7 Questions about Customer Experience That You Were Afraid To Ask
May 22, 2014
By: Diem Shin
1 ) What is Customer Experience Management (CEM)?
CEM is the practice of actively listening to the Voice of the Customer through a variety of listening posts, analyzing the customer feedback to create a basis for acting on better business decisions and then acting on those decisions to drive operational performance and customer loyalty.
2 ) What is Voice of the Customer (VOC)?
Voice of the Customer is the feedback that your customers provide regarding your products and services. It often provides insights into their wants, needs and preferences. The feedback can come from multiple sources including surveys, emails, chat, reviews, blogs, and social media.
3 ) What is Natural Language Processing (NLP)?
NLP is the process of extracting meaning from unstructured data by parsing each sentence to identify the parts of speech. Advanced algorithms are used to detect the relationships between words, phrases, and sentences to identify the topics that customers are talking about.
4 ) Why do you need sentiment analysis?
Being able to understand what your customers are saying about your products and services and their experiences is critical. Sentiment analysis captures the feelings of your customers in their own words for the most accurate, actionable assessment of the customer experience. By understanding how positive or negative the customer experience is, companies can act to impact and affect the customer’s experience.
5 ) Why is multi-channel listening important?
The practice of collecting customer feedback from different sources including internal sources such as emails, chat, surveys, CRM systems, and external sources such as social media, product reviews, blogs and communities, and combining that with structured data from EDWs for a 360 degree view of your customer. Multi-channel listening is critical because customers are sharing feedback throughout their journey, and it is critical that companies listen to every channel in order to impact the experience as they are occurring.
6 ) What’s the difference between structured and unstructured data?
Structured data is content which has structure that is easily interpreted by a machine; it includes information such as the person’s name, age, gender. Whereas, unstructured data is information that is typically text heavy and can include multi-media such as videos. Unstructured data makes up 80% of the data that is available and is considered the more valuable of the two, structured and unstructured, to provide insight into the voice of the customer. Structured data provides the “what, when and who”, and unstructured data provides the “why”. By analyzing both types of data, companies get a complete view of the customer experience.
7 ) What does “Close the Loop” mean?
Close the loop means engaging with customers to let them know that you’ve heard their issues and are addressing them. Closing the loop applies not only to customers, but also with internal groups to improve processes.
To learn more about customer experience and why it’s more important than ever, watch our on-demand webinar with Megan Burns from Forrester Research: Why Customer Experience? Why Now?.