A few months ago, as I was scrolling through Instagram Stories, one of my favorite influencers, Nicole Franzel, posted her outfit of the day.
I liked her pants, so I swiped up on the link to see the reviews and price.
Then, a few days later, I went back to the website and bought the pants.
That was my customer journey.
If the company [Betabrand] was tracking customer journey analytics, they could see that I came across their brand through an influencer, and made a purchase a few days later. These metrics would be called customer engagement analytics (more on that below).
Those analytics can help the brand measure the success of their customer journey and the overall customer experience.
Plus, those customer journey analytics can help support teams better understand and empathize with frustrated customers.
That's why customer journey analytics are important.
Below, let's review customer analytics and the metrics you need to measure to optimize your customer journey.
Customer analytics are the metrics you collect on consumer behavior. For example, customer analytics include metrics such as churn rate and customer lifetime value. This data can be used to predict future behavior and make business decisions for marketing, product, sales, or service teams.
For your customer support team, understanding customer analytics can give your reps an accurate view of the customer. When you have a better understanding of your customers, you can improve customer satisfaction and loyalty.
Customer analytics are usually concerned with the customer journey. Let's dive into customer journey analytics below.
Customer Journey Analytics
The customer journey, like the buyer’s journey, is the process a customer goes through to achieve a goal with your company.
Consequently, customer journey analytics is the data that's collected from measuring the customer experience during various touchpoints on multiple channels.
For example, if you have a customer journey map, you can see every touchpoint where a customer might interact with your brand on their customer journey.
Then, you can list the analytics you'll use to measure the customer journey experience such as customer engagement and customer satisfaction.
Understanding the customer journey can help your team empathize with your customer's pain points and goals.
Collecting this data is important so you can analyze the effectiveness of your customer journey and reduce friction in the customer experience.
Using customer journey analytics, you can answer questions like:
So, what customer journey analytics should you be measuring? Below, let's review a list of seven metrics to measure success of your customer journey.
1. Churn Rate
Customer churn rate is the percentage of customers who cancel or don't renew a subscription within a given time frame.
By analyzing how many customers you've lost over a period of time, you can start to predict churn and try to decrease your churn rate.
To analyze your churn rate and decrease it, you can look at individual support rep or manager performance, analyze your customer service against competitors, or review the friction in your customer experience.
Once you look at these factors, you'll start to understand why customers are leaving and what you can do to avoid it.
Every effort you make to improve your churn rate will simultaneously improve your customer journey.
2. Customer Lifetime Value (CLV)
Customer lifetime value is the revenue a company can expect to make from one customer over the course of the business relationship.
You can only start to improve your customer lifetime value once you've analyzed it. By calculating CLV, you'll start to see which customers are most valuable.
Additionally, if you want to improve your CLV, look at whether your company is customer-oriented. With a customer orientation, you'll begin to increase your customer lifetime value. Plus, your customers will enjoy their experience if you're focused on them.
3. Customer Satisfaction
Customer satisfaction is a metric that's used to quantify whether your customers are happy with their customer experience. This is the ultimate metric to use if you're measuring the success of your customer journey.
You can calculate customer satisfaction by sending a survey and analyzing the data.
If your customers aren't satisfied with your service, you'll want to figure out why so you can improve it.
Once you analyze the results of a customer satisfaction survey, maybe you decide to expedite customer support interactions with frustrated customers or improve friction in your customer journey.
Ultimately, this metric is used to optimize the customer journey and delight your customers on every front.
This can help your customer support team understand and prepare for challenges that different groups of customers are likely to encounter.
By optimizing this part of the customer experience, you'll delight more customers that are contacting your support team.
5. Customer Engagement
Customer engagement analytics help you measure how customers interact with your company through a variety of channels.
Once you understand customer engagement numbers, you can begin to strengthen your relationship with your customers. These engagements can happen on social media, email, your website, or customer service channels.
You can measure these analytics by looking at website data, social media analytics, or through surveys.
When you understand when your customers are engaging, you can improve the customer support experience.
Then, to improve your customer acquisition, you can focus on customer retention, remaining flexible, targeted, and diverse in your acquisition strategy.
Understanding your customer acquisition methods should help you optimize your customer journey and experience.
So, why do these analytics matter?
Well, the better you can optimize your customer journey, the happier customers you'll have. By continually improving your customer experience and customer service, you'll improve customer acquisition, brand loyalty, and increase your customer lifetime value.
Originally published Apr 21, 2020 8:00:00 AM, updated April 27 2020