With digitalization, a large part of business development has increased in complexity for many organizations. No matter the change though, customer knowledge retains itself as a major asset for a sustainable business model that promotes growth.
Knowing your product or service inside out is one thing. But knowing your customers perfectly is quite another. It can be a rather time-consuming process where the willingness to understand is key. Whilst we contemplate the potential factors behind what level of customer knowledge is required, let’s define what exactly customer knowledge is and see how it impacts the Customer Experience.
Defining Customer Knowledge
As the name suggests, customer knowledge is learning and understanding your customers. Whether it is about their needs, desires, feelings, interactions, or experiences.
To be a little clearer, customer knowledge refers to all the data and information that we have about a customer.
Guest-suite have perfectly segmented the different types of existing customer data:
- Socio-demographic data is generally your basic customer data, those that are most often requested (surname, first name, age) and likely already stored in your database. You will generally find this data collection in registration forms, for example.
- Behavioral data is all the information that relates to the activity of your customers on your website, application or shop. Tools such as ContentSquare analyze these pages visited by your users throughout their journey.
- Transactional data, as the name suggests, is data related to a purchase transaction. Like the payment method, the delivery method chosen, or simply the purchase history.
- Socio-behavioral data is simply the activity of users on social networks.
- Finally, we have the feedback data. This is all the feedback collected throughout the customer journey.
Now that we know more about Customer Insight, let’s look at how we can transform this into better experiences.
Customer Knowledge helps create unique Experiences
Customer Experience is the set of perceptions and feelings that a customer acquires during one or more interactions with a brand, a product or a service.
It is important to note that feelings and sentiments are subjective concepts. From one customer to another opinions will likely differ.
So how do you maximise the experience of each of your customers? You may have seen it coming! This is where customer insight enters the frame. Knowing key details about a customer can be incredibly helpful in making them feel appreciated and understood.
Simply knowing their first name and email address can allow you to send a personalised email at a key moment in their journey.
Let’s imagine that this customer is part of your database and is a regular buyer. It will then be very easy for you to see on your CRM that he is a loyal customer. By having access to their purchase history, you can easily trigger a promotion after the 25th transaction. This customer will receive an email mentioning their first name, it will highlight that they are an important and loyal customer and that you’d like to understand more about how you could improve their experience.
This example is not very complicated, but it illustrates perfectly the importance of customer knowledge in order to improve the customer experience.
Omni-channel Big Data
Companies can no longer do without data, and it is becoming increasingly important. It is used in all aspects of the business nowadays. So much so that you’ll find it in marketing, in sales, in customer support teams or even by product teams for improving and developing features.
This mass data is called Big Data. Although this term could be the title of an upcoming Marvel movie, it is important to remember that collecting for the sake of collecting is useless.
Collecting important information from your customers through your CRM, Chatbot or by collecting feedback is a huge opportunity to perfectly meet your customer’s expectations.
However, before you learn how to meet their expectations, you need to know how to leverage this customer knowledge to improve their experience.
The power of synchronising your CRM with an experience management tool is such that it will give you the exact areas you need to improve. Let’s take the example of a Canva user. Let’s say he has been a Canva Pro user for several months.
The product team decides to update the solution by changing the position of some tools, changing the design of the interface and the marketing/sales team decides to increase his subscription from 11.99€ to 13.99€.
One particular user uses the platform but is put off by the change in the interface, and so uses the platform less and less and ends up not using it at all. Although you know his behaviour and have an “idea” of why he is no longer a customer, it is impossible to pinpoint the exact reason why he unsubscribed.
The experience management platform is there for just that. At the time of the update, or even before, it is essential to ask the user for feedback on an ongoing basis. In this way, every improvement is based on reliable data, and this customer knowledge results in a desirable result for the customer.
By approaching the problem using this methodology, you can grow your customer knowledge with the aim of improving user satisfaction and therefore the overall customer experience.
Customer knowledge, as we have seen, has a real impact on the customer experience if it is managed successfully. In most cases, you may find the results to be rather polarising.
It is therefore important to select the customer data that is important to you in order to improve the experience of those that meet your business needs, thus keeping a good retention rate, loyal customers and brand ambassadors.
To find out what your customers think about your business throughout their journey, you can look at Feedier and understand how we can help you optimise your CX.