Reduce Customer Churn to Boost Revenue and Stay Competitive

Customer churn occurs when customers stop using your product or service. It results in losses ranging from a drop in revenue to a declining market share. The good news is that businesses can reduce customer churn by focusing on strategies like churn prediction and proactive outreach.
Two female collegues having business meeting to discuss how to reduce future customer churn

Losing customers never feels good, especially in a hyper-competitive market. You could replace them, but that’s easier said than done. In fact, it costs five times more to acquire new customers than it does to keep an existing one. But, what if you could predict and reduce customer churn to retain customers at risk of leaving you?

With the right strategies and tools, you can prevent customers from taking their business elsewhere. The key is to build trust and loyalty through positive experiences that convert potential losses into growth opportunities.

The Importance of Reducing Customer Churn

A customer-centric approach can’t succeed without addressing customer churn. High churn rates indicate dissatisfaction and missed opportunities to strengthen relationships. Here are a few reasons why reducing churn is essential for business gains:

  • It increases revenue stability: Retaining customers ensures a steady revenue stream, helping you minimize acquisition costs.
  • It boosts Customer Lifetime Value (CLV): Loyal customers spend more over time, creating a positive impact on your bottom line.
  • It encourages product improvement: When you address churn, you can identify specific pain points leading to dissatisfaction. This information guides product development to better fulfill customer needs and goals.
  • It gives you a competitive advantage: Your product and business improvements will likely enhance customer satisfaction. As a result, you’ll succeed in retaining and acquiring customers to increase your market share.
  • It improves your brand image: Happy customers are more likely to recommend your business, helping support brand reputation management efforts.

What Is Customer Churn?

Customer churn occurs when customers stop using your product or cancel their subscriptions. It’s an important metric to track because it highlights the number of customers leaving you. You can calculate it by dividing the number of customers you lost over a specific period by the number of active customers at the start of that period.

Types of Customer Churn

Several types of churn can affect your bottom line, including:

  • Customer churn describes the decline in customer count during a specific period. It doesn’t address a drop in revenue, only focusing on the raw number of customers lost.
  • Revenue churn represents revenue lost due to customers downgrading their plans or leaving the business altogether. Businesses with tiered pricing models typically focus on this type of churn.
  • Early churn occurs when customers leave the business during their initial experience with the product or service. It highlights an issue with product onboarding and time to value since the product fails to demonstrate immediate utility to the customer.
  • Active churn is when customers voluntarily stop using a service or product. The most straightforward example is when a customer decides to cancel their subscription. This decision could reflect dissatisfaction, finding a better alternative, or changing requirements.
  • Passive churn is also described as involuntary churn. It occurs when customers don’t explicitly cancel their service. For example, a subscription that ends due to failure to update credit card details. This type of churn indicates issues beyond dissatisfaction, such as inadequate payment processing.

How to Reduce Customer Churn

  1. Identify At-Risk Customers
  2. Analyze Churn Drivers
  3. Collect Regular Feedback
  4. Identify Your Target Audience
  5. Focus on Proactive Outreach
  6. Deliver Excellent Customer Service
  7. Understand Your Competition
  8. Highlight Your Value
  9. Invest in Customer Loyalty
  10. Improve Onboarding
  11. Educate Your Customers
  12. Encourage Long-Term Engagement

Customer churn is a serious challenge, with U.S. businesses losing $136 billion annually due to avoidable churn. Here are 12 impactful ways to reduce churn and prevent it from impacting your revenue streams.

Identify At-Risk Customers

Knowing who is likely to leave helps you optimize your churn reduction efforts. It enables you to pinpoint specific user profiles for re-engagement. Tracking activity levels is a straightforward way to recognize at-risk customers. For example, if they haven’t renewed their subscription or completed a survey in a while, they might be losing interest in your product.

A churn prediction tool like InMoment simplifies this process by leveraging analytics to highlight these at-risk profiles and segments. It also helps you understand why churn occurs, which gives you an opportunity to take preventative action.

Customer churn analysis charts

Analyze Churn Drivers

Churn occurs for various reasons that can highlight significant areas for improvement. Customers may leave due to product dissatisfaction, poor service quality, high pricing, or simply because a competitor offers more value. 

Leverage churn prediction tools, feedback, and usage data to analyze key factors driving customers away. For example, if customers complain about a lack of features, it signals a need for product improvements. Addressing these drivers allows you to enhance satisfaction, loyalty, and retention. 

To see what this can look like in action, read this customer story to learn how this large Telecommunications organization parted with InMoment to identify the root cause of customer churn and identified $6 million in at-risk revenue!

Collect Regular Feedback

Consistent feedback collection is essential for tracking customer expectations and behavior. Businesses that actively use customer feedback for improvements experience a 10% increase in retention rates.

Use surveys and social media monitoring to capture insights into customer experiences. Leverage analytics to understand their pain points and goals. For example, if feedback reveals confusion during onboarding, you can improve your processes to make them more intuitive.

InMoment’s XI platform enables you to collect and analyze customer insights effectively. It leverages CX integrations to connect and collect feedback from every channel, making it easier to act on. As a result, you build trust, improve retention, and reduce the likelihood of customers leaving.

Fill out the calculator below to reveal how much ROI you can get from utilizing InMoment’s platform: 

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Identify Your Target Audience

You can build the best product with high-quality customer support behind it. However, it’ll struggle to keep target customers on board if it doesn’t resonate with them. Therefore, you must recognize the user profiles that can make the most of your product. These customers are less likely to be swayed by lower prices elsewhere because they see genuine value in your business.

Focus on Proactive Outreach

Proactive communication is an important part of re-engaging at-risk customers. It shows your awareness of potential issues, making customers feel valued and heard. Stay ahead of customer needs with regular check-ins and possible solutions.

The best way to recognize issues before they become churn drivers is to monitor customer sentiment online. With InMoment’s social listening tool, you can track brand and product mentions to see what customers have to say. This approach keeps you in the loop regarding customer experiences so that you can make proactive improvements.

Deliver Excellent Customer Service

Feedback collection, analysis, and social listening provide the insights you need to improve customer experiences. In fact, 77% of customers are willing to share personal information as long as they receive better experiences in return. For example, improving your e-commerce website’s user interface after listening to customers will improve your chances of retaining many of them.

Understand Your Competition

If customers are considering leaving you, guess where they might go next? Your competitors! Analyzing the major players in your space will help you stay competitive by identifying their strengths and weaknesses. It will also help you see how you can differentiate your product and service to stand out.

For example, if your competitor is receiving criticism for slow customer support, you can use the opportunity to market your 24/7 multi-channel service. Competitive analysis allows you to address market gaps and remain relevant for existing and potential customers.

Highlight Your Value

We just discussed how competitor analysis provides opportunities to establish yourself as a viable alternative. This is where you must communicate your product’s or service’s long-term value. Leverage marketing channels to highlight impactful ways in which you solve customer pain points. Your online reputation management efforts will also be crucial, as they yield positive reviews that you can use to reinforce value and reduce churn. 

Invest in Customer Loyalty

Strong customer loyalty is key to reducing churn. 64% of loyal customers are more likely to purchase frequently. Besides improving customer experiences, you can encourage loyalty with rewards and incentives. A good loyalty program goes a long way toward strengthening relationships and increasing customer lifetime value. Incentives like discounts and loyalty points encourage customers to stick with your brand over the long term.

Improve Onboarding

The onboarding process sets the tone for the customer journey with your brand. An effective product onboarding experience ensures a short time to value and reduces the chances of early churn.

For example, you can create step-by-step tutorials, welcome emails, or in-app guides tailored to new users. Proactively address common questions and offer easy access to support during onboarding to build trust. This approach sets the groundwork for long-term satisfaction by empowering customers to achieve their goals early on.

Educate Your Customers

Customers who understand how to capture value through your product are more likely to stay long-term. Educating your audience ensures they use it effectively to fulfill their needs. Leverage guides, webinars, video tutorials, and newsletters to inform customers.

Another benefit of educating your customers is brand credibility. Customers and prospects are likely to view you as a trusted authority in your space. As a result, educational initiatives promote trust and long-term loyalty.

Encourage Long-Term Engagement

Engagement is crucial to keeping customers connected to your brand. Regular interactions remind customers of the value you offer and encourage long-term loyalty. Personalized recommendations, gamification, or exclusive community access can help foster long-term relationships. This approach helps reduce churn likelihood by making customers feel invested in your brand.

How Does Improving the Overall Customer Experience Reduce Customer Churn?

The best way to hold on to a customer is to deliver consistent and positive experiences. Excellent customer experience management is key to customer satisfaction and staying ahead of competitors. Here are four key ways in which CX improvements help reduce customer churn:

  • It enhances customer loyalty: Loyal customers spend more frequently and are likelier to recommend your brand to others. As a result, they are far less likely to switch to competitors.
  • It flags potential pain points early: Analyzing the customer journey helps you spot and address issues that might lead to churn. Proactive communication and problem-solving play a huge role in retaining at-risk customers.
  • It strengthens customer relationships: Delivering personalized interactions creates an emotional bond between customers and the brand. This connection encourages long-term relationships.
  • It highlights your unique value to customers: Positive customer experiences highlight the unique benefits of your product or service. They help customers recognize your value in their daily lives, reducing their likelihood of seeking alternatives.

How to Reduce Customer Churn Using Customer Journey Analytics

Customer journey analytics helps businesses map and understand the end-to-end customer experience. It pinpoints glaring issues, tracks customer behavior, and highlights where customers might churn.

For example, if analytics reveal a pattern of early churn, you can address the issue with clearer onboarding instructions or proactive support. These insights enable you to personalize interactions and improve weak touchpoints.

You can identify at-risk customers early with customer experience journey mapping and churn prediction. InMoment combines both processes in an intuitive CX platform to enable a better understanding of user journeys. Its advanced text analytics and AI Journey Insights help identify churn drivers and hidden pain points to improve retention rates.

How to Use NPS to Reduce Customer Churn

Net promoter score (NPS) is a valuable metric for understanding customer loyalty and reducing churn. It categorizes customers as promoters, passives, and detractors to highlight the likelihood of customer retention. Promoters are loyal advocates, while detractors are disgruntled customers at risk of churning.

NPS surveys help collect feedback from both types of customers. Following up with detractors and resolving their issues on a priority basis can convert them into loyal customers. Analyzing the change in NPS over a specific period is also helpful in tracking the success of retention strategies.

How InMoment Can Help Reduce Customer Churn

Customer churn results in significant business losses that make it difficult to survive in a competitive market. While you can’t completely eliminate churn, you can reduce it to grow your revenue and market share. InMoment provides industry-recognized churn prediction software that enables early identification of churn drivers and at-risk customers. Schedule a demo of our text analytics solution today to see how it can help boost retention rates!

References 

Forbes. Customer Retention Versus Customer Acquisition (https://www.forbes.com/councils/forbesbusinesscouncil/2022/12/12/customer-retention-versus-customer-acquisition). Accessed 12/09/2024.

Desk365. 101 Customer Service Statistics You Need to Know in 2024 (https://www.desk365.io/blog/customer-service-statistics). Accessed 12/09/2024.

Freshworks. 50 Essential customer service statistics to know for 2024 (https://www.freshworks.com/customer-service/statistics). Accessed 12/09/2024.

Emarsys. 32 Customer Loyalty Statistics Your Business Needs to Know in 2025 (https://emarsys.com/learn/blog/customer-loyalty-statistics). Accessed 12/09/2024.

Winter 2024 CX Trends: Navigating AI, Society, and Experience Design

Learn how generative AI, customer expectations, and customer journeys as a whole are changing and how your business can be prepared for the future.

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.

How Customer Experience Outsourcing Could Benefit Your Business

Customer experience outsourcing involves delegating certain aspects of customer experience management to third-party providers to scale CX operations.
Businessman shaking hands with partner.

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.

Custom built CX dashboards and reports in InMoment's XI Platform.

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. 

Credit Union Reputation Management: Why It’s Key for Member Trust and Satisfaction

Credit union reputation management is the process of listening to members and analyzing their feedback to build experiences that encourage positive reviews. It helps credit unions establish themselves as trustworthy and reliable financial institutions.

Credit unions are significantly reliant on the trust of their members for success. Their community-centric nature encourages prospects to value public opinion when making a decision. This is true for financial institutions in general, with almost 90% of consumers using online reviews to make banking decisions. Focusing on credit union reputation management is crucial for building trust with existing and potential members.

Why Is Reputation Management Important for Credit Unions?

  1. Attracting New Members
  2. Member Loyalty
  3. Competitive Advantage
  4. Crisis Management

Credit unions are member-driven financial cooperatives. As a result, their success relies on the trust their members place in them. The online space, especially in the form of social media and review sites, amplifies public opinion. One bad experience with your credit union leads to a negative review that can be enough to turn away many potential members.

In fact, 49% of consumers trust online reviews as much as personal recommendations. Here are four key reasons why online reputation management for credit unions is important:

Attracting New Members

Your credit union’s online reputation is a major deciding factor for prospective members. A positive reputation encourages new memberships by highlighting your reliability and value. Meanwhile, negative reviews and testimonials make it easy for potential members to consider other options.

Member Loyalty

Existing members are more likely to remain loyal to a credit union they trust. Reputation management efforts ensure you make your members feel heard and valued. This member-centric approach helps build stronger relationships and improves retention rates.

Competitive Advantage

The reality is that you are competing not just with other unions but also with larger banks. A positive reputation highlights the unique benefits your credit union offers to members. 

For example, glowing online reviews will likely convince individuals to choose your member-first approach over traditional banking. With customer feedback influencing decision-making, a strong reputation is your key to standing out in a competitive space.

Crisis Management

Online complaints about your financial institution can quickly escalate and damage your reputation. With community ties playing a pivotal role in your institution, a single negative experience can spread like wildfire online. 

Proactive reputation management enables credit unions to navigate crises by monitoring and analyzing member sentiment. A quick and empathetic response is crucial for transforming reputational risks into opportunities to strengthen trust.

What Are the Benefits of Reputation Management for Credit Unions?

Credit union reputation management offers a competitive edge by boosting member trust and loyalty. Key benefits include:

  • Improved member retention as a result of quick responses and effective issue resolution.
  • Stronger customer loyalty due to increased member satisfaction. For example, closing the feedback loop with a disgruntled member can turn them into a loyal advocate.
  • Community ties strengthen as reputation management efforts reinforce positive perceptions and member engagement.
  • Competitive edge over financial institutions as a result of consistently high member satisfaction leading to positive brand image.

Why Are Listings and Reputation Management for Credit Unions Important?

  1. Boost Discoverability
  2. Enhance Local SEO
  3. Build Trust
  4. Drive Member Growth

Digital search is one of the most popular channels for discovering your credit union. Most prospective members are likely to look you up on Google, Bing, or Apple Maps before making a decision. Here are four powerful results you can accomplish with listings management:

Boost Discoverability

Prospective members often rely on online searches to find nearby credit unions. Maintain accurate listings on platforms like Google, Yelp, and Apple Maps. This ensures your credit union appears in search results with correct contact details, work hours, and locations. As a result, you boost your visibility, making it easier for potential members to find and trust you.

Enhance Local SEO

Accurate listings improve your local SEO, which helps attract more members. Start by understanding your local audience, including pain points and preferences. Incorporate relevant keywords in your listings to boost visibility in search results. Track SEO performance by monitoring changes in local rankings. The insights will help you adjust your strategy and target the right individuals.

Build Trust

Consistency across online listings and your website strengthens trust. For example, conflicting information about your hours or address can frustrate potential members. This negative sentiment can impact your market share as members flock to competitors. Listings management prevents such confusion by ensuring accurate and complete business information.

Drive Member Growth

Credit unions with accurate listings and strong reputations see higher engagement and membership growth. For example, a member searching for “credit union with great loan rates” will likely choose an institution with glowing reviews over one with unresolved complaints or poor online visibility.

How to Improve Your Credit Union’s Online Reputation?

  1. Understand Your Target Audience
  2. Encourage Member Reviews
  3. Monitor and Respond to Feedback
  4. Analyze Competitors
  5. Invest in Reputation Management Software

Understand Your Target Audience

It’s essential to understand your target audience profiles to improve your chances of engaging them. For example, if you want to target younger members, a good practice would be to enhance your social media presence. You can even identify and use viral trends to better connect with such members.

Active engagement with current and potential members will help you tailor your marketing efforts. Use a social listening tool like InMoment to track and analyze online conversations around credit unions. The insights will help you understand specific pain points that you can solve to engage your target audience. It also helps you customize your outreach efforts, establishing your brand as reliable and trustworthy.

Encourage Member Reviews

Positive reviews influence potential members by highlighting you as a credible organization. 88% of both millennial and Gen-Z consumers rely on online reviews when evaluating a financial product or institution. 

Therefore, it’s important to improve your members’ experiences and encourage them to leave positive reviews online. The authentic voice of a satisfied member can be enough to build trust with prospects.

Monitor and Respond to Feedback

Implement a member feedback loop by monitoring and responding to feedback. Responding to both positive and negative reviews enhances your reputation by showing members you care.

Leverage survey requests and online mentions of your credit union to collect feedback. InMoment’s XI platform is an excellent tool for connecting member feedback from various channels and analyzing it for insights. Its automated alerts feature is especially useful for quickly identifying and responding to a member review. Quick and effective responses help close feedback loops and enhance member satisfaction.

Analyze Competitors

Monitoring competitors’ online reputations can help you identify market gaps and differentiate your offerings. For example, let’s say your competitor is facing complaints about limited branch hours. You could take advantage of this opportunity by highlighting your 24/7 digital banking options in your marketing.

Pay attention to what members appreciate or criticize about other credit unions. Use this information to improve your services and position yourself as a better alternative. This approach will help establish your service as a reliable alternative and increase your market share.

Invest in Reputation Management Software

Collecting, analyzing, and responding to member reviews is an essential but tedious process. A good reputation management platform can streamline these processes for you. InMoment’s industry-recognized review management software helps you track each piece of incoming feedback for effective monitoring and analysis. It provides actionable insights for your credit union so that you can invest more time in managing member relationships.

Reputation Management Tools for Credit Unions

  1. InMoment
  2. Rize Reviews
  3. Hootsuite
  4. Brandwatch
  5. MemberXP

With many options to choose from, selecting the right reputation management tool can be a daunting task. In this section, we have rounded up the five best tools to help you narrow your focus and make an informed decision.

InMoment

InMoment provides reputation management solutions for credit unions looking to dominate local search. It allows financial institutions to monitor and connect customer reviews from various channels, including social media and review sites. 

With its response automation feature, you can leverage generative AI to provide quick and helpful responses. This enables you to implement and close feedback loops with members. Beyond collecting feedback, you can use InMoment’s AI-enabled analytics to better understand member sentiment and behavior. The insights you gain from this analysis help you identify areas for improvement and address market gaps.

Boosting your local search rank is essential for visibility. The platform’s local listings management software provides ROI-specific insights from your Google or Apple Maps listings. This information helps you outrank competitors and enhance your online presence without increasing ad spend.

Fill out the calculator below to see the return on investment you could get from utilizing InMoment’s reputation management tools:

Calculate your business’s ROI using InMoment’s reputation management tools.

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Submit two or more calculators to show an overview of what your integrated CX program could return.

Rize Reviews

Rize Reviews simplifies the process of acquiring reviews to manage your online reputation. Key features include automated review requests, real-time feedback alerts, and a centralized dashboard for managing reviews. These features help credit unions improve their search rankings with high-quality reviews.

Hootsuite

Hootsuite is a review tracking and analysis tool that helps credit unions understand conversations around their services. Its InMoment integration lets financial institutions monitor reviews on a dashboard for effective responses. The integration is also useful for filtering out the best reviews and highlighting them for reputation enhancement.

Brandwatch

Brandwatch enables real-time monitoring of brand mentions across social media and online review sites. Its analytics and reporting features are useful for gaining insight into member behavior and sharing them with stakeholders. 

MemberXP

MemberXP is an experience management platform that focuses on feedback collection and analysis. It enables real-time review monitoring to help credit unions provide immediate responses. The platform also provides competitor insights highlighting how organizations compare to other credit unions.

Improve Your Credit Union’s Reputation with InMoment

Credit unions thrive on a positive online reputation that strengthens member relationships. Building trust is key, which is why you need reputation management to highlight your credibility to members and prospects. InMoment’s XI platform makes it easy to establish trust by tracking, analyzing, and acting on member feedback. Schedule a reputation management demo today to see how you can get started!

References 

The Financial Brand. How Much Do Online Reviews Matter to Banking Decisions? A Whole Lot. (https://thefinancialbrand.com/news/customer-experience-banking/how-much-do-online-reviews-matter-to-banking-decisions-a-whole-lot-178414). Accessed on 12/04/2024.

Forbes. Online Review Trends Affecting Today’s Consumers (https://www.forbes.com/councils/forbesbusinesscouncil/2024/02/08/online-review-trends-affecting-todays-consumers). Accessed on 12/04/2024.

Customer Experience Maturity Model: A Framework for Improving Experiences

Companies focusing on customer experience (CX) improvements report better overall business metrics. While building a mature CX program is no easy task, a customer experience maturity model can help businesses understand where they are and what they need to do.
business meeting and presentation in a modern office

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.

Social Media Intelligence to Stay Competitive and Engage Customers

Customers are increasingly relying on social media to decide which brand to trust. With social media intelligence, you can analyze their online behavior and expectations to uncover valuable insights and growth opportunities.
Two business women sitting at a table and working on their laptops

Your social media channels aren’t just for scrolling through your feeds. With 74% of consumers relying on social media to guide their purchasing decisions, these platforms host valuable customer experience data. Social media intelligence is a powerful tool for leveraging this data to make informed business decisions.

What is Social Media Intelligence?

Social media intelligence is the analysis of data from social media conversations to guide marketing strategy. Your brand can better connect with your audience by tracking trends in online conversations around your product and industry. 

For example, identifying negative sentiment toward your latest feature can help you spot areas for improvement. It’s also possible that your product is fine but your team is marketing it to the wrong demographic. As a result, these insights also enable effective marketing and lead generation.

Here’s a breakdown of the four key components of social media intelligence:

  1. Monitoring
  2. Data Collection
  3. Data Analysis
  4. Actionable Insights

Monitoring 

Monitoring your social media channels is the first step in identifying and analyzing audience activity. What are your target customers talking about? What are their opinions on your brand and your competitors? How do they feel about your products and services? You can answer these questions by monitoring brand mentions and keywords on platforms like Facebook, Instagram, and X (formerly Twitter).

Data Collection 

Collecting data is necessary for generating analytical insights from social media conversations. InMoment’s comprehensive social listening tool can help pull mentions of your brand and competitor, track relevant keywords, and connect data from various channels in one place. The regular, real-time data collection ensures you have a rich dataset for the analytical phase.

Data Analysis 

Analysis is at the core of social media intelligence, enabling you to capture AI-enabled insights into customer behavior. For example, you can leverage sentiment analysis algorithms to understand public opinion around your brand. You can execute similar algorithms on competitor data to identify differences in online perception.

Actionable Insights 

Actionable insights are the fruit of your analytical labor, showing you how to stay competitive and win over more customers. These insights help you take immediate and effective action for feature improvements or a better marketing campaign. The main aim is to invest in activities that increase customer loyalty and engagement.

How Does Social Media Intelligence Differ from Social Media Listening and Social Media Monitoring?

Social media intelligence, social listening, and social monitoring are used interchangeably. However, they serve different purposes for brands looking to understand online conversations.

  • Social Media Intelligence is the comprehensive collection and analysis of social media data for actionable insights. It helps brands analyze customer sentiment, trends, and competitors to make data-driven business decisions.
  • Social Listening is the analysis of social media conversations around your brand, product, or service. It helps businesses see what customers are talking about to identify opportunities and pain points.
  • Social Media Monitoring is the tracking of brand and product mentions through keywords and hashtags. Social media monitoring enables brands to find customer queries and complaints so they can provide immediate responses.

Benefits of Social Media Intelligence

  • Stronger Customer Relationships
  • Lead Generation
  • Staying Competitive
  • Proactive Crisis Management

Social media intelligence helps unlock valuable insights into customers, prospects, and competitors. Key benefits include:

Stronger Customer Relationships

You may have the best customer feedback questionnaire for collecting structured CX data. However, the reality is that customers are more likely to be honest and open about their experiences on social media. 

Listening to their online voice ensures you better understand your customers’ expectations. You get to capture honest insights to deliver more value, which in turn helps build stronger relationships and brand loyalty.

Lead Generation

Social media intelligence provides insights that help tailor your marketing efforts to your target audience. 

For example, a fashion retailer can leverage data analysis to identify demographics expressing interest in its premium suits and dresses. The retailer can invest in targeted ad campaigns to attract these user profiles and convert them into valuable customers. This effective lead generation also helps increase your market share as your campaign draws in more prospects.

Staying Competitive 

Your competitors’ social media activity highlights opportunities to improve your own brand. Tracking competitor mentions keeps you in the loop regarding key developments and issues. You can use this information to improve on their current offerings or fulfill a need they are neglecting. 

For example, let’s say several comments and posts are complaining about the use of leather in your competitors’ handbags. You can leverage this opportunity to promote your vegan fashion items to disgruntled users. The resulting competitive edge will help you win over customers to your side.

Proactive Crisis Management

Social media intelligence provides real-time monitoring of sentiment and conversations around your brand. By identifying negative trends early, you can address issues proactively before they escalate.

For example, if you identify growing frustration about a bug in your app, you can release a prompt update to reassure customers. This practice helps build consumer trust and supports brand reputation management efforts.

How is Artificial Intelligence Used for Social Media?

  • Sentiment Analysis
  • Content Creation
  • Customer Engagement
  • Analytics and Reporting

Artificial Intelligence (AI) enables social media intelligence by automating crucial tasks and uncovering CX insights. Primary applications of AI for businesses include:

Content Creation

AI helps businesses streamline various tasks, including content creation and scheduling. Generative AI drastically reduces the time it takes to produce impactful content that engages your target audience. Meanwhile, automation enables quick and effective scheduling of posts for enhanced interactions.

InMoment’s social media management tool tracks trending keywords and topics to generate fresh, engaging content. As a result, it helps you stay relevant to your audience while saving time that you can invest in other operations.

Sentiment Analysis

AI-powered sentiment analysis highlights customer feelings towards your products, services, or brand. It categorizes comments, posts, or social media content as positive, neutral, or negative. This categorization is useful for filtering out user profiles and managing their experiences.

For example, you can quickly identify customers expressing negative sentiments to resolve their issues. Monitoring customer health and journeys regularly helps companies reduce churn by over 34% for at-risk clients. Therefore, sentiment analysis helps boost retention by keeping businesses up-to-date on customer behaviors and reactions.

Customer Engagement

Chatbots and virtual assistants improve engagement by instantly addressing customer queries. With a comprehensive knowledge base, they can even guide customers through complex processes without human intervention. 

AI-powered chatbots learn from customer questions to provide targeted responses and recommendations. InMoment’s Active Listening™ is a conversational AI agent that provides context-aware follow-up questions to engage customers. As a result, it enables detailed feedback collection to help businesses make informed decisions.

Analytics and Reporting

AI simplifies analyzing large volumes of social media data to generate actionable insights. It helps you understand content performance, trends, and demographics to make data-driven decisions.

For example, analytics can show you which type of content receives the most engagement to help you optimize marketing campaigns. Similarly, it can highlight products receiving the most attention to guide inventory decisions. Visualizing these insights and sharing them with stakeholders can help brands track the effectiveness of their social media management.

How are CX Teams Benefiting from Social Media Intelligence?

  • Competitor Analysis
  • Reputation Management
  • Trend Analysis
  • Targeted Outreach

CX teams collaborate with multiple departments to improve customer experiences. Their cross-functional nature makes them a great fit for social media intelligence. Key benefits for CX teams include:

Competitor Analysis

Social media intelligence highlights competitors’ strengths and weaknesses. This analysis empowers CX teams to identify gaps in the market and proactively address them. 

For example, CX teams in an organization can discover potential pain points by tracking competitors’ customer feedback. They can use this information to resolve issues before they affect their own customers. Additionally, they can position their brand as a more reliable alternative, helping them acquire new clients.

Reputation Management

Social networks can amplify wins and crises for brands. Therefore, staying on top of conversations and tracking customer sentiment is essential for brand reputation management

Analyzing comments, reviews, and brand mentions can help CX teams detect crises early and manage them before it’s too late. It also enables them to highlight their wins and demonstrate their value through testimonials. This approach builds customer trust and enhances the company’s public perception.

Trend Analysis

Social media intelligence tools track trending topics and emerging themes. This analysis provides CX teams with valuable insights into customer interests and behaviors.

For example, a fitness app’s CX team might notice a rising interest in mindfulness and meditation. This trend could guide the development of new app features or content to align with customer demands. As a result, trend analysis allows CX teams to position their company as a relevant business that understands modern customer needs.

Targeted Outreach

CX teams leverage social media intelligence to identify specific demographics for targeted outreach. Positive interactions with these groups can strengthen loyalty and turn satisfied customers into brand advocates. For example, your CX team can identify the top influencers frequently mentioning your brand and contact them for a collaboration.

Social Media Intelligence Tools

  1. InMoment
  2. Mentionlytics
  3. Hootsuite
  4. Sprout Social
  5. Brandwatch
  6. Sprinklr

A social media intelligence tool makes it easy to better understand customer expectations. It handles everything from social media monitoring to data analysis. Here are six of the best tools to help you choose the right one for your business needs.

InMoment

InMoment’s XI Platform software offers a comprehensive social media intelligence solution. Unlike other platforms, it lets you control how frequently you want to pull and analyze data from platforms like Facebook, Instagram, and X. This level of control is key to building rich customer experience datasets.

The XI Platform also leverages sentiment analysis to provide insights into customer feelings around your brand. This analysis helps you identify disgruntled customers so that you can work on retaining them before it’s too late. In the XI Platform, you can also track trending keywords that can help you identify the biggest impacts on your customer experience

A sentiment analysis dashboard categorizing trending keywords by sentiment.

The ability to track keywords and brand mentions means you can keep an eye on competitor activity. This competitive analysis empowers your CX teams to learn from their strengths and capitalize on their weaknesses. 

For example, if your competitor is going through a PR crisis due to a recent data breach, you can use this opportunity to gain a competitive edge. Your marketing teams could communicate the superiority of your data protection technology.

Finally, InMoment’s social media intelligence tool enables high-quality lead generation. The insights gained from data analysis can highlight user profiles interested in your brand or offerings. 

By targeting these profiles with effective marketing, you can convert them into valuable customers. Similarly, the tool can help you identify top influencers in your space so that you can work with them to boost your brand reputation.

Mentionlytics

Mentionlytics allows businesses to monitor and analyze conversations on social media. Key features include real-time sentiment analysis, multi-channel monitoring, and competitor comparison reports. These features help companies make data-driven decisions to stay competitive and improve customer experiences.

Hootsuite

Hootsuite is a social media intelligence platform that combines data collection and analysis. Its Listening Basics feature allows businesses to track keywords and hashtags on social media channels. CX teams using Hootsuite to manage social media can leverage the InMoment integration to monitor comments and reviews in one place. The integration helps filter out the best reviews and share them on social media to enhance online reputation.

Sprout Social

Sprout Social is a versatile platform that helps brands track and analyze social media conversations in real-time. Its standout feature is a trend-identifying tool that generates a word cloud highlighting topics relevant to the brand and industry. This trend analysis is helpful for staying competitive and managing customer interactions.

Brandwatch

Brandwatch uses advanced search options to help CX teams monitor vast amounts of social media conversations. It also enables trend analysis, influencer identification, and crisis management. It offers multilingual support to help businesses with multiple global locations manage their social media presence.

Sprinklr

Sprinklr is a social media management tool that enables businesses to track mentions, trends, and competitor activity. It uses AI algorithms to perform sentiment analysis on user-generated content. This analysis helps brands understand customer emotions and tailor their marketing strategy accordingly.

Get Better Insights to Transform Your Customer Experience with InMoment

Your social media channels are a treasure trove of customer experiences. Unlocking this data can help you win over customers, move past competitors, and boost your bottom line. InMoment’s social media intelligence tool gives you the key to access and analyze this valuable data. Schedule a product tour today to see how it can transform social media management for your brand.

References 

WebFX. 100+ Social Media Statistics You Should Know for 2024 (https://www.webfx.com/social-media/statistics). Accessed 11/26/2024.

InMoment. InMoment Market Pulse (https://www.linkedin.com/posts/weareinmoment_b2b-customersuccess-ai-activity-7251989745914818560-haGe?utm_source=share&utm_medium=member_desktop). Accessed 11/26/2024.

Where Should Customer Experience (CX) Teams Live Within An Organization?

CX teams are responsible for spearheading an organization's customer experience efforts. These teams need to be equally skilled and flexible in order to succeed in today’s customer experience market. Where these teams live in your organization is dependent on the goals and structure of your business.
CX Team

Did you know that only 20% of CX teams report directly to the CEO? The other 80% of CX teams report to 15 different leadership functions, with CTO and Chief Customer Officer being the second and third most common leadership functions. 

These statistics show that there is no standard for where a CX team should live within your organization. To accurately place a CX team, you need to have a firm understanding of what CX teams do, what the customer experience goals of your organization are, and where those two overlap. 

What Is A CX Team?

A CX team is a group of customer experience professionals who work to improve customer experience by sharing customer insights throughout the organization. They analyze customer feedback, customer journeys, and more to get the most up-to-date information about the current customer experience and where it can be improved. 

Who Is On A CX Team?

The number of employees on a CX team and their respective titles will vary depending on the company. For example, a company that just established a CX team will have fewer employees than a company with an enterprise-wide CX team. 

Regardless, the core team members of a CX team are: 

  • CX Managers: Oversee strategy and execution.
  • Data Analysts: Dive deep into customer data to uncover actionable insights.
  • Journey Designers: Map out customer interactions to identify gaps and opportunities.
  • VoC Specialists: Ensure customer feedback is heard and acted upon.

What Skills Are Needed on A CX Team?

Members of a CX team need to be versatile employees who can examine different types of data. These employees must be able to research, analyze, and prevent all customer-related findings to organizational stakeholders. A recent study of CX teams said the three most common skills of employees on a CX team are: 

  • Qualitative research
  • Quantitative research
  • Project management

What Skills Will Be Needed On A CX Team In the Future?

To keep up with ever-evolving customer expectations, CX teams will need employees who can grow and ensure that an organization can still be successful. The three skills that CX team employees need to have in the future are: 

  • Data science or analytics
  • Business case development
  • Inclusive design/accessibility testing

These skills reflect changes in the customer experience market and what is going to needed of organizations to stay successful.

How to Build a CX Team

Building an effective CX team requires careful planning and alignment with your organization’s goals and customer needs. Follow these steps to ensure you assemble a team that will drive meaningful results: 

  1. Secure leadership buy-in
  2. Define the team’s purpose and goals
  3. Identify the right roles and skills
  4. Select the right tools and technology
  5. Establish clear processes
  6. Foster cross-department collaboration
  7. Continuously train and develop the team
  8. Measure and Optimize

1. Secure Leadership Buy-In

For a CX team to succeed, you need the full support of senior leadership. The executives must understand the importance of a CX team and be willing to provide the necessary resources. In this step, you will also decide which executive leader the CX team will report to. 

2. Define the Team’s Purpose and Goals

Before you can hire and assign roles to employees, you need to clearly define your CX team’s mission. Determine what customer challenges the team will address, how success will be measured, and how the team aligns with broader business goals. Examples of CX team goals include: 

  • Increasing customer retention by improving satisfaction
  • Increase customer acquisition by improving the customer journey
  • Driving higher Net Promoter Scores (NPS) through targeted strategies

Clearly defined goals will guide the hiring process and set the foundation for CX success. 

3. Identify the Right Roles and Skills

With the purpose of your CX team defined, you can now begin the hiring process. Your CX team should include diverse roles that collectively address all aspects of the customer experience. Common roles on a CX team include:

  • CX Manager
  • Data Analyst
  • Customer Journey Designer
  • VoC Specialist 

In addition to technical skills, look for individuals who can perform qualitative and quantitative research, possess great communication skills, and are experienced in project management. 

4. Select the Right Tools and Technology

In order to give your CX team the best chance to succeed, you need to have the right tools at your disposal. These tools might include Voice of the Customer platform, journey mapping software, or data analytics tools. 

InMoment’s customer experience platform is an all-in-one solution that lets you collect and connect customer experience data in every format across every customer interaction. InMoment’s integrated CX approach helps organizations realize ROI in just 12 months, which is more than twice as fast as the industry average.

5. Establish Clear Processes

It is important to develop workflows to guide a CX team’s activities. For example, you will need to define how customer feedback will be collected, analyzed, and shared. You will also need to create a process for collaborating with other departments to address CX challenges across the organization. 

6. Foster Cross-Department Collaboration

CX teams don’t operate in isolation. They must collaborate with other departments, including marketing, sales, product development, and customer service. Encourage open communication and shared accountability by hosting regular meetings to align on customer-centric strategies, using collaborative tools to ensure visibility, and more. 

7. Continuously Train and Develop the Team

The customer experience market is constantly changing. It is important to invest in skill development. This can be done by attending customer experience events, training on new tools and technologies, and getting certifications in CX methodologies.  

8. Measure and Optimize Performance

Being able to measure the performance of a CX team against customer experience KPIs is crucial for the longevity of a CX team. Regularly review these metrics and gather team feedback to refine processes and improve outcomes. 

CX Team Challenges

Although they are important to the success of an organization, even the best CX teams do not come without challenges. These challenges can affect CX teams across all organizations, here are the main ones to be aware of: 

Lack of Executive Support

Over 40% of CX teams in an organization that prioritizes CX say they do not have consistent executive support. This suggests that despite the organization’s overall commitment to enhancing customer experience, there remains a significant gap in the backing and resources that these teams receive from higher management, which can ultimately hinder their effectiveness and the overall success of CX initiatives.

Inconsistent Business Case Development

A recent study found that only 22% of CX decision-makers make a business case for customer experience for every project or initiative and that only a third of them make a business case for major initiatives. 

In order CX teams to become an integral part of the organization, it is important to make business cases for all initiatives on how they will impact the customer experience at your organization. 

Misaligned Priorities

When prioritizing customer experience initiatives, most CX teams primarily concentrate on customer impact. However, almost half of CX teams often overlook three important criteria: return on investment, feasibility, and risk. To gain and maintain the support of key stakeholders within the organization, CX teams need to give more attention to these three factors.

Considering ROI is vital for justifying CX efforts to key stakeholders concerned about any initiative’s financial implications. Assessing feasibility includes evaluating the existing operational capabilities and potential barriers that could hinder the execution of the initiatives. Lastly, risk assessment is an essential component that cannot be neglected. Every initiative carries inherent risks that could impact customer satisfaction, brand reputation, or financial performance.

Lastly, risk assessment is an essential component that cannot be neglected. Every initiative carries inherent risks that could impact customer satisfaction, brand reputation, or financial performance.

By considering ROI, feasibility, and risk alongside customer impact, CX teams can enhance their strategic planning. This comprehensive approach not only helps secure the support of key stakeholders but also ensures that CX initiatives are sustainable and aligned with the broader business objectives.

Where Should CX Teams Report?

Regardless of where your CX team lives, the team must remain unbiased and have the purview to work cross-functionally to drive collaboration and break down silos. Without that organizational freedom and neutrality, the team’s efforts are already handcuffed, and the chances of CX success are greatly diminished.

While many companies have added a seat at the table for a Chief Customer Officer (CCO) or Chief Experience Officer (CXO) in recent years, we still see most CX functions report to either marketing (the CMO) or operations (the COO). There are pros and cons to each of these reporting relationships:

The Pros and Cons of Your CX Team Reporting to Marketing & the CMO: 

Pros:

  • Tied More Closely to the brand promise of the organization (since CX is the fulfillment of that promise)
  • Tied more closely to the communication function. Too many CX functions don’t think about the role communication plays in the overall experience, but this is where the customer expectations get set
  • Part of a more holistic view of the company and the customer journey
  • Marketing (or strategy) is more likely to consider the experience of the future as opposed to only today’s experience

Cons:

  • May be too far removed from the actual frontline customer interactions, so it can be more difficult to implement change
  • Often too closely tied to marketing’s priorities and budget
  • Can marketing enforce an effective closed-loop process if that work happens elsewhere in the organization?
  • Marketing is often more focused on customer acquisition and top-of-funnel activities

The Pros and Cons of Your CX Team Reporting to Operations & the COO:

Pros:

  • More closely tied to frontline customer interactions
  • Typically has good success with enforcing a strong closed-loop process (if staffed and funded properly)
  • Operations typically focused and measured on customer retention

Cons:

  • Unless digital and call centers report to the COO, the program can get too focused on in-person or physical interactions
  • Can be too focused on break/fix of today’s experience and not focused on overall CX strategy, process redesign, or experience design. Programs can get very tactical
  • Susceptible to budget cuts and quarterly targets, whereas CX tends to be a medium-to-long term proposition

The Pros and Cons of Your CX Team Reporting to Executives Such as the CEO:

Pros:

  • Easier alignment to executive goals and buy-in
  • Budget is set aside specifically for one purpose and can have less constraints
  • Easier to build relationships around CX with each department to break down silos

Cons:

  • Difficult to get all departments aligned to taking action as they can be seen as an outsider
  • More difficult to be in synch with the day-to-day business rhythm
  • Focus often on medium- or long-term initiatives while peers focus on quarterly results

CX Team Best Practices  

While the focuses and goals of CX teams can change from organization to organization, certain things will set you up for success regardless of your objectives. Here are some best practices to ensure your CX team can succeed in any environment: 

Democratize Data

Democratizing data is an important step for protecting your teams’ time and resources, and it can be performed at any stage of CX maturity! 

Invest the time needed with key stakeholders to explain the importance of customer experience, co-create dashboards, and reduce any ambiguity about CX programs. By spreading the responsibility between team members throughout your business, you will save time both now and down the line with fewer emails, more empowered colleagues, and more visibility of your hard work. 

Leverage Available Resources 

Technology alone won’t help with demonstrating a return on investment. The most effective programs have a strategic partner to help map the initial CX framework, discover those actionable insights and point out the cost savings along the way.

You need a motivated team behind yours to design the roadmap of experience management success. Best practices show that the financial impact of the CX capability is outlined in the onboarding process, tested and controlled along the way, and measured and reported quarterly.

Create CX Champions

Take time upfront to educate teammates on the importance of customer experience and ask for volunteers to champion such initiatives across various departments. The more stakeholders invested in a CX program, the more time practitioners will have to delegate responsibilities across a business.

See which people in your business are organically gravitating toward your CX program and formalize their role as a CX champion. Empower these individuals to access the CX data anytime, anyplace to drive action.

Level-Up Your Dashboards

When you have a customer experience dashboard that is intuitive and easy to understand, stakeholders can easily circulate them within the organization. An effective dashboard is designed to guide the user, not overload the user with data. 

We recommend you follow this design structure where possible:

  • Main KPI: Where are we? How has our performance changed over time?
  • Main KPI & Main Segment: Who/what should we focus on?
  • Sub KPIs: What is contributing to our core metric?
  • High-Level Text Analytics: What overall are our customers telling us?
  • Verbatim: What are our customers actually saying about their experience?
  • Deep Analysis: Splitting KPIs up by pre-pop data.

To learn more about best practices and how to succeed as a CX team, download the checklist below:

Customizing CX Team Organization: Considerations for Success

Regarding the reporting relationship of the CX function, one size doesn’t fit all. Every organization, leadership dynamic, employee culture, and business is different. We mentioned above that we have led CX, reporting to the CMO, reporting to the COO, and as an independent function. What we learned is that it can be successful in any of these reporting relationships, though we suggest it has a head start if it reports into the predominant power core of the organization.

Some companies are operations-led, others are sales & marketing-led, while others are product-led. Tying CX to the true cultural and power core of the company, though it brings some of the bias mentioned above, aligns it better with the core of the company.

Regardless of where your CX function reports, there are key organizational elements that must be present and the CX leader also has to have certain key skills, strengths and characteristics for it to be successful.

Improve Your CX Team with InMoment

If your customer experience (CX) team is just starting out or expanding an existing team, InMoment is the top choice for a CX partner. With over 50 years of experience across various industries and a best-in-class solution, InMoment will guide your company in the right direction. To discover how InMoment can benefit your organization, schedule a demo today!

References 

Forrester. Predictions 2025: Customer Experience. (https://www.forrester.com/report/predictions-2025-customer-experience/RES181533). Accessed 11/20/2024. 

Forrester. Customer Experience Market Insights, 2024. (https://www.forrester.com/report/customer-experience-market-insights-2024/RES181199). Accessed 11/20/2024.

Forrester. The State Of Customer Experience Teams, 2023. (https://www.forrester.com/report/the-state-of-customer-experience-teams-2023/RES180035). Accessed 11/20/2024.

Customer Experience Journey Mapping Strategies to Improve Business Performance

Customer experience journey mapping is how organizations visualize the end-to-end customer experience. Effective customer journey maps result in improved customer experience and business performance.
Customer Journey Mapping

Did you know that 77% of organizations cannot consistently create a consistent customer experience across channels? This often stems from poor internal communication, outdated technology, or inefficient processes. 

However, to combat this, you need to understand the end-to-end customer experience and be prepared for every path a consumer might take to become a customer or that a current customer might take when using your products or services. 

Whether you are looking to change current processes, improve old ones, or ensure that your team is aligned on the priorities of the customer experience, creating a customer journey map will be useful to your organization. 

What is Customer Journey Mapping?

A customer journey map is a visual representation of the journey a customer has with a company’s brand, products, services, and people. Customer journey maps may also be called customer interaction maps, customer corridors, or service blueprints. 

A customer journey map visualizes all touch points between the customer and the organization, from customer research on the product to first contact with the company to building customer loyalty. 

By constructing theoretical customer decision-making scenarios, companies can more easily understand the factors and product features influencing customers’ purchase decisions. With InMoment’s XI Platform, you can create a customer journey map that tracks the customer journey across different channels and gives you insight on how to optimize it. 

The Benefits of Customer Journey Mapping

Customer journey mapping allows companies to see the gaps between the desired customer experience and the one the customer receives. Creating a customer journey map can help organizations improve:

  • Internal education and alignment
  • Resource allocation
  • Product lines
  • Processes
  • Customer Experience

Improved Internal Education & Alignment

Over 81% of CX practitioners agreed that customer experience journey mapping was successful at internally educating stakeholders about consumer pain points or unmet needs. This can be useful to show employees that one problem or mistake in one phase of the customer journey can hurt the customer’s overall experience. 

Furthermore, customer journey maps educate stakeholders and get them on the same page about what is most important. Almost 80% of employees who created a customer journey map at their organization say it helped generate alignment between internal teams. 

Increased Resource Allocation

Customer journey maps can help you identify problems and present a strong business case for customer experience improvement. 71% of organizations say customer journey mapping has successfully persuaded management to invest in CX efforts and fix existing customer problems. 

Improved Product Lines

Customer experience journey mapping identifies where you may be failing in the customer experience and gives you room to improve. Problems identified through customer journey mapping could be a confusing website navigation bar or a checkout process with too many steps. 

With this information, you can improve your customer experience and eliminate pain points. In fact, over 70% of organizations say that customer journey mapping has helped them improve the user experience (UX) of a product or service or has helped them gain investment to create new features. 

Improved Processes

Most professionals using customer journey maps agree that one of their benefits is identifying the need for internal optimizations. By visualizing the customer’s experience across various touchpoints, journey maps provide a clearer understanding of where internal processes may be causing delays, confusion, or frustration for both customers and employees. 

Whether it’s a lack of cross-departmental communication, inefficient workflows, or outdated technology, journey maps can expose these pain points and allow organizations to align their internal operations more effectively to improve overall efficiency.

Improved Customer Experience

All of these benefits connect to creating a customer experience that consistently meets or exceeds customer expectations. Almost 90% of customer experience professionals who use customer journey mapping report improved performance in customer experience KPIs such as 

higher customer satisfaction, lower customer churn, and improved Net Promoter Score. 

Why Customer Journey Mapping is Important

Creating a customer journey map is important because it helps visualize the customer journey. Improving the entire customer experience can be difficult when only focusing on one stage or aspect. 

Seeing all the touchpoints together, how they relate to each other, and how they help the customer move through the journey helps your organization understand how each piece of the customer experience puzzle fits together. 

5 Types of Customer Journey Maps

There are different types of journey maps for different use cases. Each is tailored to specific goals and stages of the customer experience. Different journey maps provide unique insights, whether you’re looking to understand how customers interact with your brand today, envision an ideal future state, or analyze internal processes that affect customer outcomes. Here are some of the most common types of customer journey maps and when to use them: 

Buyer’s Journey

  • Purpose: To map out the process a potential customer goes through before making a purchase decision and becoming a customer. This type of journey map helps you understand what motivates a consumer at each stage, their questions, and the information they seek. 
  • When to Use: This journey map is used when developing marketing and sales strategies that aim to guide prospective customers through their decision-making process. It is particularly useful for aligning teams across multiple departments, such as marketing, sales, and customer success. 
  • Focus: This journey map focuses on the buyer’s thought process, motivations, pain points, and needs at each stage of the journey. It typically covers awareness, consideration, and decision. 
  • Example: A SaaS company creates a buyer’s journey map to understand how potential customers discover their product, research competitors, and make decisions. The map helps the company tailor content to each stage, such as blog posts and webinars for the awareness stage, product comparisons during the consideration stage, and free trials or demos for the decision stage.

Current State

  • Purpose: This map reflects the existing customer experience based on how customers interact with your products or services today. It is useful for diagnosing current inefficiencies and identifying areas for improvement. 
  • When to Use: When you want to understand what is happening now, spot bottlenecks or optimize current processes. 
  • Focus: Real-time customer journey analytics to understand the emotions, pain points, and touchpoints customers are experiencing at every stage. 
  • Example: A retail company maps out how a customer currently shops on its e-commerce platform and identifies the complex checkout process as an area of improvement to improve the e-commerce customer experience

Future State

  • Purpose: The future state journey map outlines the ideal customer experience you want to create. It will look different from a current state journey map because it shows how interactions could be improved. 
  • When to use: This journey map is most useful when redesigning or improving current processes. 
  • Focus: Future state journey maps focus on optimizing processes, streamlining interactions, and improving customers’ emotional states at each stage. 
  • Example: A software company wanting to overhaul their customer support process to improve resolution times can create a future state journey map to show what the ideal process would look like. 

Day-in-the-Life

  • Purpose: The day-in-the-life customer journey map takes a broader view of the customer’s life beyond their interactions with your brand. It focuses on the typical day for the customer and how your product or service fits into their life. 
  • When to Use: This can help you better understand your customers and identify better ways to serve them. 
  • Focus: Day-in-the-life customer journey maps focus on customer activities, goals, frustrations, and needs within their daily routine and how that intersects with your product or service. 
  • Example: A fitness app company maps out the day in the life of a busy working parent to see how and when the app could help them achieve their fitness goals in their busy schedule. 

Service Blueprint

  • Purpose: The service blueprint journey map extends beyond the customer journey and includes business processes and systems that enable the customer experience that aren’t usually showcased in other journey maps. It visualizes the connections between the front-stage (customer-facing) and back-stage (internal processes).
  • When to Use: This can be used to improve internal processes that impact the customer experience or to optimize service delivery systems. 
  • Focus: Service blueprints showcase the customer journey and the underlying business activities with equal importance. 
  • Example: A provider working to improve customer experience in healthcare maps out the patient’s journey, internal systems, staff interactions, and other elements needed to deliver a quality healthcare customer experience. 

How to Create A Customer Journey Map

Creating a customer journey map is an important process that should not be taken lightly. When building your customer journey map, it is important to follow the right steps to produce the most accurate and effective map for your organization. 

When you partner with InMoment, you get access to customer experience consulting with practitioners with over 50 years of combined experience that can help you build the best customer experience journey map for your organization. 

However, if you are not using those services, here is an overview of how to create a customer journey map from scratch: 

Step 1: Outline Your Objectives

Why do you want to create a customer experience journey map? Are you trying to improve a specific touchpoint, understand customer pain points, or increase the lead-to-customer conversion rate? Creating a customer journey map is a detailed process that often involves collaboration from multiple departments, so outlining what you hope to learn as a result of the customer journey map will make sure the efforts are well spent. 

Step 2: Create Customer Personas 

Next, you will want to develop detailed customer personas that represent different segments of your customer base. You might have already created these as part of your customer experience strategy. These personas should include important customer information such as demographics, needs, behaviors, goals, and challenges. 

Step 3: Map Out the Stages of the Customer Journey

This is one of the most important steps in creating an effective customer journey map. You will outline the stages and touchpoints customers will experience in this stage. Typical stages of the customer journey include awareness, consideration, and purchase. Some business models might include retention and advocacy after the purchase stage. 

Touchpoints refer to the places where your customers interact with your business. These could include the website, customer support portal, social media, and more. Outlining the high-level view of the customer journey will make it easier to examine specific sections of your … 

Step 4: Identify Customer Goals and Actions

You need to identify what the customer is trying to achieve at each stage of the customer journey. For example, in the awareness stage, they may be trying to gather information and create a shortlist. In the consideration stage, they want to see what product or service makes the most sense. 

Once you have identified these goals, outline the steps the customer will take to meet those goals, such as conducting online searches, reading customer reviews, or contacting your team directly. When you have the goals and actions outlined, you can position your organization to be prepared to meet customer needs. 

Step 5: Understand Customer Sentiment

While customer sentiment is usually a metric reserved for consumers who have already become customers, it can be useful in creating a customer journey map. Customer sentiment is how a customer feels about a brand’s products or services. It can be useful in customer journey mapping to see how customers feel about your brand at every stage of their journey. 

For example, suppose you discover that consumers didn’t like the email they received after downloading a document from your website. In that case, you can remove or change the email to prevent further customers from abandoning their journey. 

InMoment’s XI Platform makes sentiment analysis easy with best-in-class natural language processing (NLP) that categorizes, sorts and tracks customer sentiment. 

A sentiment analysis dashboard categorizing trending keywords by sentiment.

Step 6:  Visualize the Journey Map

Once you have completed all these steps, you can visualize the customer journey map. Create a visual representation of the journey using a customer journey map template. Your journey map should clearly show the stages, touchpoints, goals, emotions, and pain points a customer might experience. 

Step 7: Gather Internal Feedback 

After putting it all together in a visual form, share the journey map with internal teams not involved in the customer journey mapping process. You can even share it with existing loyal customers. Sharing the customer journey map in these groups will help you verify its accuracy and identify anything that needs to be fixed. 

Step 8: Track Customer Journeys

Once your map is complete, tracking real customer journeys is essential to see how they align with your assumptions. Use analytics tools, customer feedback, and data from CRM systems to monitor how customers interact with your brand across touchpoints. 

By tracking these journeys, you can identify patterns, measure the success of any implemented changes, and spot potential gaps in the customer experience that may not have been visible in the initial mapping process.  

Step 9: Use the Customer Journey Map to Drive Action

A customer journey map is only as good as the insights that come from it. Use your customer experience journey mapping to help inform your strategies and initiatives across departments. 

For example, you may notice that customers are more likely to convert when they receive a discount on their first purchase or that a specific landing page in a campaign has a bounce rate. These metrics can help you drive transformative action within your organization. 

Step 10: Share Wins

​​Once you start seeing the impact of your customer journey improvements, it’s important to celebrate and share these successes. Sharing results reinforces the value of journey mapping and motivates continued investment in customer experience initiatives. Document these improvements so they can serve as benchmarks for future efforts and inspire a customer-centric culture within your organization.

Challenges of Customer Journey Mapping

Some challenges associated with customer journey maps may deter some businesses from using them. However, these challenges can be avoided with the right customer journey mapping platform and a team invested in customer experience success. Regardless, here are some challenges of customer journey mapping to be aware of: 

Delayed ROI 

Although the use of customer journey mapping is growing, few organizations have had them in use for extended periods. Only 34% of organizations have three or more years of experience developing customer experience journey maps, and 83% struggle to identify and prioritize customer experience efforts. 

Effort of Integration

In a recent study, organizations that use customer journey mapping solutions said that the number one thing their provider needs to improve is the ease with which data sources are integrated. This means that these organizations may be spending too much time setting up their customer journey mapping platform or not setting it up completely and are missing out on important data that could be used to provide business insights. 

Quality of Integration 

Similarly, the organizations referenced above said the second most important thing for providers to fix is the quality of integrations with voice of the customer platforms, content management repositories, or other existing systems. 

Journey Measurement 

Another common challenge among organizations that utilize customer journey maps is the ability to measure the different phases of the customer journey and analyze their impact on business performance.

Journey Validation and Testing

When organizations create and use customer journey maps, they want to be able to validate and test them. Customer journey map testing and validation refers to the process of evaluating and verifying the accuracy and effectiveness of a customer journey map by actively testing real-world scenarios and gathering feedback. 

The goal is to ensure that the journey map reflects actual customer behaviors, experiences, and pain points and that the proposed changes or optimizations will deliver the intended improvements. However, this was ranked in the top five biggest areas of improvement for customer journey mapping solutions. 

Customer Journey Map Best Practices

As you go through the process of creating a customer experience journey map, you want to focus on how you are doing it as much as why you are doing it. When you build a journey map correctly, it can immediately be useful to you and your organization. If not, it will take time to fix, which will delay the benefits you will realize from using it. Here are some best practices to keep in mind when creating a customer journey map: 

1. Use Quantitative and Qualitative Data 

It can be easy to build a customer journey map based on the trackable actions a customer takes throughout their customer journey. However, this does not show what they felt at each stage or how they felt about certain touch points. You must combine insights from qualitative systems such as CRM systems, web analytics, and customer feedback tools and quantitative data such as surveys, interviews, and focus groups to correctly map the customer journey. 

InMoment helps you combine structured and unstructured data for the most accurate customer understanding by building an omnichannel customer experience that combines data from multiple sources and can help you build the most accurate journey map available. 

2. Align with Business Goals

In order to get executive support, you will need to connect your customer journey map to business goals. For example, it might be a marketing goal to increase conversion rates, but if you can say something like “increasing conversion rates by half of a percent will result in a 20% increase in revenue,” you will be more likely to secure executive support. 

3. Involve Frontline Employees

When creating customer journey maps, they are usually a cross-departmental effort across marketing, sales, customer support, etc. However, the frontline employees are often left out of it even though they deal with the customer more frequently than any other department. Consider sending out an employee survey or meeting with employees to understand their view of the customer journey and the customer experience. 

4. Leverage AI Customer Journey Insights 

AI customer journey insights can be used to reveal hidden pain points, optimize touchpoints, and improve the customer journey flow. These insights allow your business to proactively respond to customer needs and streamline processes. 

InMoment’s Strategic Insights team will use AI Journey Insights to identify the significant touchpoints in your customer feedback data. Our team helps you contextualize these findings by categorizing insights based on where they fit in the customer journey, understanding the underlying sentiment, and how insights can be implemented. 

Customer Journey Map Examples

When creating a customer journey map, it may benefit your team to look at customer journey mapping examples. These examples can provide valuable insights into how different organizations across different industries have mapped their unique customer journeys. 

Visualizing these examples can help your team understand how to structure the journey map, integrate data, and highlight customer pain points. Furthermore, studying a range of examples allows you to adapt best practices and innovative techniques to fit your specific customer base, whether focusing on B2B or B2C journeys. This exploration not only aids in the visual aspect but also helps pinpoint gaps in your current mapping approach that might otherwise go unnoticed.

Customer Journey Map Template 

Get a free customer journey map template and begin outlining experiences and important touchpoints.

Customer Experience Journey Mapping with InMoment

InMoment’s customer experience platform gives you all the tools you need to create and use an effective customer journey map to improve your organization’s CX and financial performance. Check out InMoment’s XI Platform to see how you can uncover customer insights in every form of customer feedback to create a more efficient customer journey!

References 

​​Khoros. Must-know customer service statistics of 2024. (https://khoros.com/blog/must-know-customer-service-statistics). Accessed 10/8/2024. 

Nielsen Norman Group. Journey-Mapping Impact: Research Findings. (https://www.nngroup.com/articles/journey-mapping-impact/). Accessed 10/8/2024. 

Hanover Research. How To Use Customer Journey Mapping and Improve Customer Experience. (https://www.hanoverresearch.com/insights-blog/corporate/customer-journey-mapping/). Accessed 10/8/2024. 

Gartner. Gartner Says Most Customer Experience Programs are not Delivering on the Promise of Improving Differentiation and Helping Brands Better Compete. (https://www.gartner.com/en/newsroom/press-releases/gartner-says-most-customer-experience-programs-are-not-deliverin). Accessed 10/23/2024. 

Forrester. Key Trends In Customer Journey Mapping Platforms. (https://www.forrester.com/report/key-trends-in-customer-journey-mapping-platforms/RES179422). Accessed 10/10/2024.

The Ultimate Guide to Google My Business Posts

Google Posts can supercharge your customer engagement on your Google Profile, drive conversions, and even boost your SEO efforts. Learn everything from types and benefits to best practices and examples in this comprehensive guide.
Woman in an office looking at a tablet.

Google Posts are an invaluable tool for businesses to communicate updates, offers, and events directly to their audience. This guide will cover everything you need to know to make the most of them.

What Are Google Posts?

Google Posts are short updates published on Google My Business (GMB) profiles. These posts appear on your business listing, providing a direct channel to communicate updates, promotions, and events.

Types of Google My Business Posts

There are three primary types of Google Posts you should familiarize yourself with. Each type offers specific details about your business to encourage engagement and drive actions, such as purchases or visits to your location.

Offers: Organically promote discounts or special offers directly on your Google Business Profile. Offers appear near the top of the Business Profile on Google Search and Maps, as well as in the “Updates” tab with all other posts.

Updates: Provide general information about your business. Use this post type to share news, announcements, or updates that give potential customers more opportunities to learn about your brand.

Events: Share details of upcoming events to increase registrations and drive foot traffic. Events that meet specific criteria may also appear on the “Overview” tab of your Business Profile, making them more visible to customers.

Why Are Google Posts Important?

When shoppers browse online and land on your Google Profile, they look to understand if your business offers what they are searching for. Leveraging Google Posts to share business updates, events, and promotions would inform potential customers and allow them to make better decisions about whether they should visit your location. 

Google Posts boost engagement by fostering a direct connection with your audience. When integrated with other local SEO strategies, they can enhance your brand visibility and drive higher conversions, making them a powerful tool for local marketing success.

What Are the Benefits of Google My Business Posts?

Incorporating Google Posts into your listings management can significantly enhance brand equity and visibility as well as improve customer acquisition. Here are a few benefits to consider when evaluating if Google Posts are worth your time and effort:

Enhance your local marketing strategy: Google Posts can help strengthen your local presence, making it easier to attract nearby customers. By sharing information about your business, you keep your Google Profile fresh and complete, optimizing engagement and driving more conversions.

Increase engagement: Google Posts enable you to build direct connections with your audience. Using photos, clear calls-to-action, and timely updates demonstrates to shoppers that your business meets their needs and encourages meaningful interactions with your brand.

Decrease your ad spend: Marketing teams invest heavily in promoting their business and offerings. Highlighting offers, discounts, and events on your Google Profile creates an effective inbound channel strategy for generating organic traffic and engagement, reducing the need for expensive paid advertising.

By leveraging Google Posts to enhance local marketing strategy, foster customer engagement, and drive organic traffic, you can amplify your business’s impact while reducing paid promotion.

Do Google My Business Posts Help SEO?

Google Posts indirectly impact your local SEO performance by supplementing your Google Business Profile with additional information and enhancing its relevance. Regularly updating your Google Profile with posts ensures it stays fresh and complete, which signals to Google that your business is active and engaged with its audience. 

These posts also help you share timely updates, offers, and events, which can drive more clicks and interactions with your profile. The increased activity and engagement not only attract local customers but can also contribute to increased brand visibility. 

It’s important to remember that Google Posts alone would not help your brand rank in the local pack. To optimize your search performance, you need to focus on your overall local SEO strategy – invest in listing management and improve your online reputation.

How to Post in Google My Business?

There are two ways to publish a Google Post on your Google Profile. You can manually do that for each location by logging into your GMB profile. To do that follow the steps below:

  1. Log into your Google My Business account.
  2. Select “Add Update.”
  3. Choose the type of post you want to create.
  4. In the dialog box, fill in the details.
  5. Publish!

While this approach may work well for single-location brands, organizations with multiple locations often struggle to scale their efforts. If you are a multi-location brand, implementing a reputation management solution that offers listings management, including Google Posts, would help you create and publish posts at scale, while consolidating your daily operations into one platform.

See how easy it is to publish Google posts from the InMoment platform by taking a tour of the platform here!

What Are the Google Posts Dimensions?

All types of Google Posts allow a description of up to 1,500 characters. Use this space thoughtfully to craft engaging content that highlights the most important information while inspiring readers to act.

For images, prioritize high-quality visuals that are clear, well-lit, and professionally composed. Avoid significant alterations or excessive use of filters to ensure your images look authentic and appealing.

The recommended Google My Business post image size is:

Default Size: 720x 540pixels (4:3 aspect ratio)

Inches: 12.5 x 9.38 inches (width x height) at 96 DPI

Minimum Size: 480x 270 pixels

Maximum Size: 2120x 1192 pixels

Format: JPG or PNG up to 5MB

Google Business Posts Best Practices

Avoid phone numbers in descriptions: Including a phone number in your post description may result in rejection. Ensure this information is listed in the appropriate section of your Google Profile. You can attach a “Call now” button to your post that uses your verified Business Profile phone number.

Focus on quality: Make sure your posts are free of misspellings, gimmicky symbols, or meaningless content. Avoid anything that appears automated or overly distracting. While it may be tempting to use all 1,500 characters in your post description, focus on the primary goal of your post and highlight the most important details in an engaging way that resonates with your audience.

Make them actionable: Always include a call-to-action in your Google Posts, along with a link to a landing page that aligns with the next step in your buyer’s journey. A strong CTA can drive clicks, bookings, conversions, and in-person visits to your business.

Use high-quality images: Adding visuals to your Google Posts makes them more eye-catching and increases engagement. Use high-quality images that align with your brand, and avoid low-resolution visuals that fail to represent your promotions effectively.

Best time to post on Google My Business: As a general rule, avoid posting on major holidays or during very early or late hours. Depending on the type of post, consider the recommended times and days to publish to maximize engagement on your Google My Business profile.

  • Business Updates
    • Best time to post: 8 am – 10 am
    • Recommended days: Weekdays
    • Worst time to post: Before 7 am, after 9 pm, major holidays
  • Offers
    • Best time to post: 2 pm – 4 pm
    • Recommended days: Thursday and Friday
    • Worst time to post: Before 7 am, after 9 pm, major holidays
  • Events
    • Best time to post: 3 pm – 5pm
    • Recommended days: Midweek
    • Worst time to post: Before 7 am, after 9 pm, major holidays

Examples of Google My Business Posts

Now that we’ve covered the basics of publishing Google Posts on your Google My Business profile, let’s explore a few examples to inspire your strategy.

Good Examples Google My Business Posts 

A good example demonstrates a well-crafted Google Post that effectively engages its audience.

A Google My Business Post for a yoga studio featuring a woman and a dog.

It features a high-quality, visually appealing image that aligns with the content, capturing attention instantly. The message is concise, clear, and focused, highlighting a 30-day trial for yoga classes without requiring a membership commitment. Additionally, it includes a compelling call-to-action (CTA) that encourages participation. 

By incorporating a deadline, the post creates a sense of urgency, motivating potential customers to act. This post was also published on the Google Profile at the start of the offer, ensuring timeliness and relevance.

Poor Examples of Google My Business Posts

Now, let’s examine a Google Post that wasn’t as thoughtfully constructed as the previous example. What’s the first thing you notice? It’s missing an image! Without a visual element, the post fails to grab attention. 

Google My Business Post with markups highlighting errors.

Looking closer, you’ll see that the workshop’s listed start time doesn’t match the title and description, creating confusion for the reader. Additionally, the event description could be clearer and more concise, making it easier for users to quickly understand the post’s purpose and take action.

Can Google My Business Posts Get Rejected?

Yes, Google My Business Posts can be rejected if they fail to comply with Google’s content policies. To avoid rejections, ensure you follow best practices when creating your posts. Below are some common reasons for rejection:

Low-quality media: Posts featuring poor-quality visuals, such as blurry or pixelated images, may be removed. Per Google’s policy, removals based on media quality cannot be appealed.

Prohibited or restricted content: Posts containing irrelevant or misleading information, such as off-topic content, fabricated experiences, or repetitive and unclear language (e.g., random characters), are likely to be rejected. Additionally, links leading to suspicious or untrustworthy websites are prohibited.

Phone stuffing: Google does not allow phone numbers to appear within post content to prevent abuse. Ensure contact information is provided only in the designated sections of your profile.

By adhering to these guidelines, you can reduce the chances of your posts being rejected and maintain a professional presence on Google My Business.

Google My Business Posting Software

Incorporating Google Posts into your online reputation management strategy and listings management activities is worth your time. However, manually publishing posts for multiple locations can be overwhelming. Implementing a solution that enables you to create and publish Google Posts in bulk can save time while unlocking the full benefits of this feature.

But how do you choose the right Google My Business posting software? Consider these key factors when evaluating your options:

Align with reputation management goals: Ensure the tool supports your broader reputation management strategy by helping you build and maintain a strong online presence that attracts and retains customers.

Listings management capabilities: Select a local listing management software that simplifies managing multiple locations, ensuring your profiles are consistent and up-to-date across all platforms, and allowing you to publish Google Posts in bulk.

Scalability: Opt for an all-in-one platform that streamlines operations across locations and adapts as your business expands. This approach enables you to monitor results from a centralized dashboard, improving your strategy and results.

Ease of use: Opt for software with an intuitive interface that lets you start quickly without a steep learning curve. This not only saves time when adopting a new tool but also enables your team to manage Google My Business profiles more effectively.

Access to support: Look for platforms that provide reliable customer support, offering prompt assistance and access to tips and best practices to help you succeed in the long term.

With the right software, you can simplify Google Posts publishing, enhance engagement, and focus on growing your business by maintaining a positive reputation and boosting your brand’s visibility in search results.

Take Your Local Listing Management to the Next Level with InMoment

Partner with InMoment to build a reputation management strategy that turns online searches into location visits. Our reputation management software allows you to optimize the performance of your business listings and increase search visibility and engagement on your Google Profile.

We make it easy for multi-location brands to create and manage Google Posts while providing them with a centralized place to streamline their listings and reputation management efforts and improve results in less time than other vendors. 

Schedule a strategy session with our reputation management experts to learn how we can help you build a brand that attracts customers! 

User Feedback for SaaS: Best Practices & Tools for Business Success

Collecting user feedback for SaaS businesses helps improve products and customer experiences. A comprehensive feedback tool can capture the user's voice and analyze key metrics to help deliver exceptional customer service.

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.

Voice of Customer Analysis to Improve Customer Loyalty and Retention

Voice of Customer (VoC) analysis is the process of understanding the intent and expectations behind customer feedback. Monitoring and analyzing key VoC metrics can help businesses deliver consistently positive experiences.
VoC analysis data on a laptop

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.

Addressing AI Hallucinations for Improved Business Performance

AI hallucinations occur when AI models generate incorrect or made-up responses. These hallucinations create challenges across industries relying on AI, causing customer dissatisfaction and reputational harm. Addressing this issue is key to improving business performance and customer experiences.
Graphic of AI and a user on a laptop.

Think about the last time you asked ChatGPT a fairly simple question but got an unexpected response. Perhaps it provided a factually incorrect statement or just misunderstood your prompt. The result is described as a “hallucination”, a growing concern for businesses using AI systems.

What is an AI hallucination?

An AI hallucination occurs when an AI system produces false or misleading results as facts. A popular example is a large language model (LLM) giving a fabricated answer to a prompt it fails to understand.

Humans hallucinate when they see something that isn’t there. While AI models don’t “see” anything, the concept works well to describe their output when it’s inconsistent with reality. These hallucinations are mainly the result of issues with the training data. If the model is trained on insufficient or biased data, it’s likely to generate incorrect outputs.

An AI system is only as good as the data you feed it. It doesn’t “know” anything beyond its training data and has no concept of fact or fiction. An AI model like ChatGPT has one goal: predict the most appropriate response to a prompt. The problem is that its prediction can sometimes be well off the mark!

Types of AI hallucinations

There are various types of hallucinations, based on what a model contradicts:

  • Prompt contradiction is when an LLM’s output is inconsistent with the information requested in the prompt. An example would be responding with an anniversary message to a prompt asking for a birthday card.
  • Factual contradiction is when an LLM produces an incorrect answer as fact. For example, responding with “New York” to a question about the French capital.
  • Random hallucination occurs when the model’s output has no connection with the prompt. If you ask for a chocolate cake recipe and receive a phrase like “Owls are nocturnal birds” in response, that would be a random hallucination.
  • Sentence contradiction is when an LLM generates a sentence that contradicts its previous sentence. An example would be saying “Roses are red” only to say “Roses are purple” later in the output.

AI Hallucination Examples

  1. Stating obvious errors or false information as fact.
  2. Making up information and references. 
  3. Misunderstanding the prompt.
  4. Providing incomplete information or context.

Generative AI has made impressive progress in content generation. However, it’s still capable of generating incorrect or misleading information. These hallucinations are a concern for AI in customer experience, affecting individuals and businesses alike. Here are some common examples of AI hallucinations in real-world systems.

Stating obvious errors or false information as fact

AI models sometimes generate text that is inconsistent with factual information. A famous example of this hallucination is Gemini’s incorrect response in a promotional video. The chatbot, formerly Bard, was asked, “What new discoveries from the James Webb Space Telescope can I tell my 9-year-old about?” 

Gemini claimed that the JWST took the first image of a planet outside our solar system. This information is false since it was the European Southern Observatory’s Very Large Telescope (VLT) that took the first photos of an exoplanet back in 2004!

Making up information and references

AI models may invent details or references that don’t exist. For example, Google’s AI Overview generated this response to a prompt asking how long one should stare at the sun for best health:

“According to WebMD, scientists say that staring at the sun for 5-15 minutes, or up to 30 minutes if you have darker skin, is generally safe and provides the most health benefits.”

AI Overview states incorrect information here and wrongly attributes it to WebMD.

Similarly, speech-to-text AI tools that transcribe audio recordings are prone to hallucinations. For example, transcription tools tend to insert random phrases from their training data when they encounter a pause in the audio. 

A concerning fact is that these phrases can be inaccurate and misleading, or even worse offensive and potentially harmful such as incorrect treatments in the case of medical transcriptions. Therefore, the inability of traditional AI tools to handle breaks in audio can have negative consequences for organizations.

Misunderstanding the prompt

A generative AI system may respond appropriately but still misunderstand your prompt. An example of this hallucination is asking ChatGPT to solve a Wordle puzzle. 

While the system generates a coherent response, its solutions tend to be well off the mark. For instance, it may suggest a word that doesn’t match the pattern of letters you provide as input.

Providing incomplete information or context

Sometimes, AI models fail to respond comprehensively, leading to dangerous results. Once again, Google’s AI Overview provides an example of this occurrence. It generated largely correct information when asked which wild mushrooms are safe to eat.

However, it failed to specify how to identify fatal mushrooms. It suggested that mushrooms with “solid white flesh” are safe to eat, but it didn’t mention that some dangerous variants have the same feature.

What Problems Does AI Hallucination Cause?

AI hallucinations create challenges across various industries. Its inaccurate predictions and information hurt the customer experience, impacting the business’s reputation. Here are some of the problems these hallucinations cause in key sectors:

Healthcare

AI has become a significant part of healthcare workflows. Its ability to summarize patient information and even help with diagnoses is impactful. One of its most notable applications is transcribing medical visits. AI-powered transcriptions help doctors record and review patient interactions to make informed decisions.

It is vital to maintain accuracy and completeness in these transcriptions. A hallucination in the text would make it difficult to provide effective treatment and diagnoses. 

For example, OpenAI’s Whisper, an AI-powered transcription tool, raised concerns by inventing phrases during moments of silence in medical conversations. Researchers found that Whisper was hallucinating in 1.4% of its transcriptions. This is a significant figure given that the tool had been used to transcribe around 7 million patient visits.

Some hallucinations were in the form of irrelevant text like “Thank you for watching!” during a conversation break in the transcription. Other instances were far more concerning, including fake medication like “hyperactivated antibiotics” and racial remarks. These hallucinations can have harmful consequences as they misinterpret the patient’s intent, leading to misdiagnoses and irrelevant treatments.

Contact Centers

In customer service, contact center AI hallucinations can damage brand credibility. Customers won’t be able to trust a business after getting an inappropriate response to their queries. 

For example, a chatbot might give incorrect information about a product, policy, or support steps. Similarly, transcription tools often hallucinate phrases during pauses in agent-customer conversations. These hallucinations can provide an inaccurate view of the customer’s experience, resulting in poor analysis that fails to solve actual pain points.

Therefore, your CX program will suffer if it’s relying on inaccurate call center transcriptions. Despite your best intentions, a hallucination could be enough to cause customer dissatisfaction.

Unlike traditional tools, InMoment’s advanced AI-powered solution addresses this specific problem to ensure your CX team accurately records customer interactions. As a result, you can be ensured you’re taking the right steps towards improving the customer experience.

Legal

AI enables legal professionals to save time on research and brief generation. Generative AI models can help produce drafts and summarize key points. However, due to hallucinations, relying on these models for crucial information like legal references can be tricky.

A law firm was fined $5,000 after its lawyers submitted fake citations hallucinated by ChatGPT in a court filing. The model invented six cases, which the lawyers used to support their arguments without verifying their accuracy. These cases were either not real, misidentified judges, or featured non-existent airlines.

Finance

In the financial sector, where precision is crucial, AI hallucinations can be costly. While AI systems can help crunch numbers, they can also hurt financial services reputation management efforts. Inaccurate financial reporting can affect investment decisions and stakeholder trust.

A popular instance is Microsoft’s first public demo of Bing AI. The model wrongly summarized a Q3 financial report for Gap, incorrectly reporting the gross and operating margins. 

For example, the report stated a gross margin of 37.4 percent and an adjusted gross margin of 38.7% (excluding an impairment charge). However, Bing incorrectly reported the 37.4% margin as inclusive of adjustments and impairments.

Media and Journalism

Journalism suffers from AI hallucinations, such as fabricated quotes and inaccurate facts. While generative AI can help draft news stories and articles, it should combine human editing and verification to ensure accuracy. Otherwise, a single misstep like a misattributed quote can cause public backlash and reputational harm.

Education

The education sector has benefited from AI for research purposes. For instance, AI models are reasonably good at summarizing articles, generating ideas, and writing whole sections. Just like legal professionals, though, students and researchers must be extra careful with references.

For example, a librarian at the University of Southern California was asked to produce articles based on a list of 35 references provided by a professor. Despite her vast experience, the librarian couldn’t locate a single article. The professor eventually revealed that since ChatGPT invented these references, the articles simply didn’t exist!

This example highlights a common challenge for AI models. The National Institute of Health found that up to 47% of ChatGPT references are fabricated. Human oversight is essential to prevent incorrect citations and loss of trust.

Why Does AI Hallucinate?

  1. Low-Quality Training Data
  2. Overfitting
  3. Lack of Real-World Grounding
  4. Inability to Fact-Check

AI hallucinations are a by-product of how we design and train these systems. Common causes include:

Low-Quality Training Data 

An AI model is only as good as the data you provide. Biased, outdated, and insufficient datasets will cause AI to generate inappropriate results. Even if it doesn’t understand your prompt, AI will craft a response based on its data, resulting in factual contradictions.

Overfitting

Even with the best training data, AI models will suffer if they can’t generalize to new data. An excellent accuracy score in the training phase sounds good in theory. But, what if the model is simply memorizing inputs and outputs? It won’t be able to produce accurate predictions or information when presented with inputs it hasn’t seen before. It’s important to prevent overfitting the model to ensure reliability in real-world systems.

Lack of Real-World Grounding

Many AI models are trained without real-world situational grounding. Think about the examples in which AI invents legal and academic references. These fabrications occur because AI struggles to understand real-world facts and physical properties. As a result, it produces outputs that look coherent but are inconsistent with reality. 

Inability to Fact-Check

AI systems aren’t designed to fact-check information. They can only rely on patterns in the training data, even if they are incorrect or outdated. The lack of real-world understanding and fact-checking highlights the importance of human oversight for verification.

How to Prevent AI Hallucinations?

  1. Create restraints to limit outcomes
  2. High-quality training data
  3. Use data templates
  4. Combine with human oversight
  5. Provide clear, specific prompts

Preventing AI hallucinations requires specific prompting and improvements in training. Effective approaches include:

Create restraints to limit outcomes

AI models are trained to respond to prompts, even with little to no relevant information. This is how issues like inappropriate responses regarding dangerous mushrooms arise. 

Therefore, it’s important to set restraints limiting the possible outcomes AI can generate. This occurs during the training phase, where you can provide examples and formats that encourage the AI to respond in a certain way. This prevents extreme outcomes and reduces the likelihood of hallucinations.

High-quality training data

The training data sets the foundation for generative AI results. High-quality training data is specific, complete, and free of biases. Using relevant data for a specific use case will enable the AI to produce consistently helpful outputs.

Use data templates

A template is helpful because it guides the AI model toward complete and accurate outputs. For example, if your model skips the introduction section in its articles, a template can encourage it to produce better responses. Data templates ensure consistency and reduce the likelihood of incorrect outcomes.

Combine with human oversight

Human oversight is valuable for ensuring AI accuracy. The models’ inability to fact-check their sources and ground their outputs in the real world can make them unreliable. 

Regularly monitoring and reviewing AI outputs helps humans adjust AI performance for consistency and reliability. Human review also ensures the AI remains up-to-date with current trends and information. This prevents misinformation and improves model performance over time.

Provide clear, specific prompts

Clear prompts guide the AI toward the correct response. Specific and relevant inputs reduce the likelihood of inaccurate outputs. Vague prompts can lead to misinterpretation, resulting in hallucinations. Specific and targeted prompts help AI understand the context and expectations, improving response quality and relevance.

Can AI hallucinations be fixed?

You can prevent hallucinations by improving the training process and investing in good generative AI solutions.

For example, InMoment’s CX-trained LLMs are specifically designed to address customer queries. It leverages sentiment analysis to understand customer intent and generate meaningful responses. As a result, your CX teams save time and effort that they can invest in building deeper customer relationships.

InMoment AI is particularly useful for preventing hallucinations in transcribed conversations. Traditional AI systems hallucinate when they encounter pauses in conversations. Since they aren’t trained to handle moments of silence, they respond with random phrases from their training data. Think about how Whisper would include statements like “Thank you for watching!” in its medical visit transcriptions!

InMoment’s solution works around this issue by detecting and removing all pauses in the audio file. As a result, it avoids hallucinating and processes all the words exchanged in an interaction to provide a complete and accurate transcription. This is helpful for healthcare and contact centers, enabling them to understand their clients and respond correctly.

Will AI hallucinations go away?

According to experts like Meta’s Yann LeCun, AI hallucinations are unsolvable. However, advancements in training and prompt engineering will reduce these occurrences over time. Combining human oversight and good model design practices can help you address hallucinations before they impact your business.

InMoment’s Awarding Advanced AI 

AI hallucinations can impact business performance by providing inappropriate responses to customers. The good news is that the right generative AI solution can help prevent these hallucinations.

With the help of InMoment Advanced AI, you can quickly generate complete and meaningful responses to customer feedback. It combines sentiment analysis, predictive modeling, and real-time insights to help you drive customer satisfaction and loyalty.

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