Companies that use analytics to bolster their customer service operations realize better results when it comes to customer satisfaction, operational efficiency and financial performance compared to their counterparts that do not use analytics this way.
That’s according to a recent research report from Aberdeen Group that surveyed 233 organizations about their customer experience management programs.
Those companies that use customer service analytics are 39 percent more satisfied with their abilities to make service decisions driven by data compared to those companies that do not use analytics for service.
Additional findings include:
- Firms using customer service analytics boast a 72 percent greater year-over-year increase in customer retention rates compared to companies not using analytics for customer service.
- Companies using analytics for service post a 19 percent annual improvement in customer win-back rates compared to nine percent for non-users.
- Analytics for customer service allows firms to post great gains in financial measures like cross-sell and upsell revenue and customer lifetime value.
“In the era of the empowered customer, superior service is a key factor in organizational success,” according to the report. “Analytical tools provide the strategic lever through which companies convert their data into actionable insights.”
The report finds that all users of customer service analytics monitor the voice of the customer across multiple channels to capture insights about the products and services that they offer.
Additional key capabilities include:
- Using customer feedback to develop new products and services
- Regular analysis of customer and interaction data from loyal clients
- Measuring root cause analysis to determine factors that hinder good service
- Analysis of how each customer service interaction influences the overall behavior of customers
Those companies that use customer service analytics are more likely (60 percent versus 16 percent) to segment their customer bases to develop detailed profiles of customers.
“This helps determine the common characteristics of loyal clientele and how service activities impact customer loyalty,” the report notes. “Findings from this process are then used to repeat activities that help organizations retain customers and avoid ones that drive churn.”
Furthermore, 60 percent of companies that use customer service analytics can convert service interactions into revenue opportunities.