Customer Experience

Winter 2024 is heating up the CX landscape! Generative AI is making waves, societal shifts are redefining expectations, and customer experience design is evolving beyond transactions into transformative journeys. CX leaders face a thrilling challenge: staying ahead in a rapidly changing world. Let’s dive into the hottest trends and their implications for experience improvement.

AI: Hype, Hallucinations, and Human Oversight

Generative AI stole the spotlight in 2024, offering revolutionary possibilities—from personalized marketing to automated support. Yet, the reality is more nuanced. AI is an amplifier, generating outputs based on input quality. Remember the infamous case of AI suggesting glue on pizza? It underscores the need for vigilance and human oversight.

Think of AI as an intern needing guidance—it doesn’t replace human judgment but enhances it. Successful AI integration combines AI with Human Intelligence (HI) to ensure ethical, relevant, and brand-aligned interactions.

Real-world example: Taco Bell’s voice AI drive-thru improves efficiency but keeps employees involved for complex tasks, blending AI’s speed with human empathy.

Key takeaway: Thoughtful AI integration, with human oversight, augments customer connections rather than replacing them.

Society: Divided, Yet Connected

Customers navigate a paradox: craving connection in an overstimulated, fragmented world. Societal trends are shaping new opportunities and challenges for CX leaders:

• Wellness Culture: Self-care is booming, from non-alcoholic beverages to gut health products. But wellness culture can fuel health anxiety. CX leaders must offer authentic support without exploiting fears.
• Social Divides: From dating apps highlighting income disparity to far-right riots affecting footfall, social inequalities are more visible. Brands must foster inclusion through thoughtful CX strategies.
• Youth Trends: Gen Z’s rising influence demands authenticity, sustainability, and inclusivity. It’s not just their buying power but their values that matter. Aligning experiences with these principles fosters loyalty.

Key takeaway: Brands that support well-being, inclusion, and individuality will forge stronger connections and resilience in their CX strategies.

Experience Design: From Transactions to Transformations

Today’s best experiences go beyond reducing friction—they transform interactions. The goal: anticipate needs, foster emotional connections, and make every touchpoint memorable. Here’s how:

• Sustainable Interactions: Conscious design minimizes environmental impact and builds trust.
• Tactile Resurgence: Physical buttons are back! Companies like Apple reintroduce tactile keys, prioritizing comfort over aesthetics.
• Preventative Experiences: Proactive strategies (like reducing return rates) prevent friction. Smart recommendations can turn these efforts positive.
• Innovative In-Store Interactions: Gamified shopping and self-service returns transform mundane tasks into engaging experiences.
• Preserve Human Connection: Digital efficiency (like mobile orders) streamlines tasks but can erode joy. Balance technology with personal interaction.
• Data-Driven Design: Too much data overwhelms without context. Filter relevant insights to focus on what truly matters.

Key takeaway: Transformative experience design anticipates needs, aligns with values, and enhances human connections. In order to achieve this, you need to know how to leverage all your data.

The Psychology of Change: Helping Humans Adapt

Change is hard—especially with new technologies. The “mere exposure effect” shows that familiarity breeds comfort. Transparency and training are crucial. Frame AI as an enabler, not a replacer, to build trust and ease transitions.

Emotions Drive Decisions: Emotional experiences leave a lasting impact—sometimes positive, sometimes not. To create moments of delight and minimize friction, you need a fresh approach that combines creativity with customer behavior analysis. Take Houston Airport, for example: they famously cut complaints not by speeding up baggage delivery, but by making passengers walk longer, reducing the perception of wait time. It’s all about rethinking the journey to reshape the experience.

Psychology in Practice:

• Behavioral Insights Matter: Simplify choices to prevent overwhelming customers.
• Reframing Works: Change perspectives to change outcomes.
• Action Bias Alert: Sometimes, doing less is the smartest move. Take penalty shots in football for example. Data shows that goalkeepers who stay centered instead of diving dramatically actually save more. It’s a reminder that strategic patience often beats impulsive action.

Looking Ahead: Balancing Innovation and Human Connection

As we move into 2025, the key to CX excellence lies in balance. AI offers incredible potential, but human connection defines exceptional experiences.

Key Action Points:

• Integrate AI with HI: Enhance efficiency while maintaining brand integrity.
• Champion Authenticity: Navigate societal divides with honest, empathetic CX strategies.
• Engage Younger Audiences: Align with Gen Z’s values to resonate across generations.

CX leaders have a unique opportunity to meet evolving expectations, from integrating AI for seamless personalization to rethinking wellness campaigns for genuine care.

Want to learn more? Check out our 2025 Consumer Trends Report for deeper insights and practical guidance on navigating the future of customer experience.

Customer experience is at the heart of modern business success. Companies constantly seek ways to improve satisfaction, foster loyalty, and drive revenue, but delivering an exceptional customer experience is no small task. From managing customer touchpoints to implementing advanced tools and strategies, achieving the desired results requires significant expertise and resources.

For many businesses, the solution lies in customer experience outsourcing. By partnering with specialized providers, companies can tap into expertise, streamline operations, and provide 24/7 customer support—without overburdening their internal teams.

As a matter of fact, customer experience outsourcing can boost efficiency by up to 25% and give your organization more time to focus on core business functions. 

What is Customer Experience Outsourcing?

Customer experience outsourcing involves delegating certain aspects of customer experience management to third-party providers. These providers manage interactions across various channels, including customer support, social media, live chat, email, and technical support.

Customer experience outsourcing does not just refer to outsourcing different channels, it also refers to outsourcing the management of your entire customer experience program to a trusted provider who can provide you with software, services, and reporting. 

Benefits of Customer Experience Outsourcing

Outsourcing customer experience can offer transformative benefits for businesses of all sizes. Here are some of the key advantages:

• Cost Savings: Outsourcing eliminates the need for in-house hiring, training, and infrastructure, reducing operational costs. Many outsourcing providers also operate in regions with lower labor costs, further driving savings.
• Access to Expertise and Technology: Customer experience outsourcing partners bring specialized knowledge, cutting-edge tools, and best practices that might not be available in-house. They stay updated on industry trends, ensuring your customers get top-tier support.
• Scalability and Flexibility: Whether it’s seasonal demand or rapid business growth, outsourcing allows you to scale your operations quickly and efficiently. Providers can adjust team sizes and resources to meet your needs.
• 24/7 Availability: Many CX outsourcing providers operate around the clock, ensuring your customers can receive support anytime, anywhere.
• Focus on Core Operations: By outsourcing customer experience tasks, your internal team can dedicate more time to strategic business goals and innovation.

Challenges of Outsourcing Customer Experience

While customer experience outsourcing offers significant advantages, it’s not without challenges. Organizations interested in customer experience outsourcing need to be aware of potential pitfalls and address them proactively. Here are some of the main challenges of customer experience management outsourcing:

• Loss of Brand Voice: Outsourcing can sometimes lead to inconsistencies in how your brand communicates with customers, which might impact customer trust.
• Communication Barriers: Language and cultural differences can pose challenges, especially when working with offshore providers.
• Quality Control: Maintaining high standards in customer interactions can be difficult without robust monitoring and feedback systems.
• Data Security and Privacy: Sharing customer data with third parties can increase the risk of breaches or non-compliance with regulations like GDPR or CCPA.

To mitigate these challenges, your business should invest time in selecting the right customer experience outsourcing partner, ensuring alignment with their values, and establishing clear performance metrics.

How to Choose the Right Customer Experience Outsourcing Partner

Selecting the right customer experience outsourcing partner is an important step in your customer experience strategy. Here are some key factors to consider:

• Industry experience
• Technology and tools
• Cultural Fit
• Scalability

Industry Experience

When choosing a CX partner, you want a partner who understands your industry and has a proven track record of delivering excellent results in your sector. You can narrow down vendors by reading customer experience improvement stories that highlight improvements in business performance as a direct result of CX improvement.

InMoment’s team of CX experts has over 50 years of advisory and research experience across multiple industries. The InMoment team excels at program management, so you spend less time managing experiences and more time improving them.

Technology and Tools

It is important to choose a partner that uses advanced technology and tools that can also be customized to your specific needs. You can examine which vendors have the best CX technology by reading reviews and third-party evaluations. 

InMoment’s platform has been named a leader in Gartner, IDC, and Forrester evaluative reports and is the highest rated by users, according to Gartner Peer Insights. In a recent Survey by G2, InMoment performed better than Qualtrics in every category.

Cultural Fit

When selecting a customer experience management outsourcing partner, it is important to ensure that they understand your brand’s core values and maintain the same voice you embody in your current customer interactions. 

This step ensures that the experiences delivered to your customers remain consistent and reflect the essence of your brand. By collaborating with a partner who understands and upholds your principles, you can create a seamless and cohesive experience that reinforces trust and loyalty among your clientele.

Scalability

Choose a provider capable of scaling resources to meet your business’s evolving customer experience needs.

When selecting a customer experience outsourcing partner, it is important to choose one that has the capability to scale resources effectively to accommodate the changing demands of your business’s customer experience program. 

InMoment’s platform is easily scalable and customizable to match the evolving needs of your business. Regardless of your business currently falls on the customer experience maturity model, InMoment can meet you where you are and help you scale accordingly. 

Choosing the Right Customer Experience Outsourcing Approach

When it comes to customer experience outsourcing, businesses have a range of options to choose from. Some organizations may prefer fully entrusting their CX operations to an external partner and leveraging a full-service solution’s expertise and comprehensive support. 

Others may opt for greater autonomy and select a self-service solution that gives them control over their CX strategy while relying on a vendor for technology and minimal support.

Understanding the distinction between these two approaches—full-service and self-service—is essential for businesses looking to make informed decisions about customer experience outsourcing and their overall CX management strategy.

What Is a Full-Service Customer Experience Solution?

A full-service CX solution refers to a CX partnership in which the company providing the platform manages all aspects of the technology (programming, analysis, change management, etc.).

This relationship between the organization and the CX vendor is services-driven, and a brand that purchases this type of solution can expect to have a dedicated team of experienced CX and technology experts to check in with regularly and help the brand with every aspect of its CX program. 

A full-service CX vendor will help your team define strategy, implement the technology, train team members, craft surveys, import other customer data, design reporting dashboards, and beyond.  

What Is a Self-Service Customer Experience Solution?

A self-service CX vendor refers to a situation in which a person or persons within the purchasing organization are responsible for all aspects of the ongoing technology usage.

A brand purchasing a self-service CX solution can expect to have full control and autonomy in their CX initiatives. There is often a dedicated implementation team, but post implementation, there is more likely to be a helpline or contact the brand can reach out to in case of an error or if they’re in need of help.

Of course, there is a gray area between the two categories. A CX vendor that emphasizes true partnership will emphasize that customer experience is not one size fits all and will therefore offer a blend of self-service and support-driven options to fit your needs. For example, a vendor may offer DIY survey tools alongside strategic insight sessions. 

How to Determine Which Is Right for You

A full-service program can be a great choice if you’re short on resources or want to utilize customer experience management outsourcing. With a full-service program, you can fill in any gaps in resources or skill sets with the considerable expertise your full-service CX vendor has on staff. Your dedicated team will know your business, goals, and program.

A full-service CX solution will also help you to drive more long-term strategy for your program. Check-ins will help you to stay accountable to goals, and your vendor will be able to advise you on any challenges, as well as connect you with other CX professionals in your industry. 

On the other hand, a self-service program may be a better option if you have the expertise and resources to accomplish your CX goals in-house. With a self-service program, you can make changes to surveys or other initiatives in the middle of the night if you want to. 

Additionally, self-service programs can be more cost-effective in the long run, since you won’t be paying for the vendor’s management services.

Best Practices for Successful Customer Experience Outsourcing

Customer experience outsourcing is a large investment. The partner you choose to entrust your CX program with will have a direct impact on business performance. In order to ensure you choose the right partner and make the most out of your investment, follow these best practices: 

• Set clear goals and KPIs
• Maintain regular communication 
• Invest in training
• Monitor performance
• Foster collaboration

Set Clear Goals and KPIs

Establishing clear objectives and customer experience metrics is essential for a successful outsourcing partnership. Clearly communicate what success looks like for your CX initiatives, whether it’s improving customer satisfaction scores, reducing response times, or increasing retention rates. These benchmarks will guide your partner’s efforts and ensure alignment with your business goals.

Maintain Regular Communication

Frequent and open communication is the foundation of a strong customer experience outsourcing relationship. Schedule regular check-ins and performance reviews to stay aligned with your partner. These touchpoints allow you to address any challenges, share updates, and ensure that your CX strategy remains on track.

Invest in Training

Equip your customer experience outsourcing partner’s team with the knowledge they need to represent your brand effectively. Comprehensive training on your products, services, and brand values ensures consistency in customer interactions and helps the team align with your business ethos. A well-trained team can significantly enhance customer satisfaction and loyalty.

Monitor Performance

Effectively utilizing a customer experience dashboard will help you track the performance of your CX program and of your customer experience outsourcing provider. 

With InMoment as your CX partner, you can create customer experience dashboards and reports that can be shared throughout the organization to help stakeholders understand the current state of customer experience, evaluate the business impact of certain initiatives, and plan for the future.

Foster Collaboration

In order to develop the most successful partnership with your customer experience outsourcing provider, view them as an extension of your internal team. Foster a collaborative relationship by encouraging open communication, brainstorming solutions together, and sharing feedback. A strong partnership built on mutual trust and teamwork will lead to better customer and business results.

Take InMoment’s Quiz and Get Started

Ultimately, the decision on the extent of your customer experience outsourcing efforts depends on a variety of factors, including the size of your organization, your budget, and your technical expertise. 

Take the InMoment quiz below to get started and find out whether a self-service or full-service customer experience outsourcing solution is best for you!

References 

MyOutDesk. 35 Outsourcing Statistics For 2024 | MyOutDesk. (https://www.myoutdesk.com/blog/outsourcing-statistics/). Accessed 12/6/2024. 

Customer experience (CX) is emerging as a significant competitive advantage for businesses. Customer-centric companies realize an 80% increase in revenue and report 60% higher profit than those that don’t focus on customer experience. 

However, building a solid CX program requires more than isolated efforts and reactive fixes. Businesses must focus on a strategic approach that helps them move the needle on their current CX programs. This is where a customer experience maturity model comes into play.

What is a Customer Experience Maturity Model?

A CX Maturity Model is a five-stage framework that evaluates the readiness and effectiveness of your CX program. It provides a data-driven approach to identifying areas for improvement across the customer journey. As a result, the model removes the guesswork from your customer experience strategy, replacing it with a roadmap to CX excellence.

Stages of Customer Experience Maturity

1. Investigate
2. Initiate
3. Mobilize
4. Scale
5. Embed

CX maturity starts from a static phase of identifying the first steps and concludes with integrating strong CX practices. The framework encourages continuous evolution to adapt to shifts in customer expectations.

Before we explore the five stages, it’s essential to understand the role of a CX team throughout this process. A team can leverage the following six competencies, or customer experience management skills, to complete each stage:

1. Lead: Key skills include strategy and governance to build, align, and sustain successful CX programs. For example, outlining a CX program and building a team to execute the vision.
2. Realize: Key skills include tracking key CX metrics to ensure the program is realizing value and achieving business goals. For example, tracking NPS to determine the success of recent loyalty efforts.
3. Activate: Key skills include communication and expertise building to ensure teams have the skills, support, and incentive to achieve CX goals. For example, training employees to adopt a customer-centric approach and rewarding their work to motivate them.
4. Enlighten: Key skills include CX data collection, analysis, and visualization to ensure actionable insights across the organization. For example, using surveys to collect feedback and sentiment analysis to understand emotional tone.
5. Respond: Key skills include effective response and strategic decision-making to deliver CX improvements based on insights. For example, following up with disgruntled customers and updating a product feature to fit client needs.
6. Disrupt: Key skills include customer experience design and integration to provide exceptional services. For example, using InMoment’s XI platform to create a customer journey map showing how to optimize each phase.

Leveraging these competencies is crucial for moving through each of the following stages of CX maturity:

Investigate

In this initial phase, a business has yet to understand the value of a dynamic CX program. It views CX as a supplementary activity rather than a competitive differentiator.

As a result, teams primarily rely on in-house data like contact lists to reach out to customers via email. It’s a static approach that doesn’t consider targeted outreach or customer feedback analysis.

Organizations can progress from this stage by first achieving leadership buy-in. Visualize the value of CX efforts and share them with executives. Educate yourself so that you can address any questions or concerns. Highlight the positive impact of a customer-centric approach on the company’s bottom line.

Initiate

The leadership starts approving key activities as it realizes the value of customer experience management. An initial CX strategy takes shape during this stage. The organization establishes a team to explore and implement Voice of the Customer (VoC) approaches. 

Evolving from this stage requires a focus on the business impact of CX. Start with a few CX metrics like NPS and CSAT to build an initial use case. Leverage internal communications channels to convey the importance of CX across the company. Build a basic VoC program to start surveying customers for data collection.

Investing in robust CX software can simplify these activities. InMoment offers an all-in-one customer experience platform that collects and connects data from various channels across the customer journey. From survey design to data analysis, the software provides organizations with the tools to set up a VoC program.

Mobilize

The organization establishes a full-time, dedicated CX team in this pivotal stage. The team is responsible for evolving the VoC program, sharing insights with leadership, and mapping customer journeys. 

For example, the team starts collecting and integrating experience data from multiple channels. It identifies customer pain points across various touchpoints and works to improve them. Audience segmentation and journey mapping emerge as useful CX strategies. These activities help realize significant customer experience ROI, motivating organizations to continue evolving.

Businesses can progress to the next stage by doubling down on CX tools and training. Invest in employee coaching to align more of the workforce with the customer-centric vision. Focus on a cross-functional approach to improving customer experiences. 

For example, a collaboration between marketing and product teams to engage a specific user segment with a new feature.

Scale

A solid customer-centric culture begins materializing in this stage. Organizations integrate CX processes across departments and incentivize customer-centric efforts. In fact, CX becomes a crucial part of hiring and performance management. This step encourages the use of customer experience metrics to improve business processes.

Organizations advance to the final stage by leveraging the entire workforce and advanced technology. Investing in AI-powered analysis to gain valuable insights from customer experiences. Align every department with the CX vision to continuously evolve and adapt to customer trends.

Embed

The last stage of maturity establishes CX as a core organizational value. It sets the foundation for product development, marketing, and human resources. Employees across the organization understand the power of CX metrics and work toward improving them. Data-driven decision-making enables companies to deliver the best possible experiences.

Why Has It Become Increasingly Important?

• Growing Customer Expectations
• The Impact of AI
• Competitive Advantage
• Adaptability

With evolving customer expectations, organizations must shift from static approaches to dynamic, data-driven strategies. Here’s why a CX maturity model is becoming essential for staying competitive:

Growing Customer Expectations

Customers expect quick, smooth, and personalized services more than ever before. 59% of customers believe businesses should use the data they collect to personalize their experiences. Companies that fail to meet these expectations risk losing market share to customer-centric competitors. A CX maturity model highlights tools and processes to meet these growing demands.

The Impact of AI

AI is transforming the way businesses interact with customers. It enables real-time analysis of key metrics to uncover customer insights and predict behavior. Companies using AI-powered automation also reduce repetitive tasks by up to 40%.

As a result, it’s essential to harness the power of AI to improve customer service. Invest in self-service options like intelligent chatbots for quick issue resolution. Leverage Natural Language Processing (NLP) to better understand customer feedback. Consider churn prediction models to retain at-risk customers and enhance their satisfaction.

Competitive Advantage

CX maturity is a crucial differentiator for businesses in a hyper-competitive market. Organizations that evolve to higher stages of maturity are more likely to retain customers, convert leads, and increase their market share. This competitive edge is the result of a stronger focus on customer relationships.

Adaptability

CX maturity empowers organizations to be flexible and proactive. The integration of CX principles across the organization helps teams pivot and respond to new challenges. 

For example, investing in a social listening tool helps businesses stay on top of online conversations. This approach ensures they identify issues and resolve them before it’s too late. Similarly, it’s a useful strategy for tracking market trends and adapting to them.

How CX Leaders Use CX Maturity Model to Scale Their CX Program?

1. Evaluate CX Maturity Levels
2. Establish Data-Driven Processes
3. Expand the VoC Program
4. Encourage Cross-Functional CX Teams

CX leaders use a CX maturity model as a framework to evaluate and scale their experience programs. It provides a strategic approach to streamlining CX processes for business growth. Here are four ways in which organizations use the model to achieve CX maturity:

Evaluating CX Maturity Levels

CX leaders start by assessing the maturity of their current customer experience program. A maturity model helps with this self-assessment, enabling companies to prioritize and take action.

This self-evaluation typically involves the analysis of current practices and team capabilities. It helps outline the next steps and set realistic goals for scaling. For example, an organization in the “Investigate” stage must focus on securing leadership buy-in as a first step. Businesses in the “Initiate” stage must invest in a dedicated CX team to lead initiatives.

Establishing Data-Driven Processes

Data collection and analysis are key drivers of CX maturity. Advanced customer experience programs ingest more experience data for insights than their less mature counterparts. The latter usually rely on basic resources like contact lists with little analysis.

Therefore, a CX maturity model encourages an omnichannel, analytical approach. CX leaders invest in Voice of Customer Analysis to identify pain points and growth opportunities. As a result, they are in a better position to personalize customer experiences.

Expanding the VoC Program

Evolving the VoC program is crucial to delivering consistent value to customers. A CX maturity model helps evaluate the current state of the VoC program and highlights steps for improvement. This expansion ensures the company stays on top of market and customer trends.

For example, companies moving from “Mobilize” to “Scale” expand the scope of their VoC program with the help of technology. They rely on AI customer feedback tools like InMoment to dive deeper into customer experiences for actionable insights. These insights help them close feedback loops and improve satisfaction levels.

Encouraging Cross-Functional CX Teams

CX leaders start focusing on cross-functional teams as they evolve through CX maturity. This shift in priority occurs due to CX becoming a key business strategy. As a result, harnessing the entire workforce for CX improvements becomes essential. The model encourages greater employee engagement as the CX program continues to progress.

For example, CX leaders in the “Mobilize” stage work with marketing and product teams to provide a consistent experience across all touchpoints. The insights from customer feedback can guide feature development to solve specific pain points. The marketing team can target specific segments with this feature to boost retention and acquisition.

How InMoment Can Help Expand Your CX Program

Achieving customer-centricity is a journey well worth the investment. A CX maturity model provides a tiered framework for organizations to progress toward this goal. InMoment’s award-winning XI platform helps companies realize ROI in less than 12 months, which is twice as fast as the industry average. Schedule a demo today to see how InMoment can guide you toward higher stages of customer experience maturity!

References 

Zendesk. 35 customer experience statistics to know for 2024 (https://www.zendesk.com/blog/customer-experience-statistics). Accessed 11/28/2024.

InMoment. InMoment Market Pulse (https://www.linkedin.com/posts/weareinmoment_b2b-customersuccess-ai-activity-7251989745914818560-haGe?utm_source=share&utm_medium=member_desktop). Accessed 11/28/2024.

Customer experience (CX) is crucial to SaaS business success. Companies that focus on CX initiatives witness an 80% increase in revenue, highlighting the value of user feedback. With intense competition and changing customer preferences, businesses must better understand their users to stay ahead. Collecting user feedback for SaaS companies is a powerful step in this direction.

Why is User Feedback Important for SaaS Companies?

User feedback helps you refine your product to meet customer needs, resulting in increased satisfaction. Here are a few reasons why collecting customer feedback is important:

1. It helps you build and optimize products. Your SaaS product should deliver consistent value to customers. It should address their unique pain points and help them achieve their goals. 
   
   User feedback enables continuous product improvement by highlighting customer behavior and expectations. For example, if a specific integration is in popular demand, implementing it can improve retention and satisfaction.
2. It boosts revenue. Happy customers are more likely to extend their subscriptions and purchase additional features. Collecting and analyzing feedback allows you to provide more value, which increases sales, subscriptions, and revenue.
3. It enhances brand reputation and lead generation. Customer satisfaction results in positive reviews and testimonials. This feedback supports brand reputation management efforts, attracting high-quality prospects. Therefore, better customer service lets you generate valuable leads without stretching your marketing budget.
4. It helps you stay ahead of competitors. Happy and loyal customers give you a competitive edge by consistently choosing and advocating for you over other companies. Feedback analysis also improves product strategy, ensuring you continue delivering value that retains and acquires clients.

What User Feedback Metrics Are Essential for a SaaS Company to Track?

1. Net Promoter Score
2. Churn Rate
3. Customer Lifetime Value
4. Retention Rate
5. Customer Satisfaction Score
6. Free-to-Paid Conversion Rate
7. Customer Effort Score
8. Activation Rate
9. Lead Conversion Rate

Customer feedback metrics provide data-driven insight into user activity and engagement. However, deciding which KPIs in customer experience to track can be overwhelming. Here’s a breakdown of the most impactful user feedback metrics for your SaaS business:

Net Promoter Score

Net Promoter Score (NPS) is a commonly used metric that measures customer loyalty. It asks customers how likely they are to recommend your product to others, usually on a 0-10 scale.

Customers are divided into three categories based on their numerical response: detractors (0-6), passives (7-8), and promoters (9-10). The goal is to convert as many users as possible into loyal customers promoting your product and business. 

You can use NPS surveys to gather responses and track the score to identify areas for improvement. InMoment’s survey design tools enable you to quickly create custom surveys that collect user feedback for tracking NPS.

Churn Rate

Customers churn when they stop using or interacting with your SaaS product. This can happen if your product fails to deliver value and better alternatives are available. Churn rate tracks the number of customers who abandon your product within a certain period.

A good practice is to understand the drivers of churn alongside monitoring the churn rate. For example, a recent change in your pricing model could explain the uptick in churn this quarter. Leveraging a churn prediction tool can help you understand why customers might leave, which enables you to retain them before it’s too late. 

InMoment offers text analytics solutions to let you capture customer intent from their feedback. The intent appears as a complaint, praise, suggestion, inquiry, purchase, will return, comparison, requested help, recommend, not recommend, and churn. This advanced analysis helps you identify churn indicators and proactively recover at-risk customers.

Customer Lifetime Value

Customer Lifetime Value (CLV) predicts the total revenue a customer will bring your business throughout their relationship with you. This metric provides an accurate portrayal of the long-term value of the average customer. It enables you to evaluate the return on your acquisition and retention strategies.

Therefore, tracking CLV helps you identify high-value customers so that you can focus on engaging them. Retaining customers who boost your CLV will help you maximize revenue and reduce churn.

Retention Rate

Retention rate tracks the percentage of customers who renew their subscriptions to your product over a specific period. It highlights the effectiveness of your customer retention and satisfaction efforts. A high rate indicates strong engagement with your product and loyalty to your brand.

You can measure the retention rate by comparing the number of paying users at the beginning and end of a period. For example, if you start a month with 50 active users and end with 30, your retention rate would be 60%.

Customer Satisfaction Score

Customer Satisfaction Score (CSAT) measures satisfaction levels with specific aspects of your product. These interactions could include navigating your website or talking to customer support. Companies collect this data through surveys asking customers to rate their satisfaction, typically on a 1-5 scale.

Tracking customer satisfaction helps you understand how to improve the customer journey. For example, if your low CSAT is due to a clunky website experience, you should focus on improving your user interface. 

Free-to-Paid Conversion Rate

While free plans are great for lead generation, paid plans drive revenue and impact your bottom line. The free-to-paid conversion rate measures the percentage of customers who shift from a free trial to a paid plan. 

This metric highlights the level of customer satisfaction and engagement with your product. It also shows how well your trial plan acquires new customers. A good trial should deliver enough value to intrigue clients while withholding key features that would be well worth the upgrade.

Customer Effort Score

Customer Effort Score (CES) evaluates the effort customers put into using your SaaS product. Companies obtain this score through a CES survey, typically measuring the effort on a 5- or 7-point scale. A higher score indicates smoother product usage with low-effort interactions.

While a good product should be feature-rich, it won’t be able to deliver value if it’s difficult to use. 94% of customers with low-effort interactions intend to continue business, compared to just 4% in the high-effort category. Therefore, ease of use promotes continuous product usage, increasing retention and revenue.

Activation Rate

The activation rate measures the percentage of new users completing a key action after realizing the value of your product. These actions could include creating a profile or uploading a document. 

The truth is that every product’s user activation milestone will be different, so it’s impossible to define a benchmark action. However, the common theme with these actions is that they occur due to the customer finding genuine value in your product. 

Therefore, a high activation rate suggests that you are effectively onboarding customers. If you can quickly guide them to discover your product’s value, you will likely retain them. Tracking this metric can help you identify friction points in your onboarding process.

Lead Conversion Rate

Lead Conversion Rate tracks the percentage of leads that become paying customers. This metric evaluates the effectiveness of your marketing and sales teams in converting prospects. 

A high lead conversion rate indicates effective marketing and a strong value proposition. Tracking this metric helps you identify issues in the sales funnel, such as unclear messaging or ineffective follow-ups. It also guides strategy on delivering value to your target audience.

How to Collect User Feedback for SaaS?

1. Invest in a high-quality user feedback tool
2. Use surveys to collect key CX metrics
3. Collect quantitative and qualitative feedback
4. Leverage the power of social listening
5. Collect feedback when customers leave
6. Analyze customer support tickets
7. Run beta tests for new features
8. Close the feedback loop

Collecting user feedback is essential for SaaS businesses to deliver better experiences. Here are a few key feedback collection strategies to consider:

Invest in a high-quality user feedback tool

A comprehensive feedback tool makes all the difference if you struggle to collect and organize your customers’ opinions. The right tool is easy to use, scalable, and rich in analytical capabilities. It helps you collect and integrate customer data from every relevant source to avoid missing out on crucial information. As a result, you can build and analyze your dataset in one place for effective decision-making.

Use surveys to collect key CX metrics

Surveys are tried-and-tested tools for collecting user feedback. By following good design practices, you can gather actionable insights without causing survey fatigue. 74% of customers are only willing to answer five questions or less in a survey. Design surveys with concise, relevant questions to capture metrics like NPS, CSAT, and CES.

A lack of personalization is another factor for low response rates. This is where InMoment’s conversational surveys have an edge over their traditional counterparts.

These surveys work by engaging customers and responding to them in real-time. They leverage generative AI to ask follow-up questions based on customers’ previous responses. As a result of its personalized, two-way communication, this method helps collect insightful feedback. 

Collect quantitative and qualitative feedback

Quantitative feedback, like NPS and retention rate, provides measurable data. It’s easy to track, analyze, and visualize. For example, a chart highlighting the trend in NPS over the last six months provides instant insight into your customer loyalty efforts.

However, quantitative data lacks context, so you can’t explain why your NPS is trending downward. Qualitative feedback provides the necessary information to better understand customer needs and expectations. For example, open-text comments from customers can reveal issues in your product that make it difficult for them to recommend you.

Leverage the power of social listening

There is only so much customer data you can collect through surveys. Social media platforms host vast amounts of unstructured feedback that can provide deeper insights into the customer experience. Comments, posts, threads, and other forms of content can feature opinions on your product, business, and competitors.

You can use InMoment’s social listening tool to track relevant keywords and conversations across your social media channels. It monitors mentions of your brand and product to flag potential issues or highlight positive experiences. Additionally, it can perform competitor analysis by tracking what your competition is doing right or wrong. This information is crucial to building effective marketing campaigns for retention and lead generation.

Collect feedback when customers leave

It’s essential to understand why customers cancel their subscriptions or downgrade their plans. A brief exit survey can provide insight into why they decided to churn. This feedback can guide retention strategy by helping you understand what you could have done differently. For example, if pricing is a significant factor, you can boost retention by introducing flexible plans.

Analyze customer support tickets

Categorizing and analyzing support tickets helps you spot recurring issues. For example, an increase in tickets regarding a specific feature is a good sign that it requires immediate improvements.

Tag and sort support tickets by category, urgency, and sentiment. This organization will simplify the process of capturing and analyzing customer feedback. Additionally, you can track issue resolution times to see if you’re delivering timely and practical support.

Run beta tests for new features

Beta testing offers a valuable opportunity to collect feedback before a full product rollout. This helps you identify areas for improvement and address critical issues before it’s too late. It also creates a collaborative environment where users feel invested in your product’s growth.

Ask the testers to rate the product’s functionality and usability. Collect feedback on bugs that could impact the average user’s experience. Use the input to refine your product so that it’s likelier to deliver value to your target audience.

Close the feedback loop

Closing the feedback loop is essential for building trust and showing customers you care. Inform your users about any changes you make due to their feedback. You can share updates through in-app notifications or even social media posts. Leverage automation to provide instant updates to customers, saving you time to invest in stronger customer relationships.

What Key Features Should a SaaS Company Prioritize when Choosing a User Feedback Tool?

A user feedback tool simplifies the collection and analysis of customer opinions. The right software helps you make the most of each interaction with your business. Key features to look for include:

• Omnichannel Voice of the Customer (VoC): Your business will have incoming feedback from various sources, from surveys to social media channels. The right tool should pull and organize customer data from every relevant channel to provide accurate insights.

InMoment ensures a complete view of user sentiment across all touchpoints in their journey, delivering an omnichannel customer experience. It works by collecting and connecting VoC data from everywhere so you don’t miss out on critical insights regarding customer behavior.

• Customizable Surveys: Your tool of choice should enable surveys tailored to your goals. With InMoment’s XI platform, you can create targeted surveys for your specific audience and data collection needs. It allows you to build surveys from scratch or choose from existing templates for flexible feedback collection.
• Sentiment Analysis: AI-powered sentiment analysis helps you interpret unstructured feedback, such as reviews and comments. 

Industry analysts have recognized InMoment as a proven leader in natural language processing (NLP) with its ability to automate insights from user feedback. It helps you categorize feedback by sentiment and intent for effective CX management.

• Integration Capabilities: The user feedback tool should integrate with existing systems for smooth and seamless workflows. 

InMoment helps you break free of silos by connecting experience data with CRM systems, ticketing platforms, or project management tools. These integrations help your teams transform customer data into actionable insights.

• Real-Time Analytics and Reporting: Immediate insights into user feedback are crucial for making quick decisions. Therefore, a good feedback tool should let you visualize and share key CX metrics across your organization.

InMoment’s reporting features enable you to build custom reports featuring engaging visuals. Its dashboards support compelling storytelling, highlighting the effectiveness of your customer service efforts to stakeholders.

• Automated Feedback Loops: Closing the feedback loop makes customers feel heard and valued. The right tool should automatically close feedback loops by providing instant updates to customers. 

InMoment leverages automation to help businesses send custom responses to user feedback, including updates, follow-up questions, or a note of gratitude. This enables you to boost customer loyalty while saving valuable time.

Top Customer Feedback Tools for SaaS Companies

1. InMoment
2. FeedBear
3. Qualaroo
4. Hootsuite
5. UserVoice
6. Userpilot
7. Canny
8. Zonka Feedback
9. Usersnap
10. SurveyMonkey

The right feedback tool can elevate your customer experience management efforts. With an overwhelming number of options available, we have rounded up the ten best tools to help you make an informed decision.

InMoment

InMoment leverages award-winning AI and CX tools to collect user feedback across the customer journey. It enables custom survey design, social listening, and reputation management to connect CX data from various sources.

The platform’s AI-enabled analytics generate actionable insights from the feedback to guide loyalty and retention strategies. With features like sentiment analysis, custom integrations, and journey mapping, InMoment helps you capture a comprehensive view of the customer experience in one place.

FeedBear

FeedBear helps businesses collect and manage feature requests through feedback boards and roadmaps. Its boards allow customers to upvote and comment, enabling businesses to identify the most popular and impactful requests. Finally, its changelog tools allow companies to document changes and close the feedback loop with customers.

Qualaroo

Qualaroo features a no-code survey builder that simplifies feedback collection for companies. Its crucial feature is Nudge™, which enables businesses to customize and deploy feedback collection intercepts on their channels. Qualaroo helps companies understand customer sentiment and behavior with word cloud engines and sentiment analysis.

Hootsuite

Hootsuite is a social media management platform that helps companies manage online interactions via a central dashboard. It allows businesses to create content, track brand mentions, and boost engagement across major social media channels.

Userpilot

Userpilot is a product growth platform that helps businesses manage customer experiences. Key features include survey templates, analytics, and dashboards for visualizing NPS scores. Brands can leverage Userpilot to understand customer profiles better and monitor KPIs to determine areas for improvement in their CX efforts.

Canny

Canny is a user feedback platform for collecting and analyzing feature requests. Its feature voting and segmentation help businesses filter and prioritize requests according to key user segments. Canny also helps close the feedback loop by issuing automatic updates with its product changelog tool.

UserVoice

UserVoice lets businesses create a dedicated feedback portal for customers to share suggestions and comments. The voting feature helps highlight the most in-demand requests so that companies can make effective decisions. As a result, the platform provides community-driven insights into product improvement.

Zonka Feedback

Zonka Feedback is a multi-channel user feedback platform for capturing actionable insights from customers. Its no-code survey builder lets businesses create surveys from scratch or select from existing templates. The tool leverages sentiment analysis to highlight customer emotions and intent in feedback. With Zonka Feedback, companies can also visualize and share CX insights across teams.

Usersnap

Usersnap offers a range of features to streamline feedback collection. Businesses can use the tool to let customers provide detailed bug reports with screenshots and annotations. Users can also record themselves talking about the features they would like to see in the product. Usersnap also lets companies design surveys to capture metrics like NPS, CSAT, and CES to gauge customer loyalty and satisfaction.

SurveyMonkey

SurveyMonkey is an established survey design tool that helps businesses collect feedback at various touchpoints. It supports multiple survey types, including market research, product feedback, marketing, and NPS surveys.

Better User Feedback and Richer Insights with InMoment

User feedback is a vital component of the customer-centric approach. It provides valuable insights into customer behavior to help you make smarter decisions. InMoment’s omnichannel, AI-driven user feedback tool for SaaS businesses simplifies the collection and analysis of customer data to drive growth and revenue. See how InMoment can elevate your CX efforts by scheduling a demo today!

Sources 

Zendesk. 35 customer experience statistics to know for 2024 (https://www.zendesk.com/blog/customer-experience-statistics). Accessed 11/20/2024.

InMoment. What Is Customer Effort Score (CES)? (https://inmoment.com/xi-terms/customer-effort-score). Accessed 11/20/2024.

Enchant. 108 Customer Service Statistics & Facts You Must Know for 2023 (https://www.enchant.com/customer-service-statistics). Accessed 11/20/2024.

Customers are increasingly likely to switch brands if they don’t feel satisfied. 83% of customers agree they feel more loyal to companies that respond to and resolve their complaints. Loyal customers are likely to spend more and advocate for your brand. As a result, businesses must double down on efforts to understand their customers’ goals and pain points to drive loyalty. Voice of Customer analysis is a useful system for accomplishing this goal.

What Is Voice of Customer Analysis?

Voice of Customer (VoC) refers to customer feedback on a business and its offerings. It includes thoughts, feelings, and opinions regarding the brand, product, or service. The process helps you build a rich dataset that provides insight into customer behavior.

The next step is identifying patterns in this data to help you better understand your customers. Voice of Customer analysis enables you to capture these key insights for customer satisfaction and retention.

For example, this analysis can reveal why a customer canceled their subscription to your service. Their feedback across various touchpoints on the customer journey will highlight how you can better retain similar customers.

Importance of Customer Analytics

Customer analytics provides a blueprint for delivering exceptional customer service. Here are a few reasons why it’s a powerful tool for brands:

• It helps improve customer satisfaction. VoC analysis enables you to understand overall satisfaction levels with your business. For example, key metrics like CSAT help you improve aspects of your business to satisfy specific customer needs.
• It enables informed decision-making for CX teams. VoC insights help businesses make data-driven decisions for customer experience (CX) improvements. The data shows what features to prioritize to enhance customer perception. For example, if price is a significant factor for your customers, you can satisfy them by adjusting your pricing model or offering loyalty rewards.
• It informs product improvement strategy. A deeper understanding of customer expectations highlights areas for improvement. It shows you what features to prioritize based on customer pain points. As a result, you can continuously improve your product or service to meet changing customer needs.
• It gives you a competitive advantage. Enhanced customer service helps retain existing customers and supports brand reputation management. Positive word of mouth helps you attract prospects away from your competitors. As a result, you can increase your market share with this customer-centric approach.

Voice of the Customer analysis is emerging as a key consumer trend for 2025 and is poised for continued growth in the years ahead. Businesses are set to revolutionize how they gather and respond to customer feedback, shifting from traditional surveys to AI-driven VoC analytics. Companies that embrace these advanced tools will gain a powerful competitive advantage, enabling them to understand and meet customer needs in real-time. Get more details about the future of Voice of the Customer analysis and other key insights in our 2025 Consumer Trends Report.

How To Analyze Data From VOC?

Voice of Customer analysis starts by categorizing the customer feedback data. This helps you create targeted approaches for identifying patterns in each category. The four main VoC data categories are as follows:

• Unstructured feedback refers to open-ended responses in the form of emails and social media content. Analyzing this qualitative data requires conversational analytics solutions, such as the ones offered by InMoment. These tools help capture customer intent and sentiment from unstructured feedback for improved service.
• Structured feedback appears as quantitative data on customer loyalty and satisfaction. You ask customers to rate their feelings and experiences on a numerical scale. Structured data is easier to track and analyze, enabling straightforward insights.
• Unsolicited feedback is when customers provide feedback without requests or prompts from your side. For example, a customer reviews your latest feature in a Facebook post. 

Any online conversation around your brand provides an opportunity to collect unsolicited feedback. With the help of InMoment’s social listening tool, you can monitor this public opinion to ensure you don’t miss out on key insights. It also keeps you in the loop regarding competitor behavior to help you further refine your marketing efforts.

• Solicited feedback is when you proactively ask customers their opinions and feelings about your brand. Surveys and questionnaires are popular methods of collecting solicited feedback.

Key Metrics To Track for Voice of Customer Analysis

• Net Promoter Score
• Customer Satisfaction Score (CSAT)
• Customer Effort Score (CES)
• Response Rate
• Customer Lifetime Value (CLV)
• Churn Rate

VoC metrics provide valuable insight into customer satisfaction and loyalty. Here are some KPIs in customer experience to help you understand the effectiveness of your CX efforts:

Net Promoter Score

Net Promoter Score (NPS) is a popular metric for tracking customer loyalty. It asks customers how likely they are to recommend your product or service, typically on a 0-10 scale. Responses are categorized into three groups: detractors (0-6), passives (7-8), and promoters (9-10).

With InMoment’s XI platform, you can leverage NPS survey design tools to collect the data you need to analyze this metric. You can also create intuitive dashboards to monitor your NPS in one place and make adjustments when necessary. This will help you increase the number of promoters among your customers for improved business performance.

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) asks customers to rate their satisfaction with your brand and offerings, typically on a 1-5 scale. 

Low scores highlight customers at risk of churning, making it necessary to retain them. Businesses prioritizing retention over customer acquisition are 60% more profitable. Therefore, regularly tracking satisfaction levels with a customer satisfaction survey is important to increase repeat business.

Customer Effort Score (CES)

Did you know that customers with a high-effort interaction become more disloyal compared to just 9% with a low-effort experience? 

Customer Effort Score (CES) measures how much effort customers have to put into interactions with your business. It is usually measured on a 5- or 7-point scale, with a higher score corresponding to smoother interactions.

For example, if it’s difficult for the average individual to find customer support on your website, they will be dissatisfied. Tracking CES helps you evaluate aspects of your business that require high effort so that you can simplify them. Since CES is a strong indicator of loyalty, it’s important to focus on delivering smooth experiences.

Response Rate

This metric highlights engagement levels with your surveys. For example, if you send out a monthly customer feedback questionnaire and only 10% of customers respond, it suggests low engagement. This is concerning since you need customer responses to build your VoC program in the first place.

Focusing on good survey design can help improve the response rate. Make your surveys short and simple to prevent fatigue. You can also offer incentives like gift cards for survey completion. A higher response rate provides a wide range of customer insight, making it easier to understand and address common issues.

Customer Lifetime Value (CLV)

CLV helps estimate the total revenue a customer will bring during their entire relationship with the business. It factors in data like customer lifespan, purchase frequency, and transaction history.

Monitoring CLV helps you understand and improve the long-term value of your customers. It helps inform loyalty strategies to reduce customer churn and drive revenue.

Churn Rate

Churn rate indicates the percentage of customers who stop using your product or service over a specific period. 

High customer churn indicates dissatisfaction with your brand. If your competitors deliver better services, your customers won’t have to think twice about switching. Therefore, lowering the churn rate is key to increasing revenue and maintaining a competitive edge.

Identifying churn drivers is the first step to reducing churn. If feedback analysis suggests that customers expect more incentives, you can retain more customers by investing in a loyalty program.

Voice of the Customer Analysis Methods

1. Define your VoC Goals. 
2. Collect Customer Data.
3. Leverage Advanced Analytics Tools.
4. Take Action.
5. Involve Stakeholders and Teams.

Once you identify key metrics, you can implement analytical methods to improve them. Your exact strategy will depend on your goals and will require adjustment over time based on performance.

Define your VoC Goals

Understanding your most pressing problems as a business will help you make the most of your VoC data. Define your problems and establish specific goals you want to accomplish. You should know exactly why and how you want to analyze customer data.

An example could be tracking and improving the NPS as part of your customer loyalty efforts. This step narrows your focus on high-priority issues for effective resolution. Additionally, it ensures your program is unique to your business and customer needs.

Collect Customer Data

Establish comprehensive systems to collect data across the customer journey. You can capture solicited feedback from customers through surveys and questionnaires. These surveys should be simple and easy to complete, combining qualitative and quantitative data collection.

However, surveys alone aren’t enough in the online age. Customers are vocal about their experiences on review sites and social media platforms. Online activity, from a simple comment to a detailed thread, is an opportunity to collect unsolicited customer feedback.

Besides providing actionable insights, social listening helps prevent survey fatigue. Since you don’t have to send frequent surveys to learn as much as possible, you won’t be overwhelming your customers! Instead, you can tap into unbiased feedback to capture a complete view of the customer sentiment towards your brand.

Leverage Advanced Analytics Tools

Analyze the customer feedback to uncover insights into current trends and expectations. Look for patterns in the data to understand customer perception regarding your product or service. 

A common analytical method is to track key metrics according to your goals. For example, if you see a downward trend in CES over the past few months, a newly released feature is likely creating friction in the customer experience.

What about textual data in the form of reviews, call center scripts, and social media activity? The Natural Language Processing (NLP) approach helps analyze this unstructured data for valuable insights. It uses machine learning and vast amounts of data to uncover customer sentiment and intent.

You can leverage NLP for your business needs with the help of InMoment’s text analytics software. Its award-winning NLP engine transforms textual data into meaningful insights for smarter decision-making. These insights include the customer’s intent, perceived effort, and overall sentiment. As a result, you can take immediate and effective action to improve customer experiences.

Another valuable technique in VoC analysis is data correlation. This statistical tool helps you understand how specific variables relate to each other. In the context of customer service, it can help you understand how features of your business affect key CX metrics.

For example, making your website more user-friendly might correlate to a higher CES. But, does this increase in CES improve the overall CSAT? You might find that another variable, like “product quality”, impacts CSAT more than “ease of use”!

Take Action

Customers provide feedback with the expectation that improvements will follow. Therefore, once you have completed your VoC analysis, it’s time to act on the conclusions and insights.

Start with high-priority issues and create an action plan for resolving them. For example, if most of the negative sentiment is focused on your website, you must prioritize immediate UI/UX improvements. 

Ensure you close the feedback loop with customers by following up with them after taking action. This step helps you affirm the impact of your efforts and fosters customer loyalty.

Involve Stakeholders and Teams

VoC analysis is most effective when it’s a collaborative effort. Start by sharing insights with relevant departments. For example, if you identify long wait times in customer service, the support team can work on optimizing response times. At the same time, the operations team can look at resource allocation to address capacity issues.

Engage the leadership by showing how VoC analysis affects company goals like boosting retention and revenue. Along with cross-functional collaboration, the buy-in from leaders ensures consistency in addressing customer needs. Invest in a centralized CX platform to make VoC insights accessible across teams in real-time.

What To Look For in a Voice of Customer Analysis Tool

Collecting and analyzing the voice of the customer enables continuous business improvements. It encourages a customer-centric approach that helps you meet evolving needs and enhance your brand reputation. The right voice of customer analysis tool simplifies this process and helps address potential challenges. Key features to look for include:

• Omnichannel Feedback Collection: The voice of the customer comes from many different sources, including surveys, social media, reviews, and call center interactions. Invest in a tool that supports omnichannel data collection to capture a complete view of customer sentiment.

You can leverage NLP for your business needs with the help of InMoment’s text analytics software. Its award-winning NLP engine transforms textual data into meaningful insights for smarter decision-making. These insights include the customer’s intent, perceived effort, and overall sentiment. As a result, you can take immediate and effective action to improve customer experiences.

• Sentiment Analysis: Look for advanced sentiment analysis capabilities that classify feedback as positive, negative, or neutral. This helps you gauge overall customer satisfaction and spot emerging issues.

InMoment’s advanced sentiment analysis combines key metrics and real-time intelligence to help you better understand customer feelings.

• Real-Time Insights: It’s crucial to have real-time updates when tracking key VoC metrics. This feature helps reduce potential churn by providing instant insights into customer behavior. The sooner you learn of a dip in satisfaction levels, the quicker you can react and recover.
• Natural Language Processing (NLP): NLP-powered tools can analyze unstructured text data like reviews or comments to uncover customer intent and pain points.

InMoment’s award-winning text analysis uncovers the meaning and emotion behind each piece of feedback. It helps you accurately understand the customer experience so you can work to improve it.

• Predictive Analytics: The tool you select should also support AI-driven predictions of customer behavior, including churn. This feature is useful as it helps brands proactively deal with issues and retain customers before it’s too late.

InMoment offers churn prediction capabilities to help businesses understand why and which customers may churn. It leverages machine learning algorithms and text analysis to identify churn drivers accurately. This enables brands to take a proactive approach to customer retention and reduce acquisition costs.

• Customizable Dashboards and Reporting: Choose a tool with intuitive dashboards to track and visualize key metrics. InMoment’s reporting capabilities help you build impactful visuals for effectively sharing VoC analysis results with stakeholders.

How InMoment can help with Voice of Customer Analysis

Voice of Customer analysis is a powerful tool for elevating your CX program. It helps you understand customer preferences and expectations so you can better meet them. InMoment’s software handles the VoC analytical workload, allowing you to act on the insights and strengthen customer relationships. Schedule a demo today to see how InMoment can help you transform customer feedback into CX improvements!

Sources 

Khoros. Must-know customer service statistics of 2024 (https://khoros.com/blog/must-know-customer-service-statistics). Accessed 11/14/2024.

G2. 69+ Eye-Opening Customer Retention Statistics to Know in 2024 (https://www.g2.com/articles/customer-retention-statistics). Accessed 11/14/2024.

Did you know that social media is the number one discovery channel for products? Furthermore, when researching a brand or product, most consumers prefer to do their own research rather than speak to a human. 

Knowing these consumer behaviors and how they relate to your business can significantly impact your overall business performance. To capitalize on those behaviors, you need to be able to perform customer behavior analysis. 

What Is Customer Behavior Analysis?

Customer behavior analysis is the process of studying and interpreting how customers interact with a business at each stage of the customer journey. This involves looking at what customers do, such as browsing, purchasing, or abandoning a page, and understanding why they make those choices. When businesses apply customer behavior analysis, they shift from reacting to customer demands to anticipating them. 

Customer Behavior Analysis vs Customer Journey Mapping

Customer journey mapping focuses on visualizing customers’ different pathways with a business throughout their customer experience. The customer journey is not the same process for every customer. Customer behavior analysis seeks to understand the underlying motivations and drivers behind a customer’s decisions. This can include observable actions such as purchase frequency or website clicks as well as inferred behaviors such as willingness to try new products or price changes. 

Why Is Customer Behavior Analysis Important

Customer behavior analysis provides information that helps businesses meet customer needs, build stronger relationships, and drive business growth. By understanding customer motivations, your business can make decisions that lead to higher customer satisfaction, loyalty, and profitability. Here are a few reasons why customer behavior analysis is so valuable: 

• Enhanced personalization
• Improved customer retention
• Better product development
• Informed marketing decisions
• Competitive advantage

Enhanced Personalization

When you understand how customers interact with products, services, and content, you can personalize experiences in meaningful ways. By identifying specific customer preferences—such as preferred products, content types, or communication channels—you can tailor marketing messages, recommendations, and services to each customer’s needs. 

Improved Customer Retention

It is no secret that retaining customers is more cost-effective than acquiring new ones. By analyzing customer behavior, you can identify factors that lead to churn, such as delayed purchases, disengagement, or negative feedback. Early intervention —like offering incentives to at-risk customers or resolving pain points—can prevent customer loss and improve customer churn. 

Better Product Development

Customer behavior insights can allow your company to make data-driven decisions about product offerings. By understanding which products are most popular, how they are being used, and what customers are searching for, you can identify gaps in your offering and prioritize the development of certain features or improvements to current ones. 

Informed Marketing Decisions

Analyzing customer behavior allows you to craft more effective marketing strategies. Customer behavior data reveals which campaigns, channels, and messaging resonate most with different customer segments. This enables marketers to focus their resources where they’ll have the highest impact. 

Competitive Advantage

Understanding customer behavior can be a key differentiator in today’s business environment. If your business can effectively analyze and utilize customer behavior insights, you can stay ahead of your competitors by being more innovative and customer-focused. 

Types of Customer Behavior Data

To fully understand customer behavior, you will need to gather different types of data that provide a comprehensive view of behavior, preferences, and engagement. Here are the main categories of customer behavior data that can help you build rich customer profiles: 

Demographic Data

• Age
• Gender
• Income level
• Education
• Occupation

Demographic data gives you insight into customer characteristics that often influence their preferences, buying power, and purchasing habits. Demographic data serves as a foundational layer for customer behavior analysis as it helps you segment your audience. 

Psychographic Data

• Customer lifestyle 
• Interests
• Values
• Attitudes
• Personality traits

Psychographic data unveils the motivations that drive customer behavior. It can help you understand why your customers make certain choices. Using this data, you can construct targeted messages that resonate with individual values and interests. 

Behavioral Data

• Purchase history
• Browsing activity 
• Engagement with content or promotions

Behavioral data helps you identify patterns in how customers engage with products, websites, or marketing materials. It sheds light on preferred products, purchasing frequency, and typical customer journeys. Using behavioral data, you can improve the user experience based on actual customer behavior. 

Transactional Data

• Purchase frequency
• Average order value
• Payment methods
• Return rates

Transactional data provides a snapshot of a customer’s financial interactions with your business. This data can help you identify high-value customers, track purchasing trends, and evaluate the success of certain promotions, packages, or discounts. It also reveals revenue-driving behaviors, which can be valuable information for customer loyalty programs. 

Engagement Data

• Email open rate
• Social media interactions
• Website visits
• In-app usage

Engagement data helps you understand the depth of customer interactions with your organization. It can help you identify which channels are most effective for reaching specific customer segments, how engaged customers are with content, and where opportunities exist for deeper engagement. 

Customer Behavior Analysis Methods

To effectively analyze customer behavior using the data collected above, you will need to mix qualitative and quantitative data analysis methods. Here are some key methods for analyzing customer behavior: 

• Quantitative research
• Quantitative data analysis
• Predictive analytics
• Customer journey mapping
• Cohort analysis

Qualitative Research

Qualitative research and analysis involve asking open-ended questions to encourage customers to share their thoughts in their own words. This can reveal emotional drivers, such as UX frustrations, that may not surface in quantitative data. Open-ended questions can be used in surveys, customer interviews, and focus groups. 

Quantitative Data Analysis

Quantitative analysis uses website and/or app analytics combined with CRM data to analyze numerical data. Quantitative data offers a broad view of customer behavior across large segments. The trends identified can inform marketing decisions, product development, and sales strategies. 

Predictive Analytics

Predictive analytics models use past historical data, artificial intelligence, and machine learning to make educated predictions about future customer actions, such as likelihood to purchase, churn risk, or response to specific promotions. Predictive analytics allows you to anticipate customer needs and take proactive steps. For example, by identifying customers likely to churn, you can implement retention strategies before you lose a customer.

InMoment’s predictive customer analytics solution uses proprietary AI to extract insights from customer data. This allows you to spend more time executing action plans rather than getting caught up in data analysis. One of the biggest benefits of InMoment AI is its ability to make large volumes of customer feedback easily digestible in Smart Summaries. 

Customer Journey Mapping

Customer journey mapping tracks every touchpoint customers encounter with your organization. This reveals where they may encounter friction, drop off, or engage. It can help you understand how customers progress through the decision-making process. By mapping the customer journey, you can identify areas for improvement in your customer experience. 

InMoment can go one step further with AI Journey Insights, which helps businesses transform multichannel customer feedback into actionable strategies. By gathering data from sources like surveys, reviews, and calls, the InMoment platform uses NLP and AI to identify and categorize key journey touchpoints. Generative AI then evaluates each touchpoint’s impact on customer experience and suggests improvements. These insights are visualized in a way that inspires teams to take ownership, collaborate on solutions, and explore potential outcomes through simulations, driving meaningful changes to enhance the customer journey.

Cohort Analysis

Cohort analysis tracks the behaviors of customers who have been grouped together into cohorts. These cohorts are created based on shared characteristics or behaviors like the month of purchase, campaign type, or location. Cohort analysis tracks the behaviors of these specific groups over time, which allows you to observe how certain factors influence long-term engagement, retention, and churn. 

Tools for Customer Behavior Analysis

The effectiveness of your customer behavior analysis is largely dependent on the tools you use to complete it. Here are some of the top customer behavior analysis tools to be aware of: 

1. InMoment

InMoment offers a comprehensive suite of CX tools designed to capture customer feedback across various touchpoints, including surveys, social media, and online reviews. Using AI-driven analytics, InMoment provides actionable insights to help companies improve customer satisfaction and loyalty. Its platform also includes sentiment analysis, benchmarking, and journey mapping to offer a full view of customer experiences and emotional drivers.

2. Qualtrics

Known for its experience management platform, Qualtrics enables businesses to collect and analyze customer, employee, product, and brand experience data. Its powerful analytics and feedback collection tools make it easy for companies to understand customer expectations and pain points. With capabilities like predictive intelligence and real-time insights, Qualtrics helps businesses anticipate customer needs and take action to improve experiences quickly.

3. Medallia

Medallia specializes in customer feedback and experience management, using AI and machine learning to analyze customer interactions across web, social, mobile, and in-store channels. Medallia’s platform is designed to capture real-time feedback and deliver insights directly to employees, enabling organizations to respond quickly to customer needs. With features like text and speech analytics, Medallia helps businesses understand customer sentiment and trends.

4. Zendesk

Zendesk provides a robust customer service and support platform that integrates CX insights into ticketing, messaging, and live chat. Designed for ease of use, Zendesk offers tools for tracking customer issues, measuring satisfaction, and analyzing behavior through support interactions. Its reporting capabilities help companies identify recurring issues, improving customer support quality and response times.

5. Sprinklr

Sprinklr is a unified platform for customer experience management, focusing heavily on social media and online engagement. Its tools track customer sentiment, monitor brand mentions, and provide detailed analytics across various channels. Sprinklr’s CX suite includes social listening, customer care, and AI-driven insights, helping businesses gain a 360-degree view of customer sentiment and preferences on digital and social platforms. 

How to Use Customer Behavior Analysis to Improve the Customer Experience

Customer behavior analysis is invaluable for improving the customer experience at your organization. Here are some ways your business can leverage customer behavior data to boost customer experience and business performance: 

Personalized Marketing Campaigns

Customer behavior insights enable you to create highly personalized marketing messages that resonate with the segment’s unique interests and needs. Tailored messaging, such as targeted emails or personalized content suggestions, can help increase engagement and conversion rates. 

Optimized Product Recommendations

By analyzing purchase history, browsing behavior, and more, you can suggest relevant products or services that create a more satisfying and valuable experience for your customers. This can also help you increase cross-sell and upsell opportunities by presenting items that customers are more likely to purchase. 

Enhanced Customer Support

Customer behavior data lets your business anticipate common customer issues and proactively offer support. For example, if customers frequently abandon their carts at a particular customer journey stage, companies can address this with targeted assistance. 

Improved Website and App Experiences

Customer behavior analysis can reveal which website or app features users find most valuable and which ones cause frustration. By optimizing navigation, layout, and content based on behavior data, you can create a more intuitive and enjoyable user experience. 

Predictive Retention Strategies

Analyzing behavior patterns can help businesses identify customers at risk of churning and implement timely retention strategies, such as personalized offers or re-engagement emails, to keep them engaged.

Challenges in Customer Behavior Analysis

While customer behavior analysis can offer many benefits, some businesses may face challenges in effectively gathering, interpreting, and applying behavior data. Here are some common obstacles: 

Data Privacy and Compliance

With regulations like GDPR and CCPA, businesses must handle customer data responsibly. Ensuring compliance and maintaining data security can be complex, especially when analyzing large amounts of data from various sources.

Data Overload

Businesses collect vast quantities of data from multiple channels, and not all is useful. Sorting through data to identify relevant, actionable insights requires careful filtering and prioritization to avoid getting overwhelmed.

Interpreting Data Accurately

Misinterpreting customer behavior data can lead to flawed decisions. Without careful analysis, businesses may make incorrect assumptions about customer preferences or behaviors, resulting in ineffective strategies.

Integrating Data Across Platforms

Many companies use multiple tools for gathering and analyzing data, which can lead to siloed information. Integrating data across platforms ensures a unified view of the customer but can be challenging without the right infrastructure.

Acting on Insights Effectively

Gathering data is only the first step; applying insights requires coordination across teams and often significant changes to processes. Without the right implementation strategies, valuable data insights may go unused.

Future Trends in Customer Behavior Analysis

Customer behavior analysis is evolving as new technologies and customer expectations reshape the landscape. Here are some trends to watch:

1. AI and Machine Learning for Deeper Insights

AI and machine learning algorithms are becoming essential for identifying complex behavior patterns and predicting future actions. These technologies make it easier to personalize interactions at scale, enhancing customer satisfaction and engagement.

2. Behavioral Segmentation

Moving beyond traditional demographic segmentation, more companies are adopting behavioral segmentation, grouping customers based on shared actions, preferences, or interactions. This approach enables more targeted marketing and product strategies.

3. Real-Time Data Analysis

With real-time analysis, businesses can respond to customer actions immediately, offering personalized experiences on the spot. Real-time analysis is particularly useful in e-commerce and customer support, where rapid responses can lead to higher conversion rates and improved satisfaction.

4. Omnichannel Behavior Tracking

As customers interact with brands across multiple channels—online, mobile, in-store—there’s a growing need for omnichannel behavior tracking. This provides a complete view of the customer journey, helping businesses maintain a cohesive experience regardless of where interactions occur.

5. Increased Focus on Data Ethics and Transparency

With rising customer concerns around privacy, businesses are focusing on data ethics, transparency, and control. Many are implementing practices that allow customers to understand, access, and control how their data is used, building trust and enhancing brand loyalty.

Improve Customer Behavior Analysis with InMoment

InMoment’s customer experience platform is the premier solution for customer behavior analysis. InMoment has been recognized as a leader in both AI and NLP. These solutions offer any business the ability to view comprehensive data about their customers’ behavior. See what InMoment can do for you by scheduling a demo today!

References 

HubSpot. Consumer Trends Report. (https://offers.hubspot.com/consumer-trends). Accessed 11/13/2024.

Did you know that 92% of customer relationship management (CRM) leaders say AI and automation have improved customer service response times? Furthermore, 86% of those leaders also agree that AI and automation have helped them scale their operations, with the majority believing those tools are more effective for scaling operations than hiring more customer service representatives. 

What is Customer Experience Automation?

Customer experience automation refers to automating interactions or touchpoints throughout the customer journey. This can be done using tools such as AI, natural language processing (NLP), and automated workflows. Customer experience automation allows organizations to connect with customers in a relevant, timely, and personalized way without extra manual input. 

Why is Customer Experience Automation Important?

Customer experience automation is so important because 99% of service professionals at organizations who use it say that it allows them to focus on individual customers. Furthermore, an average of 90% of professionals in an organization investing in AI and automation say that it has helped reduce service costs. 

Implementing customer experience automation as a regular part of your operations can help you improve business performance by cutting out the time usually needed for routine tasks and reinvesting that time in more complex customer issues, ultimately resulting in a better customer experience. 

Benefits of Customer Experience Automation

The benefits of customer experience automation include: 

• Enhanced efficiency
• Scalability 
• Improved personalization 
• Data-driven decision making

Enhanced Efficiency

Customer experience automation can reduce the workload on customer service teams by automating repetitive tasks. This allows them to focus on complex issues that require a human touch. Of the 81% of organizations automating workflow processes, 98% report that reducing errors is a major or minor benefit of customer experience automation. 

Scalability

Customer experience automation systems can handle high columns of interactions simultaneously. This is useful for organizations managing an expanding customer base as their business grows. In fact, 91% of service professionals at organizations using automation have time to take on new projects due to customer experience automation. 

Improved Personalization 

While some may believe that automating certain touchpoints creates a similar, stale experience for every customer, the opposite is true. Over 80% of CRM leaders say that AI and automation make customer communication more personalized. Customer experience automation allows organizations to personalize more interactions based on customer data, creating an experience that is more relevant and memorable to the user. 

Data-Driven Insights

Customer experience automation software can analyze automated interactions to provide insights into common customer preferences, behaviors, and pain points. Organizations that invest in AI and automation report that it has helped them better serve customers. 

The Four Pillars of Customer Experience Automation

The four pillars of customer experience automation, originally developed by Gartner as the four pillars of customer service, represent the most important building blocks of customer experience automation and guide how it can be achieved. The four pillars are: 

1. Orchestration
2. Segmentation
3. Personalization
4. Automation

1. Orchestration

The first pillar of customer experience of automation is orchestration. Orchestration refers to creating a cohesive and smooth customer journey. You want to ensure that interactions, whether from emails, SMS messages, chatbots, live support, or any other channel, are connected and tested before the user encounters them. 

2. Segmentation

Segmentation in customer experience automation leverages customer data to group customers by behavior, preferences, or demographics. This enables more relevant and targeted communication. 

3. Personalization

Personalized experiences are more than addressing customers by name. Customer experience automation can use customer data to understand purchase history and interests to craft messages that resonate with individual customers. 

4. Automation 

The automation pillar of customer experience automation refers to tactically scheduling, triggering, and handling responses based on customer interactions. This allows your brand to keep up with customer expectations 24/7. 

Who Uses Customer Experience Automation

Various teams can use customer experience automation to accomplish different goals. Regardless of where the CX team may live in your organization, there is a place where customer experience automation can improve your performance. Here are some examples of how different teams can use and benefit from customer experience automation:

• Marketing teams
• Sales teams
• Customer support teams
• Product teams
• Operations teams

Marketing Teams

By leveraging customer experience automation, marketing teams can deliver highly personalized campaigns, segment audiences, and engage customers with relevant messaging. Setting up automated journeys, such as welcome emails and post-purchase follow-ups, helps increase engagement and build stronger customer relationships. 

Sales Teams

Through automated, data-driven triggers, sales teams can leverage customer experience automation to interact with leads at the right moments. Using customer experience automation tools throughout the sales process, sales teams can nurture leads more effectively and close deals faster. 

Customer Support Teams

Customer experience automation allows frontline customer support teams to automate responses to common inquiries, route tickets to the right agents, and send proactive updates. This reduces response times and allows support teams to focus on complex issues. 

Product Teams

With customer experience automation, product teams can collect customer feedback, analyze customer usage patterns, and identify pain points in real time. This data-driven approach can help product teams make more informed decisions about future product features and communications.

Operations Teams

Operations teams can use customer experience automation to streamline workflows, automate data collection, and ensure consistent service delivery. From order tracking to post-purchase surveys, customer experience automation tools help operations teams optimize processes and improve efficiency.

How to Use Customer Experience Automation

Here is a quick overview of how to use customer experience automation to improve the customer journey at your organization: 

1. Map and Examine the Customer Journey
2. Integrate Data
3. Create Segments and Triggers
4. Personalize at Scale
5. Monitor and Optimize

1. Map and Examine the Customer Journey

If you haven’t already, you must create a customer journey map with a high-level view of the end-to-end customer experience. Once completed, you must identify the touchpoints that can be improved through customer experience automation. These touchpoints could include onboarding, feedback requests, or follow-ups. 

2. Integrate Data

To effectively use customer experience automation tools, you must integrate your customer experience automation platform with your organization’s other systems. This means connecting your customer experience automation platform with CRM systems, marketing automation tools, and any other data sources that provide insights into the customer experience. 

3. Create Segments and Triggers

You can create customer segments based on behaviors, demographics, and other criteria, such as purchase history or engagement level. Customer segments help you organize your customers into meaningful groups for targeted interactions.

Then, you will want to create automated triggers for each segment. Triggers prompt automated responses, such as sending a thank you email after a purchase, offering a discount to customers who haven’t engaged recently, or delivering relevant content after someone attends a webinar. Triggers allow you to respond promptly and deliver the right message at the right moment to increase engagement and conversions. 

4. Personalize at Scale

Once you have this in place, you can fully implement your customer experience automation solution. Customer experience automation allows you to provide a high level of personalization for hundreds or thousands of customers simultaneously. At scale, this will improve your overall satisfaction and customer loyalty. 

5. Monitor and Optimize

Continuously track the performance of customer experience automation strategies to refine and improve customer interactions over time. You can track this by monitoring pre-selected customer experience metrics to identify trends, understand customer preferences, and detect any drop-offs in the automated journey. 

This data can be used to refine triggers, update personalization parameters, and adjust your customer segments. For example, if a triggered email isn’t generating clicks, it may need more compelling content or a different call-to-action.

Customer Experience Automation Examples

Here are some industry-specific examples of customer experience automation: 

• E-commerce: Automated cart abandonment emails that include a personalized discount, encouraging customers to complete their purchases.
• Financial Services: Proactive notifications alert customers to unusual account activity or personalized tips to improve financial wellness.
• Healthcare: Automated appointment reminders or follow-up messages post-visit, ensuring patients feel cared for and valued.
• Hospitality: Sending personalized booking confirmations and pre-arrival checklists for a smoother guest experience.

While these examples provide a high-level overview of customer experience automation use cases, it is also important to showcase in-depth examples of organizations using customer experience automation to improve their business. 

Jack in the Box

Jack in the Box struggled to provide personalized customer experiences and solicit accurate guest feedback. After choosing InMoment as their customer experience management solution, they were able to leverage InMoment AI and the XI Platform to automate feedback and pinpoint trends for business decisions, expedite insights across regions, and realize systemwide sales growth. 

Customer Experience Automation Tools

While many organizations provide customer experience automation tools, some of the most popular are: 

1. InMoment

2. HubSpot

3. Salesforce

4. Zendesk

5. Adobe Experience Cloud

1. InMoment

InMoment’s customer experience automation tools are led by award-winning AI that helps organizations handle repetitive tasks, predict customer intent, and generate actionable insights. Advanced analytics features, like sentiment analysis and feedback segmentation, allow brands to uncover deep insights and make impactful, real-time improvements. With intuitive integrations and customizable reporting, this solution is ideal for enterprise organizations looking to improve the customer experience while linking CX efforts to revenue growth. 

2. HubSpot

HubSpot’s customer experience automation solution is directed at frontline customer service teams that want to provide support on multiple channels. HubSpot offers automated workflows and personalized email marketing, which are ideal for engaging customers at every stage of the journey. While HubSpot is effective for smaller to mid-sized businesses aiming to build brand loyalty, its customer experience automation capabilities may require additional customization for large-scale enterprise needs.

3. Salesforce

The Salesforce CRM platform uses customer experience automation to deliver personalized customer experiences and support quality service at scale. With a vast range of integrations and robust data management features, Salesforce is a solid choice for larger organizations seeking an all-encompassing approach to customer experience. However, the platform’s complex setup and maintenance can demand significant resources, especially for companies new to customer experience automation.

4. Zendesk

Zendesk excels in customer support automation, providing tools like chatbots, ticket routing, and knowledge bases that streamline responses and improve efficiency. It’s particularly strong in service automation, making it a top choice for businesses prioritizing fast and effective support. While Zendesk is highly valuable for customer support, its customer experience automation capabilities focus more on service interactions than a complete customer journey across marketing and sales.

5. Adobe Experience Cloud

Adobe Experience Cloud offers a robust suite of tools for large enterprises aiming to personalize and orchestrate experiences at scale. With powerful analytics, real-time data integration, and content customization options, Adobe is ideal for brands leveraging data to drive engagement. However, Adobe’s features can require advanced technical expertise, and the platform is best suited for larger organizations with dedicated resources for setup and maintenance.

Customer Experience Automation Features to Look For

The performance of a customer experience automation platform will vary depending on your industry and the use cases of customer experience automation in your organization. Regardless, here are some of the most important features to look for in customer experience automation software. 

• Integrations
• Call Transcriptions
• Customer Sentiment Tracking
• Employee Coaching 
• Triggered Surveys
• Automated Alerts 

Integrations

When evaluating a customer experience automation platform, look for a platform that can easily integrate with your existing tech stack. Ensuring that your customer experience automation platform is compatible with CRM systems, marketing automation, and data platforms will ensure a seamless data flow between tools that give teams a unified view of the customer experience. This also makes it easier to automate processes across platforms. 

InMoment’s CX integrations ensure that your team doesn’t miss a beat by letting you connect your CX data with your CRM, marketing, call center, internal collaboration tools, and more to ensure you can collaborate and amplify your CX success across your organization. 

Call Transcriptions

Call transcriptions are an important part of customer experience automation platforms. Call transcription features automatically convert a spoken conversation into text, which makes it easier to analyze customer interactions and track issues. Transcriptions also help with compliance, training, and quality assurance by allowing teams to review past conversations and see insights that can influence future customer service. 

InMoment’s conversation analytics software saves teams up to three minutes per call by automatically documenting agent notes, generating call summaries, and more to clarify actions to be taken after spoken conversations. 

Customer Sentiment Tracking

Customer sentiment tracking uses AI to analyze customer emotions and tones. By identifying positive, neutral, or negative sentiments, customer experience automation tools can help your organization respond appropriately and prioritize interactions that may need immediate attention. 

InMoment’s XI Platform lets you quickly prioritize the most important actions from your unstructured data with real-time customer sentiment measures. This ensures that your most important customer issues are resolved first, helping you identify common sentiment themes or trends within your customer feedback. 

Employee Coaching

Customer experience automation tools can also help improve employee coaching capabilities by providing feedback and training based on past performance. These tools can analyze customer response patterns and highlight areas for improvement, such as communication skills, adherence to company best practices, and more. 

InMoment lets your managers coach employees with smart recommendations based on customer data. With customized, role-based action plans, managers in your organization can effectively drive improvements.

Triggered Surveys

Triggered surveys are one of the best examples of customer experience automation. Triggered surveys are sent automatically based on specific customer actions such as completing a purchase or ending a support call. These targeted surveys help brands gather timely customer feedback at critical touch points. 

With InMoment’s XI Platform, you can automate event-based workflows that allow you to respond to customer actions as they happen. These workflows can be tailored to specific triggers, such as a recent purchase, a support ticket resolution, or a recently attended event. 

Automated Alerts

Automated alerts notify teams of important events or issues as they happen, such as a high-value customer showing signs of customer churn. These alerts help teams respond proactively to minimize negative customer experiences and improve customer retention. 

InMoment’s XI Platform acts as an always-on analyst by scanning our data and providing you with alerts on any patterns, trends, or anomalies that occur. With this information, you can act quickly on important information related to your customers, products, or services. 

Set Up Customer Experience Automation With InMoment

InMoment has been recognized as a leader in customer experience automation. Organizations that partner with InMomet realize ROI on their CX investments twice as fast as they would with competitors. To see how the InMoment platform can improve your organization, schedule a demo today!

References 

Salesforce. The Sixth Edition State of Service Report. (https://www.salesforce.com/resources/research-reports/state-of-service/). Accessed 10/29/2024. 

HubSpot. 2024 Annual State of Service Trends Report. (https://offers.hubspot.com/state-of-customer-service). Accessed 10/29/2024.

Conversational surveys are revolutionizing how businesses gather customer feedback by creating engaging, personalized interactions that resonate with all age groups, from Gen Z to Gen X. These dynamic surveys adapt their follow-up questions based on responses, enhancing engagement and encouraging more comprehensive survey participation. 

This innovative approach not only improves customer experience but also yields richer, actionable insights that empower businesses to refine their strategies. Discover how Conversational AI can transform your customer feedback process and help your business thrive.

What are Conversational Surveys?

Conversational surveys represent a modern approach to collecting customer feedback, transforming the experience from a static questionnaire into a dynamic conversation. These surveys use Conversational AI to mimic natural human dialogue, making the feedback process more interactive and engaging for respondents.

With InMoment’s customer feedback software, respondents are 2.4x times more likely to leave actionable verbatim feedback. A higher engagement level can help you find areas where improvements will greatly impact CX. As a result, businesses can see a quicker ROI on customer experience.

How Do Conversational Surveys Differ from Traditional Surveys?

Traditional surveys typically follow a rigid format. Respondents must go through a set order of questions, regardless of their responses. This impersonal approach can lead to high drop-off rates and often results in incomplete or superficial responses. 

In contrast, conversational surveys are designed to feel more like a two-way interaction. Using chat interfaces or conversational AI, these surveys adjust their questions based on the respondent’s previous answers. 

This creates a more personalized and engaging experience. Conversational surveys encourage respondents to provide more detailed feedback. They also make the process feel more natural and less stressful.

Our conversational AI helps respondents 24% more likely to share valuable insights into their intentions. This opens more pre-emptive opportunities for engagement. By fostering a natural, open dialogue, it enables businesses to anticipate customer needs and respond proactively, strengthening connections and driving impactful customer interactions.

How are Conversational Surveys Beneficial for Businesses?

Conversational surveys offer several key benefits for businesses looking to elevate their customer experience:

• Higher-Quality Feedback Collection: Conversational surveys talk to customers in a more natural way. This approach can collect up to 5x more actionable data compared to traditional methods. The flexibility of these surveys allows them to dive deeper into customer sentiments and uncover valuable insights that might otherwise be missed.
• Faster Issue Resolution: With features like InMoment’s Rapid Resolution Engine, conversational surveys can identify and address customer issues in real-time, often before they escalate. This proactive approach not only enhances customer satisfaction but also reduces the volume of inquiries reaching your support team.
• Enhanced Customer Experience and Satisfaction: By offering a more personalized and engaging feedback process, conversational surveys help foster stronger connections with customers. This, in turn, boosts loyalty and encourages repeat business.
• Lower Support Costs: Channel deflection through conversational surveys means fewer issues escalate to costly customer service interactions. This efficiency translates to significant cost savings for businesses.

Our conversational survey has proven highly beneficial for our clients, with respondents leaving 70% more words in their feedback. Additionally, feedback related to customer effort increased by 17%. This gives your team a clear view of friction points along the customer journey. These added details provide richer insights, empowering your teams to take more personalized and impactful actions that truly resonate with customers.

How Do Conversational Surveys Work?

Conversational surveys work by utilizing advanced AI technologies to create a more interactive and responsive feedback experience. Tools like InMoment’s Active Listening AI engage with respondents in real time, prompting them with follow-up questions based on their initial answers. This approach not only keeps the conversation going but also ensures that the feedback gathered is detailed and contextually rich.

As customers provide feedback, the Rapid Resolution Engine analyzes their responses and identifies any underlying issues. It then offers immediate solutions, such as a helpful tutorial or video, directly within the survey. This seamless integration of feedback collection and problem-solving helps businesses elevate customer experience by addressing concerns before they become larger issues. Learn how the features of Active Listening and Rapid Response can elevate the customer experience.

Examples of Conversational Surveys

Conversational surveys can take many forms, depending on the context in which they are used. For example:

• Chat Surveys: These surveys use a chat interface to interact with customers. They might appear in the survey question itself, as a chat window on a website, or within an app, where the customer can provide feedback in a conversational style.
• SMS Surveys: Similar to chat surveys, SMS surveys engage customers through text messages, asking questions, and collecting responses in real-time.
• In-App Feedback: Embedded within mobile apps, these surveys can pop up at key moments in the customer journey, such as after completing a purchase or using a new feature, to gather immediate feedback.

How to Analyze Data from Conversational AI Surveys?

Conversational surveys are a powerful tool for gathering richer, more insightful customer feedback. Here are a few key steps to analyze conversational survey data effectively to enable your business to drive meaningful improvements in customer experience:

1. Organize and Structure Responses: Start by categorizing responses based on topics, sentiments, and themes. Use natural language processing (NLP) tools or text analysis software to automate some of this categorization, grouping feedback by intent, emotion, or keywords.
2. Sentiment Analysis: Apply sentiment analysis to determine the tone (positive, negative, or neutral) of responses. This step can help identify areas where customers are either satisfied or frustrated, allowing teams to prioritize areas for improvement.
3. Thematic Analysis: Identify recurring themes, such as product features, service issues, or general experience. Text analytics can cluster feedback into topics, providing an overview of common areas customers mention. With conversational surveys, this might include tracking how often intent-driven words or phrases appear.
4. Intent Analysis: Intent analysis goes beyond sentiment by identifying the purpose behind responses. For instance, customers may express a desire to buy, get support, or provide feedback. Recognizing these intents helps businesses identify pre-emptive engagement opportunities.
5. Generate Actionable Insights: Use dashboards and reporting tools to transform raw data into visual summaries, allowing CX teams to quickly identify actionable insights. Regular reports that highlight emerging trends or urgent issues keep stakeholders informed and aligned.

However, with a surge of detailed responses, CX managers and teams face the challenge of efficiently analyzing it all. Depending on the volume, it can take weeks or even months to sift through feedback, delaying critical improvements that enhance customer satisfaction and demonstrate ROI. This bottleneck can slow your team’s ability to deliver impactful results, affecting overall business outcomes.

Empower your CX team to focus on implementing impactful strategies instead of getting bogged down in time-consuming analysis. That’s where InMoment’s text analytics solutions come in. With our advanced software, you can uncover rich insights in minutes rather than weeks. Our text analytics models identify 54% more topics, enabling your team to discover improvement opportunities with remarkable scale and precision.

How to select the right conversation survey solution?

Choosing the right conversational survey solution involves several key considerations:

• Customization: Ensure the solution allows you to tailor surveys to reflect your brand’s voice and meet the specific needs of your audience.
• Integration: The solution should easily integrate with your existing platforms, such as CRM systems, to streamline feedback collection and analysis.
• AI Capabilities: Look for advanced AI features like Natural Language Processing (NLP) and machine learning, which can enhance the quality of insights gathered from your surveys.
• Data Security & Compliance: It’s crucial to choose a solution that keeps your data secure and complies with local regulations, especially if you operate in multiple regions.

InMoment’s Conversational Surveys are available to all existing customers at no extra cost. Reach out to your Customer Success Manager to start leveraging this powerful tool. If you’re new to InMoment, schedule a demo. With InMoment’s Conversational Surveys, you’ll collect richer insights, resolve issues faster, and boost customer satisfaction—all while enhancing your bottom line.

Did you know that one negative experience is enough for 50% of customers to switch to a competitor? This is especially true in insurance, where customers have diverse preferences and a growing demand for personalized services. There are several best practices, trends, and challenges you need to consider to deliver an exceptional customer experience in insurance.

What is Customer Experience in Insurance?

Customer experience (CX) in insurance refers to the overall journey customers go through when purchasing a policy from an insurance provider. Customers are increasingly demanding faster, more accurate, and personalized experiences. These expectations stem from a need for both efficient digital solutions and the human touch of in-person interactions.

As a result, CX is now a major differentiator in the hyper-competitive insurance industry. Corporations like Amazon and Google are also entering the space, making it more difficult for incumbents to stand out. Insurance companies that can successfully provide seamless experiences will likely come out on top with a base of satisfied and loyal customers.

There are various types of customer experiences in the insurance sector. Here’s a quick breakdown of customer expectations by category:

• Health insurance customer experience:
  Customers expect easy access to healthcare networks. They expect fast claims processing and personalized health management. Clear communication and self-service tools are crucial to their satisfaction.
• Life insurance customer experience:
  Life insurance customers need clear, simple communication about policy terms. They expect personalized financial advice and a smooth application process to build trust.
• Property and Casualty (P&C) insurance experience:
  P&C customers want fast claims resolution and easy-to-understand policies. They also appreciate risk management tools like home protection services and real-time alerts.
• Auto insurance customer experience:
  Auto insurance customers value personalized offers based on driving habits. They want fast claims handling and easy-to-use mobile apps to manage policies.
• Commercial insurance customer experience:
  Commercial clients need customized solutions for their specific industry risks. They expect expert advice, dedicated support, and flexible policies.
• Home insurance customer experience:
  Home insurance customers want clear coverage options and quick claims processing. They appreciate proactive communication on potential risks like weather hazards. 

Importance of Customer Experience in Insurance

A 2023 McKinsey survey of over 8,500 North American insurance customers suggests that CX initiatives are crucial to revenue growth and employee satisfaction.

Here are a few key reasons why it’s important for companies to embrace a customer-centric approach:

• It enhances customer retention and loyalty. A positive customer experience fosters trust and satisfaction. It makes policyholders more likely to stay with an insurer long-term. Customers who feel valued are more inclined to renew policies and become loyal brand advocates.
• It improves customer satisfaction across all touchpoints. Quick, transparent, and efficient services reduce frustration and improve the customer journey. By leveraging digital solutions and user-friendly interfaces, insurers can enhance customer satisfaction at every touchpoint.
• It gives insurance brands a leg-up on the competition. In an industry where products are often similar across providers, customer experience can be a key differentiator. Insurers who offer exceptional experiences can stand out in the marketplace and continue attracting new clients to maintain their competitive edge.
• It boosts the insurer’s brand reputation. A strong focus on customer experience goes a long way toward improving a company’s public image. Satisfied customers are more likely to share positive reviews and recommend the company to peers. As a result, good customer experiences enhance an insurer’s brand reputation management efforts.
• It enhances operational efficiency. Investing in CX initiatives spells internal benefits for the insurance providers themselves. For instance, by utilizing chatbots to quickly respond to customer complaints, companies can save hours’ worth of time that can be invested into building rich customer relationships.

Insurance Customer Experience Statistics 

The following statistics highlight modern customer expectations and opportunities that insurers can leverage to meet their business objectives:

1. CX leaders in the insurance industry outperformed their competitors in total shareholder return (TSR) by 20% for life insurers and 65% for property & casualty (P&C) insurers between 2017 and 2022. (McKinsey & Company)
2. Approximately one in six customers report that insurers don’t follow up with them after an initial discussion. (McKinsey & Company)
3. Virtual assistants are in use by only 16% of insurers, but 38% of consumers find value in AI-based communication. (Mendix)
4. Human agents and advisers remain the highest-rated channel for customer satisfaction, with 20% of customers willing to switch insurers if their adviser left. (McKinsey & Company)
5. 49% of customers believe a human advisor is more trustworthy in filing a claim than an automated service or a chatbot. (Mendix)
6. 50% of five-star ratings from insurance customers highlighted that a “positive or empathetic adjuster attitude and handling approach” is important to their satisfaction. (Hi Marley)
7. A successful customer-centric approach results in a 20% boost in employee satisfaction for insurance companies. (McKinsey & Company)

How to Improve Customer Experience in Insurance?

Personalization, multi-channel journeys, and customer convenience are key to improving CX in insurance. Here are some strategies for enhancing customer retention and loyalty:

1. Ensure an Omnichannel Customer Journey

Customers are no longer comfortable restricting themselves to a single interaction channel. They expect a consistent experience from their insurance provider wherever they are.

For example, let’s say a customer interacts with an agent via email for the first time. Later, they pick up the phone to have a direct conversation to discuss the issue further. They expect the company to have a record of their communication so far to ensure minimal delay.

This expectation stems from a need for convenience. Customers want to interact in various ways and expect smooth transitions between channels. The takeaway for insurers is to invest in multiple communication channels. Each channel should be reliable, safe, and easy to use.

Another good practice is to synchronize customer data across these channels. Building an omnichannel customer experience makes the process smooth for customers as they don’t have to repeat information or stick to one channel.

InMoment is the premier solution for insurance providers looking to build an omnichannel customer experience. The InMoment platform is built to help you monitor and analyze data from multiple sources such as reviews, calls, and survey responses. 

2. Deliver Personalized Experiences

Personalization is a cornerstone of exceptional customer experience in the modern age. In fact, it’s one of the most impactful applications for collecting customer feedback. The insights into individual behavior and expectations help businesses tailor their services accordingly. For example, insurers can provide specific risk assessments based on customer profiles.

InMoment’s XI Platform can help by collecting data from every channel and organizing it into one central location to gain a complete understanding of the customer, which allows you to deliver a more personalized experience.

This approach makes customers feel valued and heard. Therefore, personalization makes them more likely to stay loyal to you.

3. Invest in Digital Channels

Customers are increasingly keen on digital interactions. Apps and websites simplify a range of tasks, from purchasing policies to submitting claims. Unfortunately, insurers still struggle to provide quality digital experiences. Over 30% of customers express dissatisfaction with the digital channels available.

One of the best ways for insurance companies to stand out is to invest in reliable, secure, and efficient digital channels. Features such as instant quotes, real-time support, and eForms help provide a smooth customer experience.

4. Train Employees

While digital channels are important, in-person experiences still matter, especially for complex inquiries. 53% of customers want an in-person interaction before purchasing an insurance product.

Leveraging the human touch is important for insurance companies to strengthen customer relationships. Training your staff to be empathetic, knowledgeable, and efficient can go a long way. It can greatly enhance customer satisfaction during critical touchpoints across the customer journey.

Also, it’s important to ensure consistent service from frontline staff across all your physical locations. Inconsistent customer experiences result in mixed reviews, which makes it difficult to attract prospects.

5. Simplify Products

Purchasing insurance products can be an intimidating process. By simplifying your offerings, you make it easier for customers to make informed decisions. Simplified products and clear communication also increase transparency. This enhances customer trust in your brand and makes it more likely that you get positive reviews.

6. Educate Customers on Risk Prevention

Educational content on risk prevention and management can help customers make informed decisions. It encourages good daily habits, like safe driving and staying healthy, to minimize relevant insurance costs. By educating customers, you also establish yourself as a reliable authority and strengthen your relationship with them.

7. Make Documents Mobile-Friendly

Customers expect smooth access to important information on their smartphones. This helps them make decisions or seek support on the go. Mobile-friendly documents enable this convenience by offering accessible and readable content on customers’ devices.

8. Leverage AI & Chatbots

Chatbots enable customers to find quick answers to their questions without having to wait for a human agent. 

For example, a chatbot can guide customers through the claims filing process after a car accident. It would start by requesting relevant details, such as the accident date and type of damage. After processing the information, the chatbot can leverage its knowledge base to suggest next steps and personalized advice.

The self-service enabled by chatbots can help your business by reducing support costs. It helps improve customer satisfaction by cutting down on wait times and increasing efficiency.

9. Offer Flexible Policy Options

Flexible policy options allow customers to customize their coverage and only pay for the insurance they need. Many customers appreciate the ability to tailor aspects of their policy, like coverage limits and deductible amounts. Therefore, by introducing flexibility, you can make your offerings accessible and improve customer convenience. 

A wider range of options also helps you attract more customers from different financial backgrounds. Existing customers are also more likely to be loyal to a business that adapts to their needs.

10. Prioritize Data Security

The sensitive nature of the information in insurance transactions makes data security crucial. Customers need an assurance that you will protect their data from misuse or information breaches.

Investing in measures like encryption and secure data storage will help you better protect customer privacy. Your commitment to security will also improve your brand credibility by making it easier for customers to trust you.

Insurance Customer Experience Best Practices

The following practices can help you deliver consistent and rich experiences to customers with a focus on transparency and efficiency:

1. Collect regular customer feedback and act on it. Gathering and analyzing customer feedback enables a deeper understanding of the individuals you’re serving. For instance, with the help of a customer feedback questionnaire, you can ask targeted questions that give you relevant information. The data can help you make immediate adjustments to customer service operations.
2. Be transparent with your customers. Prioritizing clear communication and transparency across all touchpoints of the customer journey will help you reduce frustration and enhance long-term trust in your brand.
3. Streamline workflows. Simplifying the application and underwriting processes will help you attract prospects away from competitors. This is because customers are always going to choose the most convenient and easy to use option. Investing in automated pipelines for tasks like claims processing and policy issuance will reduce wait times for customers. It will also save you time that can be utilized in other aspects of your service.
4. Personalize the customer experience. Tailoring your products and services to cater to individual preferences enables you to enhance customer satisfaction and retention.
5. Continuously improve and adapt to changing customer needs. Customer expectations will keep changing, especially during these uncertain economic times. It’s a good practice for insurers to stay flexible and track customer sentiment over time. This ensures your services stay relevant and impactful despite the economic climate.

Popular Customer Experience Trends in Insurance

Looking at some of the CX trends in insurance can help you identify what you’re doing right and what you can improve. The following trends are emerging as key drivers of growth for insurers:

• There is a growing demand for personalization. Customers expect personalized services more than ever before. This comes from a growing need for convenient and relevant experiences. Insurance providers can leverage AI to tailor their services to unique individual needs. As a result, customers feel understood, which enhances their loyalty to the company.
• Omnichannel interactions are gaining relevance. Customers want to interact with their insurers through several channels. For instance, a customer on the move would prefer a quick chat via a mobile app. However, she might feel the need to have a detailed in-person interaction once she has enough time on hand. An omnichannel approach ensures that customers receive consistent service wherever they are.
• Customers appreciate intuitive self-service. The need for quick and seamless experiences has also given rise to the idea of self-service options. Digital tools like mobile apps, chatbots, and online portals are relevant here. These tools allow customers to complete tasks on their own without taking too much time.
• It’s important to think about risk mitigation. Customers are starting to embrace risk prevention and mitigation incentives. For instance, by offering safe driving discounts, your company can benefit by encouraging good habits. The safer your customers drive, the less likely you are to receive claims. Moreover, the discounts will prevent customers from seeking cheaper alternatives.

Examples of Insurance with the Best Customer Experience

Companies can achieve impactful business outcomes by delivering excellent customer experiences. The following insurance providers demonstrate the value of adopting a customer-centric approach:

Ohio Mutual Insurance Group

The Ohio-based insurance company maintained its competitive edge with a Voice of the Customer (VoC) program. It leveraged the InMoment CX platform, especially its text analytics and case management features, for this purpose. 

As a result, Ohio Mutual boosted its survey response rate to 25% and reduced survey response times from a few weeks to just a few days. Also, it captured analytical insights from feedback that provided a clearer picture of customer satisfaction levels.

A Fortune 500 insurance company

This P&C national insurance company had a clear goal: maintain a strong brand reputation to thrive in the competitive industry. Through their partnership with InMoment, the insurance provider gained access to an intuitive and easy-to-use reputation management software. The decision was crucial to improving their public image to prospects.

Their average star rating increased by 8.7% from 4.48 to 4.87, while the review volume increased by a staggering 452%. The increased brand credibility enabled them to rise up the Fortune 500 list by 57 positions!

Allianz Trade

Allianz understood the importance of text analysis software in gaining a deeper understanding of customers. It partnered with InMoment to add over 30 contextual data points to each piece of feedback. 

The enriched data helped identify areas for improvement in issue resolution for frontline staff. As a result, Allianz witnessed a 5.7% and 6.7% growth in business and profit, respectively.

What are the best Customer Experience Metrics for Insurance Companies to Measure?

Once you’ve implemented your CX strategy, it’s imperative that you evaluate and measure its performance. Here are ten key metrics to help you see if your CX initiatives are delivering the expected returns:

1. Customer Effort Score (CES): Measures how easy it is for customers to perform tasks like purchasing a policy, filing a claim, or resolving any inquiries.
2. Claim Processing Rate (CPR): Tracks the speed at which you process insurance claims. A faster processing rate implies streamlined and efficient workflows that are likely to maintain or enhance customer satisfaction.
3. Claim Denial Rate (CDR): Measures the percentage of claims you are rejecting. A higher rate, especially if it’s above the industry average, can result in increased customer dissatisfaction as policyholders will feel the insurance is not serving them according to their expectations.
4. Customer Satisfaction Score (CSAT): Evaluates customer satisfaction with specific interactions like filing a claim or talking to customer support. A higher CSAT suggests that your CX initiatives are succeeding at resolving customers’ pain points.
5. Average Time to Quote: Measure how quickly you provide a policy quote to customers once they provide their information. A faster response time enhances customer satisfaction and makes it likely that your company will be recommended to others.
6. Average Time to Bind: Tracks the time needed to finalize a policy after a customer accepts the quote. Shorter times indicate that you are properly utilizing digital solutions like automation to streamline your workflows.
7. Average Handling Time (AHT): Measures how long it takes to resolve customer inquiries, whether over the phone, via chat, or through email. 
8. Cross-Selling Rate: Measures how often existing customers purchase additional products or services, like adding home insurance to an auto policy. A higher rate implies a high level of customer trust in your brand, as they clearly find value in your offerings.
9. Net Promoter Score (NPS): Evaluates customer loyalty by asking how likely customers are to recommend your insurance company to others. A high Net Promoter Score (NPS) suggests that your services and CX efforts are good enough to encourage positive reviews from customers.
10. Policy Renewal Rate: Monitors the percentage of customers who renew their policies, reflecting how well you have fostered strong customer relationships.

Customer Experience Challenges in Insurance

A positive customer experience in insurance depends on overcoming obstacles like intense competition, fragmented journeys, and diverse preferences. Here’s a closer look at some of these challenges:

1. Digital solutions fail to live up to customer expectations. While insurance customers appreciate apps and websites for their convenience, the current state of digital platforms leaves much to be desired. Clunky, slow, and difficult-to-understand digital channels are the reason why only 20% of customers rate them as their top choice for interactions.
2. Customer journeys are fragmented from the beginning. There is a lack of cohesion in insurance customer journeys. Six out of ten customers switch channels before completing a purchase. Moreover, the transition between offline and online platforms tends to be sudden. These factors make it difficult for insurers to prioritize the right interaction channels.
3. There is a strong customer need for interactions with human agents. Even the best digital systems can’t completely replace the human touch for insurance customers. Human agents are far better at handling complex issues like claims disputes and personalized advice. Therefore, it’s important for companies to maintain and train their workforce to this end.
4. Customers have diverse channel preferences. The growing expectation for convenience means customers want to choose any communication channel at a given time. Without investing in an omnichannel approach, it will be difficult for insurers to fulfill this key demand.
5. There is growing competition from big tech corporations. Tech giants like Google and Amazon are starting to enter the insurance space. Their resources allow them to offer innovative digital experiences and quick services. This growing competition puts pressure on incumbents to evolve and meet higher customer expectations.

How to Select the Right CX Software to Manage Insurance Experience

Insurance providers can streamline their customer experience management efforts by investing in intuitive and feature-rich CX software. Here’s what you should look for when selecting the right platform:

Omnichannel Feedback Collection

Customers interact with their insurers through multiple channels. This makes it crucial for companies to connect experience data from various sources. InMoment’s CX integrations ensure you don’t miss out on any insights by integrating your platform with all the systems you use to collect feedback.

AI-Driven Text Analysis

AI empowers you to unlock meaningful information from volumes of feedback so you can make data-driven decisions. The award-winning AI text analysis software offered by InMoment helps you automate the collection of analytical insights. As a result, you can save valuable hours that your workforce can invest in acting on the feedback itself.

Review Monitoring & Response Automation

The right CX platform should have features to monitor customer reviews across platforms such as Google, Yelp, or social media. Automating responses to these reviews helps manage your online reputation. It also shows customers you respond to them in real-time, enhancing satisfaction.

InMoment’s platform allows you to generate review responses using AI. These responses can be set to adhere to specific brand guidelines to maintain a consistent tone across channels. 

Case Management

It’s crucial to manage client concerns and issues to reduce complaints. This is where case management capabilities, such as the ones offered by InMoment, can help. These features empower your agents to address customer needs and build long-term relationships.

InMoment’s case management software simplifies the tracking of customer experience cases by allowing you to solve cases, identify larger trends, and quickly identify the root cause of a case based on customer and employee perspectives. This solution also recommends the most efficient way to solve cases, which empowers employees to handle issues promptly.

Compliance & Security

When selecting a customer experience software for your insurance organization, robust compliance and security are essential. Due to the sensitive nature of customer data, from health information to financial records, insurance companies must ensure that the software they select meets the requirements of strict data protection regulations. Considering this feature helps safeguard against risks while providing strong security protocols that protect your client’s privacy. 

At InMoment, we’re dedicated to safeguarding the confidentiality, integrity, and availability of our clients’ data; and our compliance programs reflect that. We’re committed to meeting and exceeding industry standards in regulatory compliance. Our platform is SOC 2 Type II compliant and ISO 27001 certified, and we’ve partnered with a hosting provider that adheres to Sarbanes-Oxley, HIPAA, and Gramm-Leach-Bliley regulations, ensuring that your program is protected by the highest standards in the industry.

Improve Your Insurance Customer Experience with InMoment

Investing in excellent customer experience helps you win by boosting customer satisfaction. With InMoment’s comprehensive CX platform, you can automate the collection and analysis of feedback so that your agents can spend more time focusing on what truly matters: fostering rich relationships with customers. Schedule a demo today to experience the transformative capabilities of our platform for yourself!

References 

Insurtech Insights. Here’s How Google, Amazon, Facebook and Apple are Targeting the Health Insurance Market (https://www.insurtechinsights.com/heres-how-google-amazon-facebook-and-apple-are-targeting-the-health-insurance-market). Accessed 10/17/2024.

McKinsey & Company. Elevating customer experience: A win-win for insurers and customers (https://www.mckinsey.com/industries/financial-services/our-insights/insurance/elevating-customer-experience-a-win-win-for-insurers-and-customers). Accessed 10/17/2024.

Mendix. The Future of Insurance: 20 Stats That Show Customer Experience is Vital (https://www.mendix.com/blog/20-stats-future-insurance-depends-customer-experience). Accessed 10/17/2024.

Hi Marley. CONSUMER AND CARRIER CX INSIGHTS: What Drives 1-Star and 5-Star Customer Satisfaction Scores in Claims (https://www.himarley.com/wp-content/uploads/2022/03/Whitepaper-What-Drives-1-and-5-Star-Scores-In-Claims-1.pdf). Accessed 10/17/2024.