You know customer data matters, and you're collecting it across key touchpoints — but do you know how to use it to boost your revenue?
You know the benefits of getting to know your customers. Better engagement, higher loyalty rates and market insight are just a few of the advantages you expect from collecting customer data.
Once you have your customer data, though, what are you doing with it? If you're like a majority of companies out there, there may be more options for using that insight than you realize.
Here are five ways your customer data can give you a leg up.
1. Connect CX Data to Financial Results
Thanks to tracking buying habits and conducting customer feedback surveys, you know your customers well. You have a dialogue with them, you know their characteristics and you regularly see helpful insights in the data.
Connect that with financial results for even more impact on your company’s bottom line.
- What offerings do your customers regularly rave about?
- What offerings do they say need improvement?
- After each survey, do customers go on to purchase another product or service from you? If so, which one?
- Is one of your competitors frequently mentioned in customer feedback surveys?
2. Understand the competition
Customer data can also give you insight on your competition. Pay attention to what your customers are saying about the competitive landscape. Also pay attention to customers’ buying behavior with competitors.
Do your customers or prospective customers also frequently buy from one or two of your competitors? If so, what is that competitor doing that’s different from you?
Use this intelligence to understand your customers and your market better. You can innovate from this position.
3. Link Employee Engagement With Customer Engagement
Consider what customers are saying about each of your departments.
Is there one department that is getting more negative feedback than others? If so, this might be a sign that this department is experiencing low employee engagement.
There is a direct correlation between employee engagement and customer engagement. When you improve your employee engagement, you will improve customer loyalty.
Remember, engaged employees create loyal customers. And according to the White House Office of Consumer Affairs, loyal customers are worth up to 10 times as much as their first purchase.
4. Create Demand Based on Customer Insight
Apple is the classic example of a company that used foresight to create massive customer demand. But they didn’t pull this information out of thin air.
They got to know their customers.
Apple is able to predict what their customers want and what they’re willing to pay for it because they got the facts (the customer data) first. The new Apple Watch might not be the most perfect piece of technology on the market yet, but there is already a huge demand for it among Apple fans because Apple knows their customers – and their customers know this.
5. Use Customer Data to Innovate
Well-rounded customer data is a combination of buying data and customer feedback. And well-rounded customer data is a key to innovation.
- What are your customers buying?
- How are they buying it?
- What are they saying about their purchases?
This insight will tell you exactly what your next move should be. Innovation is 50% inspiration and 50% intelligence.
If you use customer data correctly, it can do wonders for your business. Most companies aren't yet getting the most ROI from customer data analytics. But if you can do the things above, you’ll find that your data will not only drive sales and revenue but it may transform your competitive edge.
P.S. If you need help collecting customer data and getting the most out of it click here.