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Analyzing Feedback for CX Improvement

Analyzing Feedback for CX Improvement

For your business to thrive, you need to double down on improving your customer experience or CX. Positive customer experiences are vital for building brand loyalty and for ensuring that your target audience members have a great time when they shop at your business, whether that’s online or in person.

The best way to improve your CX  isn’t to guess at different strategies. It’s to take feedback from customers and analyze it to maximum effect. Today, let’s explore methods for analyzing customer feedback and making the most of what your customers have to say about their time with your business.

Why Analyze Customer Feedback?

Simply put, because it provides you with invaluable information you can use to improve your business operations across the board. Customer feedback analysis leads to better customer loyalty, accurate pricing, more effective customer support, and plenty of other helpful benefits.

Your customers are a treasure trove of important customer feedback data. User feedback, in fact, is some of the most essential information you can integrate into your CX through data analysis. For example:

    • You can provide your customers with surveys after making a purchase or subscribing to a service. Those surveys relay critical pieces of feedback like how satisfied your customers are, what they thought of the checkout experience and overall user experience, etc.

    • Real-time feedback on social media provides an opportunity to interact directly with customers. Collecting that info will help you design solid surveys, too.

    • You can measure how often your customers visit certain pages or how long they interact with your brand. That can tell you how interesting your business is and how navigable and comfortable your CX is, as well.

    • Or you can examine how often your customers recommend or refer your brand to others. More referrals mean that they think your CX is stellar from start to finish.

Above all, you’ll want to collect customer feedback so you can make your CX better in the ways that count. For instance, if lots of your customers provide negative reviews saying that your checkout process is clunky and unintuitive, it’s a smart idea to revamp your checkout page to fix those functionality issues ASAP!

Think of customer feedback as the pulse of your target audience. It’s never a good idea to ignore such vital information, especially when considering your overall customer experience strategy.

Major Metrics You’ll Collect for CX Improvement

As you look to improve your brand’s customer experience, you’ll want to pay attention to and collect data on specific metrics. These metrics include:

Customer Retention Rate

That’s how many new customers you acquire stick with your brand or make repeat purchases compared to your overall new customer pool. If your retention rate is relatively low, it means you need to focus more on keeping customers than getting them.

Net Promoter Score or NPS

This measures how likely customers are to recommend your brand to their friends or family members. A high NPS score is ideal, as it means your marketing team has to work less to bring new customers into the fold.

NPS surveys should not include open-ended questions. Instead, it should be numerical for actionable insights via your analytics tools.

Customer Satisfaction Score or CSAT

This vital metric tells you how satisfied your customers are with any element of your product or brand. You can measure CSAT for things like customer surveys, customer experience calls and chats, products, purchases, and anything else.

Customer Effort Score or CES

This is another significant metric, as it tells you how much effort customers have to expend in order to interact with your brand. Generally, you should aim for a low customer effort score — the easier your brand is to use and interact with, the better.

Customer Churn Rate

Your churn rate is related to your retention rate. The churn rate is the percentage of customers who abandon your brand for one reason or another. Ideally, you want the churn rate to be as low as possible by improving your CX and by making your brand specifically tailored to your target audience’s desires and needs

Customer Lifetime Value or CLV

This tells you the average amount of money you can expect from a given customer based on the average money spent by those who shop at your brand.

How To Collect CX Metrics

You can collect all of these metrics using analysis software or by simply paying attention to survey responses. Furthermore, you can rely on organizations like Awesome CX to perform this analysis and collect the data you need to implement new CX strategies and improvements.

Remember, your customer feedback surveys should not be too complex! Only ask for specific customer insights from them. If need be, send out specialized surveys, like customer satisfaction surveys, for topics like sentiment analysis and business growth.

How To Analyze CX Feedback

Now that you know the importance of analyzing CX feedback and what metrics to pay attention to, let’s take a look at some analysis strategies you can adopt and practice in the near future. There are many follow-up and feedback channels you can use to develop graphs of feedback and to determine the root causes of responses.

Segment Your Customers

First and foremost, you need to segment your customers into different groups. Customer segmentation involves looking at all the customers who purchase products from your brand, then separating them based on their similarities. Those similarities can include demographic characteristics, stated reasons for buying from your business, or something else entirely.

Regardless, segmenting your customers is vital because it allows you to target their customer journeys and provide them with personalized experiences.

Say that you have two groups of customers:

One group is looking for a long-term subscription-based service. The other is looking for a short-term product. If your business offers both products, you can develop customer journeys and experiences to serve both groups. That way, both groups of customers feel tailored to and “seen” in ways that will foster brand loyalty.

Customer segmentation can be done with CRM or customer relationship management software, or other analytical tools depending on what you have available. You can also manually segment your customers by looking at the data personally.

Categorize Qualitative Data

Next, to analyze feedback for CX improvement effectively, categorize all the qualitative data you receive. Qualitative data is any data captured through subjective experiences or response forms, like surveys.

For instance, you might have a mountain of qualitative data stored in your business databases. This includes your customers' feelings about your products, their stated problems and complaints, and so on.

It’s essential to categorize qualitative feedback as best as you can. Even though qualitative data isn’t as easy to categorize as quantitative or numeric data, you can still determine certain similarities or elements shared in responses.

As an example, if a lot of customer surveys mention that your customer experience personnel are rude or disruptive, odds are there's a trend you should pay attention to! Analyze this feedback to improve your CX by replacing your customer support staff with other people or training them to provide a better, more empathetic experience for your customers.

Look for Response Similarities

As touched on above, try to look at all the similarities you can in all the customer feedback you receive. This includes both similarities that are stated (as in the above example) and similarities in terms of the data source.

For example, say you receive several of the same feature requests from customers. That might be a sign that you should look into implementing that new feature.

Let's give another example: Say that you have a lot of disgruntled and negative survey responses after implementing a new survey type. The new survey type includes several additional questions and some open response fields for customers to complete.

The responses are starkly contrasted with your previous survey responses. Your last survey was short, sweet, and to the point, and it received largely positive feedback.

By looking at response similarities, you can determine things like:

    • The new surveys aren’t as popular with your customers

    • The new surveys might be a little too complex or take too long to complete

    • Your previous surveys were much better

Now that you have this information, you can make improvements to your CX based on the similarities you discover.

Create User Funnels

User funnels are concentrated depictions of a customer’s journey, starting from when they are first made aware of your brand or a product to eventually purchasing that product. A customer funnel should include all the major touchpoints that the customer experienced.

You should make user funnels because it’ll help you visualize the interactions and decisions of your customers. Most importantly, you can see precisely where customers jump off the proverbial train, abandoning their cart or your site entirely.

If you notice that your user funnels indicate most customers quit for the checkout screen, for instance, it means your CX needs to be improved before the checkout page, such as in marketing, on the landing page, etc.

Put Yourself in the Shoes of Your Customers

In a more general sense, you can analyze feedback for CX improvement by putting yourself in the shoes and minds of your consumers. Imagine going through your customer experience as one of them; do you notice any pain points or hurdles that would be difficult to ignore?

If the answer to that question is yes, it's time to go back and try to streamline or improve the CX in a way that seems good to you. Imagine what you could do to make the CX more enjoyable or comfortable from your perspective. If you've successfully empathized with your customers, this should be relatively straightforward.

Analyze Customer Feedback with a Script

Much of this feedback analysis takes time or is done manually. But you can automate the process to some extent using a script.

A script is a code snippet that you can customize with certain keywords that you want to target with your feedback. Scripts allow you to collect feedback, then organize and present it based on similar keywords, phrases, customer sources, and so on.

That can be an invaluable way to cut down on time needed to analyze feedback.

Leverage AI Tools for Large Data Set Analysis

Similarly, don't hesitate to use AI tools when analyzing large data sets. These days, many machine learning platforms use AI technology to identify similarities and to segment customer groups for better understanding. The more data you have, the better positioned you'll be to make a truly outstanding CX for all your customers.

Contact Awesome CX Today

In the end, analyzing feedback for CX improvement is a strategy you can and should implement at the earliest opportunity. By taking customer feedback into account, you can ensure that your future CX design elements are perfectly tailored to your customers' needs and desires. In turn, those customers will become more loyal to your brand than ever.

Awesome CX can help with this starting today if you don’t know where to begin. Our specialists can provide a variety of services, ranging from back-end support to call center services and more.

Let's chat today to learn just how we can help with analyzing customer feedback!


Customer Experience | Tech Target

Churn Rate | Investopedia

Customer Segmentation | Tech Target

Competing on Customer Journeys | Harvard Business Review