McKinsey & Company today announced the launch of its new innovative data analytics platform, Experience DNA, to help organizations maximize the value of customer experience (CX) management and design. The first of its kind, the platform allows CX leaders to use real-time customer, operational, and financial data to make predictions about customer satisfaction, ultimately helping businesses target key customers.
It’s a significant leap toward real-time, comprehensive customer insight, giving companies a strategic tool to drive market differentiation by predicting the financial value for each customer segment.
Until now, organizations have been limited to using survey tools and sampling techniques developed nearly two decades ago. Only six percent of CX leaders believe using such historical insight to gauge loyalty enables both strategic and tactical decision making. These legacy tools are unable to translate today’s massive volume of data and signals into action to make faster, smarter decisions that drive acquisition, customer satisfaction, market differentiation, and profitability.
To meet the needs of the new customer, business leaders need to make disruptive changes to the customer experiences they offer. Experience DNA enables such change.
The New World of Act-Now Customer Experience
Experience DNA’s predictive insights tailor recommendations for strategic decision making and real-time engagement on customer journeys. Early adopters are seeing significant gains across a range of customer experience indicators, including:
- An airline company achieved an 800 percent increase in satisfaction among key customer segments through more-targeted post-delay compensation
- A hospital uncovered a $2.5 billion revenue uplift opportunity through improved segmentation
- A bank achieved a 20- to 40-point lower attrition rate through the identification of churn drivers
Experience DNA delivers a significant step change in customer experience insights and recommendations by combining data collection, aggregation, machine learning, and predictive analytics. This allows CX leaders to make informed decisions in the moment and in the future:
- Near 100 percent visibility of their customers and the impact of their experiences
- Make predictions on how business actions will impact satisfaction and value measures like revenue, cost to serve, or churn
- Drive real-time engagement decisions to improve an individual customer’s experience
- Take proactive action on opportunities and challenges
- Plan ahead on CX efforts to maximize both satisfaction and ROI, with value-based strategic decision-making and accurate performance measurement
Build Customer Relationships Through Proactive, Tailored Daily Engagement
It takes the average organization nearly a month to generate meaningful action on the results of a survey, and those actions are inevitably built for the “average respondent.” Experience DNA allows real-time insight and proactive intervention tailored to customers’ needs, removing the need to wait for a survey to identify an opportunity and enabling businesses to anticipate and respond immediately.
Prioritize Journey Enhancements and Drive ROI
Customer-centric organizations drive real value. In fact, since the last economic recession, CX leaders have seen threefold greater increases to shareholder returns than CX laggards. Experience DNA provides first-of-its-kind insight into the real experience drivers of financial value so organizations can prioritize actions that drive both customer loyalty and real ROI.
Kevin Neher, Senior Partner, McKinsey & Company
“2021 will be a year of transition as leaders look to pivot back to growth. It’s time for a bold reset to deliver experiences that are targeted, predictive, and responsive. By doing so, companies can go from ‘How are we doing?’ to ‘How do we deliver on what customers want, now?’ This customer-focused, data-driven approach allows companies to unlock efficiencies, predict customer behavior, track satisfaction drivers, anticipate churn, and act on real opportunities to create interactions that are truly meaningful and sticky.”
Nicolas Maechler, Senior Partner, McKinsey & Company
“While many corporate functions such as sales, operations, and supply chains have capitalized on new capabilities in data and analytics, CX has not leveraged these yet. Experience DNA enables CX leaders to leapfrog into the future by making CX predictive, real-time, and actionable in the moment. This new frontier of CX means that companies can utilize predictive scoring, foresee satisfaction, spot likely churn, and flag opportunities to turn loyalty into profitability.”
To learn more about Experience DNA, visit www.mckinsey.com/xDNA.
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