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The 3 Dimensions of Operationalizing Customer Intelligence

Customer intelligence equips us to utilize customer related information for developing deeper customer relationships, which can be leveraged to improve profitability. It acts as the basis for targeting potential customers of various attributes, identified from existing profitable customers.

Due to the commoditization of services, products, there is an increased focus on service and customer interaction as a differentiator – customer experience, proactive service etc. help in positively influencing customer loyalty. These aspects, when combined with the enterprise analytics at a strategic level, lead to the Customer Intelligence. Through Customer Intelligence, a company can understand customer requirements, habits and is better equipped to handle customer issues so as to improve the overall customer experience.

Dimensions of Operationalizing Customer Intelligence

Customer Intelligence is multi- dimensional and primarily encompasses three different aspects:

  • Customer Information Integration: It is essential that the data garnered is clean and as per the guidelines given by the data users. The data compiled should be able to provide a 3600 view of the customer.
  • Customer Insights: This helps in the segmentation strategies and modeling. It is important to know the specific customer preferences, requirements and the customer value. The insight should be in depth and help in identifying the various potential activities of specific customers, such as customer moving to another brand, buying or responding to a particular event, campaign etc.
  • Customer insight Operationalization: The analytic customer insights need to be integrated to the front office applications so that individual customers can be addressed through customized treatments. Marketing and sales decisions can then be taken accordingly.

According to a study by McKinsey, it was found that extensive and best practice users of customer analytics outperform their competitors. For such companies, their business strategies aligned as per CI proves to be the competitive differentiator.

Types of companies on the basis of their CI dimension

Usually, companies fall into either one of the four categories on their drive for these three customer intelligence dimensions.

  • Basic Level – In this case, the company does not have a 3600 view of the customer. It is primarily dependent on manual analysis of customer data. This may be due to a lack of knowledge or infrastructure required for analytics.
  • Foundational Level – Here, the company has the basic necessary parameters in place such as unique customer ID and customer segmentation.
  • Advanced Level – The company has a complete 3600 view of the customer and the customer campaigns and interactions are customized on the basis of the value segments.
  • Distinctive Level – Along with the 3600 view of the customer, the products and services are differentiated on the basis of the different segments and all customer interactions are insight driven.

Where does your company stand?

The goal of any company should be to reach advanced or distinctive level in order to leverage maximum benefits of CI. To do that, several important measures need to be adopted-

  • Integrated deployment of IT infrastructure, optimal analytics skills (in-house expertise), and smart execution/organization.
  • Top management incorporating analytics insights in key decision-making.
  • Developing a culture that appreciates and acts on customer analytics.
  • Putting new processes in place that managers and executives can readily understand and take actions on accordingly.
  • Engage and act to monetize social media insight with highly personalized offers and promotions.

 

Customer Intelligence dimensions and company categories combined are useful in creating a highly useful diagnostic matrix for the manager to find out the current level, intensity, and depth they would like to achieve in the future for developing strong customer relationships, niche offers and other proactive services.

A truly integrative approach to analytics is the gateway for extracting maximum value from customer intelligence. As a company progresses upward through its CI dimensions, its overall performance and efficiency in customer experience also gradually enhances.

Leading customer intelligence companies, such as VOZIQ, provide services and solutions that can be leveraged by enterprises across diverse verticals to move on to an advanced or distinctive level in Customer Intelligence.

 

7 STEPS TO GET ROI FROM CONTACT CENTER ANALYTICS

 

Closing the Customer Intelligence Loop in Contact Centers

The customer intelligence build is utilized within the corporation at diverse points – e.g. by the CEO to frame strategies and in decision making, the Product Development Manager in product designing, by the marketing team for data mining and modeling, finance for measuring customer profitability, and even IT for data provisioning and reports.

One of the functions where the quickest impact of operationalization of CI is in contact centers, where the customers interact directly and need an immediate response. They are generally the first and preferred points of contacts for customers to communicate with a company about their products/services. Their efficiency and strategies determine what impression is cast on the customer and how well he/she is served. With the advent of CI, the contacts centers have seen a change in their operations. They are now inching towards a more insight driven interaction system with segmented profiling.

What does closed-loop customer intelligence mean?

For a contact center, customer insights are critical so as to ensure that the customer interaction experience is in line with corporate marketing and thus have consistent messaging and business and profitability goals. For this to occur, the contact center managers should be able to:

  • Understand who is interacting: The first aspect is to understand the person calling, e-mailing, faxing or chatting. The contact center needs to understand the individual, business or group that the contact represents. This understanding goes beyond mere identification of the customer and is more about understanding the customer as a person – the needs, pain points, context of the contact etc. This understanding leads to correct segmentation and subsequent provision of an appropriate response.
  • Responding to the customer in the best possible way: Once comprehensive customer intelligence is built, it should be used to match each customer contact with the best possible customer service representative for specialized handling of the interaction. For example, a frequent caller is routed to a more skilled agent who specializes in handling similar contacts. Similarly, high value customers are routed to agents empowered with responding to such customers.
  • Empowering CSRs to drive business impact: Based on customer intelligence and the insights into the contact handling record of contact service representatives (CSRs), tailored coaching programs can be created to empower the CSRs to leverage customer intelligence and deal with specific segments of the customers. This is a very crucial method to achieve business results, such as increased customer satisfaction, reduced customer churn, reduced repeat calls rates and so on.
  • Monitoring and reporting call center KPIs: The contact center managers should monitor and report Customer Intelligence results to top management – CSAT scores, customer retention numbers, first call resolution rates (FCR), etc.
  • Utilize the close customer relation to provide useful inputs to the CI analytics. The CI analytics team should focus on the operational realities, such as the descriptor data points for customer identification, routing engines, mapping the descriptor data points for right action/ treatments and success metrics identification.

How does closed loop customer intelligence help?

Customer intelligence is essential for moving the customer contact center to a profit or loyalty based operation from cost or service oriented operation. By closing the customer intelligence loop, businesses gain the ability to identify the business-critical trends in customer experience and take necessary action in a timely manner. This also helps the business to leverage the contact center customer data in a strategic manner in order to gain a competitive advantage in the market. Closing the loop also leads to the best alignment of operations for delivering a delightful customer experience. It greatly reduces operational costs by removing inefficiencies.