How Data Science and Business Intelligence can Improve your Customer Service and Make you More Profits
The three-stage model of the customer experience is comprised of pre-purchase, consumption and post-purchase. Tracking your customer’s full experience with data analytics ensures that you have the tools needed to maximize your profit potential from each customer. Using data science and business intelligence systems to see where there may be gaps in service can result in a more positive overall customer experience, higher customer retention, higher average tickets and more profits for your business.
WHAT IS BUSINESS INTELLIGENCE?
The term “Business Intelligence”, as we use it today, is used to refer to “decision support systems” which use data science (metric analysis, algorithms, statistics, etc.) to compile data and provide reports on the metrics businesses need to make fully informed decisions. Decision-makers with tangible facts about the performance of their business can fine-tune their customer experience and grow their bottom line better than those that do not.
The following are some examples of metrics that can be tracked to identify areas to work on to improve your customer’s experience and result in happier clients and fully realized profit potential.
Knowing who your customer is and catering your marketing to that audience will put you in a position to make money. Did you think your demographic was 50-year-old men, while it’s actually 35-40-year-old couples? You can’t sell effectively if you’re selling to the wrong people.
AVERAGE RESPONSE TIME
When your customer makes the first contact, how long does it take for them to get a response? According to Lead Connect, lead conversion rates go up by 391% when customers receive a response in the first minute. Acknowledging your customers right away helps to build better rapport and results in more closed deals.
When customers make a purchase from you, what are they spending on-average? Knowing this figure will help your business achieve sales goals, and track if there is an area of opportunity. If your average ticket is $100, and you need it to be $120 to reach your goal, what add-ons or additional services can be offered to drive that average ticket up?
How many of your leads turn into customers? Being aware of how many customers choose not to buy can show where there is an opportunity for improvement. Why are they choosing not to purchase? If you can resolve that issue, there is no reason you can’t increase your conversion rate and increase your profits.
After the transaction has been made, what is your customer saying about you? Tracking things like returns, complaints and warranty claims AND whether they were resolved to the customer’s satisfaction can give you insight on why your business isn’t getting those valuable 5 star reviews. Good reviews and word-of-mouth results in new customers and the potential for more sales.
Data analysis and business intelligence systems can centralize all your data in a secure way and analyze it with advanced tools and techniques to provide real-time visualization of key metrics. Having that reliable data on-hand to base your decisions on can result in a better customer experience and more profits for your business.