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What is customer experience analytics and how can analytics improve your CX?

To improve customer satisfaction across the company, it is essential to understand what is customer experience analytics cx. The customer experience (CX) has a significant impact on your brand's reputation, customer loyalty, and financial performance. According to a Forbes report, 75% of customer experience management executives gave customer experience a top score for being incredibly important to the business. Also, 84% of companies that work to improve their customer experience report an increase in their revenue.

Customer Experience is always your company's top-selling item (CX). Customer satisfaction is what draws in new customers, determines what and how frequently they make purchases and has a significant impact on customer loyalty and lifetime value (LTV). 

Furthermore, you can better understand how to improve customer satisfaction with the help of customer experience analytics. You will learn more about the customer's perspective, experience, entire customer journey, and the issues they have with your offerings. To grow your customer base, you need to be tracking the right communication metrics all across your organization. That’s why we have built Live platform, a full omnichannel solution that helps companies worldwide grow their profitability and improve their customer experience. 

In this article, we’ll discuss the top 5 benefits of customer experience analytics and how to analyze customer experience. We’ll also highlight six steps to improve CX with experience analytics insights.

This article includes the following:

  • What is customer experience analytics CX?
  • Why is CX analytics important to business?
  • 5 key benefits of customer experience analytics CX
  • Steps to improve CX with experience analytics insights
  • Conclusion

What is customer experience analytics CX?

Customer Experience Analytics CX is the process of gathering, analyzing, and processing customer data to evaluate and ultimately enhance CX. You can use customer data to understand better how customers interact with your business, its products, and its services. By changing designs, how you market to customers, or how you deliver your products or services, you can use this information to enhance the customer experience.

Any interaction that happens between the user and the product can be included in customer experience or customer experience data. The information can come from interactions with customer support over the phone, web chat, social media, SMS, email, and reviews. Live platform can help you to analyze customer journeys and use AI to predict business trends so you make a data-backed decision.

The reporting provided by CX analytics covers:

  • How to reach potential brand ambassadors and devoted customers as well as the best customer base for your company
  • Reviews, surveys, and other sources of feedback, both positive and negative a complete view of the customer experience, including any pain points or obstacles encountered along the way
  • Rates of success for your current products and services and potential future areas

Why is CX analytics important to business?

The best way to understand your current customers, attract new customers, and foster loyalty is to establish a culture and organizational structure that prioritizes CX. Customer engagement, purchasing, and LTV are all directly correlated with the customer experience and customer journey. CX analytics generates profitable, quantifiable, and useful insights.

From sales and marketing to customer retention, CX analytics affects every facet of the company. They are essential for outlining customer pain points, demonstrating the effectiveness of marketing strategies, and ensuring that you are reaching out to customers in the appropriate ways.

Standard models created on broad metrics are frequently inconsistent across the business and incapable of providing deep insights. Your most important insights into customer satisfaction, engagement, and purchasing patterns are lost without CX analytics. Results from CX analytics enable measurable, data-driven decisions that produce results.

5 key benefits of customer experience analytics CX

Analytics for customer experience can assist businesses in delivering a better CX faster and more consistently by understanding customer behavior and preferences. By spotting and resolving problems early on, CX analytics can also contribute to a positive customer experience.

The benefits of monitoring your analytics are explained below.

1. Understand Customer Satisfaction Levels

You can determine whether customers are satisfied with your brand's user experience by looking at detailed customer analytics.

It can provide you with important insight into the experience they want and how to change your products, services, customer service, etc., to deliver it.

To evaluate how satisfied your customers are, you can examine metrics for the customer experience like CSAT, NPS, etc. And if you introduce new services, you can thoroughly assess whether the customers value them and think they work.

Following that, you can assess how to improve the services you provide to both current and future customers while edging out your rivals.

2. Recognizing customer interactions

Customer experience analytics enables you to comprehend how customers engage with your products and services by analyzing your data. Then you can use this data to improve customer service and boost sales.

3. Identify customer obstacles

Even if your product or service is the best, there will inevitably be some problems or challenges. You can quickly identify these obstacles using customer analytics data, and you can create effective solutions to get past them.

NPS, for instance, enables you to identify customers who are reluctant to advocate for your brand. Get in touch and learn what went wrong for them, and work to make things right so that they are more satisfied.

You can quickly resolve issues while using predictive analytics and machine learning algorithms to understand the struggles of your customers.

4. Make knowledgeable decisions

You can't only rely on anecdotes or educated guesses to make sure that your brand appeals to nearly every customer.

If you make decisions based on actual data, your chances of success might go up significantly.

In order to assist you in making wise business decisions, CX analytics links customer behavior with specific metrics. Metric-based CX data gives you insight into what your customers want from you in order to improve engagement and retention.

5. Value growth and cost reduction

In terms of lifetime value and customer satisfaction, predictive customer experience analytics can identify high-value customers. It also discovers valuable, dissatisfied customers, though. When you are aware of this information, you can plan your spending and make savings.

4 easy steps for analyzing customer experience

The four steps for gathering and examining customer experience data are listed below.

1. Create your ideal customer profile

The best customers are those who will benefit the most from your services or products and who will remain loyal to your company. These customers could be your most valuable resource and the foundation of your customer base.

You can find your best customers by monitoring website traffic, conducting customer surveys, researching your current customer base, etc. To comprehend customer needs and determine whether they meet your criteria, you can also use text analytics, voice of the customer tools, and user sentiment analysis.

Knowing your target market can help you better analyze their experiences and adjust your customer experience management (marketing strategy, sales, or customer support) accordingly.

2. Create a customer journey

You must list every point of contact with customers and chart their entire customer journey in order to effectively collect and analyze your CX data.

These are the points of contact between the brand and the customer, from the very first advertisement they see to the communications following a purchase. These include:

  • First website visit
  • Point of consideration
  • Point of sale
  • Customer onboarding
  • The product return or subscription withdrawal (if any)

If they don't proceed to the "purchase" stage, for instance, you should figure out what stopped them.

A single touchpoint has the power to make or break a customer's loyalty and experience. It is crucial to gather and examine customer data related to these points because of this.

3. Track crucial metrics

After completing the initial steps, it's crucial to use advanced analytics tools to track and analyze important business metrics like CSAT, conversions, and other metrics.

With an analytics platform, you can also gather customer feedback using metrics like Net Promoter Score (NPS) or Customer Effort Score (CES) to get quantified data.

Additionally, you can use social listening tools to keep tabs on how your brand is perceived on social media platforms like Facebook, LinkedIn, etc., and to gain useful insights about customer data.

4. Analyze the data and make a plan

In order to determine whether you have a thorough understanding of your customer's experiences, you should evaluate all the customer data you have gathered.

Make sure you have information from various sources and compare it to other information. It can assist you in determining the advantages and disadvantages of your brand. You can use this information to develop a plan of action that will prioritize customer satisfaction and advance your company.

You can investigate the causes further, for instance, if your analytics show a relatively high cart abandonment rate. Then, to encourage customers to finish their purchases, you can come up with strategies like providing discounts, freebies, etc.

If only a portion of your customer base is represented in your analytics, try extrapolating the results to include all of them.

Steps to improve CX with experience analytics insights

All customer experience analytics findings should ultimately lead to an improvement in the customer journey or experience. The following are typical methods for doing this:

1. Establish your ideal customer segment

The demographic that generates the greatest sales and revenue should be clear after the analysis is complete. Your target audience or ideal user base can be thought of as this group of customers. It may be more effective to directly target this group of customers and try to expand it after learning what drives them to make purchases.

2. Make personalized customer experiences

Businesses will be able to address these pain points and offer tailored solutions because the earlier customer experience analytics steps were successful in identifying the trends relating to each channel or customer segment.

3. Determine the needs of the customer

Businesses will have the chance to correctly identify any customer needs through analysis of the interaction. Customer experience insights provide you with essential knowledge about how your customers use your platform. You can gather specific details about the goods they buy, the time of day they buy them, and other helpful information that you can then use to develop new upselling strategies or incorporate into your marketing plan.

Any successful customer satisfaction will constantly work to meet the audience's various needs. When a customer is interested in your brand, they will frequently let you know what they expect and how your company can do better. One application for CX analytics is actively listening to this chatter on social media. Also, through direct interaction and attempting to incorporate it into your CX.

4. Make yourself stand out from the competitors

After conducting a CX analysis for their own brand, businesses can then choose to look at their competitors' brands in order to gather more CX insights. According to Statista report, 44.5 percent of organizations worldwide revealed that they perceive customer experience (CX) as a primary competitive differentiator. Competitor experience analysis can offer teams effective solutions. In order to come up with a solution, the teams must keep an eye out for customer journey segments where their rivals are outperforming them.

5. Build a loyal customer base

Maintaining a high customer satisfaction rating costs less money and takes less time than attracting new customers. Giving your customers exactly what they want is a great way to enhance their customer experience. It will be simpler to keep customers interested if you are aware of what draws them to your company.

6. Continuously keep an eye on experiences

Businesses must stay on top of their customer's experiences because they are so dynamic and changing. The last step in customer experience analytics is to gather data continuously and analyze it. These give you an advantage over your competitors and give your customers what they want before you know it.


Your brand will grow a unique, long-lasting, and devoted relationship with each of your most valuable customers when you put them at the center of everything you do. Making data-backed business decisions can benefit from effective analysis of the customer experience and the entire customer journey. 

To stand out from the competition, you need to develop this kind of relationship with your customers and a level of customer insight.  You can improve the customer experience for your company once you have accurate data at your disposal.
Ready to improve your customer experience? Don't hesitate to get in touch with us today if you want to learn more about how the Live analytics platform technology can make this vision a reality for your company.

Learn more about how the Live product family can help you support and improve your customer experience strategy.

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