How Do You Unlock the Value of Customer Insights?
When I thought about this topic, the first thought that came to my mind was, “Are we losing customer insights?”
Often, we don’t talk to our customers to understand the insights and act on them.
Let me explain this.
There lived a shopkeeper named Sheran – she ran a small, charming store that had been in her family for generations.
The business was good, but a curious problem bothered her for quite some time.
One morning, when Sheran was stocking her shelves with freshly baked goods, she noticed a group of loyal customers chatting outside her store. They seemed happy and engaged, but Sheran couldn’t help but wonder what brought them to her store every day.
Sheran decided to converse with her customers to understand this. She introduced herself and asked, “I’m curious, why do you choose to shop at my store every day, and what do you like the most about it?”
The customers shared their thoughts:
- An elderly lady said, “I come here because your store reminds me of the one I used to visit with my parents when I was a little girl. It feels like home.”
- A young entrepreneur explained, “Your store is always well-stocked, and your staff is so friendly and helpful. It’s convenient for me.”
- A student said, “I love how your store looks on Instagram. It’s so cute, and I can find unique snacks and treats.”
Sheran was surprised by the variety of reasons – some valued the nostalgia and comfort, while others appreciated the convenience and aesthetics.
This insight was like a hidden treasure, and it got her thinking.
She decided to create a simple suggestion box near the entrance. She encouraged customers to drop in their feedback and share their thoughts about the store. She even offered a small discount to those who participated.
Soon, the suggestion box was filled with notes from customers. Some customers wished for more gluten-free products, while others wanted extended opening hours.
Sheran began to act on these insights.
She expanded her product range to include more gluten-free options and adjusted her store hours to accommodate early-morning and late-night shoppers.
The results were astounding. Customer satisfaction soared, the shop became a gathering place for the community, and many new faces joined the group of regular customers.
Sheran realized the importance of customer insights. They were like a guiding star, helping her better understand her customer’s needs and preferences.
How Do Customer Insights Improve the Customer Experience and Your Business?
Sheran’s example gives us a clear view of how customer insights can help a business. Let us look at another example of how customer insights can be used in a large-scale operation.
Imagine a retail company that operates an online e-commerce website. They noticed a drop in online sales and wanted to understand why customers were not completing their purchases.
Here’s how they collected customer insights and acted on them:
1. Data Collection
Behavioral Data Analysis
The retailer began by analyzing website behavior.
They tracked what products customers were viewing, how long they stayed on the site, and at what point they abandoned their shopping carts.
They also monitored which web pages had the most engagement.
Demographics and Segmentation
They collected demographic information like age, location, and gender through customer profiles and purchase history. Segmentation allowed them to group customers based on these characteristics.
Customer Journey Mapping
They created a detailed customer journey map that visualized every touchpoint in the online shopping process.
This included the discovery phase, product selection, checkout, and post-purchase interactions.
Contact Center Data Mining
They reviewed customer interactions with their contact center, including chats, emails, and phone calls. This provided insights into common customer issues and pain points.
They initiated post-purchase surveys and feedback forms, asking customers about their online shopping experience, reasons for abandonment, and what improvements they would suggest.
2. Insights Gathering
Analyzing the collected data, the company uncovered several insights:
They discovered that a significant number of customers abandoned their shopping carts during the checkout process, particularly after seeing the final price, which included shipping fees.
Mobile Vs. Desktop
Insights showed that mobile users tended to abandon their carts more often than desktop users. They found that mobile users faced navigation and payment issues.
The data revealed that younger customers were more price-sensitive and would abandon their carts if additional fees were applied. Older customers, on the other hand, valued a seamless checkout process.
Contact Center Pain Points
Inquiry mining revealed recurring customer complaints about difficulty tracking orders and slow response times from the contact center.
3. Acting on Insights
With these insights, the retailer took several actions to improve the online shopping experience.
They addressed the cart abandonment issue by offering free shipping for orders above a certain amount and displaying shipping costs upfront.
They invested in optimizing the mobile shopping experience by improving the website’s mobile responsiveness and creating a user-friendly app.
They tailored marketing campaigns and discounts based on customer demographics, aligning their offerings with what each age group valued the most.
Contact Center Improvements
To tackle slow response times and tracking issues, the company revamped its contact center operations, hired more staff, and implemented an automated order-tracking system.
4. Monitoring and Feedback Loop
The retailer continued to collect data and monitor the impact of these changes. They tracked vital metrics such as cart abandonment rates, sales figures, and customer satisfaction scores.
Over time, the retailer observed a significant decrease in cart abandonment rates, increased mobile sales, and improved customer satisfaction. Sales revenue from their e-commerce platform began to grow, and they retained more customers by addressing their specific needs.
In essence, customer insights are the compass that guides a business on its journey to success. They illuminate the path to customer satisfaction, loyalty, and sustainable growth.
To neglect these insights is to miss out on a wealth of opportunities for improvement and success.
Therefore, in the ever-evolving business landscape, it is not merely beneficial but crucial to listen to your customers, act on their insights, and continually refine your approach to meet their needs and exceed their expectations.