More organizations are adopting a journey-based approach to measuring the customer experience.
Most organizations are concerned about optimizing the customer experience, but are finding it difficult to measure the impact of their customer experience initiatives. Customer satisfaction data is frequently captured at specific points in time, but it’s difficult to derive a 360-degree view of the customer from these discrete data points. Furthermore, this data is often trapped in email, voice mail, text messages, websites, social media channels, and other customer feedback sources, as well as customer relationship management (CRM) systems, point-of-sale (POS) systems, billing systems and mobile applications.
In light of that, more organizations are using customer journey analytics and customer journey mapping to correlate and analyze these data sources. These closely related tools can help organizations improve their customer service processes and identify potential problem areas that can impact the customer experience.
According to the 2019 State of Customer Journey Management and CX Measurement report from Pointillist, more than 87 percent of respondents said that an exceptional customer experience was very or extremely important, and 11 percent said it was somewhat important. More than 90 percent of survey respondents said a journey-based approach to customer experience was important to their overall success.
Linking CX to Business Performance
For the report, Pointillist surveyed more than 700 customer experience, marketing and analytics professionals, and grouped respondents into three categories based upon their overall satisfaction with the performance of their customer experience initiatives. Underperformers (26 percent) were dissatisfied, average performers (50 percent) were somewhat satisfied and high performers (24 percent) were highly satisfied.
Organizations that were less than highly satisfied with their customer experience initiatives were unable to link CX metrics to quantitative business KPIs such as revenue and customer churn. Only 6 percent of respondents in under- and average-performing organizations said they are satisfied with their organization’s ability to quantify the impact of customer experience on business KPIs.
High-performing organizations have significantly more mature CX measurement programs and are more likely to use a data-driven, journey-based approach. High performers are also more satisfied with their organization’s ability to rapidly generate customer insights, take actions based on those insights, and quantify the impact of those actions. In addition, high performers are 3.2 times more likely than underperformers to use customer journey analytics to analyze and optimize customer experience.
Breaking Down Silos
The top obstacle for effective measurement of customer experience is the inability to break down data silos and integrate cross-channel customer data. Only 11 percent of respondents in under- and average-performing organizations say they are very effective at integrating customer data. Respondents are using only 3.8 customer data sources to connect and analyze customer interactions across touchpoints, which is less than a third of the 12 most widely used sources. As a result, cross-channel customer journey analyses are based largely on incomplete information.
Current tools and technologies are insufficient for quantifying and improving customer experience because they do not provide a unified view of the customer journey. Despite employing more than 4.5 customer data and analytics technologies on average, less than 25 percent of respondents said they were satisfied with their ability to integrate customer data, rapidly generate insights, engage customers with the best experience, and quantify the impact of these actions.
IPC offers customer experience consulting services to help organizations develop a CX strategy that leverages advanced communications, analytics and automated tools. We can help organizations use a journey-based approach to improve customer satisfaction, customer retention and customer lifetime value.