Customer experience analytics: Separating hype from fact
Customer experience analytics: Separating hype from fact 11/29/2011
By Donna Fluss
Analytics and cloud-based or hosted offerings are the buzzwords of the day in the IT world. Vendors promote their offerings by claiming that they fall into one or both of these categories. While its good to know that an option is available in the cloud, it doesnt have anything to do with the capabilities of the application, just the delivery mechanism. And if all offerings provide customer experience analytics, as now seems to be the case, its difficult to differentiate one from another.
The contact center technology sector is suffering from analytics-itis”; so much so that its challenging for enterprise and contact center leaders and managers to figure out what they need to improve the performance of their departments, since the messaging from the various vendors sounds so similar.
There are significant functional and usability differences among many (but not all) of the customer experience analytics options that have been introduced into the market during the past five years, even if vendors are not doing a great job of communicating the differentiators. Companies also need to appreciate that a vendors experience, know-how and best practices are critical in helping organizations realize the benefits from these applications. How users avail themselves of these resources generally explains why one companys implementation succeeds while a similar one fails.
Here is a list of some of the customer experience analytics applications that have been introduced during the last few years to help companies improve the customer experience and how they should be used.
High-value analytics applications for improving the customer experience
|Cross-channel analytics||Identifies and evaluates the various channels that customers use to interact with an organization||Helps organizations determine the channels to use to optimize interactions with their customers||Sales and marketing||Usually uses input from other analytics applications (e.g., speech, text and desktop analytics)|
|Self-service analytics||Evaluates the customer experience in all self-service channels, primarily Web and interactive voice response, to determine what is and is not working well||Identifies ways to improve self-service applications to eliminate issues that annoy customers and discourage the use of cost-effective self-service tools||Customer service, contact center, marketing and sales|
|Predictive analytics||Identifies the most effective approaches for communicating with customers to optimize sales, service and collections interactions||Improves the customer experience while increasing sales and collections revenue and reducing average handle time and operating expenses||Customer service, contact center, sales and marketing|
While worldwide economic challenges over the next 12 to 24 months will likely drive companies to hunker down and reduce IT investments, DMG recommends that organizations consider investing in one or two of these applications to help them survive and possibly even thrive. Keep in mind that during troubled times, customers want to be reassured by their service providers, especially those in financial services, health care, insurance and telecom. These industries need to prepare for an increase in traffic from customers, prospects and the general public. They should also anticipate changes in how the interactions arrive, as social media is going to have a growing impact on their organizations during the next five years (see DMGs Benchmark Study on the impact of social media on customer service).
Customer experience analytics applications are capable of making major contributions to contact center management and enterprise performance. Companies should use this list to identify two or three customer experience analytics applications that have the most potential to help them improve profitability while enhancing the customer experience. What should be clear from this list is that, while many of these applications are sold to contact centers, their benefits are much farther reaching, and they should be viewed as enterprise applications.