Category Archives: E-Commerce

Ecommerce Customer Experience: how to optimize it

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A good eCommerce customer experience offers much more than just speed and ease: it fits customers’ preferences to increase their lifetime value and keep your churn rate low.

It’s no secret that people are shopping online more and more. With social distancing, the average customer profile has evolved and adapted to navigate and make eCommerce purchases.

Ecommerce has been a key channel in retail, marketing, and sales operations, to the point it globally represents three-quarters of the overall retail growth. According to Statista, eCommerce sales are supposed to reach almost $604 billion in 2021.

Whether eCommerce sales are made overseas or regionally, one thing is true: The customer is at its center, and offering an at-least-good customer experience is a basic requirement.

Still, that is not what we usually see these days. Regrettably, it is very common to find bad eCommerce customer experiences, such as buggy checkout processes.

Well, that’s no laughing matter. Losing a customer in the checkout process means you’re saying goodbye to the most concrete revenue you might be able to get.

Why is eCommerce customer experience so important?

Owning an inventory and simply selling it isn’t enough, especially in the competitive market we witness today. Products and services aren’t differentiators anymore—but good eCommerce customer experience is.

An eCommerce experience refers to the quality of the interactions customers have in digital stores.

To achieve acceptable levels of quality, the user interaction should match customers’ expectations and provide them with fantastic eCommerce customer experience—there is where its importance lies.

Customer experience decides if you’re selling or not—literally—when it comes to eCommerce. 

The following statistics, provided by CX Central, make it clear:

  • After going through a poor experience, 89% of customers say they have stopped buying from a brand
  • Customer experience is overtaking price and products as a key brand differentiator
  • Eighty-six percent (86%) of customers are willing to pay more for a better customer experience
  • In general, 61% of people have a better opinion of brands when they offer an excellent mobile experience
  • Around 25% of online shoppers leave the website without paying if they find the website navigation too complicated

As you can see, offering a bad eCommerce customer experience is the way to chaos. Simultaneously, a good eCommerce customer experience is the way to customer engagement.

But how can you avoid being in the bad eCommerce statistics?

Keep in mind that every and each eCommerce operation should be built considering how the customer feels throughout the buying journey. 

If customers feel bad about your brand while on your eCommerce, they won’t hesitate to open a new tab and search for your competitor quickly. Competition is a few clicks away.

This means you have to offer a seamless, intuitive, eCommerce customer experience.

What makes a good eCommerce customer experience?

A good eCommerce customer experience should allow your customers to move through your online shop with speed and ease while matching their personal preferences.

This might differ from customer to customer – that’s why it is important to know them deeply.

In case you’re in doubt whether you’re offering a great eCommerce customer experience or not, there are a few KPIs that can help you get your answers.

We know a large portion of customers abandon the cart because that’s how they browse eCommerce. 

Still, according to Baymard, the main reasons for cart abandonment during checkouts are too high extra costs (50%), eCommerce demanding customers to create an account (28%), and too long checkout processes (21%). 

Another interesting statistic is that customer retention in eCommerce is 5X cheaper than acquisition. 

This suggests that keeping your customers and increasing their Lifetime Value (LTV) is a great way to keep ROI coming back to you. If your customer LTV is good, you might want to keep it high to benefit from consumers’ engagement.

With this in mind, we’ll move forward to some eCommerce customer experience trends that are extremely promising for the upcoming months.

1 – Personalization

You wants your customers to feel like you care about them, right? 

The best way to ensure them you do is to offer them interactions that match their context.

By basing its campaigns on factual data, eCommerce can deliver highly personalized and relevant offers to customers throughout their lifecycle and buying journey.

This means more accurate product suggestions, tailored loyalty points, smart follow-up emails, and more, to guide your customers more easily in the journey.

Please pay attention to the fact 71% of consumers express some level of frustration when their shopping experience is impersonal. On the other hand, 80% of them are more likely to buy from brands that offer customized experiences.

Tailoring a specific eCommerce customer experience based on customer data is no longer a futuristic idea. It is here, and people are demanding it.

2 – Flexibility

Customers expect to buy from anywhere at any time. This means providing them with:

  • A wide variety of paying methods on the checkout page
  • Search bars so customers can quickly find products they’re looking for
  • A small number of input fields in the checkout process
  • Fair price policies that don’t scare buyers away

Are these all? In fair honesty, they aren’t. Granting your customers with flexibility goes much further, and it starts with understanding what their preferences and hopes are.

The omnichannel market, for example, is growing at an impressive speed due to customers’ need to create deeper connections with brands as fast as they need to.

Whether customers want to shop online or to go in-store and have their package sent to their houses, omnichannel embraces countless opportunities across digital platforms and physical operations to deliver customized customer experiences.

This creates a competitive advantage and levels your eCommerce customer experience up.

3 – Human connection

The average Americans see from 4,000 to 10,000 ads daily. This massive advertising has contributed to making customers feel overwhelmed and make them harder to reach effectively.

When getting involved with brands, customers need to understand root-causes to allow an emotional connection. 

This isn’t something that paid ads can tell them, so eCommerce needs to take a step back and focus on organic storytelling techniques.

By focusing their attention on unique, personal brand experiences, businesses can upgrade their marketing campaigns and shopping journeys to build an outstanding eCommerce customer experience.

How does that affect your eCommerce directly? Well, this is a fantastic opportunity to use videos and live content to tell your story in an appealing way to attract and retain customers.

This is also a sign you should focus on more effective human support. 

For example, as much as people don’t mind being served by chatbots, 73% of customers still love being supported by friendly representatives who provide excellent service.

4 – Convenience

Convenience is the key to a good eCommerce customer experience, so fast and free shipping is about to become a brand differentiator.

Hitches and slowness aren’t allowed anymore and might push the demanding, time-sensitive customer away.

Let’s say your marketing team has invested time and money in delivering a campaign to attract customers to a unique sales promotion.

However, as soon as the customers engaged with your campaign get to your eCommerce, they catch themselves face to face with slow loading times, confusing pages, and unclear product descriptions.

Let’s also imagine that, as soon as customers put the products in the cart, the price previously exposed to your eCommerce suddenly increases.

Bad news: You have just wasted all the money your company invested in an effective acquisition campaign.

Studies say 14% of customers percent will begin shopping at another site when waiting for a page to load. Imagine how negatively this can affect your churn and conversion rates.

By neglecting convenience, there is a high chance your metrics towards digital initiatives might not perform the way you’re expecting them to and indicate opportunities you’re losing in the business.

Ways to improve eCommerce customer experience

There are many ways to improve your eCommerce customer experience once you decide to invest in meaningful customer-centric experiences.

One thing is universal for picking and implementing the right technologies to optimize your eCommerce customer experience: your improvements must be data-based.

This means every page and feature on your eCommerce should rely on vital customer information, such as what type of interaction your consumers prefer depending on the journey stage they’re at.

For example, have you ever considered developing a solution that allows your customers to buy from you while driving? Or delivering your products to consumers’ vehicles and other appliances?

Perhaps one of the above might make huge sense and generate even more value to your customers. But you’ll only know for certain if you rely on trustworthy customer data.

This is such a trend that customers will agree to sell their information to brands they choose. 

Whether it is their in-store movements, their location, or online browsing, customers are aware data access is essential to create personal experiences—and they’re counting on you to use it wisely to reward them with the best eCommerce experience ever.

Many eCommerce leaders and professionals worldwide have been doing that and benefiting from Customer Data Platform outcomes to personalize and elevate their eCommerce customer experience.

Improving your eCommerce customer experience with a real-time engagement platform

In the process of improving your eCommerce customer experience, you should strongly consider a few tools to help you build the best user experience.

Arena’s real-time engagement platform is the choice for you. It is equipped with Live Blog and Live Chat that can easily be embedded into your eCommerce to generate leads, increase engagement, and boost your revenue.

Keep reading to find out how both tools can optimize your eCommerce customer experience. We highly recommend checking out how Shoply leverages Arena for their Live Shopping experience.

Live Blog for eCommerce

A Live Blog is a new way to blog that embraces live content to a real-time audience.

When you live Blog, you combine different post formats and sources to create a refreshing coverage feed with the latest news towards an important event in your field. 

Live Blogs are huge in many sectors, such as sports, elections, protests, and conferences. However, these powerful engagement platforms can do much more, especially when we bring your eCommerce to the scenery.

Could you Live Blog a product launch? Sure! Could you live Blog a new promotional sale? Yes! Could you live Blog a special gathering for your loyal top-level clients? Absolutely.

Live Blogs transcend the way blogs have been building content over the years and should be adopted by eCommerce’s that care about the content they’re providing customers with.

Live Group Chat for eCommerce

Have you ever considered working on your eCommerce to embed tools that promote customer real-time interactions 24/7?

Live Chat Groups are an amazing option to achieve that!

As the name suggests, Live Chat Groups are chats that can easily be implemented on eCommerce to allow real-time conversations between your customers and representatives and your customers alone.

By implementing one on your eCommerce, you allow new types of interaction that add on more credibility to your pages and don’t make your customers wait for a response when customers reach out for you.

Live Chats have been used by support and sales teams for years, but now marketers have opened their eyes to its potential to engage and offer excellent customer experiences.

The advantages of Live Chat Groups are:

  • Availability: Consumers want businesses to be available 24/7, and Live Chat Groups are always there to prevent your customers from waiting for a response
  • Support: Sales representatives use Live Chat Groups to give customers great support, whether they’re in the checkout process or in doubt about a specific product
  • Real-time engagement: Replying quickly to customers should spare you the chance to leave them without an answer and lose them to other eCommerce on your field
  • Lead generation: Want a fast, simple tool that collects customer data and lets you smoothly guide shoppers through the customer journey? Live Chat is the answer!

As you read, consumers are expecting your next eCommerce customer experience move

We know how fast you need to implement changes that will give you quick and remarkable results. 

That is why we have decided to let you download our engagement platform for free and get started as soon as you want!

Start now and add Live Chat and Live Blog to boost your eCommerce customer experience!

How to Improve eCommerce Customer Experience

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Satisfaction is the word of order. To reach it, the customer experience (CX) for your eCommerce must be on point! Read on and discover how you can improve yours!

All eyes are on the customer now. Whoever dedicates strictly to price is faded to be eaten up by companies serving one moment.

Consumers are more demanding than ever before. Online shopping has become an ever-growing search for the most positive and memorable experience.

On the other side, eCommerce needs to understand its own customers to offer what they really want to get.

So, the faster you assimilate what your brand must do, the bigger will be your returns. Follow up and start right now!

Why is Customer Experience so crucial to eCommerce?

The relationship established between the industry and customers is not supply and demand anymore. It goes far beyond selling. This is a Customer-Centric era! Besides offering an excellent service or product, you must serve a memorable experience, adding value not only to your merchandise but to your whole brand legacy.

Since your company is directly competing with other names offering the same item, with the same level of quality, and the same price, providing an excellent experience to the customer has become the way to stand out, especially in eCommerce.

It is necessary to understand the needs and explore them, making sure satisfaction is present throughout every step of the buyer’s journey.

Dive in your customers’ minds, know their personality, treat them as individuals, be empathic. No one likes to be ignored or mistreated. After all, satisfied customers tend to buy more, put great referrals out there, and positively qualify your company.

How can your eCommerce improve Customer Experience?

The customer experience begins long before the purchase and ends, well… that depends on how deep is their connection with you. Also, aspects including the longevity of the product or service and, most importantly, the degree of emotional involvement to your brand are determinants.

The process of customer experience can start with a personal dream, desire, or status someone seeks for. Whatever is the trigger, customers will join a journey craving for more information to make a dream come true.

With all the accessibility and variety of information provided out here, you must be fully ready to catch their attention at the first click on your eCommerce. They will find out everything about your product or service before addressing any salesman.  

They will build expectations, imagining themselves owning your product/service, feeling the sensation, the joy, the happiness. That is why the entire process has to be flawless. Your customer is preparing their life for that purchase moment.

Although, if they go through any bumps along that ride, anything that negatively influences them, their minds can change in a second, and your eCommerce will lose a sale.

What are the best practices?

Since the idea is to generate a level of satisfaction that your customer will come back to you for any time they need something, here are some best practices you’d better know.

Listen to your customer

A Customer Data Platform (CDP) is responsible for gathering, in one place, the entire database of your company. For eCommerce, this functionality is particularly useful, as it helps to increase lifetime value (LTV) and decrease customer acquisition costs (CAC).

Integrating multiple touchpoints is essential to boost consumer loyalty, increasing the relationship between the brand and the customer. A CDP can integrate all customer data sources through a clean and unified registration system.

By that, marketing and sales can create campaigns with even more personality for your client. With a unique approach aiming for customer experience, it is possible to increase conversion chances, maximizing the average ticket without having to acquire new clients.

When crossing complementary information, it gets easier to identify different customer clusters. For example, you can build a segmentation for those who add products to the cart but leave before buying and those who purchase and may be open to new experiences on your eCommerce.

Holding those types of information, strategy becomes more curated, and ad campaigns get more effective. Then, investments can be directed to where it matters instead of giving blind tries and wasting money.

Put empathy first

We can immediately say that being empathic to your customer makes your eCommerce service a personalized, opening space for the exclusive.

We have mentioned a few times here in our blog that the customer knows exactly when someone is pushing them to buy something ––, and you do not want to be that person!

Letting the audience know your products or services are designed by excellence also includes how you connect with them. By serving empathy in your day-to-day, you make the buying process more flexible.

As a result, your customer will understand you are solving their particular needs, and not just making another regular deal.

Create relevant engagement

Customer experience for eCommerce is a 100% induced process. Your strategy team is in charge of building the most extraordinary journey. A golden tool to accomplish that is Live Chat.

A professional Live Chat solution allows you to monitor, in real-time, how many visitors are on your eCommerce and what pages they are browsing and products they are looking for. It is also possible to know if they are evading the buying process to make a proper intervention to reverse the situation.

Those proactive Live Chat invitations break the barriers of reactive positioning –– when your brand waits for the customer to call you. Approaching visitors in real-time completely changes the dynamic and the relationship between sales and customers.

By acting proactively and showing you are there, available at any time, you have better chances to enhance eCommerce’s customer experience.

It turns essential to mention that every step of this type of engagement is strategically designed to be data-based. There is no guessing or trying in the dark. Unexpected behaviors here can instantly ruin the deal.

Prepare your teams

Another great way to provide a better customer experience for eCommerce is by investing in proper training for your support team. Courses, workshops, digital content: there are plenty of ways to educate and create better service.

It is also fundamental to listen to your team’s reality, encouraging them to share their perceptions, give feedback, and improve the process along the way.

Establish a safe and open communication channel between you both. After all, a significant part of your success depends on them.

Simplify the buying process

Having your customer behavior mapped, you can identify –– or even predict through data –– some crucial details, especially when it comes to the buying process itself.

When you anticipate their common desires, you can display items or services to enhance their experience on your eCommerce and offer a smooth process to do business with your company. You improve the chances of higher revenue.

What metrics to measure about CX for eCommerce?

When we talk about customer experience for eCommerce, some important metrics work as a compass to indicate whether you are on the right track to achieve your business goals. They must be closely linked to the macro strategy, so the results operate as a cascade.

It’s worth mentioning that many managers focus excessively on operational activities indicators, such as the number of e-mails or social media posts.

Those are also important since you can measure teams’ productivity. But without the correct data analysis of performance, it is likely you are all wasting time and money.

General conversion rate

This one probably is very familiar to you. Also, a fundamental metric to evaluate how the customer is experiencing your eCommerce. The conversion rate index usually can point out bottlenecks on your website or strategy.

Aspects your team would not figure out quickly, demanding users’ behavior to identify it correctly. Gaps can be extremely dangerous to the entire process, causing exit spots before the purchase happens.

Shopping Cart conversion rate

A must-have indicator for eCommerce, this one measures when some products or service is added to the cart, but the visitor abandons the process before concluding the sale. By analyzing this metric, you can identify which stage they are evading.

That way, your teams can use tools like real-time updates, provided by the Customer Data Platform, to comprehend why it is happening and how to revert it. Also, you can still create a powerful retarget campaign using CDP to bring them back for those lost customers.

Net Promoter Score (NPS)

When it comes to measuring customer satisfaction and the possibility of making good referrals, Net Promoter Score (NPS) is one of the best known. A typical example of NPS is the following question: “How likely are you to recommend us on a scale from 0 to 10?”.

This metric can be used as a starting point for products or services standardization entirely based on data and customer experience.

As a business manager, the questions approached by NPS are essential to be solved. After all, you know if the customers aren’t satisfied with what they’ve received, chances are, they’ll get frustrated.

Customer referrals

The buyers’ journey is cyclic. It is not enough to have the right products and serve well anymore. The environment built by you must provide a prime time through every single step of customer experience.

When potential new customers see how your brand has been transforming clients, it kind of creates a shortcut between consideration and decision-making. For example, social proofs reveal the opinion of real individuals about the connection established with you and your service.

It could be a testimonial, a demonstration, photos, or even a five-star evaluation. The more referrals your customers put out there, the more authority your brand gets. And even though it may be not easy getting people to spend their time writing something positive about you, it is ok to offer some motivation in return, like a coupon or a gift.

What are the positive results of CX in the checkout process?

To earn customers trust and make them feel safe to close a deal, the checkout page has a massive role in it. From the beginning until the end, your customer experience for eCommerce must be consistent and cohesive, exuding security throughout the journey.

Withdrawals mostly happen at the checkout stage, whether it’s because the page is complex, or demands too much information, or because there are patterns the customer may not feel comfortable filling.

Picture yourself going through your checkout page:

  1. How simple and objective is it?
  2. Are the main points of the information displayed clearly?
  3. Is your checkout browsing intuitive?
  4. Can customers quickly understand that it won’t be too long?

Questions like those enlighten how your checkout page should be constructed, focussing on customer experience.

Here, a bonus tip is to always pay attention to the type of devices being used to access your pages. If you neglect the sources, you will be shutting down several entry doors. You can get that information using the Customer Data Platform.

How can CX generate more revenue?

Nothing can push customers away more than a bad experience. Therefore, to ensure technological innovations lead you towards better results, more profits, and brand loyalty, eCommerce’s customer experience must count on the right tools. Arena’s customers in the eCommerce segment, like Shoply, are already reaping the profits from offering an enhanced Customer Experience.

Just as your customer wants to keep it simple, yet meaningful, so should you when it comes to how to do it. That is why Arena gives you the most fantastic alternatives.

The first one is the Customer Data Platform. This is, by far, your ultimate top option. Every piece of data you need to create the best customer experience for eCommerce is on CDP. Click here and understand how it can increase your sales! Also, you can have a Live Chat solution for free on your website in three simple steps! Within minutes, get this powerful tool right now and boost customer experience on your e-commerce.

Customer Data Platform: where audience data and sales strategy meet

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Are you having trouble improving conversion rates and connecting customer insights from different touchpoints? A Customer Data Platform helps you understand your audience in a granular way and enables you to craft better campaigns and product offers.

Understanding customers always required brands to look at their audience through different lenses – whether through other marketing channels, relationship platforms, or customer segments. On the verge of Big Data culture, however, just having a fragmented view of your audience is not enough anymore. 

What drives sales is the ability brands have to deliver a cohesive customer experience (CX) across different channels, which is only possible by fully understanding channel correlations and cause and effect connectors along the audience’s touchpoints. 

These days, people interact with brands more often than ever before, and so making sense of different interactions is a lot more complicated than it once was.

Recent research by Ascend2 and Research Partners consulted more than a thousand marketers and found that 43% see data integration across different platforms as one of their main goals. In contrast, 37% wish to enrich data quality and completeness.

No wonder executives are investing more and more in their technology stacks: one-third of industry professionals believe it’s essential to have the right technologies for data collection and analysis, according to a study by Digital Doughnut. Currently, 44% of marketers say they already have data management platforms.

But amongst all data platforms available, the Customer Data Platform is undoubtedly the best you can have if your goal is to understand your audience better and drive more sales. We’ll show you why!

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What is CDP? And how does it work?

A Customer Data Platform (CDP) is a software that unifies customer data from different data systems and customer-facing platforms. It combines customer’s demographic data, buying history, social media and content preferences, call centers, and customer navigation data. 

Once implemented, the CDP acts as a 360º data solution: it collects, filters integrates, and analyzes customers’ data in real-time. 

CDPs can ingest structured and unstructured data from Customer Relationship Management Systems (CRM), Data Management Platform (DMPs), customer support channels, eCommerce websites and apps, payment systems, social media, etc. They also track behavior across different devices.

By acting as a hub for many data sources, the Customer Data Platform allows marketers to build a holistic view of single customers and their pain points. 

But how exactly do they organize so much data? Well, CDPs rely mostly on first-party data so they can determine the so-called Unified Customer Profiles, which are profiles based on information from real customers and prospects.

That makes the data match consistent across different platforms, and hence the audience insights end up being much more reliable for marketers.

Check out some practical examples of data collected by customer data platforms:

  • Transactional data: order details, customer and product value, renewal dates, abandoned baskets, stage in the conversion funnel
  • Behavioral data from web and mobile: Products and categories browsed, clicks, store visits, interaction data, number of pages visited, etc
  • Profile data: Contact and opt-in data, psychographic data, details about channel and content preferences, lifestyle, etc
  • Brand Relationship Data: Email interactions with customer support, social listening insights, social media comments, etc

The end-to-end role of a Customer Data Platform (CDP)

In today’s competitive landscape, marketing executives are expected to keep track of all customer interactions and connect marketing efforts to other departments, such as sales and customer success, to provide customers with a satisfactory customer experience (CX).

The rush for data management optimization is seen clearly by the CDP industry’s growth in recent years. According to the Customer Data Platform Institute, the number of CDPs available in the market doubled from 2017 to 2018. Now, there are more than 50 CDPs in the industry worldwide.

The truth is that CDP can be an asset for every department within a company, working as an end-to-end solution to enrich customer experience. We’ll soon explore how brands can use CDPs to drive sales, but first, let’s explore CDPs’ overall benefits for companies. 

Breaking Data Silos

CDPs integrate data from multiple departments, which encourages different teams to collaborate and speeds operational routines. With a CDP, marketing, sales, customer experience, and support teams can be on the same page regarding customers’ needs.

Automating marketing workflow

Because they automate a lot of the data integration and analysis, CDPs make the lives of marketing professionals a lot easier, freeing them from repetitive work and allowing them to spend more time in strategic planning. 

Speeding up decision-making

As data processing happens in real-time in the CDP, it also makes it possible for companies to easily spot changes in customer behavior and act upon them while quickly sharing relevant insights with different teams.

The power of CDPs in driving sales

As we pointed out, CDPs are an excellent liaison point for different departments and can be at the heart of customer experience management. But to what extent can CDPs contribute to final sales? 

There are many ways CDPs can directly or indirectly improve conversion rates, drive customer loyalty, and decrease churn and bounce rates. In fact, a report from Forbes Insights highlighted that 44% of organization leaders believe the Customer Data Platform is helping them drive customer loyalty and increase ROI.

We have made a list of 11 ways CDPs can help you drive sales while also better understanding your customer base. 

1) Know your customers across multiple devices or channels

The mandatory philosophy among marketers is that they should reach their customers on the right channel, at the right moment, and with the right messages and products. To do that, they need to let go of assumptions and understand exactly how users interact with them across different channels and devices.

With all such information concentrated in the CDP, marketers can tailor better experiences and advertising segmentation across devices, increasing campaign success chances

2) Accurately track shopping events

A CDP is a great tool for retailers and eCommerce as it tracks customers’ buying behaviors and relevant transactional data in significant volume. CDPs allow them to keep a consistent record of the products customers added to the cart, the duration of checkout and order completion, abandoned carts, and other information that is crucial for online operations.

3) Improve pricing 

Collecting data from many sources – from your eCommerce website, app, or even physical stores – CDPs help you clarify how much customers are spending and how much they are willing to pay for your products according to their stage in the customer journey, search, and navigation patterns. 

CDPs can also be connected to your supply chain systems to help you adjust costs and manage the relationship with suppliers, which are aspects that often impact pricing. With such information updated in real-time, you can be more assertive in your pricing strategy.

4) Offer personalized discounts and product recommendations

Having a holistic customer profile at hand also allows brands to offer clients personalized discounts and product recommendations that ultimately can turn them into loyal customers.

A study by Salesforce shows that 57% of customers are willing to share their data to exchange personalized offers or discounts. In comparison, 52% will share their data in exchange for product recommendations that meet their needs.

While knowing customers in detail, companies’ teams can offer precisely what users need to advance in the sales funnel – whether it is a discount, a free trial, reviews from peers, or a personal approach from the support team.

5) Connect physical and digital shopping experiences

For retailers that also operate offline, a CDP can connect insights from online and offline systems, which is often a challenge for companies looking forward to addressing omnichannel experiences. A survey from the CMO Council found only 7% of respondents said they are always able to deliver real-time, data-driven experiences across physical and digital touchpoints.

With a CDP, brands can offer better customer experience from the website to the physical store – and vice-versa – increasing sales opportunities.

6) Be quick to react to customers interactions

Being quick to answer customer’s signals is also crucial for both customer acquisition and retention strategies. Still, many marketers struggle with the amount of real-time insights they can access and act upon. 

Research published by MediaPost, commissioned by technology consultancy Vanson Bourne, shows that only a minority of marketers feel they can immediately react to online customer interactions. According to the study, only 43% act quickly over customer behavior in the pre-purchase stage, 38% during purchase, and just 35% in the post-purchase phase.

By providing CRM, sales, and marketing teams with a continuous data stream, CDPs can make customer data more actionable. Isn’t that the point of having so much customer data? 

7) Prevent churn and cart abandonment 

Retail managers and online marketers are often investigating why customers abandon carts or churn after a few purchases. A CDP can give you deep insights into what stands in the way between your customers and the checkout.  

It helps you spot gaps throughout the entire customer journey (and not just in specific channels) that might be leading customers to give up purchases. Are there problems with website usability? Is your customer support too slow? 

By figuring out what is wrong, your team can work on fixing these gaps and segmenting churn prevention campaigns to attract customers back. 

8) Optimize Customer Acquisition Costs (CAC) and Conversion Rates

The McKinsey Global Institute estimates that data-driven organizations are 23 times more likely to acquire customers, six times as likely to retain customers, and 19 times as likely to be profitable. 

With the Customer Data Platform’s assertiveness, companies can better streamline marketing segmentation and customer success efforts, thus optimizing results related to Conversion Rates (CR), Customer Acquisition Costs (CAC), and Customer Lifetime Value.

9) Qualify your leads

One of the best aspects of CDP for sales is that it allows you to qualify your leads better and nurture the relationship with customers across their entire lifecycle. Not only it supports marketers in optimizing strategies to attract qualified customers; it also gives you the necessary information to engage with customers who are ready to buy. 

A study by Forbes shows, for instance, that 53% of marketing executives are using CDPs to engage with existing customers’ needs, increasing the likelihood that they will become recurring clients and the chances of upselling them. 

10) Enhance predictive marketing

Predicting customer behavior and preferences are what helps giant retailers like Amazon to drive sales. This marketing technique, which determines the probability of success of different marketing strategies, is essentially fueled by high volumes of customer data, which only a CDP could support. 

Armed with a CDP, data scientists and marketing analysts can gather data from several sources and apply predictive models with a great accuracy level.

11) Improve attribution models

With so many touchpoints with the audience, it is often difficult for companies to determine accurate attribution models and discover which channels drive more sales. According to Google, almost 80% of all transaction value involves at least two marketing channel interactions – a number that can be much higher depending on your business’s complexity.

The Customer Data Platform can optimize the attribution framework since marketers can send attribution data to the CDP and have a more accurate view of campaign performance.

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Why CDPs are more complete than other data management platforms

So you have learned the many benefits that CDPs can bring to the table. Many leaders still ask themselves if they should ditch their existing data management tools for a CDP. What has to be clear for marketers and sales managers is that different data platforms don’t need to exclude each other. 

A Customer Data Platform can potentialize the outcomes of Customer Relationship Management (CRM) software and Data Management Platforms (DMPs).

In a survey by The Relevancy Group conducted in 2018 with US executive marketers, about 6 in 10 respondents said they were integrating CRM data into their CDP. 

From a digital advertising perspective, CDPs can make the work of Data Management Platforms a lot more precise as well – with at least 29% of marketers feeding CDPs with digital advertising response data.

Although CDPs, DMPs, and CRM systems share some similarities, they all have different purposes within a company, with CDP serving as a primary data hub to make your teams more confident in responding to customers’ needs. 

Want to become an expert in CDP?

If you plan to purchase a CDP for your company, the next step is to check out the platforms available in the market and consider which one is the best fit for your business goals.

If you feel like it is time to learn more about CDPs, we invite you to download our eBook Customer Data Platform: the future of marketing and sales.

The eBook will give you details about CDPs’ features, how they work, and how they can be incorporated into your marketing and sales strategies. We hope you enjoy it!

Data-driven marketing: learn how to work it with your customers

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Data-driven marketing belongs to a new customer service approach that unleashes companies’ potential to make better, scalable marketing decisions and benefit from higher marketing ROI. It represents the future of customer experience and meaningful branding messages.

You already know what people say: Knowledge is power. Facts, information, and skills acquired through experiences are gold mines for every company that wishes to stand out and stay relevant in their customers’ minds.

Customer data platforms tells marketers everything they need to know about their target audiences. Through digitalization and its multi-channels, it became possible to trace people’s actions across the digital and physical worlds to optimize the process of offering customized products and services that match individual needs.

However, these days, data must be smooth to access and easy to visualize. This happens because customers want quick responses, which timing and effectiveness are highly affected by delays and assumptions.

In this unforgiving environment, are you confident that your marketing decisions are based on facts? When important events on your field take place, how quickly can you respond to them? How many customized experiences do you actually deliver to your customers?

If the answers to those questions concern you, you’re at the right place, at the right time. Get ready to know how data-driven marketing can take you closer to the answers you wish you could give.

In this article, you’ll find out:

  • What is data-driven marketing;
  • Data-driven marketing benefits;
  • Impacts on customer experience;
  • How to work data-driven in consumer segmentation;
  • And examples of data-driven culture.

With that in mind, let’s move forward.

What is data-driven marketing?

Data-driven marketing is a strategy that uses customers’ reliable information to personalize whole marketing communications and experiences. From buying journeys to targeted media and in-store service, data-driven marketing accesses massive information to leverage decisions and make the right judgment about what customers need. This helps marketers to refine strategies based on facts, not guesswork.

But where does data-driven marketing get all the information from?

When you use your phone’s mobile apps or desktop devices to web navigate, you’re leaving traces all around the internet. The applications you use are designed to send data to companies so they know what websites you access, with who you’re interacting with, the locations you have been to, and more relevant information that clarifies your individual preferences and lifestyle.

Many organizations are already worried about data, but we must call attention to the fact that data-driven marketing goes beyond data itself.

The many devices, platforms, and other types of media you use are surely whispering into marketers’ ears over and over to help them build fact-based decisions that match your expectations. Even so, data-driven strategies merge a high-powered amount of digital and offline channels to give context, collect information, and arrange it in ways that are easy to visualize. Data-driven marketing aims at amazingly-designed customer experiences, but influences internal operations in ways companies have never seen before.

With so much information being generated at all times, data-driven marketing unites the right tools to track, segment, and optimize strategies. When used right, this groundbreaking approach will help you to invest in the right interactions to increase customer retention and bring you more marketing ROI.

Data-driven marketing benefits 

Now that you know the importance of data-driven and how it is revolutionizing marketing strategies, it is time to highlight some of its many benefits.

Segmentation

Data-driven marketing is the key to build marvelous customer experiences based on well-designed segmentation. The first step is to select the right customer segment to drive marketing efforts into. After that, you will be prepared to work on specific, tailored tactics to sharpen your customer touchpoints, whether they’re potential or not.

By segmenting a target market, it gets easier to develop products, solutions, and approaches that will attract the right people to your brand. Segmentation also provides transparency when you wish to know how your campaigns are resonating with the public and gives you a better understanding of particular users’ behavior.

Customer acquisition

Four essential questions must be answered very carefully when you decide to attract target audiences and contact potential customers:

  1. What message will you tell them?
  2. How will you communicate with them?
  3. When will you reach out to them?
  4. Where will you find them?

In a data-driven approach, all of these questions will be respectively answered based on:

  1. Goals and pain points;
  2. How they behave;
  3. The best timing according to their routine;
  4. And the digital and physical places you’re more likely to meet them.

Even if you have a large number of customers, it is possible to combine data to deliver special, tailored touchpoints that match their behavior and preference. It could be an e-mail, or an SMS, or a live event. Possibilities are countless, but you will surely pick the best ones once you know what customers expect from you and how to engage them.

Data-driven marketing works efficiently when it comes to continuously deliver interactions to match customers’ expectations throughout their journey. With so much information at the palm of your hand, you will be ready to transmit the right message (what) at the right time (when) and place (where).

Revenue

Every company director loves it when technology saves the day by cutting costs and returning investment. Gladly, this is pretty much the case with data-driven marketing.

According to the Forrester report “Insights-Driven Businesses Set the Pace for Global Growth“, data-driven organizations grow 30% per year more than companies that don’t base their strategies on data.

When we take a good look at different markets, it gets even clearer that data-driven strategies embody assertive communication that makes ROI possible.

Custom-made marketing campaigns reach proper audiences, which leads to customer acquisition, which leads to customer engagement – and ROI is coming back to you in each one of these stages. Not to mention the revenue currency that comes from these approaches.

Revenue is also possible by cutting costs, reducing churn, and democratizing information through different companies’ sectors.

Upgrade your marketing strategy

Automation was already a buzz when CRMs arrived to transform the way marketers dealt with customer data. From purchase details to personal information and preferences, CRM was and still is prepared to collect digital data at higher levels. This allows big data to play a more predominant role in marketing: Data is now at its core, deciding the directions companies should take to reach their goals.

It must be said that collecting data became a more complex task, especially when you take the number of multi-channels available these days. Still, this complexity isn’t an excuse: If brands don’t automate operations related to those channels, they will lose way too much time putting effort into what can be automatic, and marketers won’t be able to strengthen their creative side and propose remarkable tactics.

Fortunately, there is a considerable amount of data-driven tools that optimize, clean, and filter important data from multiple sources, whether they’re 1st (directly extracted from customers) or 3rd party (found in the market).

Data-driven marketing automation saves you time, money, and free your team to focus on more important tasks that require human abilities, such as creativity. That is how you truly upgrade your marketing strategy: By quickly analyzing qualitative data and returning a creative response to customers’ issues.

This means a wider customer reach, more relatable content, targeted ads, and personalized customer journeys – to only quote a few.

Don’t forget that numbers and reports play a crucial role in data, but the outcome will only be useful if the human eye analyzing them gets the right insights and develops accurate replies to get closer to customers.

Impacts on customer experience

Lincoln Murphy, known as the Customer Success guru, says that Customer Success is only achieved by combining what customers need to an appropriate experience while delivering the right interactions. As you know now, this has everything to do with data-driven.

Data-driven marketing is a new shift in customer care. It prioritizes customer experience in smart and strategic ways, such as we have never seen before.

Many marketers around the world have embedded data-driven strategies into their routines, taking their time to analyze information that will drive to ideal customer experience. With so many benefits, data-based decisions impact consumers on profuse levels. Take a look at some of the impacts:

Personalize customer interactions 

Needless to say, real engagement is closely related to giving customers a personal touch in everything you do.

Irrelevant content, general messages, and ordinary offers will only frustrate the current consumer. People expect brands to customize every touchpoint and suit them to previous steps of their consumer journey. This means companies need to enrich and individualize communications that work in a one-to-one approach to get in touch with customers and prospects.

While 74% of consumers feel frustrated by irrelevant content, 56% of them would reward personalization with a purchase.

Data-driven tactics are the perfect response to this personalization requirement. It allows you to incorporate consumers’ inclinations, pain points, and attitudes to deliver personalized experiences both in digital and physical fields.

Content personalization also turns your communication more persuasive, improves customer conversions, and boosts engagement.

Improve products and services

Products and services can also be personalized and better designed to respond to buyers’ expectations. Analyzing clear data will help you understand whether you need to develop a new product or give an existing one new functionalities to match your customers’ needs. This kind of information also guides you to make the right decisions on when to invest in innovation and when to change small details that make a difference.

Besides, data-driven marketing ensures companies always keep an eye on the market to launch tailored, untried products. Data will assist you in when to launch something new, to know how much people are willing to pay for your products and services, and what can be enhanced to increase customer satisfaction.

Ask for feedback 

Another way data-driven marketing impacts customer experience is via feedback. Remember that people use social media to discuss brands and experiences, and when they talk about your company, you should be the first to know. Practices like social listening will help you monitor what people say on social media networks and collect precise data to gather feedback and insights into what’s working and what needs refinement.

Predict customer trends and market changes

Customers are avid for brands that can communicate and act based both on their individual preferences and what’s going on around the globe. Sustainability, social responsibility, storytelling… These are all actual trends that brands should pay attention to while planning their year. Closing your eyes to the market and only focusing on customer behavior is dangerous, as the external environment can dictate what trends will create buzz and what you can do to make people more interested in your brand.

Data-based predictions are important to keep you one step ahead of your competition, especially in times of change. Timing is crucial: Losing the chance to reply quickly to changes and real-time events might harm your brand in ways you never thought possible. With that in mind, make sure you use data to be prepared for change.

Reach customers where they are

Uncovering the best channels for promoting your brand can be a challenge, but data-driven marketing clarifies what those channels are and how your customers use them. This will prevent you from investing unnecessarily in channels that have bad ROI and planning media usage poorly.

With a more concise understanding of trends, you may get a broader view of channels’ tendencies to use them correctly, building more responsive communications. Batches of customers will also benefit from an enhanced content distribution from your part.

Make customers more engaged

Data automation is the ultimate principle to direct creativity into engaging strategies. In the past, marketers could only deliver a few types of customer service — versions back then didn’t vary, and general communication was even acceptable. Nowadays, though, our hectic and ever-changing routine requires more from brands. If you want to truly engage customers and make them loyal to your brand, you better start seeing data as the main resource to achieve better engagement rates.

More interested in experiences than in products, customers these days expect to be listened to and empowered by appropriate brand responses. Not only people are willing to pay more for better experiences — engaged customers are ready to invest emotionally in brands, and this is vital to any long term customer relationship.

Besides making you relevant in consumers’ minds, engagement pays your bills. Companies that have improved engagement increase purchase frequency and order sizes. This keeps revenue coming in and customers satisfied with relevant buying and connection experiences.

How to work data-driven in consumer segmentation

To apply data-driven marketing in your company, you need to be ready to extract, treat, compare, and analyze digital information from multi-channels, transforming it into knowledge.

We know this multi-channel information means millions and millions of data coming from social media, website analytics, cookies, CRMs, consultancies, market data, competitors, and more. But, thanks to technology and digital transformation, data-driven companies use analytics and algorithms to filter and select types of data that matter the most to them.

There are data-driven solutions — software and methods — that will help you segment your customers and visualize information in intuitive reports. With the advances of machine learning and artificial intelligence, machines gather data around and bring it to you whenever you need it.

One of these tools is the Customer Data Platform, also known as CDP. A CDP should provide you with the right insights to create personas, attract and qualify leads, create new content strategies, and develop customer relationships.

Be aware that marketing segmentation is a key-strategy when it comes to the data-driven mindset. Separating customers by interests, job titles, age, location, gender, and more is an amazing strategy for companies that wish to come up with outstanding marketing strategies instead of sending mass emails and trying to acquire leads through general advertising. Segmentation will pull you closer to generate real-time audience engagement.

For example, in 2015 Very.co.uk combined customer preferences with data about the weather to create personalized homepages to attract consumers to their e-commerce. In the process, 1.2 million versions of the website could be displayed, matching customers’ interest. For example, if you were looking for homeware, your homepage would bring special promotional messages that had everything to do with the products you were looking for. It is completely personalized — and that was only possible because Very.co.uk data scientists created complex algorithms to predict customer behavior.

Nubank, the largest Fintech in Latin American, is another company that embraces data-driven marketing to customize the customer experience. Nubank created ‘wows’, the name given to specific gifts customers receive when assistants feel a special type of connection while serving them.

Every gift is designed especially to the customer, considering their preferences and context. Nubank recently gave a consumer that owns 85 dogs a box full of dog toys, bone-shaped letters (written to the customer herself), and a device that throws dog treats in the air.

Examples of data-driven culture

Data-driven marketing has been so relevant it is leading a policy of its own, known as data-driven culture.

Data-driven culture allows organizations to replace opinions and guesswork with data-derived facts. Here, data is the main resource for collecting and leveraging insights in every company’s department. For this reason, all operations and routines will revolve around it, creating a new decision framework that relies on collaboration to move, integrate, and combine data more efficiently.

This means information must flow effortlessly through people, processes, and solutions so decisions can be made in a matter of seconds. There is no time for waiting: Business intelligence, technology, sales, product, marketing, and many other teams must have quick access to data to enhance customer interactions as swiftly as possible.

To give you a real case example, The Coca-Cola Company in Brazil assembles a data-driven culture to machine learning and AI to analyze its market and consumers. From three to three months, Coca-Cola employees set goals based on data and measure their progress through indicators and continuous information exchange.

It is also interesting to mention that Coca-Cola uses digital as a leading measurement tool and values people diversity to boost collective learning.

Worldwide, Coca-Cola is also known for its successful data-driven campaigns and agile mindset. In practice, data helped Coca-Cola deliver the Cherry Sprite flavor, which was inspired by the fact many customers mixed their drinks in self-service drink fountains. It also drove the company to create personalized AI assistants for vending machines that can behave differently and allow consumers to personalize drinks.

To mention one more example, Coca-Cola has been using data-driven marketing to track photographs of its drinks on social media, using image-recognition technology — this allows the company to target customers and deliver more efficient adverts, considering their consumption behavior.

At the end of the day, it’s clear to see that companies that have absorbed data-driven culture are completely different from companies that haven’t. Data-driven companies achieve tremendous results by dealing with complex multimedia channels — like videos, social media, ads, email, and liveblogs; — to reach customers with the right message at the right time. This ability is closely tied to automation and analytical approaches, which permits operations to be optimized, and audiences to be attracted more effortlessly.

Data-driven marketing is the future 

We know making the best marketing decisions is a challenge as much as it is a basic requirement. Moreover, facts tell us the future of organizations will be decided by the ability to use data wisely — and we know you don’t want to be left behind.

Arena helps media companies all around the world to encourage engagement and streamline customer data to smart marketing campaigns.

If you’re willing to be assisted by a Customer Data Platform to boost your audience and work data-driven marketing with your customers, get to know more about how we can create powerful experiences for your users.

Complete guide to Customer Experience

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Customer experience is one of the new frontiers of marketing. Customers, in the market powered by industry 4.0, are more interested in the experience than in the product itself. In fact, according to a research held by Momentum Worldwide in 2019, 76% of the participants declared to prefer experiences over things. 

This is closer to our own lives than you might think. Have you ever felt so well treated by a company that you eventually became their client for life? Or that a salesperson seemed to know your needs so well that you made an impulse purchase right on the spot? 

On the other hand, have you ever found it so hard to navigate a website that you couldn’t find or buy what you wanted? Or had to wait so long for technical support on a product or service you bought that you never used that company again, nor recommended it to anyone?

All of those situations have to do with the same business aspect: Customer Experience. Miles away from that simple and old idea of mere customer service, it is one of the biggest marketing trends today. And it involves reconfiguring your whole business around the idea of providing a customer with what he wants and needs, before he or she even knows they might need it.

Want to know more of how that works? Don’t worry, we got a simple and complete guide to help you improve your “CX” in no time.

What is Customer Experience and why is it important?

Customer Experience, also known as CX, is the summary of every physical or virtual interaction a customer has with your business. It is the sum of what defines his or her perception of your brand, starting from the very first contact up to their level of satisfaction at the end of their experience.

Simply put, CX is one of the most fundamental parts of Customer Relationship Management (CRM) because it is what will decide if any individual that comes in contact with your business will become a repeat and loyal customer. 

From your website usability to how your employee treated them, and how satisfied they were with your product, every piece of the puzzle will define how happy your brand made them – and, most importantly, if they are willing to come back.  

In addition, a happy customer is not only a loyal one. Oracle conducted a global study in which 74% of senior executives stated a good experience will make customers become advocates for your business. 

Not only will they come back, but they will talk about you with their friends, family, coworkers. They will recommend you, defend you, and bring you new business. They will become your marketing tool.

The importance of CX can be summed up in a simple idea: without customers, you don’t have a business. And an American Express research found that 86% of customers are willing to pay more for a better experience. This is why your main focus should be on investing in that experience, so you retain the ones you have, while also attracting new ones. 

Why should your business focus on CX?

In an ever more scattered and competitive market, Customer Experience is set to be the defining factor that makes someone opt for your brand, and not another. A third of customers will quit buying from a business after their first bad experience. On the other hand, half of them are likely to splurge on an impulse purchase if they receive a personalized treatment from an employee, or even an online interface.

And if a customer rates your company 10/10 on a satisfaction level, he or she will probably spend more than twice as much on your brand. Their  loyalty may last for over five years. When you are happy with a product or a service, you don’t quit them.

Talking in money figures, according to a study by the Temkin Group, businesses that make US$1 billion a year can increase that number by US$ 700 million in three years, simply by investing in CX. The reason is, by doing that, they attain higher customer satisfaction rates, reduced customer churn and, consequently, increased revenues.

If you want to make that kind of money, that means you cannot ignore your customer needs, their emails, feedback, queries, and expectations. You have to listen, understand, and act based on what they tell you.

That is why a Bloomberg Businessweek survey revealed that great customer experience is a top strategic objective right now for any kind of company. It is the most effective way to beat your competitors, and get your customer to not only come back and spend more, but to become your marketing tool, through word-of-mouth, positive online reviews, and recommendations to their friends and acquaintances. 

Is customer experience the same thing as customer service?

Absolutely not! Customer service is when a potential client interacts with one of your employees, in a store, online, or on the phone, for example. And that is just one part of the customer experience.

If you go to a restaurant, and your order is served quickly, and tastes delicious, that is good customer service. But if you become a regular at that particular restaurant, the chef knows that you are allergic to onions, and does not use them in your food without you even having to ask, that is great customer service.

Because that is the heart, the central element, of CX: seeing and treating your customer as a human, an individual, and not a simple source of money. Customer experience is all about providing a human and authentic connection, one that does not feel run-of-the-mill, nor a script from a production line. It feels unique and personal.

Technology today, such as a CRM software, has made it possible for that individual experience to be executed in many different ways. Predicting future purchases and needs based on the customer’s history, or delivering targeted email marketing campaigns are good examples. However, it is still about seeing each one of them as an individual, listening to them, and anticipating their expectations and needs.

That does not mean customer service is not important. On the contrary. Providing assistance, answering every email, complaint, or question – and quickly – is more imperative than ever. But that is only one part of your customer experience, that has to start positively from the homepage of your website and last long after a purchase is made. 

What makes for a good customer experience?

Exactly because good CX must feel personal and unique, there are no automatic formulas or guaranteed recipes. The one key element that is at the beginning of every good customer experience is: listen.

Know how to listen

Listening to what your customers are saying to your business, and about your business, must be your top priority. Every feedback, email, technical support call, or online review must not only be dealt with quickly, but also used as raw material to create a strategy in reducing friction and providing better and more personalized service for your customers.

Have a good system

In order to do that, a system that puts all that feedback and information together, and analyzes it, is essential. The logic is simple: create channels that make it possible for your customer to tell you what he/she wants, likes, or does not like, acknowledge and understand their demands; then act on them.

If you are not doing that, the alternative result is quite clear. Your complaint and purchase lines are clogged, and your customer is frustrated with long waiting times – which is the number one cause of bad customer experience. 

The dialogue does not flow organically because your employee does not understand what your customer needs – which may make your employee’s frustration come off as rude or angry. Consequently, your client support is left with many unresolved issues and complaints. And your customer is dissatisfied with automated responses, and the lack of a personal, human, component. Those are all the roots of bad, or terrible, CX.

Mock up your typical consumer

Know, though, that it’s not easy. Most companies still don’t provide good or excellent customer service. In order to change that, your CX policy must come from the top of the chain, expressed in clear and public guidelines, available and known by everyone in your business.

For example, create personas, so your employees know whom they will be dealing with. Provide training for those same workers. And listen to their feedback, too. They are the ones on the frontline, so they are in an ideal position to see and feel what your company might be doing right or wrong – and how to improve it.

Always ask questions

Finally, never hesitate to ask questions. Use your chat platforms to better know your customers and their current experience with your brand. Follow those conversations up with emails. If necessary, outbound calls are not off the table. 

And remember: it’s all about empathy. Emotions play a huge part in customer experience. It is precisely the emotions that will determine if your customer wants to remain in business with you or not. 

But how do I measure if all of this is working?

Measuring and analyzing is one of the most challenging parts of customer experience. That is why a number of different metrics and tools were created to assess the quality level of CX in a particular company.

With them, it is possible to evaluate the effectiveness of specific strategies, as well as how they improve or not the customer’s perception of, and relationship with, your brand. The four CX measuring tools that are most used in the market today are listed in the following topics.  

Customer Effort Score (CES)

It measures how easy, or difficult, a consumer’s experience with one of your products or services was. Here’s how it works: a customer made a purchase on your website, for example, and you wish to know how easy it was for him or her to navigate the e-commerce platform. 

So you send a CES survey after they are finished, asking questions like “How easy was it to complete your online purchase”, or “to navigate our website”, with a rating scale from ‘1: very difficult’ to ‘7: very easy’. Pretty straightforward.

Net Promoter Score (NPS)

We all have answered a Net Promoter Score survey before. It measures a customer’s loyalty score, by asking a variation of the “On a scale from 0 to 10, how likely are you to recommend this product/company to a friend or colleague?” question.

In addition to being very simple and straightforward, that numerical score is a quite good assessment of customer experience. That is why the metric, created by Rob Markey and Fred Reichheld at Bain and Company, is favored by many boards and executive committees, being one of the most used by businesses in the world today.

Customer Satisfaction Score (CSAT)

While Net Promoter Score evaluates the satisfaction with the whole brand, CSAT surveys the customer’s experience with a specific product or service. The metric system, though, is pretty much the same, usually providing a scale from 1 to 5 or 7 – where 1 is very unsatisfied, and 5/7 is very satisfied. A yes or no answer may also be used, however.

Due to its specificity, and for how it makes possible to analyze each different point in the customer experience chain separately, most CX leaders in the world choose CSAT as their top metric.

Time to resolution (TTR)

One of the main sources of customer frustration, and bad experience, is waiting a long time to get a response. For that reason, TTR is a very important metric. It measures, in average, how long it takes for a customer’s issue or ticket to be solved by a company’s brand after it’s been open. 

The result may be provided in days or business hours, being the product of the whole sum of time spent in resolution divided by how many tickets and issues were solved. The logic here is pretty obvious: shorten your TTR as much as possible, if you want to increase the likability of having return business from a customer. 

CX trends

Good Customer Experience results all over the world have come from companies who have been following a certain set of practices. The first one is that they are customer-centric, instead of profit-centric. 

That means their top priority is providing an outstanding experience, focusing more on retaining and satisfying their current customers than on attracting new ones at any cost. Second is that good CX usually comes from old school methods. Yes, again: human interaction. 

Companies that privilege one-on-one personal conversations over chatbots, market research (such as customer calls) over predictive analytics and social media, as well as investing in talent on board, often present the best customer experience results. It is not about being state of the art, or overtly technological, but about the willingness to provide good, satisfying service.

Number 3 is something we have already said, but can never overstate: these companies are listening. The base for their CX strategies is the feedback from their customers. Not only they collect it, but they have put systems in place to properly analyze it, and turn the conclusions into action.

Next, they acknowledged the importance of their employees in implementing good customer experience. Not only did they provide specific and individual training, based on different departments’ and workers’ needs, but they also got all their workforce involved in their CX strategy effort.

Finally, no matter how well they are doing, Customer Experience leaders in the globe keep increasing their investment on CX initiatives.

So, how do I Improve my CX strategy?

A good CX strategy consists of guidelines and actions that start from the very top and involve the whole company. It must be assimilated by every employee because to a greater or lesser extent, they will all eventually play a role in the customer’s experience of your brand.

These guidelines and actions must come from a very simple customer-centric principle: make your employees understand they should treat a customer the same way they would like to be treated by any business. 

In order to do that, make your customer feedback – that same one you already collected and properly analyzed – available for everyone in your team. Let them see and know how they can improve those experiences you have surveyed.

And that is ever more effective the sooner it starts. Your workers should be informed of your customer policy as soon as they are hired. And through training and support, they must be updated and refreshed on those practices as often as possible.

There are two powerful tools that you can incorporate to your strategy and will make your brand step up its game regarding customer experience. We are talking about live blogs and live chats. 

Live chats

Most companies use live chats as a customer service channel. But did you know it is also possible to use this tool to generate an experience for our consumer? 

Some platforms, such as Arena, allow you to create live group chats. This means your audience will be able to comment on your event, exchange impressions and also very valuable information. 

Depending on the profile of your audience, you can promote this space as a powerful networking opportunity for them to connect with people who have similar interests and valuable contributions for them both personally and professionally. 

On the other hand, you, as a brand, will receive immediate feedback from your customers. This will allow you to know exactly what they like and dislike, which gives you the opportunity to redefine your course of action immediately. As a consequence, you will offer an even better experience to your audience, making them loyal to your brand and the content you produce.

This is customer experience to its core, generating true value for your public and allowing your brand to be a vector for meaningful relationships. 

Live blogging

Live blogging is a new approach to content marketing. As the name suggests, these are platforms that allow you to create content as a particular event or set of events unfold. It gives your audience (or public, as you might want to call) a chance to have access to things they otherwise wouldn’t. 

There are basically two ways in which you can use live blogging. The first one is to provide a full coverage of an event. This means that people who haven’t been able to attend feel like they are actually participating. Big tech events make full use of this technology for this kind of use. 

The second way in which you can benefit from live blogging is to broaden your user’s experience. Let’s say, for example, your company is promoting a big event with celebrities and big names of the area. 

In this situation, you can use a live blogging strategy to grant access to the backstage or to have specialists commenting on the theme of the event. You can also directly interact with your audience by publishing trivias and reposting what they have been saying about the event online. 

Live blogging is a fine way to deliver a greater customer experience to your public. By adopting this technology, you are giving them the opportunity to have access to exclusive content, personalised interaction and relevant content. 

Lastly, because it all comes down to this, and you have to remind yourself of that every day, all the time: in order to provide a great customer experience, listen to your customer and their feedback. 

Create channels so they can speak to you. Listen to what they want, need, like, and don’t like. Use that in your favor. Engage in the conversation, ask questions, try to understand them better.

In short: see them as human, as an individual, as your business partner. Speak their language, with them, not to them. And be quick. Don’t make them wait. Nobody likes to wait.

If you want to start testing some of the tools that will allow your brand to offer an even better customer experience, here’s what you can do: create an account at Arena and implement our freemium version of the live blog and live chat!   

What Omnichannel is and Why it Leads Customer Experience

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Omnichannel puts the customer at its ultimate core. This integrated and all-places strategy personalizes touchpoints in the customer journey to offer the most effective shopping experience anytime and anywhere.

It is fair to say omnichannel is the perfect response to a new customer-centric culture. Here’s everything you should know about it.

Taking care of customers according to their expectations is the greatest of brands’ responsibilities. This concern has made marketing, technology, and sales teams work together for years to increase customer satisfaction in different channels.

From mobile apps to desktop blogs, from e-commerce to social media and physical stores, customers expect the same service excellence in any place, at any time.

To reach that excellency level, companies these days must assemble and harmonize various components, such as data, multimedia marketing, and multiple sale channels, to get to their audiences at the right time and place, and intently offer the best of the best experience.

That’s when omnichannel walks in.

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What is omnichannel?

Omnichannel is a marketing and sales strategy that combines and crosses different channels to provide an outstanding and personalized shopping experience. By blending several elements into an integrated whole, omnichannel removes the boundaries between digital and physical spaces, optimizing brand messages, general communication, and, most importantly, customer experience.

Already a reality in some great retailers, omnichannel brings together e-commerce, shopping apps, blogs, social media, marketplaces, ads, and physical stores to improve the consumer lifecycle and customize its touchpoints, whether they’re digital or offline.

In order to be omnichannel, brands need to mix products, marketing, sales, customer support, supply chain, and more, to make their deepest reasoning clear: Put the customer in its ultimate core and let channels combine (and recombine) to deliver consistent and efficient shopping and communication initiatives.

Some omnichannel examples are:

  • Being able to buy a product that isn’t available in-store, using an app
  • Purchasing on e-commerce and collecting at the store
  • While collecting, being swiftly introduced to new launches that really interest you
  • Abandoning the cart and getting an email with the offer of a new, exclusive customer loyalty program that follows up to the abandoned product
  • Getting a shipping notification via e-mail and SMS

Omnichannel vs Multichannel

We can say every omnichannel retailer contains multiple channels. That makes omnichannel essentially multichannel, but the contrary isn’t true. Therefore, these terms can’t be used interchangeably.

The main difference between these “channel” concepts is that omnichannel integrates its operations while multichannel components act separately.

In a multichannel strategy, there isn’t mutual communication. In fact, it is common for multichannel retailers to face lack of information exchanges and a sense of competition between their channels.

When it comes to branding, multichannel sends out the same message in all channels and to all consumers, regardless of the lifecycle stage they’re at.

This combined with the fact multichannel doesn’t allow personalized experiences contributes to the idea that multichannel focuses on products, not on user experience.

Meanwhile, omnichannel not only integrates channels but collects and transforms customer data into personalized interactions with their consumers base. It means that, unlike lack of communication, an omnichannel brand message quickly adapts through the customer journey and remains relevant.

It doesn’t matter if the customer is online or not: The same unique message will be sent. Most businesses invest in multichannel today, although we should mention that omnichannel consumers spend between 15% to 30% more than multichannel consumers.

It is also important to distinguish omnichannel from cross channel. Cross channel strategies also integrate channels to offer more comfortable and agile shopping experiences. However, omnichannel stands out for being the only method to assess consumers’ behaviors, habits, and preferences to create personalized touchpoints.

Why should brands be omnichannel?

You probably know how exigent the modern consumer is. Technology has put a personal device and free access to information in customers’ hands, and people have grown fond of browsing and comparing. Technological and ever-changing lifestyle also makes customers enjoy shopping experiences that are flexible, trustworthy, and responsive to their needs. Buying when and where they want is a basic requirement for customer experience and care.

Another detail you should pay attention to is that people have enough time and information to consider which is the best product or service. And, thanks to content marketing, there is a huge number of tools that tailor customer journey to this new demanding and multi-connected profile. Brands work hard to make the most out of marketing in social networks, blogs, messaging applications, and more.

Still, content isn’t all it takes to engage people: Companies need to focus on customer behavior.

And, if you’re curious about it, you should definitely check these Google; and Salesforce; insights:

  • 68% of shoppers purchase movies, books, and video games both in-store and online
  • 66% of shoppers prefer online shopping to find items, compared to 27% who prefer offline
  • 55% of buyers say that retail experiences are disconnected from channel to channel.
  • 59% of shoppers prefer to shop online to get better prices
  • 83% of U.S. shoppers that visited stores had used online search before going into the store

That being said, brands should be omnichannel because customers are omnichannel. They don’t split a brand’s perception into offline and online. It means that, if their experience is damaged in any channel, frustration will lead buyers to switch to another brand. Recall that 58% of consumers will turn to competitors if they face a single bad customer experience. 

However, omnichannel benefits are not exclusive to shoppers. Companies that integrate sales, logistics, technology, and marketing channels also benefit, as they make consumers happy and likely to buy more – who doesn’t want more revenue, right? 

In addition, satisfied clients talk about their experiences with friends and family and help brands increase their customer base.

Omnichannel strategies also cut costs by rethinking opportunities based on consumer habits. Another advantage is that unifying communication promotes a more consistent brand image and encourages synergy between operations. Often, it is cheaper to adopt omnichannel and optimize strategies than to open more sales channels.

Finally, we should mention that being all-places – as latin Omni suggests – makes your brand capable of solving multiple use cases, whether online or not.

How does omnichannel work in e-commerce?

Omnichannel has a huge impact on e-commerce. Known for its convenience, e-commerces allow customers to buy anywhere, at any time, and provide relevant information about products and services that interest them.

The omnichannel mindset turns e-commerces operations more efficient. Its approach aims to provide online shoppers with seamless and continuous buying experiences.

Digital components that absorb customer data through e-commerce purchases can be easily accessed to create a well-built consumer understanding. The goal here is to identify what methods will bring better results and which channels are more effective to engage and delight the customer.

Another possibility is that e-commerce can lead to many other shopping opportunities. Think about the number of shoppers that buy online and decide to collect their products in-store.

How great would it be to offer specific products once the customer arrives? Or, to look at it from another perspective, think about what will happen to e-commerces that won’t let shoppers choose how and when to get their hands on their purchases. Will they fail to deliver convenient experiences? They surely will.

When correctly implanted, omnichannel e-commerces strategies will quickly identify customer touchpoints that will lead to specific solutions – and, as a consequence, to more engagement and brand loyalty.

The effects of omnichannel in customer experience and culture

Omnichannel is all about customer experience. Its core is to deeply understand buyers’ needs and embrace them, all while respecting their time and delivering meaningful messages.

Whether online or offline, omnichannel interactions should cause a sense of identification and present a brand that gives buyers the chance to access their preferences.

The real impact here is that, by understanding people’s needs, omnichannel is extremely powerful to generate follow-up interactions and engaging buying stages.

All data available must be used to create a context for future touchpoints in multiple shopping environments. And the secret to the omnichannel done right is that this context must be continued, wherever people are.

Customer experience must be continued, otherwise, brands fail to engage and retain. If your consumers don’t identify with the message you’re sending through your channels, then they’ll look for other messages they can connect with.

That’s why you have to step back and focus on the fact that, for your channels to be truly omnipresent, you firstly need to perceive the habits and preferences of your target audience.

If you think omnichannel only personalizes messages and experiences, you better think again. Being able to collect and interpret universal customer data is a fascinating way to go a little further and customize offers and even products.

Let’s move on to some examples of how to do that!

Be inspired: real omnichannel experiences

Sephora: My Beauty Bag

Born with digital DNA, the giant beauty Sephora created a special feature to connect clients to their favorite products. Named “My Beauty Bag“, the feature – which is also an app – is part of the Beauty Insider loyalty program, and allows customers to access products and past purchases whenever and wherever they want. 

While using My Beauty Bag, clients can, whether in-store or not, search for the right shade of lipstick, rebuy old purchases, and recommend products to friends. Sephora’s stores are equipped with tablets that make it possible for consumers to log-in immediately and add new items to their bag or “loves” – previously known as Sephora’s shopping list.

My Beauty Bag enables shoppers to collect favorite products, organize them in one place, create wish lists, keep track of both online and in-store purchases, and track rewards. 

Burberry: Series B

Based on customer data, Burberry created a new series of limited edition products that remain available for only 24 hours on the 17th of every month. The timing here creates hype and a sense of urgency for customers to reach out and buy the exclusive and recently launched products. Purchases can be made on Instagram, WeChat, LINE, and even in the Korean Kakao platforms.

This type of strategy was essential to increase consumer engagement and create anticipation, and it paved the way for the development of new activities across multiple channels that focus on customer experience and interactions.

Amazon: Amazon Prime and Amazon Go

Even if a huge number of companies worldwide won’t have as many resources as Amazon has, there are some key details to pay attention to in their omnichannel strategy that can inspire other businesses, especially when it comes to data unification.

With the mission to be the world’s most customer-centric company, Amazon has been investing in omnichannel for years now. 

When Amazon Prime membership arrived, it called public attention by offering free shipping. It saved time and was convenient. As time went by, other benefits were provided, such as unlimited video and music streaming, discounts, and even a wardrobe, that allows customers to try on items online before purchasing them. 

Omnipresent, Amazon decided to expand to physical dimensions and launched Amazon Go, a convenience store where customers don’t need to wait in line.

Through the Amazon Go app and artificial intelligence features, clients register everything they’re putting into the cart and leave the store as soon as they want. There’s no need to pay in the cashier. Their receipts appear in the app and money is charged from the Amazon account.

This new type of purchase is called “Just Walk Out” and embeds different AI technologies and data to provide the best shopping experience. Omnichannel at its best!

As you might have noticed, omnichannel is intimately related to customer experience and retention – and brands that ignore its potential are most likely to fail in maintaining competitive advantage. 

Want to learn more about engagement and make your customers brand loyal? Access our Customer Experience Guide!