Customers are at the heart of many organisations, it’s no surprise that organisations are looking to leverage their customer data to provide a better customer experience, whilst benefitting from retaining and growing these customer accounts.
We’ll look in to how you go about using the data you know about your customers to provide them with a better experience, and increase your commercial offerings alongside this.
We have seen the rise of companies such as Amazon & Netflix, who inherently aren’t data companies at heart, but have leveraged large amounts of customer data as their primary asset to change the way the operate to deliver a tailored personalisation experience to their customers.
It’s no wonder that Jeff Bezos, Founder of Amazon, is the richest man in the world with a net worth of $113 billion (https://www.forbes.com/stories/ten-richest-people-in-the-world-2020/), he has taken his customer data and analysed it in every aspect of his business from selling books on the original book store, to shaping the future of retail with the Amazon Marketplace.
We’re all aware that Amazon is a leader in predicting what we may want in the future, before we even knew we wanted it. How they achieve this, is by building a picture of your Digital DNA, and fit you into customer profiles by matching you up to users of similar demographics and buying behaviour.
Some argue that this could be an invasion of privacy, however Amazon suggest that they want to start with the customer, and work backwards, to build a service that is focused around the customer, delivers an experience that makes them delighted to use the service. Something I’m sure we all aspire to.
Netflix has experienced exponential growth over the years, and have been using the data they have collected, not only to drive what content they produce, but also to define the user experience, again by recommending appropriate content to their users based on their usage and history.
House of Cards, a Netflix original series, was born out of, and was supported by such analysis of users’ streaming habits, which allowed them not only to take the plunge on creating the first 2 series, but also renew for a total of 6 series based on user ratings.
This can be seen as the next generation of tailored content, specific to users based on their demographics and streaming habits, with a large focus on the user experience, to ensure that customers continue their subscriptions, as well as grow their user base.
How can you follow suit?
So, what can we learn from these examples, how can your organisation benefit from analysing your customer data, and how can you start on your journey to delivering an amazing customer experience.
- Capture data about your users / customers
It is evident from the examples above, that Amazon and Netflix both have swathes of data about their customer usage, and have used this to create a better service and obtain a competitive advantage.
Challenge yourself, what data can I morally collect from my customers? (And how? Between identifying the data to collect, and consolidate data, there is also the critical part which is how – e.g. with what system – can they collect these data.)
- Demographic information,
- Shopping locations,
- Home location,
- Browsing history,
- Interests & Dislikes,
- Devices used to visit your site or run your application,
- IP addresses?
- Build a centralised data model – Pull together internal data sources throughout your organisation, not just your department
Do you have a picture of your customer information across the Sales, Operations, Finance, Support functions?
Having this data in a centralised repository such as a Data Warehouse (TrueCue platform) will allow you to generate an overarching view of your customer and start building the Digital DNA of your customers.
Picture yourself in the sales or customer success team, dealing with a customer who is due to have a renewal on your service, having a view on Support tickets raised may give you an indication as to whether the customer is happy with the service they are receiving and their likelihood to renew. Knowing that there may be an issue, you may choose to stage an intervention prior to the renewal to ensure the customer is receiving the service they require, leading to a successful renewal.
- Use external data to supplement your internal data model
There are a myriad of external sources available to tap into with a call of an API, some of which may not be immediately obvious how they can help support the
I would suggest another challenge, what external data sources can you leverage to get a deeper understanding of your customers? Consider the below datasets, could this enhance your internal data with additional insights?
- Twitter – Can you leverage twitter data to analyse the sentiments of posts about your organisation?
- Linked in – Are they posting about particular areas of interest, or competitor companies
- Stock prices – if publicly listed, how has recent economic events affected their business
- 3rd party suppliers
- Build a customer profile, segment your customers
Build up a view of your customers, based on the information available to you internally & externally around demographic information, usage detail, likes and dislikes. Then segment your customers into sub groups that have similar traits or behaviours.
We discuss this further in our blog “Methods for Effective Customer Segmentation”.
- Analyse the data
Build analytics and data visualisations that allow the data to be consumed by many within the organisation. Search for answers to hypothesis you may have about your customers. With Dynamic data visualisation tools such as Tableau or PowerBi, exploring this data can be fun, and unlock insights which may lead to changes in how you service your customer.
- Build predictive models
You can leverage your centralised data model to run predictive algorithms to predict future customer behaviour, and allow you to identify the early warning signs that you need to act upon.
We explore this further in our blog “Using Data and Machine Learning to Improve ROI for Customer Retention”.
- Share & disseminate the analysis to those on the front line
Remove the frustration for the customers having to repeat information – how many times have you been on a phone call with an organisation, who pass you from pillar to post, having to repeat the same information several times.
Remove that frustration by Sharing the data analytics, data visualisations and the outputs from your data models with the teams that interact with the customer, so everyone has all the information they need to know about the customer. These front
- Take action
Use the insights that you’ve identified to make changes to the way you operate, offer up services and products to the customer that they may want & need.
Stage interventions where necessary, to ensure the customer is always receiving the best form of service from your organisation.
“I love working in data analytics, it always presents new challenges, and I thrive on solving each problem with data, aiming to delight our clients.”