Customer experience isn't just a buzzword; it's the lifeblood of businesses striving for sustainable growth and customer loyalty. Therefore, collecting customer experience insights to drive business decisions is incredibly important.
In this blog, we'll explore the multifaceted world of CX insights, from deciphering customer sentiments to identifying pain points and implementing strategies that resonate with your audience.
We’ll also dive into the methodologies that help collect customer feedback, from surveys and interviews to user testing.
What Are Customer Experience Insights in Market Research?
Customer experience (CX) insights in market research refer to the valuable information and data gathered through various research methods to understand how customers perceive and interact with a brand, product, or service.
A lot of customer experience insights data typically looks at the buyer's journey, what a customer thinks about when they buy something from you, and more. It can even include other things that they attribute to your brand.
In the past, our market research company has used various methods (focus groups, customer surveys, interviews, and more) to collect customer experience insights. It's the most effective way to gather insights to see how each part of your business affects the customer in their buying journey and make improvements.
Why Are Customer Experience Insights Important?
If you’re hoping to increase customer lifetime value, average order value, or other things like customer loyalty then customer experience is something you should take a close look at.
In our experience, finding crucial data that can help executives and managers make important business decisions can come from customer experience insights.
Your customers' experience with your brand is not something to ignore or belittle if you care about giving them a better experience and growing your business.
Here are a few more detailed benefits of collecting CX insights:
Delivering the best products possible is a challenge and is not an easy feat to complete. Product testing paired with customer experience insights can give some early feedback on whether a product will perform well for a brand or not.
In our experience with product testing, having input from existing customers is a crucial thing that some companies forget.
Many companies and brands struggle with churn without understanding the reason behind it.
Using the insights from customer experiences can help bring issues or concerns into the open to show what could be responsible for an unexplained churn rate.
When doing something like a customer experience insight survey, it’s possible to ask your customers what they think of your brand compared to others, maybe even some of your competitors.
It gives the opportunity to see what customers think of your brand matched against others and for what reasons.
It’s useful to see this info unfiltered to try and rectify any shortcomings or differences. It can also help you create a product or service that is competitive in the current market.
Ways to Collect CX Insights
Collecting customer experience insights involves gathering information from various sources to understand how customers perceive and interact with your brand, product, or service.
Here are several effective methods to collect CX insights:
1. Customer Surveys
Perhaps the best way to collect insights from customers is to go right to the source with customer satisfaction surveys. They are specifically designed to collect measurable, quantitative data that is excellent for gathering feedback, identifying trends, and resolving pain points.
Additionally, there are several customer satisfaction metrics such as customer satisfaction (CSAT), net promoter score (NPS), and customer effort score (CES) that you can track over time to truly know if your strategies to improve CX are working.
2. Focus Groups
Focus groups gather a small, diverse group of customers to discuss specific topics or experiences related to your brand with a skilled moderator. They allow for rich, qualitative insights and group dynamics observation.
3. One-on-One Interviews
An alternative to focus groups is in-depth interviews. Similarly, you can ask open-ended questions about customer experiences, pain points, and suggestions for improvement. Additionally, they provide an opportunity to delve deeply into individual experiences, perceptions, and feedback.
4. User Testing
User testing is a powerful method for gathering CX insights as it involves observing real users interact with your product, website, or service in a controlled environment.
By providing specific tasks or scenarios, user testing allows you to directly witness how individuals navigate, perceive, and interact with your offering. Through their actions and verbal feedback, you gain valuable firsthand insights into usability, user-friendliness, pain points, and areas of improvement.
Additionally, participants' thought processes are often vocalized, offering a window into their decision-making and emotional responses.
This method provides concrete, actionable data that enables you to refine and optimize the user experience based on actual user behavior, ultimately leading to a more customer-centric and effective product or service.
How To Best Use Customer Experience Insights
As we've discussed, using market research to gather customer experience insights is a crucial component of business strategy. But, just exactly how can you use these data-driven insights to drive real organizational change? Here are a few examples.
1. Pricing Your Products/Services
For your products and services, it’s critical to have them be competitive in the market. That can include both pricing and the product or service itself when compared to the customer experience.
Having products that meet your target market's needs at a price they are willing to pay is most businesses' dreams and goals (or so they say when they talk to us). It’s also important to think about how the market and your customers' wants and needs might change.
That’s where using customer insights from product testing and pricing research can help.
2. Growing Brand Loyalty, Engagement, and Awareness
With proper data from the inside of your customer’s minds, you should be able to get a good idea of your brand’s value in their eyes.
Things like brand loyalty, brand engagement, and brand awareness are all things that may be able to be pinpointed with the right customer experience insights research.
For instance, bigger brands and companies like to do brand promotion and customer engagement activities together around the holiday season.
These things typically come from customer experience insights that show how well consumers react to them when compared to other times or even other companies.
3. Better Conversions and Customer Value
It’s best when your customers can help your business grow by showing and helping you give them what they want.
With certain customer experience insights, you can increase average order value, increase prices, and even increase conversions by finding out how to tailor your product and marketing to them.
You can use the data from a customer experience insights project to find out if customers cross-purchase, re-purchase, and more.
It’s also possible to find out if any are likely to or continue to do so. If not, it’s always good to find out why not in order to increase the value of your product or service.
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Austin has an extensive background in SEO as he's been blogging since 16 years old back when the internet was in its infancy. As fitting, he holds a Bachelor's degree in English with a concentration in creative writing.
Learn more about Austin, here.