12 min. read


Analytics For Customer Experience in Details

Analytics For Customer Experience in Details



If you've dealt with designing or visualizing certain projects at least a little, you've certainly come across the term User Experience. It is a term used to define what affects the reception of our custom mobile application, creative visualization, or web application.

User Experience is a vast topic that can be discussed endlessly, and it has many factors and rules; we even included a few golden rules of UX in one of our articles. Therefore, the article about Customer Experience is worth reminding that UX has something to do with it, not only the name.

Knowing how your customers interact with and feel about the products or services you offer is essential for improving their overall experience, which can be achieved through customer experience analytics. Collecting and analyzing customer data allows businesses to gain valuable insights into their needs, opinions, and experiences. Are you making the most out of this powerful tool? What results have you seen from it so far?

The data you receive from CX analytics enables you to reduce customer churn, increase customer satisfaction and retention, and help you identify the areas for product improvements.

Are you ready to discover how to quickly and conveniently analyze customer experience in five straightforward steps and interpret the CX data that results? Read on, and you won't regret it!

What is Customer Experience Analytics?

What is Customer Experience Analytics

By utilizing customer experience analytics (CX analytics), companies can acquire vast data about how their customers interact with the product. This valuable insight enables them to identify and eliminate any potential hindrances or gaps in the user experience, ultimately leading to increased productivity growth.

Utilizing customer experience analytics, you can make informed decisions to upgrade your product from initial contact to customer service. Moreover, it allows you to identify issues and roadblocks your customers are dealing with that you may have been unaware of.

  • Main Features of CX Analytics

CX analytics tools, commonly called customer experience management software, proudly showcase many features, including web content and inventory organization.

Although those features can be advantageous for some organizations, a few essential elements must be included in your CX analytics tool when customizing it specifically for employees.

Performance Analytics

By choosing the right Key Performance Indicators (KPIs), performance analytics can measure staff performance and allow managers to introduce gaming elements that will help enhance individual productivity.

For example, performance analytics can help customer service reps refine their output in a self-guided manner by analyzing their verbal cues, tone of voice, and communication speed.

Customer Contextual Analytics

Whether your business is B2B or B2C, customers today don't just desire but anticipate a personalized experience from all businesses.

By leveraging customer contextual analytics, you can develop more engaging interactions with your customers through tailored content and instantaneous feedback (such as interactive chatbots which utilize natural language processing).

To create meaningful customer interactions, it is imperative that all communications become increasingly anticipated, personalized, and applicable.

Executive Dashboards

Companies that aspire to utilize customer experience data across their organization fully must carefully consider the reporting capabilities and analytics features of any prospective tool, like whether or not admins can set up customized dashboards.

The CX dashboard is a game-changing data tool that makes collecting and analyzing customer experience metrics easy, fast, and productive. Executives can now make decisions through its uncomplicated layout of crucial customer data performance indicators! This powerful technology offers an efficient way for businesses to gain valuable insights into their customers' needs and preferences.

A dashboard serves as a clear, constant view of your customer experience for decision-makers to ensure they are always aware and informed about the bigger picture.

The Benefits of Customer Experience Analytics

The Benefits of Customer Experience Analytics

Now, let's be more precise and identify the advantages of customer experience analytics. Let's cut out all superfluous terminologies and hone in on actionable information!

  • Customer Data is Collected

When you possess accurate CX data, you can unlock actionable insights into what your customers are looking for and why they react the way they do. With this information, you can prioritize bug fixes, feature upgrades, and product improvements to capitalize on potential revenue growth opportunities from each improvement.

Furthermore, customer data analytics eliminates the need for guesswork and helps you make decisions based solely on data-driven insights into product improvements.

  • Bottlenecks Identification

Uncover the source of your customer touchpoints leak by inquiring directly from customers about their experiences or analyzing behavioral patterns inside your product. With this knowledge, you can apply it to patch any friction points and understand why and where people drop off in later sprints.

  • Improved Customer Loyalty and Retention

When you comprehend your customers' struggles and the product imperfections that frustrate them, it's easy to solve them quickly and enhance customer loyalty. Give excellent service by notifying users who encountered a product bug that the dilemma has been fixed.

Who Needs Customer Experience Analytics?

As previously mentioned, customer data analytics blends multiple types of behavioral analysis and much more. It is advantageous because it provides various departments with relevant, actionable data that can be used to improve customer experience analytics. Let's learn how each team can leverage this valuable CX data!

  • Product Managers

Product managers can unlock crucial knowledge about customer engagement with their product and what obstructs them from becoming engaged, active customers. Once this is understood, they can take action to resolve those problems and increase user engagement.

  • Product Marketers

Using customer analytics, product marketers can recognize their clients' requirements and what drives them to purchase the brand's products. Product marketers can develop strategies to attract relevant prospects and increase initial consumer engagement while reducing churn rates.

  • Customer Success Managers

To maximize customer satisfaction and loyalty, Customer Success Managers can leverage valuable insights from metrics such as NPS or customer satisfaction scores to understand customers better. With this knowledge at hand, they are capable of providing tailored support that meets the specific needs of each user group. Moreover, by proactively contacting unhappy customer groups and identifying their issues early on, they ensure a successful resolution is reached on time.

Metrics for Customer Experience Analytics

Metrics for Customer Experience Analytics

In this section, we will detail how to uncover each essential customer experience metric and take action accordingly. Give it your full attention so that you can apply what you learn to your own customer's data.

  • Customer Lifetime Value

Customer lifetime value (CLV or LTV) indicates a single customer's total revenue over their entire subscription period.

By understanding this CX metric, you can accurately draw a connection between customer retention and the ultimate profitability of your SaaS business. Furthermore, with CLV in predictive analytics, making sound financial decisions better equipped for long-term success is easy.

To calculate your CLV, divide the average revenue of each account by its churn rate. Want to take it one step further? Analyze which user cohorts are most profitable and have the most significant negative impact on your company with a customer profitability analysis! Doing this will give you invaluable insight into where to focus resources for your business to thrive.

  • Customer Satisfaction Score

This metric provides a comprehensive view of how customers feel about your business. This measurement can accurately assess overall customer touchpoint levels, from the product to customer support and specific features.

For SaaS solution companies, surveying customer satisfaction along their journey is paramount. This way, you can gain valuable knowledge on what causes user transition at various points during the experience.

Measuring customer satisfaction can be as easy as using CSAT surveys. As an illustration, you could use a survey to assess how beneficial new product features have been for your customers or even why engagement with some features is inadequate. Creating the appropriate questionnaire allows you to listen to customer feedback and respond accordingly.

  • Customer Effort Score

Have you ever considered the time and energy your customers expend to reach out for help or complete a task with your product? With Customer Effort Score (CES), you can receive valuable insights into how much effort users put forth. This data allows product managers to identify areas of friction, allowing them to create an improved customer experience.

To measure this metric, you must create CES surveys and connect them to specific activities in the customer experience. In other terms, show a CES survey after a user completes an action, such as engaging with a feature for the first time or achieving an objective in your customer journey.

To calculate your CES score, simply tally up the number of positive and negative responses and divide by the total. Instantly, you'll have a comprehensive understanding of how well users engage with your product or service! It makes data-gathering easier to manage and provides insight into user pain points as soon as they arise so that you can address them quickly.

  • Customer Retention Rate

The customer churn rate is a different metric than the customer retention rate; the latter measures how many of your paying customers decided to extend their subscriptions out of all of them at month's end.

To better understand the business, tracking customer retention is critical. Monitoring this metric will allow you to know how many customers are sticking with your product each month and ensure that it remains profitable and worthwhile for them. Keeping an eye on these figures can significantly aid in long-term success.

To calculate the Customer Retention Rate (CRR), divide the number of customers who remain at the end of a certain period by those who began that same span and multiply your answer by 100.

  • Net Promoter Score

Unlike the customer effort score, which assesses a customer's satisfaction at one point in their journey, the NPS score provides an understanding of overall user loyalty and pleasure.

Monitoring your Net Promoter Score (NPS) frequently is essential to recognize dissatisfied customers and take corrective action as soon as possible, decreasing the chance of customer churn.

To discover the effectiveness of your customer loyalty, NPS score calculation is essential. Fortunately, it's easy to calculate - just subtract the percentage of promoters from detractors, and you have your answer! For a visual demonstration, refer to the formula presented in this picture.

Conducting Customer Experience Analysis

Conducting Customer Experience Analysis

We recently covered the essential steps to identify and calculate the five most crucial metrics for CX analytics. We must obtain data from various sources and then decipher it.

  • Divide Customer Journey

Rather than performing customer experience analytics for all your customers simultaneously, taking a more targeted approach is wiser. It will ensure the data is robust and accurate rather than vague and incomplete.

To maximize success on a global level, it's essential to have customer experience analytics tools to chart the customer journey.

Additionally, you should curate a journey with all contact points to secure customer success (what customers aim for when using your product) to compute important CX metrics such as CES or CRR conveniently.

You can leverage the data gathered to create superior onboarding experiences by utilizing entire customer journey maps.

  • Understand Users Needs

By segmenting your customers from the initial interactions with your product, such as during sign-up or onboarding, you can gain a more nuanced understanding of them and uncover their desired outcomes when interacting with your product.

Utilizing this service, you can build personalized experiences that will leave your customers feeling satisfied and valued. This focus on user loyalty ensures continuous growth in the number of loyal patrons while boosting the overall customer experience.

Instead of coding new elements for data collection, you can quickly and easily install Userpilot's code-free welcome screens into the onboarding process. Using these welcome screens, you can ask customers questions about their use cases and learn more about their job roles to gain valuable insights.

  • Check Customer Behavior

After you have conducted an extensive customer experience analysis, the next step is to group customers according to their in-app activity. Even though individual people work different activities in your app, there are likely commonalities between them that can be further explored by segmenting users into cohorts.

Knowing your users' app activities lets you understand their relationship with the product, identify which features they use most often, and pinpoint customer engagements that lead to a high or low NPS score. You will have insight into how customers use your product by tracking user behavior.

To maximize your customer experience, we urge you to consider Userpilot and its advanced segmentation capabilities. With this analytics tool, it is easy to construct unique cohorts of users based on personally applicable criteria.

  • Gather Customer Feedback

Did you realize that measuring customer effort is crucial to detecting and rectifying friction points throughout the customer journey? It goes much further than merely being part of CX analytics.

Constantly asking for customer feedback through surveys such as CSAT or CES at different points of engagement will allow you to identify any problematic spots, solve them by taking action on their advice, and reconnect with customers to complete the cycle.

  • Collect Product Analytics

Now that all customer contact points have been identified and data collected, it's time to take action. Rapidly pinpoint the blockers obstructing customers' experiences, drop-off points in their journey, and any other friction they may encounter when using your tool.

Final Words

It is indisputable that superior customer service and experience are the decisive components between highly successful and subpar businesses. Even offering the most excellent product or service won't get you far unless your customers receive outstanding care.

Whatever your business or industry may be, offering extraordinary customer experiences is essential to succeeding in today's market. And the only way to uncover what methods are working and which aren't is by relying on analytics rather than guesswork. If you want to take the most out of your customer data and experience analytics, we will be happy to talk to you during our free consultation.

About the author
Milo Miszewski - Chief Executive Officer

Milo founded mDevelopers in 2010, bringing his over 10 years of sales management, B2B solutions, and business relations. Milo acts as the general director, as well as a mentor and advisor. In everyday work besides managing the company, he supports the sales department in networking and building relationships.

Miłosz Miszewski

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