Qualitative vs. Quantitative Data In CX Design

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Quantitative and qualitative data complement each other. But determining which data to choose to create surveys can be quite difficult.

Quantitative research yields numerical results, but there is no use of numbers in qualitative research. Wait! Don't get confused. 

Well, you have come to the right place. In this blog, you will learn about the quantitative and qualitative data in CX design. Let's get started.

Understanding qualitative data

Organizations usually collect qualitative data, also known as primary data, and it is essential for comprehending target audience sentiment and influencing customer journey design

Qualitative vs. Quantitative Data In CX Design

Qualitative data-collection techniques enable companies to interact directly with their key customers.

And also, see how they use their products or services, and receive feedback in real-time by performing unstructured or semi-structured first-person user interviews and other market research options.

It contributes to the definition of the customer journey and the establishment of an initial basis and comprehension of all internal and external encounters.

Qualitative metrics

Following are the some qualitative metrics that are commonly used in market research:

  1. Net Promoter Score

  2. Customer satisfaction

  3. Customer feedback

Let’s learn about them in detail.

1. Net promoter score

Net promoter score is a popular qualitative indicator among customer success managers. It asks a consumer if they are inclined to suggest your product to others they actually know. 

On a scale of 1to 10, 10 denotes the most likely and 1 represents the least likely. It is an excellent predictor of your brand's advocacy potential and customer loyalty.

2. Customer satisfaction 

Another measure in which customers score their experience with your brand. This information was gathered specifically in response to a recent engagement the client had with your support staff

However, it is also collected over a longer period of time when you inquire how happy they are with your brand.

3. Customer feedback 

It is the most popular criterion used to assess the health of your customers. What better source of information on a patient's health than themselves? It might take the form of a survey or a series of frequent meetings to get customer feedback.

Now that you have learnt about qualitative research, let us now discuss qualitative data.

Understanding quantitative data

Secondary research requires quantitative data, which may be acquired through a number of organized surveys, questionnaires, and polls.

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It improves primary research (qualitative data) and layout efforts by quantifying important issue areas when converted into statistics

It also enables marketers, developers, business executives, and customer experience agents to examine consumer details, attitudes, and behaviors from a data-driven perspective, as well as test ideas derived from qualitative data.

Quantitative metrics

Following are some quantitative metrics that can be used in your market research survey:

  1. Customer health score

  2. Customer churn rate

  3. Customer Lifetime Value

  4. Monthly Recurring Revenue

  5. Customer retention cost

Let’s learn about these metrics in detail.

1. Customer health score

This measure offers extensive information about the health of a certain client account

It considers numerous client behavioral factors, as well as your pre-defined parameters for what you deem good or negative for a customer experience scorecard.

Your customer engagement tool computes and displays the health score based on these inputs.

2. Customer churn rate

It is the frequency with which your clients leave your service. It is a clear indication of how well you manage your client connections

If all of your customers are satisfied and stay with you for an extended length of time, your churn rate is zero. That is the ideal objective for every subscription-based firm.

3. Customer Lifetime Value (LTV) 

Lifetime value is the overall predicted revenue a client will create over the course of their association with your company

It is computed by aggregating all renewal payments and subsequent purchases, then deducting the customer acquisition cost. It is a critical parameter for determining the overall health of your organization.

4. Monthly Recurring Revenue (MRR)

MRR in customer success indicates how much money your clients generate for your company each month

These can be accomplished through a variety of techniques, such as renewal fees, upselling, or cross-selling. Annual recurring revenue (ARR) is what it is termed when computed annually.

5. Customer retention cost

This demonstrates how much money you are investing in client retention efforts. The entire cost is split by the number of clients kept

The ultimate value indicates how much you spend on each customer to keep them. You may calculate your profit or loss by comparing this cost to the revenue earned by each customer.

To create personalized qualitative and quantitative surveys, you may use different software, such as Voxco Survey Software. 

Understanding the power of quantitative research allows for the utilization of precise numerical data to unveil patterns and trends, providing a solid foundation for making informed decisions in various fields and industries.

In the next section, you will learn an example for a better understanding of quantitative and qualitative data.

Example of quantitative and qualitative data

Consider product X and create a survey. After collecting the responses, you may find two different types of results. One of them may be quantitative and the other might be qualitative. 

For example, you may discover:

  1. 70% of the respondents bought product X.

  2. The product is so economical that the respondent couldn't resist buying it.

The first option can be considered as quantitative as it can be counted in numbers (70%), whereas the second option is qualitative as it indicates quality (economical).

Quantitative vs qualitative data 

Quantitative data can assist you in seeing the broader picture.

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Qualitative data adds details and can give your survey results a personal voice.

  1. Generating hypotheses: Qualitative research allows you to obtain thorough knowledge about a subject. You might utilize it to start your study by learning about the challenges or possibilities that individuals are thinking about. These concepts can be developed into hypotheses that can be tested quantitatively.

  1. Finding broad answers: Because a multiple-choice survey is quicker to run than a series of interviews or focus groups, quantitative research often includes more respondents than qualitative research. As a result, it may help you definitively answer broad queries such as, "Do people favor you over your competitors?" or “Which advertisement is the most appealing?”

  1. Integrating the human factor: Qualitative research can also be useful in the project's final phases. Quotes from open-ended questions may provide a human voice to the quantitative data and trends in your research. Hearing your clients describe your firm in their own words may often assist you to identify your blind spots. Qualitative data will provide you with this.

  2. Validating assumptions: Quantitative research will provide you with statistics that you may use statistical analysis to validate your hypothesis. Was that an actual problem or simply someone's perception? You will be able to make judgments based on factual observations once you have collected concrete facts.

Which data is the most preferred in CX design?

While the quantitative technique gives an accurate measure of fact, the qualitative method allows the researcher to explore and understand the complexities of a phenomenon.

A-beginners-guide-to-qualitative-and-quantitative-research

Quantitative data helps us forecast patterns, whereas qualitative data can assist us in understanding why such trends occur.

As a result, we might infer that they both complement one another and that neither is absolute.

Conclusion

The acquisition of qualitative data is exploratory; it entails in-depth study and inquiry. Qualitative data collection methods are primarily concerned with acquiring insights, reasoning, and motives; hence, they are more in-depth in terms of research.

We hope you have understood the difference between qualitative and quantitative data. With platforms like Voxco Survey Software, you can create surveys to gather and analyze both types of data with ease

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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