Using Social and Other Data to Revitalize the Customer Experience

The Fourth Listening Post

July 2015 Copyright © 2015 Tata Consultancy Services Limited

Tonya McKinney, Principal and Head – Customer Experience Solutions

Lisa Fairbanks, Lead – Customer Experience Solutions

Introduction: Digital Trends

Digital forces have led to commoditization and consumerization in many industries.

Companies have lost their historical advantages and customers easily switch brands.

The use of innovative customer experience analytics helps companies reshape products and services and gain new competitive advantages.

The Fourth Listening Post, 2015

Importance of Customer Experience

Customer experience has become the new competitive differentiator. Companies that excel at customer experience deliver superior financial performance.

CumulativeTotal Return

The Fourth Listening Post, 2015

Source: Watermark Consulting blog post. The firm tracked stock market performance from 2007-2012. CX Leaders are the top 10 rated public companies in Forrester Research’s Customer Experience Index studies, and Laggards the 10 lowest-rated companies. http://www.watermarkconsult.net/why-Watermark.html#Loyalty-Lift

The six-year stock performance of U.S. public companies with superior CXi ratings was three times greater than the S&P 500 Index.

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The Way Forward: Advanced Analytics

Traditional approaches to customer insight are expensive and time-consuming. All companies use the same sources and similar analytical tools and techniques.

To win the market, companies need new qualitative insights.

Digital advancement has produced two new and cost-effective analytic approaches that interpret customer experience.

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Advanced Analysis of Existing Data

Big Data capabilities, such as text analytics, mine old data for new insights.

Companies can unlock value in unstructured, archived data including call center transcripts, chat conversations, and customer email queries.

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Advanced Analysis of New Data

Advanced analytics on new social data provides contemporary customer insight.

Social profiling adds a new edge to companies’ standard life stage segmentation.

Behavioral and psychographic insights can influence the actions of marketing, sales, and service teams.

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The Fourth Listening Post

The ‘Fourth Listening Post’ brings together new analytics methods and data types online. It allows companies to re-imagine customer experience.

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Designing an Effective Customer Experience

Designing a compelling customer experience requires qualitative customer engagement data and insight.

Companies that fail to see this often get their investments wrong.

Case study:An insurance company failed to identify customer preference for self-service. As a result, it misdirected resources.

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Unstructured and social data, combined with conventional data sources and new text analytics provides richer, more actionable profiles on which to build the customer experience.

Insight: Behavioral Segmentation

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Companies must maintain a constant feedback loop on the issues, gaps, and opportunities in customer experience across channels.

Case study:A mobile phone provider identified an opportunity to disrupt the market by eliminating long-term contracts. Market dynamics changed as a result and customer selection criteria shifted drastically.

Insight: Customer Experience Criteria

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New analytics on unstructured data gives companies detailed insight on channel performance.

Channels include digital channels such as online, social, and mobile, as well as conventional channels like call centers, stores, and ATMs.

This information is crucial to designing a holistic customer experience.

Insight: Customer Omnichannel Experience

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Conclusion: Revitalize Customer Experience

Customer experience is the new competitive differentiator.

To design a unique customer experience, companies need new insights. They must tap new data sources and analytics methods. Social media is a continuous onlinefocus group.

Understanding the behavior of target markets will unlock innovation and bring competitive advantage.

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