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How To Use Big Data to Improve Your Customer Service

JT Ripton / 3 min read.
June 25, 2019
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Customer experience is everything.

Recent research has revealed that 90 percent of buyers are willing to pay a premium for better customer experience. The key is understanding what an improved experience actually means for a customer, however.

The rise of analytics has positioned companies to achieve closer customer analysis ”on a far greater scale than feedback surveys or social media comments. With access to a mix of complex data sets from an array of sources, companies now have better insight into customer behavior, leading to higher sales numbers and better customer service.

With that in mind, here are five ways you can use this new emphasis on data to deliver better customer care.

1. Know Your Target Audience Much Better

In the past, data collected on customer interactions were primarily drawn from observation and direct engagement. These sources provided some level of insight but were difficult to aggregate ”making it a challenge to get a comprehensive view. Today, companies are able to examine thousands of data points on each customer to better understand and segment their best customers.

For example, companies have used big data to figure out how millennial buying habits differ from previous generations. In terms of a singular product, companies now understand why the product is attractive to one subgroup as opposed to others. With this information, brands can address the specific needs of each subgroup and maximize the number of potential customers.

2. Seeing the Entire Customer Journey

On top of maximizing your most likely audience, big data provides a panoramic view of the entire customer journey.

Whereas businesses were previously limited to immediate client interaction, now they can employ big data to review customer behavior and trends before, during and following the interaction.

Take internet transactions for instance. When a client visits a company‘s website, companies can now see what links were visited before and after the client transaction. This is helpful in knowing whether or not the customer had to shop at a different site because of inventory availability or other concerns.

3. Deliver a Personalized Customer Experience

Big data provides a deeper insight into individual buyer needs and preferences. Instead of using a one size fits all approach to sales, your organization can use big data to cater to individual clients separately. This strategy enables the ability to expand your loyal consumer base, which is the biggest driver for long-term business.


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It’s been proven that a mere 5 percent increase in customer retention precipitates more than 25 percent in profit increases. This is made possible when big data analytics discovers personal preferences based on previous buyer behavior.

A perfect example involves capitalizing on a past call from a customer. The customer was curious as to whether or not your company provides free trials. Your company can now approach this same customer with an offer to purchase your product and extend a refund option. Since the offer caters to the customer’s personal preferences, it’s likely this customer will become a loyal purchaser.

4. Provide Multi-Channel Support

Personalized service is further amplified with multi-channel support. While some buyers prefer phone call support, others would rather communicate through live chat, social media platforms or email. The challenge is to cater to each customer’s communication preferences while communicating efficiently across all channels.

All communication mediums need to operate at optimized levels even if the majority of your customers prefer one medium over others. If not, your company runs the risk of losing new opportunities on other channels.

Big data helps clarify customer service functionality across various channels. Your business can use data analysis as a guide for areas of improvement to maintain coordinated multi-channel customer service.

5. Saving Customers Time

Customers are always interested in saving time and often will turn away from a brand who doesn’t practice efficiency. Big data saves customers time in many ways.

Brands can learn and track a customer’s preferred communication channel and deliver all outbound communications (delivery information, events, new offers) accordingly. Customers will appreciate this reliability and will be grateful to not have to check multiple channels for such information.

Being proactive about information is also a big data benefit that saves customers time. Real-time tracking on deliveries, anticipating upcoming service needs, and detecting issues before the customer needs to report it are all great ways to save customers time.

So Use Your Data

Big data is a powerful tool that offers a wealth of possibilities for understanding customer behavior. If used strategically, big data can provide your company with enhanced sales, marketing, and customer service methods to perfect customer experiences. Remember, customers, want awesome experiences with your business and are willing to pay more for it. Use big data to give them what they want.

Categories: Big Data
Tags: Big Data, customer service, personalized, profit

About JT Ripton

JT Ripton is a freelance business and technology writer out of Tempe. He loves to write to inform, educate and provoke minds. Follow him on twitter @JTRipton

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