Customer Analytics: What It Is & What It Means for Businesses

Consumers have an unprecedented number of brand options and access to information these days. Not only that, but communities are also becoming increasingly diverse while consumer behavior shifts on the heels of the pandemic.

As such, customer analytics is more valuable than ever as it informs both your marketing and innovation. Brands are racing to improve their market intelligence to stay ahead of rapidly changing markets, and customer analytics is a massive piece of the puzzle.

That being the case, we’ll explore customer analytics – what it is and what it means for businesses. Specifically, we’ll break it down to explore:

  • What is customer analytics?
  • How can brands understand consumers more effectively using it
  • Why customer analytics are essential, in general

Consumer behavior is a constantly moving target. The importance of using customer analytics to inform your product placement and messaging cannot be overstated. Here are a few statistics that bear that out:

  • 65% of consumers feel that how a brand handles themselves during a crisis significantly impacts their trust and confidence.
  • Since the beginning of the pandemic, 75% of US customers say they’ve tried new shopping behaviors for both economic reasons and shifts in personal priorities.
  • Using customer analytics to understand your target audience is critical. For instance, Millennials are the most diverse generational group in US history, with 44% being racial or ethnic minorities.

With that, let’s jump in so you’re prepared to capture the voice of the customer.


What Is Customer Analytics?

Customer analytics refers to capturing and analyzing consumer data to better understand behaviors, perceptions, and emerging trends. Data used for customer analytics can come from a vast array of sources such as surveys, chat logs, social media listening, review data, customer service transcripts, media traction among consumers, etc. Ideally, the more sources of consumer data you have to pull from, the better informed you’ll be.

Customer analytics allows you to segment your data to get to your target audience’s needs, wants, and pain points. It can also help detect new audiences that would be receptive to your products and messaging.

In a nutshell, customer analytics is all about building a robust platform of continuous consumer insights, so your marketing and innovation hit the sweet spot with your audience.


Understanding Your Customers More Effectively

There are many avenues to pursue when seeking to better understand your consumers. On a broad level, social listening helps uncover conversations that brands would miss otherwise. Brands can segment audiences by the customer journey and can create ongoing customer care analyses to filter for relevant narratives within a brand’s mentions.

A customer journey analysis is particularly helpful. It captures customer experience, market research, and consumer insight that teams use to build brand awareness, understand consumer behavior, and increase demand and engagement throughout the entire purchase funnel.

You can develop a rich understanding of how your consumers engage with your products by examining social conversations centered around consideration, evaluation, purchase intent, purchase narratives, post-purchase, and loyalty.


Digging into these conversations to uncover pain points helps you inform marketing, innovation, and customer service strategies to address consumers’ issues. Monitoring the health and volume of these social media conversations has the added benefit of watching your hard work pay off as your post-purchase volume increases.

Examining Customer Care Analytics

Similarly, a customer care analysis can isolate social conversations that impact customer service, product availability, quality, and price. Keeping tabs on these conversations lets you see your performance in real-time so you can tackle the problem issues.


Brand 1 Customer Care Dashboard. Major CPG brand’s customer care overview. 7/30/21 – 8/30/21.

Customer analytics doesn’t have to be an arduous task. In this instance, we are tracking just four issues along with volume and sentiment trends. As you can see above, this particular CPG brand would need to dig in deeper to understand the problem with their lackluster sentiment performance with social media users regarding their product quality.

Fortunately, with the proper social media listening tools, that’s not difficult to do. Simply clicking on your metrics will reveal the social media posts talking about your specific issue. Then digging into the trending keywords and word clouds show you more around where the problems lie – and the volume of mentions.

Additionally, customer analytics includes digging into your internal data, including consumer reviews, star ratings, survey data, net promoter scores, chat logs, customer service call transcripts, and any other data gathering efforts you have in play.

If your data analytics tools do not let you upload these datasets, you may want to consider others that do. Every piece of intel you can include adds to the insight you can derive from your customer analytics.

Why Customer Analytics Is Essential

Business intelligence capabilities are expanding and brands the world over are interested in understanding all that it offers. Those who can dig into relevant consumer stories hidden inside the data are finding themselves better prepared to implement effective strategies.

And it offers myriad use cases, which is key. Because not only do you want to serve your customers by meeting their needs and addressing their pain points, but you also want to fend off your competition. So, having a robust customer analytics protocol is a must within today’s market.

It’s the quickest way behind the scenes when one wants to capture the voice of the customer. And that desire should top every brand’s priority list, because if you’re not doing it well, your competitors will be. Aside from customer care and the consumer journey, you can also pick apart your audience to uncover:

  • Demographics
  • Psychographic data such as interests and emotions
  • Geo-location and time data
  • Key opinion leaders and influencers your audience trusts
  • Source data showing where your audience congregates online
  • Trending topics and sub-themes
  • Sentiment drivers
  • News media getting traction with your consumer base

Brands that possess these capabilities have the intel they need to target their consumers with pinpoint accuracy. And consumers are paying attention. Brand loyalty isn’t easy to come by these days, and customers have gotten very particular about the brands they use.

So, brands that can spot pain points and address them quickly will win out over those that can’t. And customer analytics can be the ace up your sleeve to woo your audience and outperform your competition.

Reach out for a demo, and we’ll show you how world-class social listening and data analytics tools can help you knock it out of the park with next-level customer analytics.


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