Why Customer Data Analysis Is Important for Your Business
by Rawzaba HalabiPublished on August 28, 2019
Knowing your customers is essential to any business. However, only a few excel in truly understanding what their customer base wants. Luckily, customer data analysis can help to uncover a detailed view of a (potential) buyers by their online behavior. So, let’s see what goes into the process of customer tracking and why you need it.
What Is Customer Data Analysis
Customer data analysis is a method of following a person’s online trace to create a customer profile. That profile is later used to make decisions about customer retention, customer acquisition, and the ways to build reliable customer service. In other words, you should identify who your high-value customers are and how to interact with them.
How Customer Data Analysis Works
Since every insight demands large amounts of data, your customer data analysis has to gather as much as possible information about the people who visit your site. It consists of three key steps.
1. Market segmentation and predictive analytics
The first course of action in a customer data analysis of dividing your customers into sub-groups based on their shared traits. Both potential and existing customers come into consideration. It’s called market segmentation, and its primary goal is to discover which are the short-term and the long-term customers.
Predictive analytics, on the other hand, is the statistical techniques that make predictions about your customer’s behavior, their decisions, and their potential activity on your site.
Now, you segmented your potential and current customer base and activated predictive analytics. The next step is to take into consideration how this valuable data is going to improve customer service.
First, you’ll have to organize customer service training to teach your employees how to handle particular situations. Second, your training should go beyond the solutions for familiar outcomes. It will require continual customer education.
The latter is, in reality, highly underrated, whereas customer service training happens quite often. Nonetheless, it’s important to realize the difference between the two to create a better service culture.
2. Customer service training
Customer service training takes customer data analysis to teach the employees what their job is should they encounter a specific situation. The training gives them guidance, procedures, and answers to resolve possible issues.
It allows them to learn particular skills used in their line of work. The training, however, works only with the exact situations whose outcomes the employers already know.
If an employee passed their customer service training, it’s hard to determine whether they’ll be able to handle the unknown situations. Training qualifies the employees to have an exact reaction, while it fails to prepare them for managing the unexpected issues. It’s where customer service education comes into play.
3. Customer service education
A customer-centered approach is what your business needs to have a top-notch customer service. Moreover, your approach involves customer service education, where you have to teach your employees on the best course of action for unplanned events.
They also have to be able to implement these actions into the service they provide. Once your team members get to know the customers in various situations, they act accordingly to the situation and not necessarily follow the rules they learned in training.
Implementing Customer Service Education into Marketing Strategy
Customer service education should be an ongoing process that you provide for your employees. You will have to integrate it into your current marketing strategy with the following steps.
Know the Goal of Your Customer Education Plan
Being able to implement customer education in your strategy successfully first requires you to know the goal of your plan. There are a few benefits a customer education program does to your business.
It provides additional sales.
Fewer people have inquiries about your product.
More education improves customer retention.
How Your Post-Sales Look?
Think about the main point of contact if your product happens to be faulty. It is customer support. Customer data analysis can help you resolve those issues with little effort.
What’s more, each of your employees will know how to treat problems in different circumstances due to customer service education.
Think About What Changes You Need
Once you add customer service education into your strategy, your employees can track the progress themselves. They will be the ones to tell you which additional changes your company needs and what’s the best way to execute them.
Do You Use Customer Analytics in Your Business?
Customer data analysis gives your business an extraordinary advantage over your competitors. If you’re still unsure whether to include it into your marketing strategy, now is the right time to test it out.