Customer experience. User experience. Data and analytics. What do these things really have to do with improving the bottom line?

Today, more and more companies are realizing that true competitive advantage lies in creating an engaging customer experience — one that is personal, fast, easy, and useful.

The only problem: many companies are not quite sure how to create it.

By using advanced analytics, companies can make better use of their customer and user experiences, leading to higher satisfaction — and loyalty — in the long term.

Why does customer experience (CX) matter?

In the digital marketplace, customers are even more demanding than ever before. More than half of customers today say they’ve switched companies solely because of poor user experiences. Companies who fail to embrace CX as strategic path to growth won’t just be lagging, they’ll get left behind.

But where to start?

The ability to use both active and passive data to better gauge your customer and their journey is imperative to creating the optimal CX and improving journey mapping. Companies must collect, analyze, understand — and most importantly use — customer data to learn how to make CX better.

The following are a few reasons data-driven CX can make the difference.

Read all: Improving Customer Experience Through Customer Data

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