3 Reasons Why CMOs Can’t Afford to Ignore Customer Experience Data
March 27, 2015
Do you know why your most loyal customers are suddenly buying less of your products, or why, after launching a new marketing campaign, sales are still flat?
To make good decisions about campaigns, pricing, packaging, advertising, or any other aspect of your marketing activities, you need information. Starting a Customer Experience Management (CEM) program to collect and analyze customer feedback from every source is the best way to get that information, and to use the resulting insights to make business decisions that improve customer experience.
This is crucial, because Customer Experience (CX) leaders have better brand loyalty as well as better financial returns. Securing brand loyalty can create benefits anywhere from $26 million to $88 million in just one year.
Still not convinced? Here are 3 reasons CMOs can’t afford to ignore customer experience data:
Negative brand reputation:
In today’s world, your online reputation *is* your reputation. It is critical to understand what online reviews say about your business and your brand. When you break down the customer sentiment, you will find details about everything from the buying process to price, promotions, and usage of your products. You need to know what is going on, because a full 90% of customers say their buying decisions are influenced by online reviews. Similarly 53% of global online buyers say they won’t buy something unless they have online reviews for validation.
Lost market share to the competition:
Large corporations spend more than £1.3 million a year hiring firms or staffing internal departments to track & analyze their competitors. Customer feedback tells you how you are perceived in the market, and gives you clues about how you’re compared to your competitor’s products or messaging. If you don’t know what competitors and customers are talking about, you won’t know when the competition is gaining ground.
Decline in customer loyalty:
Loyalty programs can increase a brand’s market share by 20%. Loyalty members are an invaluable resource for product feedback, new marketing campaign ideas, and ways to improve overall customer satisfaction. They can also act as a strong sales channel through word of mouth advertising and online feedback and reviews. Just make sure your members know their opinions are being read, considered and used to make changes. Because 70% of members feel loyalty programs are part of their relationship with a company, they are very sensitive to feeling neglected or betrayed and can easily become your most vocal critics.
Where do you go from here?
Building an effective customer experience program includes collecting, integrating, and analyzing customer feedback in order to understand how your customers feel about your brand. You can then use
those insights to make smarter business decisions that improve customer satisfaction and loyalty.
This means that demographics are not enough. Your CRM solution can tell you about your customers’ demographics, but it can’t tell you what is shaping their perceptions of your brand. Bringing your CRM data together with CEM data allows you to find the topics that customers are talking about and the emotions they are expressing. You can dig down into their motives behind buying, not buying, or churning. Then you can filter by loyalty and purchase information to uncover what loyal customers value most. Without this real, 360-degree view of your customer, you risk sending the wrong messages, making customers feel misunderstood, and potentially offending the very people you are trying to engage.
With 55% of customers willing to pay more for a better experience, you can’t afford to fall behind.
To learn more about how marketers can build customer experience programs, download our eBook The CX Files: Marketing. How Customer Experience Management Helps Marketers Uncover the Truth About Their Brands.