#28 | DCX - Perspectives and insights on digital customer experience
Data-Driven CX: A Beginner's Guide to Building a Data Discipline; Delivering Continuous CX Improvement; Links to Industry news, ideas, insights, and the DCX Thought Leader Linkedin Profile of the week
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Data-Driven CX: A Beginner's Guide to Building a Data Discipline
As a newcomer to customer experience (CX) design, you may be wondering how you can use data to improve the experiences you create for your customers. Building a data discipline in CX is essential for ensuring that you base your design decisions on sound evidence and that you can measure your experience’s effectiveness. Here are some tips to help you get started:
Start with the customer: Before you even consider collecting data, you must clearly understand your customers and their needs. This means researching to gather insights into their behaviors, preferences, and pain points.
Define your goals: Once you understand your customers well, you need to define what you want to achieve with your data. This could include improving customer satisfaction, reducing churn, or increasing conversions. Clearly defined goals will help you focus your data collection efforts and ensure that you are tracking the right metrics.
Collect the right data: There are many different types of data that you can collect, but it's essential to focus on the data that is most relevant to your goals. This could include customer feedback, behavioral data, or performance data. Make sure you have a plan in place for how you will collect this data and how you will use it.
Analyze your data: Once you have collected it, it's time to understand what it tells you. This might involve creating reports, visualizing data, or running statistical tests. The key is to be strategic in your analysis and focus on the insights that will impact your CX design.
Take action: Finally, it's important to use your data insights to inform your design decisions and make changes to your CX strategy. This might involve redesigning a product or service, changing how you communicate with customers or implementing new processes.
Several foundational data tools are essential for customer experience (CX) design:
Customer feedback tools allow you to gather customer feedback in real-time and track sentiment over time. This can include surveys, ratings, reviews, or customer service interactions.
Behavioral data tracking: This involves tracking how customers interact with your products or services, including how they navigate your website, what features they use, and how long they spend on different pages.
Customer segmentation involves dividing customers into groups based on shared characteristics or behaviors. This can help you create targeted experiences for different customer segments.
Customer journey mapping involves mapping customers' various touchpoints with your brand and tracking their experiences at each stage. This can help you identify pain points and opportunities for improvement.
Voice of the customer (VoC) analysis: This involves analyzing customer feedback to understand what customers say about your brand and products and using this information to inform your CX strategy.
Building a data discipline in CX takes time and effort, but it is essential to creating effective and successful customer experiences. With these tips, you can develop a solid foundation in using data to drive your CX design decisions.
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Delivering Continuous CX Improvement
Improving customer experience is an ongoing process that requires a continuous effort to understand customer needs, identify areas for improvement, and implement changes.
Continuous improvement of customer experience (CX) is essential for ensuring that you meet your customers' needs and stay competitive in the market. Here is a guide to continuous CX improvement, including critical steps for gathering business requirements, mapping, tracking, testing, and analyzing customer data, quantifying and evaluating improvements, ensuring delivery, and validating the return on investment (ROI):
Gather business requirements: The first step in continuous CX improvement is to gather and confirm business requirements. This involves understanding the needs of your customers and identifying areas for improvement. This might include gathering customer feedback, analyzing customer data, conducting market research, and inputs from finance, marketing, and operations.
Map, track, test, and analyze: Once you have identified areas for improvement, it's important to map out the customer journey, track customer interactions, test changes, and analyze the results. This includes creating customer journey maps, monitoring customer behaviors, conducting A/B tests, or running statistical analyses.
Quantify, evaluate, and prioritize: Once you have gathered and analyzed data, it's essential to quantify the impact of any changes and assess their effectiveness. This involves tracking customer satisfaction, churn rate, or conversion rate. Then, use this analysis to prioritize improvements based on their potential impact and feasibility.
Ensure delivery: Once you have identified and prioritized improvements, it's important to ensure that they are delivered effectively. This involves working with design, development, and operations teams to implement new processes or redesign products or services. In addition, it's important to carefully plan and test these changes to ensure they are successful.
ROI validation and retrospective: Finally, it's essential to validate the ROI of any improvements and conduct a retrospective to understand what worked well and what can be improved in the future. To understand the impact of the changes on the business, develop dashboards to track metrics, including customer satisfaction, churn rate, or conversion rate. It's also important to conduct a retrospective to reflect on the continuous improvement process and identify future improvement opportunities.
It's important to remember that CX improvement is an ongoing process, so it's essential to regularly gather customer feedback, analyze it to identify areas for improvement, and implement changes to improve the customer experience continuously.
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Links to Industry news, ideas, insights, and the DCX Thought Leader Linkedin Profile of the week
Customer experience trends: what does a Gen Z customer expect? | CXDojo (medium.com)
Gen Z customers, born between 1997 and 2012, expect convenient and personalized experiences from brands. They prefer interacting with brands through various channels, including social media and messaging apps. Gen Z values transparency and authenticity from brands and expects them to be socially and environmentally responsible.
To meet the expectations of Gen Z, companies must deliver personalized, convenient, and transparent experiences across all channels. Gen Z is the first generation to have grown up with widespread access to technology and the internet, shaping their expectations for customer experiences.
How Emotions Drive Consumer Decision-Making (cmswire.com)
Emotionally connected customers promote a brand to their family and friends, and 70% of respondents said they spend twice as much with those brands they are emotionally connected with. This article discusses the role that psychology and science play in crafting such an experience and how a brand's emotional motivators play a role in crafting it.
Are you really talking with a chatbot?
Brenda was a conversational AI that could answer questions about apartment listings. But, like all conversational AIs, she had some shortcomings. To compensate for these flaws, the company recruited a team of employees they called the operators. When Brenda went off-script, an operator took over and emulated Brenda’s voice.
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DCX Thought Leader Linkedin Profile of the week
Every week, I share a person's profile from Linkedin that I think will benefit your life and career.
This week, I’d like to introduce you to Richard Owen, Founder of OCX Cognition.
Richard is a prominent thought leader in the customer experience industry and was the CEO of Satmetrix. While at Satmetrix, he led the development of the Net Promoter Score methodology, the most widely used approach for measuring customer experience. Richard co-authored ‘Answering the Ultimate Question’ with Dr. Laura Brooks. In addition, he launched several initiatives to promote the use of NPS, including The NPS Certification | Net Promoter Score Training - Net Promoter Masterclass, certification program, and conference series.
I spoke with Richard recently about OCX Cognition, the changing face of NPS, and surveys' demise as he pushes toward predictive analytics.