Richard Snow's Analyst Perspectives

Clarabridge Operationalizes Text Analytics for Better Customer Experience

Posted by Richard Snow on Mar 11, 2013 9:52:47 AM

Clarabridge is a well-known text analytics vendor that markets its products under the banner of customer experience management. As I wrote last year, its products allow organizations to take a closed-loop approach by capturing all forms of text data, analyzing it, categorizing it, understanding root causes of customer issues and raising alerts so that action including collaboration can be taken based on these insights. Such a process is supportive of customer experience management, but for me the missing link is using these insights in real time to actively influence customer interactions.

To help fill this gap, Clarabridge has launched two new products, Collaborate and Engage, which is part of the latest product release. Collaborate uses Facebook-like capabilities to share information to relevant users through one common system. This ensures the right information gets to the right people at the right time, and, since the informationvr_cfm_benefits_of_capturing_customer_feedback comes from a common source, lets everyone act and collaborate on consistent information. Engage takes the process one step further. It supports the collection of text-based data from any source, including social media and customer feedback forms. It then analyzes all these sources, referencing other customer data sources, to establish issues, trends and customer sentiment out of which it can categorize the insight: product issue, a specific customer issue, at-risk customer and so on. Based on this information, the item in question (a social media post, say) can be routed to the most appropriate individual or group to handle the response and direct interaction using social media. That individual can gain immediate access to all related data and prepared templates that have been set up to decide the best response. When required this can happen in real-time, so for example a tweet could be captured, analyzed, categorized, and the insights sent to an individual to respond in real time, the objective being to engage with the customer in an informed way using consistent information regardless of who handles the response. This approach helps organizations realize the benefits of capturing customer feedback which our research has identified as the largest benefit is improved customer satisfaction and loyalty in 65 percent of organizations but have the ability to act upon it enables the ability to improve customer experience. This last step is what I call real customer experience management, as the end-to-end process enables the individual handling the interaction to proactively influence the outcome using up-to-date information and analysis.

vr_cfm_most_important_customer_related_metricsThese new capabilities come as part of a package that includes enhanced reporting and visualization of the reports and analysis, architectural improvements that include the use of Hadoop to speed up the process and make it more flexible, and more options to run on-premises or in the cloud. Its efforts to improve its reports are fine but the underlying metrics are most important as our research finds that the customer satisfaction scores are the most important metric in 71 percent of organizations.

I find a lot of nonsense written about customer experience management, and my customer experience management research shows this is confusing companies as they try to improve the way they provide customer service and engage with customers. Analytics is a good foundation, but for me the real requirement is to operationalize analytics and use it to drive actions, especially real-time responses to interactions. This means sharing information with everyone handling interactions and surfacing the information in a way it can be easily accessed and used, and that supports collaboration with others if a given individual doesn’t know the answer to a customer issue. The new release from Clarabridge supports this approach, so I recommend organizations take a look how it can support their customer experience initiatives.

Regards,

Richard J. Snow

VP & Research Director

Topics: Social Media, Customer Analytics, Customer Experience Management, Speech Analytics, Clarabridge, Mobile apps, Collaboration, Customer Service, Call Center, Contact Center, Contact Center Analytics, CRM, Customer Performance Management (CPM), Text Analytics, Unified Communications

Richard Snow

Written by Richard Snow

Richard leads Ventana Research’s Customer and Contact Center Performance Management research practice, which is dedicated to helping organizations improve the efficiency and effectiveness of managing their customers, throughout their lifetime and across all touch points, including the contact center. He conducts research exploring the people, process, information and technology issues behind customer operations management, contact center management, and customer experience management. He also works with senior business operations and IT managers to ensure that companies get the best performance from today’s highly complex application products. Richard has worked in management and consulting leadership positions in the technology industry including with Price Waterhouse, Sema Group and Valors. In his work, he has been involved with all aspects of delivering highly complex IT solutions to a variety of clients in the telecommunications, financial services and public sectors. Richard has specialized in delivering customer care and billing solutions for telecommunications operators, and several multi-channel contact centers for organizations in both the public and private sectors.