The Analyze Phase of a Customer Analytics Initiative
In the analyze phase, you want to be able to describe the current state of the customer, often by segment, and identify the root causes of problems or insights to make improvements.
For example, if you’re measuring customer loyalty, you’ll have customers’ likelihood to recommend scores, satisfaction ratings on other parts of an experience, and open-ended comments. From this you can
Compute the baseline Net Promoter Score
Examine the open-ended comments for the reasons for ratings
Conduct a key driver analysis to understand which features or attributes of the experience are having the biggest impact on customers’ likelihood to recommend
Improving is often the most challenging part of any project, and that’s making changes to a product or process. The goal of the improving phase is to implement solutions that address the root causes of customers’ pain points.
During the improving stage, you use the data collected in the measure phase to show quantifiable improvements (or reductions) in your metric. This can include
Conversion rates (converting more browsers to buyers online)
Improvements in customer attitudes
Increases in revenue
An increase in the number of repeat purchases
One of the worst things that happens is collecting analytics that clearly show a problem with the customer experience but then doing nothing about it. It can frustrate customers and lead to analytics initiatives that were just an exercise in measuring.
For some methods, the improvement process is built into the measure step.
For example, when conducting an A/B test on a website, the improvement has to be built so implementation is easy.
In other cases, making changes is much harder. If you find that one of the primary reasons customers aren’t repurchasing or recommending your product or service is because of price, making changes to the price usually involves corporate politics, entrenched ideas, and shareholders.