The Ultimate Guide to Customer Experience Analytics

By

Arron Westbrook

Last Updated:

August 27, 2025

Reading time:

8 minutes

What is customer experience (CX) analytics?

Customer experience analytics refers to the process of gathering and analysing data related to customers' interactions and experiences with a company's products, services, and brand.

It involves collecting data from various touchpoints such as customer feedback, online interactions, social media, surveys, and more.

The goal of customer experience analytics is to gain insights into customer behaviour, preferences, and satisfaction levels in order to enhance and optimise the overall customer experience.

By analysing customer data, businesses can identify patterns, trends, and areas for improvement, allowing them to make data-driven decisions to better serve their customers.

Why does it matter?

At every moment, customers are interacting with brands across an ever-growing number of touchpoints.

And things are changing… fast.

Today’s shopping journeys are omnichannel. For some users, the path to purchase can be quick and straightforward. For others, it can be long and convoluted – with users taking time for deliberation, poring over reviews, and using digital as well as offline channels.

Customers are moving from discovery to conversion (and beyond) in a way that is increasingly unique and personalised to them. And they are less loyal to brands than they ever have been.

The answer lies in CX analytics. The ability to gather the data and feedback necessary to truly understand the overall customer experience and to improve it.

CX analytics is crucial to ensuring we are providing the best user journey we can for each and every customer.

What data does customer experience analytics use?

Customer experience analytics solutions use Artificial Intelligence to analyse this unstructured free text feedback from across all of these touchpoints – from online reviews to social media, customer service interactions, to customer engagement, for example.

Then, they deliver actionable insights that help you deliver better customer experiences (and improve metrics like net promoter score, CSAT, and customer retention).

At Chattermill, we call this advanced approach Unified Customer Intelligence – bringing together all of this data in real-time, and at scale, to give a comprehensive view of how your customers are really experiencing your products and your brand.

Why is customer experience analytics important?

It improves customer experience

If we want to be able to improve CX, we need to know what is really going on.

For Dave Ascott – Strategy Lead at Chattermill – CX analytics is fundamental to business success today.

‘It’s basically understanding the way your customers think or feel,’ he says. ‘There’s no other way of understanding the customer’s perception.’

Customer perception is a key detail here. It might not be true that you are the most expensive retailer in your niche, but if that’s what your customers perceive, then something needs to be done about it.

This level of customer insight might not be apparent in the hard numbers or static data. We need to know what they are thinking and feeling in their own words.

Ascott refers to the success story of the money transfer business: Wise.

For Wise, digital customer experience is central to the business. They don’t simply want to gain customers. They are laser-focused on turning their customers into evangelists for the brand.

‘Banks charge 5%. If we charge 4.8%, we may get a customer, but we would never get advocacy,’ Nilan Peiris, Chief Product Officer at Wise, says. ‘In order to drive word of mouth and evangelism, you need to aspire on your product KPIs to be an order of magnitude better than the alternative that’s in the market.’

The result? Wise has been able to build a sense of ownership and pride among consumers to create that advocacy. It has become more of a movement than a brand. And although it is still a relatively young business, it is successfully competing with the biggest banking institutions.

Customer experience is about more than simply making sales.

It reduces customer churn

CX analytics can drive customer acquisition, and it can turn shoppers into advocates. But customer retention is a growing area of focus for businesses.

88% of consumers say they will switch to a competitor after three or fewer bad experiences. In the US, avoidable churn is costing businesses a massive $136 billion a year.

CX analytics is helping brands identify who is most worth investing in to keep them loyal and spot customer pain points as they are happening and intervene before the churn occurs.

It increases repurchase rates

Using CX analytics can not only help you understand which customers are most worth investing in to keep loyal, but it can also identify who will be most receptive to messages that will drive repeat purchases.

It improves personalisation

Optimising personalisation is key to improving the experience your customers have. It can help ensure your most valuable customers do not churn and shop with a competitor instead.

It creates a more customer-centric culture

Chattermill’s Dave Ascott points to how CX analytics can help evolve the business culture of your organisation. It can help shape the product, the service, and the culture.

Good CX needs all elements to be understood.

Why CX Analytics matters more than ever

Today, businesses are increasingly competing on CX. If you are in the dark when it comes to your customer behaviour, and what they think and feel, you simply aren’t going to know how best to manage your resources to keep your best customers loyal.