In today’s multichannel economy, data-driven customer experiences (CX) are crucial to companies’ future growth. According to a Forbes Insight report, Data Elevates The Customer Experience, the benefits of providing data-driven CX are wide-ranging, including enhanced revenue generation and enabled cost reduction, as well as accelerating process efficiencies and quality improvements. However, many organizations are still working toward sharing data across applications and departments.
Business leaders understand the importance of data-driven CX. Of the 357 executives of large organizations surveyed, more than half (52%) reported “a well-developed and designed enterprise data analytics effort enables us to deliver a superior customer experience.” Another one-third (34%) said they “are rapidly and systematically developing data analytics capabilities to improve our customer experience.” Even those who are still developing their customer analytics capabilities (17%) expect to catch up within the next two years, the report noted.
The survey measured organizations’ data-driven CX progress based on three main components: organization (people), openness (data) and orchestration (process).
In the area of organization, the survey found that most business leaders grasp the importance of analytics. For example, the survey found that:
- 57% of respondents said business executives at their company understand the importance of enterprise-level data analytics “extremely well;”
- 62% said the use of data analytics has led to faster decision-making; and
- 58% said their company “employs metrics to measure the impact and success rates of customer engagements.”
In the area of openness, the survey found that companies still have a long way to go to ensure that essential data, applications and systems are being shared across enterprises to achieve a superior data-driven CX. Of those surveyed:
- Only 36% said their data is “highly integrated” in real-time across all customer channels.
- Only 14% said their customer data “is cross-functional and comprises fully synchronized data stores, structured to support the full range of marketing analyses, campaign management, real-time processing, query sandboxes and BI reporting.”
- The majority of respondents (38%) said they have a view of their customers’ interactions, transactions and requests a little more than half (51-75%) of the time.
In the orchestration category, executives report they have made progress in linking back-end processes with front-end services or interfaces. However, there is more work to do. For example:
- Only 47% said their key customer channel data is “highly integrated” with back-end processes (such as CRM and ERP).
- Only 41% said the people involved in back-end processes are “highly involved” in CX activities.
“The use of data analytics enables us to make relevant marketing offers to customers in their preferred channel based on prior purchase behavior and other customer characteristics,” said Sanjay Sidhwani, SVP of Marketing Analytics for Synchrony Financial, in the report. “We are now using SKU, category and merchant category data to anticipate customer needs and serve relevant content in marketing communications. We also use behavioral data in our customer-service operations to improve the customer service experience. We expect to further improve the customer experience by creating a single view of all customer relationships and enabling all customer interactions with the relevant data.”