Posts

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

Handpicked Customer Experience Articles for Busy Customer Retention Leaders

Customer Experience:

Customer experience is the next competitive battleground, it’s where businesses are won or lost. Companies are starting to expect a $3 return on investment for every $1 invested in the customer experience. Interestingly, 2 out of 3 companies view customer experience delivered by contact centers as a competitive differentiator. According to Gregory Yankelovich, a CX influencer, “Customers are no longer buying products and services, they are buying experiences delivered via the products and services.”

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

When the customer experience starts at home

To serve end customers better, begin with your employees. Charity, the saying goes, begins at home. So too does a superior customer experience.

Growing numbers of companies are coming to recognize the benefits of customer-centric strategies: higher revenues, lower costs, and stronger employee and customer loyalty. In the effort to transform customer journeys and refine direct interactions with clients, however, many companies overlook the need to engage the whole organization, including its support functions, in a customer-centric transformation.

Six ways listening improves the Customer Experience

It takes at least two people to have a conversation, and one of the keys to a successful conversation is listening. Being a good listener can create trust and confidence. It is a helpful skill in both personal and business relationships. Listening doesn’t have to just be between people. It can be between a brand and its customers, or its employees.

Rob Pace, CEO of HundredX, is adamant about creating a listening culture, and he shared six ways that listening can improve business performance.

  • Listening gets you Feedback and Data
  • Listening gets you Stories to Share
  • Listening grows Customer Retention
  • Listening will increase Customer Spending
  • Listening creates Brand Ambassadors
  • Listening Creates Employee Retention

17 stats that show why CX is so important

Customer experience (CX) has been a hot topic for a number of years now, with global brands like Airbnb and Apple setting the standard (and expectations) for what customer experience should look like. As a result, CX or ‘how customers perceive their interactions with your company’, as Forrester defines it – has become a primary focus for businesses.

Research from Salesforce tells us that 75% of people now expect a consistent experience wherever they engage with brands – be it through social media, mobile, or even in person. Immediacy is also in demand, with 64% of consumers expecting companies to interact with them without delay.

Customer Contact Centers Prioritize CX

All customer interactions matter, but ones that take place via corporate contact centers can be particularly important in determining whether a customer has a positive or negative experience with a brand. Contact centers put company representatives in contact with customers, providing the opportunity to address specific needs and ultimately strengthen relationships.

As businesses increasingly focus on the customer experience (CX) as a competitive advantage, many are rethinking the role these centers play, along with the technologies and teams needed to support more complex interactions.

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

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

Drive Business Impact with Proactive Customer Retention Strategies

Multifaceted interactions and transactions between customers and organizations often make it difficult to evaluate individual and collective experiences, identify churn signals, catch churn indications during an interaction, and proactively address them, while the customer is still on the line. But, within this complexity lies great opportunity to forge stronger, more lasting bonds with customers—that is, for companies that can harness their customer dynamics to reduce churn.

“Eighty percent of executives believe they deliver great customer experiences, whereas only eight percent of their customers second this fact,” says Dr. Vasudeva Akula, Co-Founder & Head of Data Science & Customer Analytics Practice, VOZIQ.

“There is a huge gap between what the company thinks and what the customer sees, because companies fail to understand what the customer is trying to accomplish.” -Dr. Vasudeva Akula, Co-Founder (Head of Data Science & Customer Analytics, VOZIQ)

How VOZIQ Predicts Customer Churn?

Most organizations fall short at maximizing the utility of unstructured data, which is typically huge in volume, dynamic, and distributed across multiple touch points in the contact center, such as post-call agent notes, satisfaction surveys, call tags, IVR logs, and so on.

VOZIQ leverages advanced text analytics and predictive algorithms to convert unstructured customer interaction data into a deeper intelligence about churn risk for every customer:

  1. Ingest every contact center customer data source, structured and unstructured.
  2. Apply NLP to understand effort, sentiment, and intent of the customer.
  3. Link this intelligence to what happened on previous calls.
  4. Understand context of an interaction by linking it to past transactions and interactions.
  5. Calculate churn risk, based on sentiment and effort scores.
  6. Build predictive models to forecast future customer behavior, based on past behavior and actions.
  7. Loop back the churn predictions into contact channels, using built-in APIs for proactive retention activities.

“Instead of a survey based approach to understand customer experience – i.e., asking the customer “how well are we doing, and tell us where we can improve” – an organization can leverage the call center as a listening post to understand expressed as well inferred churn indicators,” says Dr. Akula.

Enabling Proactive Customer Retention Strategies and Driving Business Impact

VOZIQ’s Predictive Churn Prevention Solution provides dashboards, reports, and APIs to drive actions, based on predictive churn intelligence. Here is how the solution drives actions:

  • Finds the root causes of cancellations by leveraging multiple customer interaction data sources and text analytics.
  • Predictive churn models using expressed and inferred churn risk by using customer sentiment from agent notes, call reasons, and surveys scores.
  • Optimizes churn program through A/B testing of multiple models and tracking the success of each outreach campaign.
  • The organization, using predictive text analytics, will also get access to churn management dashboards and reports that include:
  • User configurable dashboards with volume and trends of churn propensity and sentiment scores.
  • Out-of-the-box churn root cause reports by key issues, products, customer tenure, geo-locations, revenue groups, etc.
  • Role-specific scheduled reports with weekly, monthly, and quarterly trends in churn propensity and customer satisfaction scores.

Delivering Significant ROI to Clients

VOZIQ provides quicker time to value and an outstanding ROI compared to most other solution providers.

“At VOZIQ, we put an extra emphasis on making the predictive text analytics very affordable and extremely easy to use. This significantly brings down the total cost of ownership of the solution,” said Dr. Akula. “When combined with the positive impact on revenue, it means that our solution delivers huge ROI to any mid-sized recurring revenue business.”

VOZIQ also provides professional consulting services; its team of talented data scientists works with customer teams to jumpstart the analytics program, reducing the starting hassles for the customer, while minimizing the cost of hiring and managing contact center domain experts.

Driving Proactive Customer Recovery – A Customer Success Story

“When one of our clients, from a subscription-based technology service industry, needed a customer retention solution for minimizing their customer churn rate, we used contact center interactions as a differentiator, by identifying customer intent, effort, and sentiment. We then applied predictive algorithms on this unified data to create churn propensity scores that were more accurate and dynamic in comparison with churn risk calculated only on the basis of customer identity in the traditional approach,” says Dr. Akula.

The biggest success factor, according to Dr. Akula, was the way they delivered recovery actions on likely churners. The VOZIQ team worked with the client and its Interactive Voice Response (IVR) system to re-route likely-to-churn customers to special recovery teams. These teams were tasked with retaining the customer proactively by delivering qualified offers, newer products, and higher levels of service.

With this approach, the solution delivered a whopping 500 percent to 1000 percent ROI, resulting in increased annual revenue.

See how VOZIQ’s Predictive Churn Analytics Maximizes the utility of latent interactions in contact centers and delivers significant ROI by boosting revenue and cutting customer care costs!

Originally appeared on LinkedIn.

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%.

 

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.

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

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