Customer Retention Perspectives (December 2017)

Convincing existing customers to stay loyal, as well as getting new customers, is a major challenge for many businesses. It’s better to use our valuable time on customer retention strategies instead of fighting a battle to constantly replace them with new customers.

This edition of Customer Retention Perspectives features some of the popular resources compiled by our analyst team for busy customer retention professionals like yourself!

Customer Retention Perspectives (1st December 2017)

 

How To Master Customer Retention Using Artificial Intelligence

Statistics show the advantages of customer retention. Existing customers are 50% more likely to try new products and spend 31% more money compared to new customers. Despite this overwhelming evidence, only 18% of companies make retention one of their top initiatives.

But there is hope. Advanced analytics delivered through artificial intelligence (AI) offer a new way for retailers to glean customer insights from their data. AI sharpens the four data lenses that can be used to provide vivid snapshots of each individual customer. These data lenses are demographics, psychographics, behavioral patterns, and intent.

4 CUSTOMER RETENTION STRATEGIES FOR THE HOLIDAYS—AND BEYOND

Some industries live or die based on holiday business. Other industries, like tax preparation, follow a calendar with completely unique crunch times. Some businesses are seasonal and see a boom in the summer and a bust in cold months, or the other way around. However, one thing unites us all: a very real need for effective customer retention strategies.

If you invest time in devising and implementing customer retention strategies, then your holiday seasons can actually be both more profitable and more pleasant. Here’s how to do it.

[Infographic] 5 Ways to Drive Customer Retention Actions with VOZIQ’s Predictive Text Analytics Solutions

Acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing customer, according to various studies. In recurring revenue businesses, retention rates have a huge impact on business profitability in many ways.

Check out the 5 ways to reduce customer churn significantly in recurring revenue businesses such as telecoms, cable and internet, insurance, home utilities, and healthcare.

7 Mighty Customer Experience Trends for Retention in 2018

Customer experience is not a new idea, however, the proliferation of digital technology and an abundance of choice has empowered customers more than ever before.

It’s important to remember that amazing customer experiences are driven by appealing company culture and true dedication to immaculate service. All the fanciest tech in the world cannot solve broken principles. With those words in mind, check out the 7 mighty customer experience trends to inform your retention strategy in 2018.

Why Retention Stats Often Give You Zero Insight Into the Customer Experience

In the early days of your product, your new customers make up a high proportion of your customer base; so your average churn looks really high. However, over time, new customers make up a smaller and smaller proportion of your customer base. As a result, your average churn should decline over time. Therefore, if your base churn is holding steady, it’s highly likely in reality that you have a churn problem.

So what’s the best way to measure churn? Check out the article to find out

We hope that you had a great time reading these popular articles on Customer Retention.

Let us know your suggestions, as well as any useful articles we may have missed in the comments below.

[Infographic] 5 Ways to Drive Customer Retention Actions with VOZIQ’s Predictive Text Analytics Solutions

Acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing customer according to various studies. Also consider this research from Bain and Company, which tells us that increasing customer retention rates by 5% increases profits by 25% or more depending upon the industry. For example, in the financial services industry, the boost of 5% retention rate translates to an increase in profits of almost 25%.

In recurring revenue businesses, retention rates make a huge impact on business profitability in many ways.

Here are the 5 ways in which VOZIQ reduces customer churn significantly in recurring revenue businesses such as telecom, cable and internet, insurance, home utilities, and healthcare.

 

Download this infographic in PDF Version here

Counter Customer Revenue Risk by Infusing Customer Behavioral Intelligence into Retention Strategies

One of the 2017 predictions by Forrester is about the increase in revenue risk for firms, by up to 50%, due to the increasing number of customers who operate as free agents.

How does a customer-minded retention leader avoid the impact of demanding, millennial-minded customers on the company’s profitability?

What typically ails Customer Retention programs

1. Lack of an integrated enterprise customer strategy: In enterprises, retention typically falls in the purview of the Marketing team. However, this team does not have access to the pulse of customer – the day-to-day experiences of customers – because the marketing team has no direct access to the customer beyond sample-based insights.

On the other hand, there are contact centers – the go-to places for customers for any issues, feedback, or inquiries. Customer interactions and the related metadata being generated in contact centers are rich in insights about the emotional state of the customer regarding their overall experience.

The problem is, on one hand, the marketing team does not have tools and processes to access this information, while the contact centers don’t have access to the customer segmentation data, which is based on demographic and transactional profiles.

2. A lost opportunity due to the silos: Imagine an enterprise where marketing and contact centers can operate the enterprise customer strategy in an integrated manner. In such an enterprise, retention teams can leverage the most effective communication channel in the enterprise – the contact

The 2-way communication happening in contact centers can enable retention teams to achieve a breakthrough in breaking the retention rate ceiling.

Here is a framework to break the silos and boost retention rate:

VOZIQ offers a proven solution to design and operate an integrated customer strategy by extracting behavioral intelligence from customer interactions, and by leveraging the unified intelligence to drive consistent retention actions across the enterprise.

The solution is based on 3 steps –

1. Leverage text notes from contact centers to extract behavioral intelligence: After every call in a contact center, the agents talking to the customers add a text note on the interaction to the These millions of text notes are unique in being human-interpreted data about the real issues customers are facing.

VOZIQ Text Analytics Platform enables enterprises to leverage these text notes and create behavioral intelligence (such as root causes, sentiment, and customer effort) at scale.

2. Integrate the behavioral intelligence with other data sources: VOZIQ then allows the integration of these insights with traditional data sources such as demographic, transactions, geo, tenure, product, VOZIQ even allows integration with satisfaction surveys and speech-to-text data.

This integration leads to an enriched, unified pool of a large customer data set that can be leveraged to create deep intelligence about customer dissatisfaction and cancellation.

Some such insights include (shown on bottom-right in above graphic):

  • Top drivers of customer dissatisfaction
  • Root causes
  • Dynamic churn risk score
  • Predictive customer intent
  • Customer effort
  • Customer sentiment

When correlated with structured customer data (shown on the bottom-left in the above graphic), these insights deliver unlimited opportunities to digest the data and understand key issues and top opportunities to boost retention.

3. Drive retention actions with a focus on maximizing customer value: Armed with this deep churn intelligence, VOZIQ further provides various tools and process- es to enable the retention teams to design a proactive customer contact strategy. Such strategy focuses on preventing churn by offering a better customer experience, opposed to relying on reactive, win back strategies, which are mostly ineffective.

  • Detect churn risk as it emerges with dynamic churn score
  • Enhance customer contact rate with risk-based, intelligent call routing
  • Improve sales effectiveness with service-to-sales model
  • Enhance marketing effectiveness with risk-aware marketing
  • Boost profitability by leveraging specific insights from VOZIQ’s solution to improve field operations, service, products, and pricing strategy

Takeaway:

Forrester’s 2017 predictions warn that the millennial mindset of ‘no-loyalty’ is increasingly evident across age groups. For the new customer, a single episode of a bad experience can lead to prolonged loss of revenue from that customer to a competitor.

In such a volatile scenario, a few companies, according to Forrester, will leverage technology to understand customer emotion as both a descriptive and predictive measure to guide experience design and govern operations.

VOZIQ assists retention leaders in building an enterprise aware of customers’ emotions and risk, and provides them with tools and processes to deliver a better customer experience across the lifecycle.

Click the below image to download the Document in PDF format.

Counter Customer Revenue Risk by truly understanding Your Customer with Predictive Text Analytics

Handpicked Customer Retention Articles for Busy Customer Retention Leaders

Customer Retention:

Industry-wide benchmarks show that it costs about 5x more to acquire a new customer than it costs to retain an existing customer. According to Kevin Stirtz, a loyalty expert, “Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time or we’ll lose them.”

These are some of the highly popular customer retention articles from the last quarter curated by VOZIQ’s internal team.

Prescriptive Analytics: The Solution to Reduce Churn through Definite Actions

With the capability to constantly gather new data to re-predict and re-prescribe, prescriptive analytics can automatically improve prediction accuracy and prescribe better decision options to business leaders.

Prescriptive analytics ingests hybrid data, a combination of structured (numbers, categories) and unstructured data (IVR Logs, CRM Textual Notes), and business rules to predict what lies ahead and to prescribe how to take advantage of this predicted future without compromising other priorities. By using prescriptive analytics in a churn situation, business leaders can decide which type of remedial actions can be used for different customers likely to churn.

 

5 Best CX Strategies to Reduce Customer Churn in 2017

When customers are satisfied with a company and its products and services, it doesn’t mean that he will stay forever with the company. Effective loyalty programs anticipate customer behavior by constantly reviewing and analyzing customer activities.

Here are the 5 best strategies to make customers happier and reduce churn:

  • Understand what type of churn is prominent in your company
  • Build accurate understanding of customers
  • Explore newer data sources to gather customer intelligence
  • Deploy predictive analytics to uncover new opportunities
  • Focus on proactive retention approach

6 Super-Psychological triggers to use for maximum Customer Retention

Churn and burn sales and marketing tactics in today’s world of choice, simply don’t nurture sustainable growth; you must aim for customer loyalty at every turn if you want your brand to thrive. To truly understand the psychology behind consumer behaviors, emotions and tendencies, you need to genuinely connect and interact on multiple levels, with a view to forming rock-solid bonds. This dramatically increases the likelihood of achieving loyalty and as an end result, repeat customers.

 

How to increase your profits by 25% by improving Customer Retention

If you’re struggling to increase your profits, the problem might be that you’re focused on the wrong area. There are only three ways to increase your profits:

  • Increase the number of customers.
  • Increase the number of sales you make to each customer.
  • Increase the value of each sale.

If you’re only focused on increasing the number of customers, you can only see one-third of the methods for boosting profits! To maximize your profits, you need to dedicate your time to increasing the value of each subscriber and to do that, you need to focus on customer retention!

 

We hope that you have enjoyed reading these articles. For busy customer retention leaders like yourself, our curators have compiled few more popular articles on various customer related topics from the last quarter.

Click the below image to download the complete list in PDF format.

Best handpicked resources recommended by VOZIQ

Customer Retention Perspectives (October 2017)

This is our first blog on Customer Retention Perspectives. These are some of the best resources compiled by our analyst team for busy customer retention professionals like yourself!

 

Customer Retention is the Unsung Hero of Business Growth

Customer relationships are a bit like gardens. Once you plant those seeds, you’ve got to put some effort into helping them flourish. After all, customer retention is the bread and butter (or water and sunlight to keep the gardening analogy going) of the small business world. We all know that, in theory, it’s cheaper to keep our existing customer relationships healthy and strong than to set out to acquire new ones, and easier to successfully pitch products and services to them as well.

While every business, customer and product is different, the good news is there are tried and true tactics for organizational success (and even growth) through customer retention.

Why You Should Be Focusing on Customer Retention, Not Acquisition

It is only natural to be continually on the lookout for ways to lure the next potential customer, but focusing too hard on acquisition may be to your detriment. According to numbers procured by Invesp, 44% of companies admit they focus more on acquisition than retention, and only 18 percent claim to focus more on retention. However, the same research points to the idea that customer retention is far more financially sound.

5 Ways to Drive Customer Retention Actions

Standard churn prediction models rely on structured data such as customers’ demographics and purchase histories. VOZIQ’s predictive text analytics solutions reduce the time-to-value by going one step beyond these common churn reduction approaches.

Here are the 5 ways using which VOZIQ reduces customer churn significantly:

  1. Detect Churn Risk as It Emerges with Dynamic Churn Scores
  2. Enhance Customer Contact Rate with Risk-Based Intelligent Call Routing
  3. Improve Sales Effectiveness with Service-to-Sales Model
  4. Enhance Marketing Effectiveness with Risk-Aware Marketing
  5. Create Company-Wide Risk Awareness

The 4 Keys To Boosting Your Customer Retention

According to Bain & Company, attracting a new customer costs your business 6 to 7 times more than retaining an existing one. You need to do what you can to continuously earn your customers’ loyalty – never underestimate the value of retention. Here are four keys to achieving the level of customer retention you need to boost your top line:

  1. Know your customers better than they know themselves
  2. Implement feedback systems
  3. Go beyond nice and polite
  4. Provide anticipatory service

Give Your Customer Retention Strategy the White Glove Test

Nuances can be difficult to see, let alone measure. Is that why business leaders seem to be doing their best to only respond to metrics? So, many companies are dependent on metrics alone that they often miss small problems that lurk in the shadows, waiting for their chance to grow to devastating proportions.

Have you given your customer experience a white glove test to find out which part of the customer journey needs some tidying up?

We hope that you had a great time reading these popular articles on Customer Retention.

Let us know your suggestions and any useful articles we may have missed in the comments below.