How much more likely would you be to use a particular online travel site to book a hotel or flight if its search results more closely matched your preferences? By analyzing more than 14 days of customer behavioral history and applying predictive and prescriptive analytics, one travel company managed to increase bookings by 2.6% or 50,000 additional transactions a day.
By 2020, more than 40% of all data analytics projects will relate to an aspect of customer experience.
“Investing in customer analytics will help you understand customer’s needs, satisfaction and value, and allow you to create a great experience for them,” says Melissa Davis, research director at Gartner. By 2020, Gartner predicts that more than 40% of all data analytics projects will relate to an aspect of customer experience. Unfortunately, data and analytics leaders often receive requests with broad objectives such as "deliver the most value from customer data," rather than specific requests grounded in business outcomes.
Follow these three steps to deliver business outcomes through customer analytics:
1. Prioritize the use cases that deliver the most value
Starting with a sea of data can be overwhelming. The best approach is to identify the business need and select up to three of the most requested use cases across the organization that most closely meet your business objectives. Use cases might include optimizing marketing promotions, optimizing sales leads or improving the quality of customer service.
“For example, if your desired outcome is to increase or avoid losing revenue and your business discipline is customer service, select a relevant use case such as ‘reduce customer churn’, says Davis. “Next, identify the types of data to acquire, such as the customer’s interaction history (purchases and call center interactions) and profile data. Finally, select the analytics to apply.”