Companies collect massive volumes of data every day, but they often struggle to connect their data-driven insights with CX initiatives.
The first step in bringing out the full value of data is learning how to analyze it and communicate findings to company stakeholders. A basic data science education can help executives pinpoint the relevant insights in a flood of information, according to Deborah Alvord, VP analyst at Gartner.
"Many leaders say, ‘I've got all this data. Now what?’” Alvord told CX Dive. “It's hard to differentiate between what is good to know and what is critical to our priorities and our key business and CX objectives.”
CX leaders don’t need to become experts — they can leave the heavy analysis to dedicated data scientists, according to Jake Johnson, principal at the Alexander Group. However, even a basic understanding of data is valuable.
CX leaders who speak the language of data can better use it to shape experience-driven initiatives and investments while effectively communicating their goals with other executives.
Leaders should identify and focus on a consistent set of metrics when studying and sharing data, according to Johnson. It can be tempting to seek more exciting or interesting data points, but sticking with a core data set results in a more compelling long-term strategy.
"If you're staying consistent with the things that matter, the acceptance of their importance around the organization will start to grow,” Johnson said. “If you're flipping between different priorities every quarter or every month, no one's going to buy in as much.”
Communicating those findings and how they impact CX initiatives can further the goal of creating a company culture that puts experience first.
"The insights can't live in a vacuum,” Johnson told CX Dive. “CX isn’t owned by one part of the business. It really needs to be spread out across the organization."
Data visualization is foundational
Relevant insights can be hard to find in a morass of numbers. This makes data visualization, the practice of turning complex data into charts or other graphics, the most important skill for CX leaders to develop, according to Alvord.
Successful data visualization helps leaders turn a jumble of data into a coherent narrative. Inadequate attempts or a failure to even try to visualize data, on the other hand, can cause more confusion than clarity, according to Alvord.
“I have seen a lot of dashboards in my career, and they can be overwhelming,” Alvord said. “They can be irrelevant. It's just numbers over numbers. What does this mean if it's not telling the story?”
Executives who know how to lay out data in clear, concise forms can better understand what they’re seeing and explain it to other stakeholders.
One example of good, consistent data visualization is a company that created a customer experience dashboard and made it available across the organization, according to Johnson.
The software collects and displays information regarding response times, satisfaction scores, online reviews and other relevant metrics, Johnson said. Since all leaders have access to this information, it gives everyone a baseline — and a buy-in — to understand the company’s CX strategy.
Data helps leaders react efficiently
Customer experience, like every aspect of business, is moving faster than ever. CX leaders with an understanding of data can respond to customer demands with agility.
Companies can leverage their huge volumes of data to provide better customer outcomes, according to Johnson. Leaders that understand this data can react quickly to support positive trends or make adjustments when an aspect of the experience fails.
“Twenty years ago, it was more of a finger in the air, and maybe a bit more delayed,” Johnson said. “Now we have the ability to move faster with that real-time data and information.”
Rapid responses are key to making the most of technological innovations like generative AI.
For instance, hard data helps companies measure just how much time and effort an AI-powered assistant saves its agents, according to Alvord. Alternatively, a company can determine whether a chatbot is handling enough inquiries to justify its implementation.
“You need data to show whether or not your investments are truly bringing in the ROI,” Alvord said.
