Does analytics improve the customer experience? Only if you do it right

Data analytics Customer Experience CSC Blogs

New data from Forbes Insights shows that analytics is delivering improved customer experiences to the vast majority of enterprises currently trying to leverage data for competitive gain.

As eMarketer reports, “29 percent of executives worldwide who currently use data analytics have seen a significant shift across the board in their ability to deliver superior customer experiences. More than a third have seen shifts in many areas, and more than a quarter of respondents have seen moderate shifts. That adds up to 90% of respondents who say they’ve noticed at least some change thanks to data analytics.”

These users are optimistic that data analytics will do even more to improve the customer experience in the near future. More than four in 10 respondents (42 percent) expect significant improvements to the customer experience in two years.

Interestingly, 9 percent of the Forbes Insights respondents currently using data analytics see no changes in the customer experience, while the same percentage also anticipate no changes two years from now. (Another 1 percent say they don’t know in either case.)

So what’s up with the minority of enterprises that aren’t getting any ROI from their customer analytics? I’ll take a shot and guess that they’re doing something wrong. There are a number of mistakes that can render an analytics program ineffective. Among them are:

  • Not defining a business problem or goal for analytics to solve
  • Tracking data that is irrelevant to the business problem or goal
  • Failing to accurately measure the progress and results of an analytics initiative
  • Drawing the wrong conclusions from the data

Any of those mistakes can lead an analytics program off the rails. The key to making any tool effective is to apply it intelligently and within the correct context. Knowing why you’re using it and how to use it are the first steps. If you tried unsuccessfully to tighten a screw with a hammer, it would be wrong to conclude that “hammers don’t work.”

Data analytics is no different: Used the right way, it can improve customer experiences, employee productivity, internal processes and much more. Used the wrong way, data analytics is about as helpful to enterprises as a hammer.

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  1. Tilak Sarkar says:

    good one!


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