‘The big data con in customer experience: What is important is the right data, usable data at the right time. When it comes to measuring what customers really think about your business, it’s actually small data that really counts'.
If you want to understand what makes customer experiences special just think about why you remember particular experiences in a positive light, sometimes it is because it just did what you expected but there will usually be some small detail or details that made the difference. The phrase 'it is the little things that count' are at the heart of most great experiences. Contrast that with the image conjured up by the phrase ‘big data’, that we now hear everyday that is held up by many (usually with a vested interest) as the answer to defining customer experiences. I seem to remember that a few years ago CRM systems were going to perform the same miracle – help you to understand, manage and even predict what your customer needs, desires and behaviour would be.
The issue here is not the value of big data, in the right context what can be achieved can be truly amazing – crunching immense quantities of information to unravel science, to produce cures for diseases - the question is where is the value in terms of customer experience design and delivery.
Customer experience is a practical deliverable ‘thing’ it is not a theory that requires a proof, therefore ‘data’ is only valuable if it can be used to either to reinforce the value of an existing customer experience or if it can be used to underpin change that can be connected to an improvement in the value to the end customer and the company. As customers we respond to sales messages that draw us into the purchase cycle and it is what then happens when we interact that drives our future behaviours. Understanding what is truly important to customers is key and it will be little things, often qualitative elements that have the most impact, so it helps to know what you are looking for in the data ocean.
When I talk to businesses about what can be seen as a highly complex area that requires a high degree of technical expertise and insight to engage with I ask some simple questions. In effect a mini sense check that any Executive could understand the answers to: how much do you spend on collecting customer data…on storing customer data…on analysing customer data? How do you use customer data to drive actions, improve customer outcomes and create value?
Occasionally there is a high level of understanding in terms of the answers but in most there is a knowledge gap and if you don’t know the answers how can you begin to understand the return on investment of your own ‘engagement with the great big data race?’
In my book on the customer experience I am challenging companies to think about these fundamentals and providing insights into how to sort the wheat from the chaff, it is too easy to invest just to be part of the game.
Over the years I have not come across many companies of any scale that have a shortage of data and knowledge about what happens inside their business – indeed more than enough to be able to act and improve their existing experience with no further investment but they actually don’t realise they have it!!
To illustrate this just consider how a short analysis of the data around customer complaints usually reveals themes and repeated issues. I have seen first hand how when a Bank opens a new customer account, history (data) tells them where the potential new customer will have problems, how that will prompt some degree of customer distress, in-bound calls and therefore cost – yet this is not acted upon and instead the response is to react when the problem – that is entirely predictable – manifests itself!
There is no logic to this behavior using prior knowledge to make those tiny changes to the experience makes both experiential and commercial sense, after all it is the little things that count!
So why do these changes not happen? It is not about the absence of data it is in most cases about the disconnects inside the company, in effect the business logic is broken and that means a lack of a clear view on the ownership of the design and management of key customer experience. You can have all the data in the world at your finger-tips but if the customer experience does not have a strong voice in the Executive you will deliver nothing of consequence.
By Alan Pennington, author of The Customer Experience Book, published by Pearson, out now priced £12.99.