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Learn 5 ways of retaining customers

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

Learn 5 ways of retaining customers

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%.

 

A loyal customer base is the true test of a profitable business.

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

Loyal customers are willing to pay a premium for the products and services, as well as buy more often from the business over time. In addition, they refer their friends and family to the business more often. As these loyal customers generate more business, the operating costs to serve them decline. The combined value of lower cost to serve, higher revenue potential and lower cost to acquire through referrals creates a compounding effect on profits over time.

How VOZIQ delivers retention rate gains?

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.

1.Detect Churn Risk as It Emerges with Dynamic Churn Scores

VOZIQ provides a closed-loop analytics solution that generates churn predictions from contact center data, and then feeds the insights back into customer handling processes for timely and appropriate actions. From call center/CRM text notes, VOZIQ’s Predictive Text Analytics solution extracts sentiment, call reasons, disputes and competition references along with demographic, usage and billing data to create the most accurate customer churn prediction models.

This enables businesses to leverage latest customer interactions and reveal churn risk as it emerges instead of depending upon historical data and trends.

2.Enhance Customer Contact Rate with Risk-Based Intelligent Call Routing

VOZIQ’s solution uses customer contacts already happening at your contact center to identify high risk customers in IVR and re-route them to the highest skilled service professionals for risk recovery.

This churn-risk based intelligent routing has enabled many enterprise recurring revenue businesses to boost their contact rate with high-risk customers by as much as 10x.
This is a huge gain compared to typical retention email campaigns, which deliver very low engagement. Intelligent routing of higher risk customers to higher skilled agents also prevents long hold times, multiple calls for the same issue or call transfers from agent to agent that result in customer dissatisfaction.

3.Improve Sales Effectiveness with Service-to-Sales Model

VOZIQ’s solution analyzes and sorts the variance between low and high performing agents based on various KPIs including customer satisfaction, prior cancel rates, and first call resolution rates. Individual performance is also correlated to call types extracted from text.

These insights, when coupled with intelligent IVR, allow retention leaders to match high-risk calls with empowered and uptrained service specialists with relevant skills. This enables the service specialist not only to engage the customer with due awareness of the risk but also make meaningful offers while the customer is still on the phone. This creates new up-sell and cross-sell opportunities, decreases the churn risk, and boosts customer lifetime value.

4.Enhance Marketing Effectiveness with Risk-Aware Marketing

As VOZIQ leverages the contact center data, i.e. agent notes along with survey data, CRM data, billing data and other available customer data sources using advanced cloud-based text analytics technology, it can effectively find the customers who show higher propensity to churn. The cancellation risk scores and cancellation root cause insights help marketing teams to supercharge their retention marketing program by providing targeted offers through email, web and snail mail.

5.Create Company-Wide Risk Awareness

Using call center/CRM text notes as a powerful source of customer intelligence, VOZIQ’s engine identifies each customer’s intent, the effort the customer had to make to achieve his intent, and the resulting sentiment. VOZIQ also uncovers root causes and builds correlations between various drivers of customer dissatisfaction and cancellations. Hidden in all this data are insights into products, services and competitors.

These insights give a complete view of customer experience at various stages of the customer lifecycle. All these insights provide an opportunity for improved customer experience for retention leaders to collaborate with other departments to drive customer-risk aware improvements.

We have seen enterprises leveraging these insights to achieve enterprise-wide results such as:

  • Improved sales through personalized offerings.
  • Improved field operations with a better understanding of customer experience and risk.
  • Enhanced service through better training and sharing best practices.
  • Improved product by using call center interactions as indirect customer feedback.
  • Enhanced pricing strategies by using customer churn risk drivers and competitive intelligence from your daily customer interactions and advanced text analytics.

Takeaway: VOZIQ uncovers hidden churn risk 2X faster!

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.
VOZIQ creates dynamic churn scores through insights extracted from call center/CRM text notes, and offers an end-to-end solution to drive breakthrough retention actions by injecting risk awareness into all customer-facing teams in a recurring revenue enterprise.

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Reduce churn 2X faster in recurring revenue businesses using VOZIQ’s Text Analytics Solutions

VOZIQ Customer Intelligence Blog

5 Best CX Strategies to Reduce Customer Churn in 2017

VOZIQ Customer Intelligence Blog

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.