The Covid-19 crisis has forced businesses to embrace technology to provide a unified customer experience. The pandemic restrictions have had a significant impact on consumer behavior. It is crucial to deliver a better customer experience in these challenging times. During the pandemic year 2020, business isn’t about what you are selling; it’s about what customers want to buy. Customers demand a personalized experience throughout all channels. So, the biggest challenge for marketers is to meet and exceed customers’ expectations.
According to Forbes, 84% of companies leveraging customer experience report an increase in their revenue. An effective customer data management will surely deliver an enhanced customer experience. Collecting customer data is essential to know your customers well and serve them according to their needs and preferences. Also, gather only the relevant data that can add value to your business. Let’s discover some segments and trends of customer data management that will provide more robust customer experiences in 2020.
Customer Data Management
Customer Data Management (CDM) incorporates the process of collecting, managing, and analyzing the data to provide superior customer satisfaction. It aims to deliver a personalized, real-time, and channel-agnostic customer experience.
Types of Data
To attract and retain your customers, you need to advance your strategies. If you want to improve your customer data management, you need to understand your customers better and collect the right type of data for your business. Here are the types of data that can be beneficial for your business.
Identity Data directly reveals customers’ identity and can be collected when users sign-up for a product or service, enter payment details, subscriptions, or fill up forms to get notifications about a particular product or service. This type of data includes the name, contact details, user ids, email addresses, and payment preferences, etc.
Quantitative data is based on the customers’ interaction with your brand. This type of data can be obtained through web analytics tools, tracking cookies on your webpages, transactions history, social media activities, or customer support history.
Descriptive data aims to provide a precise level of customers’ information throughout the seasonal growth, decline, and lifespan of the customer cycle. You can collect this data through advanced lead forms, conducting surveys, questionnaires, and interviews. Descriptive data comprises customers’ lifestyle, family details, hobbies, educational details, properties, etc.
Qualitative data provides information about customer behavior, including opinions, choices, or attitudes that a customer expresses during a purchase or interaction. This type of data consists of predicting customers’ preferences based on their purchase journey. It can be collected through the tailored newsletter sign-up process, using monitoring tools to analyze customer behavior on social media, examining the rate or review system, analyzing the feedback forms, and reviewing websites.
Best Customer Data Management Practices for Improved Customer Experience
1) Customer databases incorporate millions of records with invaluable information. If any record fails to give essential details, use verification or validation tools that are easy to integrate with almost any software.
2) While collecting customer data, make sure to use a consent management platform. This ensures customers’ consent by clearly defining which data you are using and for what purpose.
3) Collect only relevant data and embrace data privacy policies to avoid security issues. Make your data easily accessible to your sales, marketing, and other departments.
4) Use customer database management systems rather than conventional excel sheets to maintain the data. Make sure to keep a backup of collected data and clean irrelevant copies.
Data Management Trends in 2020
Data management will always be a differentiating business practice for the next several decades. The growth and tremendous potential of advanced data is the reason behind the evolution of customer data management. The points listed below gives a broader view of data management trends and future steps that businesses need to plan to deal with an expanding set of data issues and improve customer experience.
Hyped Importance of Omnichannel Service
Companies use multiple channels to interact with customers, including online forms, live chat, social media, and other channels. Customers shift through many channels while purchasing any product or service, expecting a consistent experience throughout all channels. Covid-19 pandemic has changed people’s shopping habits, and it is even more crucial to provide a unified customer experience throughout all channels. Many companies are leveraging omnichannel marketing strategies to increase their annual revenues, which has improved customer experience.
Prioritized Mobile Customer Experience
While providing a consistent customer experience throughout all channels, mobile customer service is a necessity. A bad mobile experience can be harmful to your brand image. According to a survey, 57% of customers won’t recommend your brand if it has a poorly designed website on mobile. Also, even if they like your brand, they’ll stop visiting your site if it isn’t mobile-friendly. Stat Counter stated that 52% of all internet traffic now originates from mobile, with desktop usage on a trending decline. This is an important reason for companies to emphasize improved mobile customer experience.
Companies Focusing on Employee Experience to Further Enhance Customer Experience
Digital transformation practices within companies have focused on customer engagement the most. It includes redesigning websites to help customers find the information quickly, improving the customer feedback system, and enhanced engagement with customer data to make it personalized and relevant.
Good relationships with employees are beneficial for companies. Companies such as Starbucks, J.W. Marriott, Airbnb, and others have seen the advantage of engaging their employees to strengthen the customer experience. If employees have a positive experience with the brand, they’re most likely to solve customers’ problems and act as a brand ambassador.
People find it more convenient to prefer self-service rather than spending time talking to a representative. In the coming years, companies need to ensure having a wide range of self-service options to help customers find answers to their queries. According to Gartner, a billion service records will be raised automatically by customer-owned bots. Furthermore, 91% of customers are supposed to use an online knowledge base if available and tailored to their needs.
The changing consumer behavior during the crisis has made it even more crucial to understand and measure your customers’ behavior at every touch-point and across all channels. Customer database management software can be helpful to collect and manage data, following the security measures. Choosing the best software for your business can help you organize data and use it for customer data extension, segmentation, and activation across all marketing channels.
Business leaders must analyze data management trends to examine their business impact and adjust the models and operations to make the best use of it. Right from internal decision making to appointing chief data officers and continuous intelligence, data management is evolving. Businesses should adapt to these evolving data management structure and prioritize the improved customer experience.