Technology Based Solutions to Enhance Customer Retention Strategies

Customer churn in the age of information is a fact of life for every business in every industry. Customers have unprecedented access to data, enabling easy comparisons of alternatives, as well as hassle-free provider changes with a simple click of a button. With Accenture reporting that 77% of consumers are no longer loyal to any particular brand, companies must work harder than ever to retain their customer base. It is well known that the acquisition costs of converting new customers far outweigh the cost of maintaining current customers, further motivating companies to find and implement innovative customer retention strategies. Technology-based customer retention solutions provide powerful platforms and fresh approaches, and most importantly, practical frameworks and processes to successfully engage with customers at scale. They have been proven to consistently decrease churn and improve a business’ bottom line.

Customer churn formula

In addition, partial churn refers to a customer’s decision to downgrade their level of service or purchase a decreased number of products, or otherwise become less profitable to the company.

The price of a high customer churn rate

Happy customers = low churn

Technology — key to successful customer retention strategies

Four pillars of customer retention

  1. Customer care and support — making sure that any issue with your service product is addressed quickly and effectively and leaves the customer satisfied with your response.
  2. Personalization — understanding your individual customer needs and engaging with them according to their preferences and personality.
  3. Post-funnel marketing — ongoing engagement with existing customers, by giving them the attention they crave, listening to their voice and predicting their needs and wants.

Customer success — Gainsight

Customer retention strategies can be triggered as a result of behavior or lack of behavior. For example, retention-driving emails can be sent to encourage better engaged, or notify of unused features. Harvard Business Review reports that providing customers with short tutorials on product features before disengaging can reduce churn by 6%.

Customer care and support — TechSee

Personalization — Evergage

Gaining insight into customers and personalizing responses allows companies to provide a better experience to the specific customer based on the history of his preferences and other data. It also enablesthe company to prioritize the customers in danger of churn and allocate resources towards high value customers. Harvard Business School’s Managing Churn to Maximize Profit, recommends that rather than redirecting time and resources to retaining any customers on the brink of churning, businesses should focus on their attention on the most profitable customers on the brink of churning.

Post-funnel marketing — Optimove

Summary

This post was originally published on the TechSee Blog

TechSee revolutionizes the customer support domain by providing the first cognitive visual support solution powered by augmented reality and AI. www.techsee.me