Data is very much a passion for me.
– Sid Banerjee, Executive Chairman and Co-Founder of Clarabridge
Data Is the New Currency was the theme of this year’s Digital BrainFest, held Friday, May 6. Keynote Speaker Sid Banerjee’s talk “Navigating the Customer Experience Journey” focused on data in the context of customer experience, or CX. Mr. Banerjee is a customer experience, business intelligence, and text analytics expert and the Executive Chairman and Co-Founder of Clarabridge, which provides customer experience management (CEM) solutions.
We caught up with Sid after his keynote for an exclusive video interview on CX’s impact on business performance. As Sid explains in the video, “Focusing on customer experience actually has a direct relationship to how well a company does.” Watch the video for Sid’s insights on CX’s role, then check out highlights from his full keynote and what factors your company needs to focus on for mature CX.
Why Does Customer Experience, or CX, Matter?
As Sid explained at Digital BrainFest, there is “huge revenue potential” for those businesses that are strategic about CX.
Improving customer experience leads to more customer satisfaction and loyalty. And satisfied, loyal customers reward businesses with greater profitability.
Research from the London School of Economics has shown that a seven-point increase in the Net Promoter Score (NPS), a leading metric for customer loyalty, can increase revenue 1%. That’s a key data point that Sid emphasized both in his keynote and in his post-talk video.
Quantitative research aside, it is also critical to keep in mind how direct customer feedback (from both satisfied and dissatisfied customers) can create opportunities to increase efficiency in a business and make necessary changes.
Customer-centric companies like Amazon are prime examples of this, with Amazon CEO Jeff Bezos writing this in a 2013 letter to shareholders:
[It] is a fact that the customer-centric way is at this point a defining element of our culture.
Sid shared that perspective with the Digital BrainFest audience as an example of one of the biggest companies in the world – which puts the company at the heart of its business strategy. He also explained that:
Aligning to what customers want almost always aligns to corporate goals.
How to Use Data to Master Customer Relationships: 3 Things
Customer data is key to understanding your customers and in turn delivering CX strategically. When it comes to creating that Amazon-like customer-centric approach, however, “Data alone won’t do it,” as Sid explained on stage. In order to make the customer experience a positive one, Sid recommends that companies have these three things in place:
- Technology: to collect and make sense of customer data
- Process: to make use of insights from customers
- Culture: to set the tone at the top all the way down to the operations
It also takes outside-in thinking to combine information across systems to create one view of customers and help identify which interactions are positive interactions.
The goal of all this focus on CX? Getting to a world in which you can support customers at any time, from any channel- social, mobile, web, email, in-person or other. That means your company is more informed about and responsive to customers. Its customer-centric approach is driving a customer strategy.
As Sid explained in his post-keynote video, the bottom line is that CX isn’t just the nice thing to do – it’s a real strategic asset to any business.
Continue to check out the Digital BrainFest 2016 Highlights page for additional recaps, videos and takeaways from this year’s event.
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