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Various Ways Companies Are Using Data Analytics to Improve Customer Experience

We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better“- Jeff Bezos

Jeff Bezos needs no introduction. With his obsession and passion with customer experience, what Amazon has done is cinematic history. We all know that customer is the king/queen but handful few actually really treat customers like that. Whenever a prospect walks in through the door, a physical or a virtual one, he is hiring the organization for a particular job or a task that he wants to be fulfilled in his life. There are nuances which just the demographic data will not reveal when it comes to the customers. For instance, you have a regular customer at your bookstore. You might know that this person is possibly 6 feet tall, works at a bank, but you don’t know why he chooses a tabloid over Wall Street Journal. Thanks to the various data sources available around us, which, if studied carefully, will reveal the why. Maybe from his tweets, you will know that he is already having financial news overdose while working in a bank and needs a break while commuting. This is a small example of the benefits that can be reaped by having a 360-degree view of the customer.

Who isn’t aware of Netflix? Most of us have a membership. But the landing page for every person is different – The reason being the analytics-driven targeted marketing. For every user, Netflix has created a persona. What are the shows you watch often? Who are the probable candidates who might be interested in this new show of a particular genre? The answer lies in the analysis of the copious amounts of data Netflix is sitting on. The data is collected, and algorithms are modified on a daily basis for the 100 million users. Netflix uses this data to create a highly personalized experience for their consumers.

On Friday evening friends have come over, and you want to order your favorite pizza from Pizza Hut. How do you do that? You have forgotten the name of the Pizza which you had last ordered. You don’t need to worry. Pizza Hut’s chatbot has already analyzed your recent orders and can tell you about the latest offers available on your favorite pizza and also suggest you the most convenient payment option. Chatbots are helping companies like Pizza Hut eliminate any chances of human error and provide the consumers exactly what they may need. Other advantages of chatbots are that they are always available. Given the advantages surrounding chatbots, one can assume that they are here to stay and will greatly enhance customer experience and subsequently satisfaction.

In another example, suppose you tried searching for an anti-aging cream on the Estee Lauder website but got notified that it is out of stock. You don’t need to worry about checking the website again and again. The site will inform you as soon as the cream is available in the stock. Won’t it make you feel special? Many companies are using omnichannel as well as near-field communication to make buying and choosing products a seamless and hassle-free experience.

We all know about Footlocker. They perfected the art of under promising and over delivering. They started it by delivering the ordered product in a shorter duration than what it was originally stated. Imagine you as a customer is expecting your new sneakers on the coming Friday, but it delivered to you three days before. Needless to say, you will be one satisfied customer. It is not as simple as it looks – a lot of data is crunched, and numerous simulations are run the background to optimize the delivery route so that delivery time can be reduced.

Last but not least, recommendation engines. Everyone notices how Amazon throws up the products bought together or a bundle of a couple of products which one might buy. Similarly, Netflix shows us the shows which might interest us. A lot of data is analyzed behind the curtain to make it possible. Each consumer persona is analyzed and then fine-tuned to suit personal tastes. A customer 360-degree view is created to understand the customer holistically, and all the customers are treated differently. Deep down, isn’t that what we want?

The available data has transformed customer interactions from a one-dimensional interaction to insightful interchanges. It has been possible due to technological advances. Moreover, many organizations have been quick to change their business model to leverage technology and deliver exceptional customer service. Automakers are leveraging predictive maintenance to enhance the satisfaction of their customers. Ordering, procuring, post sales and during sales service, everything has come together to provide the customer the out-of-the-world experience. Even this particular aspect has laggards and leaders and very soon the laggards will have to buckle up or will be left behind playing the catching up game. The good news is that it is well within everyone’s reach to change and leverage data to put the customer in the center!

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