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[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.

 

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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

5 Best CX Strategies to Reduce Customer Churn in 2017

In an era of intense competition, the customer experience is often the main differentiator. Once a sale is complete, the contact center is an enterprise’s primary touch point with its customers, whether they are consumers or businesses. When a company knows what their customers want and responds with a consistently excellent customer experience (CX), they create loyal and profitable relationships.

The best loyalty programs proactively analyze customer behavior to identify and address at-risk customers before they defect. Effective customer retention programs are enabled by customer relationship management (CRM) and advanced analytics solutions. Contact centers need these underlying systems to serve as the last line of defense, and especially for recurring-revenue businesses – that are threatened with losing their customers to competitors.

When customers are satisfied with a company and its products and services, they have no reason to look for alternatives. Effective loyalty programs anticipate customer behavior by constantly reviewing and analyzing customer activities. If a mid or large size recurring-revenue business cannot proactively retain its customers through the use of analytics and effective marketing programs, the problem falls to the contact center.

According to a research from Harvard Business School, increasing customer retention rates by 5% increases profits by 25% to 95%.

To improve customer retention and customer loyalty, subscription or recurring-revenue businesses need to first analyze customer churn and quantify its impact. This provides insight into the different customer groups that may need to be better addressed or need particular attention. Based on the industry vertical and the market, companies from these industries need to design a predictive churn model to identify potential customers who have a high probability of churn. Below are the 5 best strategies that you and your CX team can consider to make your customers happier, and reduce churn.

  1. Understand what type of churn is prominent in your company

The first important strategy would be to understand the type of churn happening in your company. When doing this, the customer types to be managed should be identified. Most often, both voluntary and involuntary churn coexist. The focus of customer churn management should be on controlling the voluntary churn by customers. Churn can further be differentiated into the soft and hard churn. Hard churn essentially occurs due to a single event. But, most likely, this is almost never the case; hence, the emphasis is more on the soft churn – the churn that is a result of multiple factors. Identifying the customer group to focus on is a key to managing the churn effectively. Churn needs to be expressed using dollar values so that the magnitude of churn is immediately perceptible.

  1. Build accurate understanding of customers

The next logical strategy is to develop a strong understanding of who are your customers. Identifying the different customer types likely to churn involves comparing profiles of customers who have churned to those who have not. This analysis should be done using all customer segmentation data available, such as behavior, purchase history, demographics, sales channels used, transaction values, etc. This behavioral profiling helps in identifying typical patterns of customers before churn.

  1. Explore newer data sources to gather customer intelligence

More and more recurring-revenue businesses are looking at previously untapped sources of customer data from contact centers to create deeper knowledge about the drivers of customer experience. This deeper intelligence helps these companies to manage customer experience effectively and create a competitive edge. By gathering customer perceptions of their experience, these businesses can use the data to get an insight into how to improve the quality of the customer relationship to improve customer loyalty. Such recurring revenue companies can use the data to identify where customer retention effort will have the greatest return on investment (ROI).

  1. Deploy predictive analytics to uncover new opportunities

Deploying predictive analytics to mining contact center interactions uncovers new opportunities to approach customer retention effectively. All the interactions a customer has with a contact center have enough clues about their satisfaction or dissatisfaction. Typically businesses fail to leverage these interactions as a source of customer intelligence. Predictive analytics enables identifying these clues and categorizes the customer as ‘satisfied’ or ‘dissatisfied’ based on their previous interactions, and then assigns a propensity to churn score.

The typical indicators of an at-risk customer are:

  • Large number of calls
  • Expression of dissatisfaction
  • Competitor mentions and comparisons
  • Enquiry of alternative price plans
  • Customer experience issues
  1. Focus on proactive retention approach

The typical approach to retain a customer is reactive, where companies generally wait for a client to contact their support team before beginning a conversation. Instead, recurring-revenue businesses should reach out to customers proactively and anticipate their needs. Take the time to analyze how a customer is using their product/service as well as their relationship with customer support. Customer insights from unstructured data help the creation of proactive retention strategies via customer service teams and marketing campaigns.

Proactive retention effort works better because customer dissatisfaction is much more heavily correlated to defection than customer satisfaction is to loyalty, keeping obstacles, problems, and difficulties out of a customer’s path will almost certainly reduce the likelihood that the customer will defect from your brand.