In today’s economy, it appears that all efforts are focused toward gaining new customers, and one feels obliged to follow suit. However, that couldn’t be more wrong. While branding and marketing are leveraged for attracting new clients, you should work just as hard on retaining the existing ones, and using data is the right way to go.
You may wonder why it is essential to keep your loyal customers when it is always the bigger number of subscribers we are striving for. As usual, the answer is profits. First of all, keeping an existing client costs up to 5 times less than trying to get a new one. Also, it is much easier to sell a new product to someone who has their faith in you. What is more, by riasing customer retention rates by 5%, you will be able to increase profits by 25%-95%(!). Finally, in periods of crisis, customer retention is vital for survival, especially for startup companies.
Now that we have your full attention, let’s see what techniques you can use to keep your existing customers happy, satisfied, and always wanting more.
You can’t expect any positive results if your strategy comes down to quick adjustments at the last moment, i.e., winging it. As usual, you have to make a sound plan on how to embed data and analytics. Think of how you can use the data you have already collected, and be ready to make some changes according to the results. In a nutshell, this is what your plan should look like:
- Set your KPIs (key performance indicators) the right way (automated, repeatable, and scalable).
- Identify three main challenges to deal with. Decide on the urgency and prioritize.
- Classify data and system issues so as to know how to approach them.
- Don’t rest on your laurels — reevaluation of your program is needed every 3 months.
- Educate your employees.
Of course, you are going to need the right workforce to interpret the data and come up with ways of solving the issues. Therefore, hiring new senior executives could come up as a solution, but don’t forget about your existing teams either. They should be provided proper training to understand the importance of data solutions and how to use them if the organization is to prosper.
If you wish to attract more high-quality leads, then focus on the existing ones. Analyze their key features and do everything in your power to appeal to these clients in the future, too. With a bit of data analysis, you can find out attributes like a clients’ age, annual spending, job, or industry. Potential customers sharing the same properties as your most loyal ones are most likely to “join the crowd”.
You must have already noticed how the amount of information about your clients is a bit overwhelming. Admittedly, it is difficult for employees to juggle all the tasks and find out why clients are churning, or why they are staying with you for that matter. Fortunately, this is where machine learning comes to the rescue.
By using math, statistics, and probability, machine learning can generate useful insights. In addition, the more data you provide to machine algorithms, the better they get. For example, the more information you feed a system about customers’ existing purchases or browsing history, the easier will it be to determine a relevant up-sell or cross-sell products.
In case your employees are not the most skilled at machine learning, you can hire someone outside your company to analyze the data and suggest practical solutions.
The Right Software
To keep your clients, you have to provide them with a seamless experience. Clients like routine and flexibility at the same time, which is quite a task to achieve. For this reason, it is your mission to select subscription management software that best suits your organization's needs.
Reputable subscription software has plenty of advantages for recurring billing businesses. First, you can customize all the communications. Second, it is much easier to keep close track of your subscribers and their actions, and this data can later be used for analysis. The third is safety. As you are dealing with loads of sensitive data, any leakage could be catastrophic for your reputation, so bear this in mind when selecting subscription management software.
Text Analytics Matters
Finally, don’t overlook one of the most basic strategies, and that is reading the free-text responses to open-ended inquiries.
Nowadays, this is done with text analytics options. By using the right tool with sentiment analysis, you will be able to recognize the issues without too much endeavor. Naturally, for this data to be valuable, you have to implement it into business decision-making.
If you haven’t already, you should make reducing customer churn a priority. Data analytics can be of great help. It can’t be denied modern businesses are surrounded with incredible amounts of data coming at them from all sides. But remember you can always harness the data and use it for your own good. Just make sure you pick the right tools and strategies.