Customer Analytics: Perspective from the Retail Strategy

Customer Analytics: Perspective from the Retail Strategy

The exhaustive process of identifying a client’s requirements wants, expectations, preferences, and aversions is known as the voice of the customer (VOC). Additionally, this goes beyond consumer feedback, social media, and relationships.

One of the reasons VoC is crucial is because the quality of the customer experience is a key differentiator in standing out from rivals. Before recently, the only metrics utilised to assess the success of retail sales were average transaction values and conversion rates. But that is not the case right now.

Retailers understand the value of data points at every stage of the customer journey and in every channel to stay on top of behaviours and ensure an effortless, omnichannel experience, as stated in a white paper by Frost & Sullivan, which states that “customer satisfaction can no longer be measured solely based on a transaction.”

Customer Satisfaction

The same white paper states that 50% of global retailers and wholesalers use customer satisfaction levels to gauge the success of their investments in digital transformation. Only 20 to 25 per cent of businesses, however, do this effectively. In today’s digital environment, it is crucial to have a system in place to assess all of the client feedback that is always coming in.

Companies must evaluate all the data they collect to adopt effective changes to satisfy customer expectations, as information is tracked nearly everywhere, from internet cookies to customer surveys to sentiment analysis.

As more and more people switch to internet shopping, businesses are also losing the in-person sales experience and feedback loop that would enable retail staff to identify and communicate customer wants or needs back to their corporate offices. In addition, 35% more people now shop on social media sites than they did a year ago. Additionally, compared to earlier generations, members of Generation Z and younger will continue to spend two to three times as much money purchasing on social networking platforms.

While this is excellent for generating sales, it represents yet another missed chance to obtain direct client feedback during the sales process. VOC analytics may give insight into how businesses can actively enhance service, sales, and revenue while also ensuring that customers are heard.

Connecting with the customer matters

Building trust and establishing an emotional connection are two essential elements in forging a genuine connection with customers. The foundation for fostering consumer loyalty is trust. In actuality, 44% of worldwide customers spend $500 or more annually with the companies they believe in the most.

Every single interaction a customer has with a company offers the chance to either increase or decrease trust. By keeping that in the forefront of their minds, brands can make sure that every interaction they have with their customers is intended to leave a positive impression.

Building trust also involves using and protecting any customer data acquired responsibly. According to the 2022 Adobe Trust report, 73% of customers are concerned that the information brands acquire will not be useful to them and will instead only be utilised to advance the brand. Additionally, 81% of customers state that it is crucial to them to have a say in how businesses use their data.

These satisfying encounters have the potential to develop an emotional bond with customers over time. The quality of any data we collect depends on how it is evaluated and what actions are taken, thus it is essential to employ a methodical approach to analyse the data and comprehend the end user.