. If a product received a colder response than you had expected, then it’s probably time to go back and do some homework by analyzing the negative responses as to why it didn’t work and how to improve next time.
5. Optimized pricing models-
price optimization is understanding customers’ reactions to various pricing strategies by leveraging data and deciding the best price for any product or service. Pricing models are drafted based upon factors like competition, cost, customer type, geography etc. Having all these data in place helps in fixing competitive pricing with maximized revenues.
Data-driven organizations perform better on a wide range of metrics. They are 23 times more likely to acquire customers than non-data-driven companies, six times as likely to retain these customers, and, therefore 19 times as likely to be profitable3
It’s not an exaggeration to say that data has become one of the most valuable resources in the world, perhaps even more than oil. Given the invaluable insights and business opportunities that can be harnessed with data, would you still ignore the power of a data-driven strategy for your business?
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