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Big Data is changing the game in measuring customer loyalty. Aaron Cheris, a partner with Bain's Customer Strategy & Marketing practice, describes how advanced analytics can help companies observe and predict behavior, and prescribe ways to improve the customer experience.
Read the Bain Brief: What Big Data Means for Customer Loyalty
Read the transcript below.
AARON CHERIS: It's a really exciting time in customer experience and loyalty measurement when you think about the opportunities that Big Data provides to really change the game [in terms of] the number of people [you] can reach and understand at any given moment. Historically, you get response rates of 2%, 10%, 20%, on surveys. And so at that moment, you have a sense of how your customers feel about you.
With Big Data, I can know how everybody feels about me, or at least I know what everyone's experience is. And the key is really continuing to ask those 2% to 10% of the people so that I can link the data to the emotion and understand the impact of what I observe with the data on how the customer feels.
But Big Data has this great opportunity to broaden my impact. [It also does three other things]: One is, it allows me to look at this observational data. What do I see? What are the different things that are happening in the customer experience?
The second is, it's got this predictive power that says, Hey, when I see those couple of things that I witnessed in the customer's experience, how does that relate to how they feel or what happens next? But what I think is particularly powerful is the third, which is the actual prescriptive that can point to what I do about it and what works. When I do a follow-up call two days later, does that actually change the trajectory and does that make that customer more loyal? So it's a really exciting time in customer experience.
Read the Bain Brief: What Big Data Means for Customer Loyalty