The Need to Analyze Conversation Data for Business Growth
Aug 20 2020
Why the Need to Analyze Conversation Data for Business Growth?
Loyalty. The trait that helps keep personal relationships close is also the same trait that allows a business to build strong relationships with its customers. Customer loyalty is obtained when customer satisfaction is high. This begs the questions, how does a business increase customer satisfaction? To understand what drives customer satisfaction, a business must obtain customer feedback. It is highly beneficial, then, for a business to obtain valuable customer feedback. Conversational data is one source of data (arguably the best source) we can use to obtain customer feedback. Improving customer loyalty, then, can be a great investment to make when growing a business.
How Valuable is Customer Loyalty?
Research done over the years have shown that profits and lead generation all benefit from increased customer loyalty. Frederick Reichheld of Bain & Company has shown through research that a “5% increase in customer retention produces more than a 25% increase in profit.” Loyal customers are a great source of leads since their referrals can generate many new leads. Returning customers, furthermore, tend to spend more on each transaction. Simply put, a business cannot obtain a profit without its customers, since most of the revenue a business will make is from its customers!
How Does a Business Obtain Customer Feedback?
There exists a customer feedback loop we can use which consists of four steps. This customer feedback loop is called the A.C.A.F. loop.
Ask: talk to your customers and listen for feedback on your service or product.
Categorize: Organize the feedback collected into more significant categories for your business
Act: Act upon the feedback collected. Spread this information throughout the business with anyone that has the power to enact changes.
Follow-up: Connect with the customers who gave feedback to show them that their voice is heard.
A good source of customer feedback is conversational data, which falls under conversational marketing. Through conversational marketing, we can really grasp a strong understanding about what your customers are saying.
Why Conversational Data May Be the Best Source of Data
Conversational data may be the best source of data because it deals directly with your customers. Through the conversational experience with a customer, a business can make it interpersonal, cross-channel, and data-driven, something long forum pages or surveys have trouble accomplishing. These are the experiences that really create meaningful relationships with the customer, something that has been overshadowed over time with the advent of new technology. New technology allows us to reach a much greater audience than we ever could with social media, in short amounts of time too, but it also costs more meaningful interactions with your customers.
The solution? Acquire more conversational data through developing technology with chatbots which may be the key to growing your business with your customers.
How You Can Use Conversational Marketing to Grow Your Business
Having conversations between each other is something that is embedded within our nature. Conversations are happening every second between people and is a crucial part of how society functions. It is necessary then, for a business to use the tools that optimize conversations between them and their customers. What really are the benefits to conversational marketing?
Conversational marketing can be a friendly way of interacting with customers, especially through the mobile phone. Having a chatbot on your website, for example, can be a great way to answer customer’s questions about your product or service while additionally collecting valuable insights about them. A chatbot is a much more natural way of collecting customer feedback instead of a typical survey or web post. A chatbot can also suggest solutions to the customer in real-time so that action can be taken immediately. Any problems that arise throughout the customer interaction can be relayed immediately to the business.
‘Like any conversation, a conversation between business and customer should be two sided - both parties have something to learn and something to gain.’
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