The average company manages 162.9 TB of data—a figure that doubles for enterprise-level organizations. When people think of data, they think of hard numbers.
Incomprehensibly large figures can be pumped through an algorithm and come out the other end as a shiny and new insight.
And yet, the most upfront data point—the customer review—requires a different level of analysis. Qualitative experience, though neither strictly objective nor easily quantified, provides businesses with a very direct answer to the question they are usually asking when they comb through all of those endless numbers in the first place: What do people think of our products?The most successful brands can read between the lines of consumer reviews to find the answer. In this article, we provide a comprehensive look at strategic vs. tactical data analysis so that you can use it to shape your marketing, sales, and CX strategy.
What is strategic vs. tactical data analysis?
Strategic data analysis refers to analytic strategies that are designed to unfold over a long period of time. It shapes the direction a company is going and may not necessarily produce immediate results.
Tactical data analysis is much more short-term and responsive. Customer reviews can factor into both strategies.
For example, let’s say you run a business that has just released a new phone case. Customer reviews begin to pour in. Day 1, 15% of them say something like this. “Cute case, but doesn’t seem to fit iPhone Pro models.”
The tactical response, of course, is to go in and update your description to clarify which phones are compatible with your case.
Now, let’s fast forward to day 1000. You’ve got the iPhone Pro debacle taken care of by now, but a new analysis of your customer reviews indicates that many people still don’t quite know what they are getting with your product. Maybe they feel that the case does not look in real life the way it does in the photos. Maybe it is more decorative than durable—or more durable than decorative, as the case may be.
The unavoidable conclusion is that many people feel surprised by what they receive in the mail. The strategic response is to dig in and take a deeper look at how you are describing/presenting your products to the public.
Review based data implementation is not exclusive to e-commerce.
A law firm like the Percy Martinez Medical Malpractice Group can harvest similar data through a combination of online reviews and direct customer communications.
For a lawyer, this could be through a platform like Avvo that focuses on lawyers and reviews for them in specific.
That data may not influence the “product” directly –their legal services–but it could inform the way they communicate which indirectly and inevitably influences their product.
We will illustrate through screenshots how lawyers can use reviews to improve their practice in a later heading.
When it comes to strategic vs. tactical data analysis, both strategies are important for staying competitive and meeting customer expectations.
Who should focus on review-based data analysis?
Everyone. Customer reviews play two important roles in every business’s experience:
- They shape public perception. It’s said that one negative review is as impactful as forty positive ones. You can’t stop customers from putting out complaints. You can use that information to avoid repeat incidents and understand how other people perceive your brand.
- They improve processes. Without reviews, you simply can’t fully understand what it is like on the other side of the proverbial counter. Consumer-driven data can give you insights that otherwise never would have crossed your mind.
All businesses can benefit from review based analysis. Let’s say you are a law firm.
The service that you provide is tricky to market because branding is so abstract from the consumer perspective.
Most people who walk into a law office don’t know enough about the legal system to distinguish one firm from another.
Visibility is often the deciding factor. To that end, you have been proactive. You have the highway billboards. Your phone number consists of one digit, which you flash proudly on your fingers in every publicity photo you’ve ever taken.
All of that is great, but it doesn’t change the fact that when people search for your firm online, they see a lot of Google reviews that say things like, “Doesn’t answer phone calls.” “Won’t return my call.” “Left message. Hasn’t called back.”
It’s true, too. For the last month, you’ve been at capacity to the point that you’ve stopped taking on new clients for the time being.
The tactical response to this data?
Make sure that your receptionist is letting people know that you are booked out. Develop a referral system, even.
On the strategic end, you might make a point of regularly reviewing your online reviews to develop an external understanding of what it is like to do business with your firm.
By engaging actively with customer reviews, you improve your processes and your business’s optics in the same move.
In keeping with the legal example, here are a few firms leveraging review-based analysis within Google Reviews.
Malone Law takes the extra step of replying with thoughtful and specific responses to all of their reviews.
The Norden Leacox firm in Orlando leverages empathy and communication in their customer interactions.
The Kenny Habetz Injury Law firm boasts reviews that imply a level of service that goes above and beyond most legal clients’ expectations.
Note the middle review. “They set up chiropractor visits with an amazing doctor.” There may be other injury attorneys willing to provide this type of supplementary form of support, but having it featured on Google Reviews is a major point in this firm’s favor. And finally, Zehl and Associates:
All of these reviews are handy for the firms. They provide a level of social proof that many potential clients will draw comfort from. They also provide a pretty clear pattern of what customers expect and appreciate from their lawyers. Speed. Compassion. Clear communication. Notes that these firms can use to inform their future decisions.
Harvesting Data
Unfortunately, product reviews are relatively rare. Studies indicate that only 10% of customers provide you with feedback. Those who are leaving feedback may not fully reflect the general experience. It could be an exceptional set of circumstances that inspired them to write the review. Your business made a mistake and now they are angry. A famous 1980s study put out by Coca Cola revealed that an angry customer will tell up to twice as many people about their experience as a happy customer.
A disgruntled review is still helpful but does it really reflect your typical interaction with the consumer? Remember that under the best of circumstances, most people will keep their thoughts to themselves–good or bad.
There are exceptions to this. Service-based companies—everything from home service brands to law firms—tend to experience higher rates of customer reviews. This likely owes to the fact that service professionals work more intimately with their customers than an e-commerce brand.
These reviews also tend to have more visibility. They aren’t buried at the bottom of an Amazon page. They are the first thing that a person sees when they search for the service business’s name. Consequently, these forms of consumer feedback tend to be more influential.
That influence is important. Why would a consumer spend time writing a review that they don’t think anyone will read or respond to?
Bringing in Reviews
Brands can increase their chances of getting reviews by:
- Asking for them. You never get what you don’t ask for, right? It’s a simple but effective step to source information. Many brands automatically send feedback forms to consumers once the product has arrived at their door. These forms can be structured to encourage information that is more specific to what you want feedback on. The physical appearance of your product. The new feature that you’ve just implemented. That thing you noticed 10% of people complain about during your last round of tactical data analysis. When you ask for files/forms/surveys from your customers it is important to make the process as easy as possible for them. They shouldn’t have to make a new account through some sort of third party data-collection website, or follow ten steps just to let you know what they think.
- Incentivizing feedback. Sweeten the pot with small coupons or other customer rewards. Not only will this help produce more data but it will also build consumer loyalty, and possibly increase conversions.
Remember that “reviews” aren’t limited to what a customer posts on Amazon or your company website. Customer service interactions are an excellent way to engage actively and in real-time with tactical data analysis.
Live chat features allow your CX team to
- Find out what is bothering the customer and
- Fix it
within a matter of minutes. Unfortunately, many brands struggle to adequately incorporate CX into their revenue generation strategy. One reason for this might be the congenital flaw in consumer reviews: They are subjective and therefore difficult to process and quantify.
Brands that can leverage their CX team more effectively might better implement their data, soothe aggravated customers, and convert more sales in the same move.
For example, let’s say you own an e-commerce company that sells athleisure wear. Like so many other online clothing and accessory retailers, your company struggles to match customer expectations. It’s uniquely difficult to fully experience a clothing or accessory item without physically handling it.
Your CX team understands this as well as anyone. They deal with it on the frontlines, and they do it every day.
Cindy sighs when she receives a live chat complaint from Sylvia, stating that the athletic top she purchased does not suit her body shape the way she expected it to. She’s heard this one before.
This time, instead of simply apologizing and initiating a return, she sends Sylvia a link to a comparable product in a different size. She then sends this information over to the product team. About 10% of the people we hear from say the size isn’t what they expected. Can update our descriptions?
That’s the tactical response.
Cindy’s team also chronicled customer comments and complaints, developing a wealth of new data. It’s not all negative either (I love that top, but wish you had it in navy, etc.). This information is stored for later review and used to inform new product development.
That’s a strategic response.
In one move, the brand can:
- Appease an aggravated customer, and
- Get tons of new data
Allow customers to speak their minds, and they so often will. It’s how you listen that will be most impactful. Every successful brand has some type of CX strategy. If you aren’t leveraging it in the context of data analysis, you’re losing out on valuable short and long-term insights.
Remember that all of the marketing in the world only does so much good without being reactive to customer feedback.
The Argota marketing agency, owned and operated by Jorge Argota, specializes in developing brand visibility through bespoke SEO strategies.
Beneficial though increased traffic is, it doesn’t help if you aren’t directing potential leads to a responsive sales funnel. You want to understand and use customer feedback in a way that produces better service and sustainable growth. That doesn’t mean reacting with panicked urgency to any bad review. It does mean recognizing and addressing patterns.
Wrapping it up
No other aspect of business-related data analysis is so visible as how a brand grapples with its customer reviews. When someone posts information about your product or service online, it is destined to play a very direct role in how potential customers make their future buying choices.
Tactical data analysis will help you dress your wounds. Respond to short-term issues in a way that is fast and effective.
Strategic data analysis is your long-term solution. It will help you avoid making the same mistake twice, and also just optimize your future product development.
Remember that review-based analysis needn’t necessarily focus only on negative reviews. “I wish this came in red,” might wind up being just as impactful to your brand as “Item was poorly packaged.”
Need help with your marketing strategy? At the K6 agency we have proven experience with various aspects of paid advertising. Contact us today for a free quote!