Evaluating The Influence Of Data Analytics In Customer Service

In today’s scenario, with data being the most important asset of a company, the application of Big Data Analytics is far from just advantageous; it can really make or break a business.

Take for instance one very relatable aspect of a business – customer service. Amidst tough competition, a business that consistently offers exactly what its customers want always wins. So today, both big and small companies are now adopting data analytics in customer service to grab a larger share of the market.

But the question is, can data or customer analytics really enhance customer experience?

To answer this, we must refer to a study by Forbes where results show that:

• Nearly 58% of global companies have already experienced benefits by adopting data analytics in customer support.
• About 44% of businesses have gained new clients and also boosted revenues after integrating big data analytics into their customer-centric operations. (Source)

Now, let us try to find out how data analytics in customer experience is bringing about major changes.

How is data analytics transforming customer experience?

• Gauging customer expectations and needs

Predictive customer analytics helps businesses to forecast possible changes in market demands so that they can strategize accordingly well in advance. Besides, collecting customer data also reveals what else they are looking for, what their expectations are etc. This information is finally used to better their current products and services. Moreover, it also opens up opportunities to build newer and better products that can fulfill the changing needs of clients. It helps companies reduce the number of unhappy customers.

• Offer better personalization

Studies show that about 57% of financial services companies today employ real-time data analytics to offer personalized website content to customers. This is because the expectation of each individual is different – there is nothing like one size fits all, when it comes to customer requirements. With data analytics, as the exact needs of each customer are pinpointed, they can achieve a greater degree of personalization that fulfills all customer requirements to the T.
Experts at McKinsey & Company assert that with better personalization using advanced data analytics in customer support companies can fetch up to 8 times the ROI on marketing costs and boost sales by more than 10%.

• Customer complaint resolution

According to Forbes, 92% of customers say that after 3 to 4 unsatisfactory experiences with a certain brand, they would proactively look for a better option. With the advent of AI, an increasing number of companies are using chatbots on their websites to address customer queries and concerns. Apart from chatbots, smart call routing features are also being increasingly adopted to minimize customer wait times and expedite complaint resolution. The speedier the process and the more accurate the resolutions are, the better it scores in favor of the company.

A study by Forbes says that almost 60% of companies have experienced higher customer retention rates after integrating big data analytics in business operations.
So the impact of data analytics in customer service is indeed invaluable.