Reduce Customer Attrition
Are you making these awkward mistakes with customer retention?
Let’s be honest: Compared to landing new customers, the process of keeping them just isn’t that alluring.
Unless, of course, you’re into predictable revenue, high profitability and an enviable brand advantage.
In that case, a world-class customer retention capability is the head-snapping, center of attention you and every other subscription-based business are ready to pursue.
And who could blame you? Imagine what life would be like with little to no churn:
Year-over-year growth that doesn’t rely on acquiring new business. Steady, committed customers that flood you with referrals. A bottom line that looks better and better in black.
If you’re still admiring world-class customer retention from afar, you’re going to need a winning approach to have a fighting chance.
- Pinpoint which customers are at-risk to leave?
Some are eyeing the door, some aren’t and some are in between. Without knowing who’s who, retention efforts can come across confusing at best and at worst, inappropriate.
- Explain why?
You could assume every customer “at-risk” is restless for the same reason. You could also try to woo someone with a love letter addressed to someone else.
- Act in time?
Answers to the first two questions won’t help if customers are already walking away. Unless you spot and heal the rift before they notice it, they’ll be gone.
These are the keys to the heart of world-class customer retention. Without them, your approach is bound to end in awkward failure.
How to end churn
We can put these keys in your hands.
We can help make your approach to customer retention smooth, natural and irresistible.
Through the surprisingly seductive power of analytics, you can:
- Predict which customers are “at-risk” before they start drifting away.
- Uncover the unique reasons why each customer will grow dissatisfied.
- Implement powerful, personalized strategies to delight and retain customers at scale.
In other words, with a world-class customer retention capability, you can end churn. Our methodology makes it possible.
How we build your world-class customer retention capability
Step 1 – Interaction Mapping
First we set out to understand where you interact with customers and how it influences their experience––paying close attention to what’s likely turning them off.
We map out your customers’ experience by diving deep into feedback sources including calls, interviews, surveys, social media, targeted research and satisfaction reports.
By the end of this step, you will see exactly how, where and when your customers’ interact with you and a list of which interactions are most likely hurting retention.
Step 2 – Customer Segmentation Analysis
Next we develop models that segment your customers by behavior. This segmentation helps you make smart, data-driven decisions about finding, attracting and retaining your most profitable customers.
We collect and prepare the behavioral data to determine where and what kind of retention actions should be “triggered.” We also run a proprietary “clustering” algorithm to identify and profile the customer segments.
The result is a mechanism that allows you to identify customer behavior that signals the highest risk of attrition so that you are prepared to act before they think about leaving.
Step 3 – Identify “AT-RISK” Customers
Then we develop a statistical model to help you predict how likely a customer is to leave and when.
We collect and prepare the data to develop a model to identify those at-risk, then we run multiple tests to validate your model is accurate.
Once Step 3 is complete, you will be able to generate a “risk score” for each customer and a list that fits with your ability to effectively address their concerns.
Step 4 – Root Cause Analysis
It’s time to understand why these customers are leaving.
We compile and analyze internal and external sources of customer data, behavior and attitudes to identify root causes of attrition.
At the end of this step, you will have detailed summaries of what’s driving attrition organized by key dimensions including product and customer profile.
Step 5 – Remediation Efforts
Finally, we develop your action plan to produce quick retention wins and strategic improvements to your customers’ experience.
- We develop and prioritize short-term and long-term recommendations that address the root causes of churn
- We facilitate internal management discussions and operational alignment to the recommendations
- We develop a roadmap for quick wins and strategic improvements of customer experience
- And we develop impact analysis outlining potential benefits, costs and risks of each remediation initiative.
Actionable recommendations to reduce churn by addressing its root causes.
Get the keys to world-class customer retention
When the engagement is complete, you will have:
- A List of “At-Risk” Customers: You will know which of your existing customers are most susceptible to churn in the short term. The list is not only accurate, it is also small enough to be manageable so that you can achieve quick retention wins.
- Churn Root Cause Analysis: Thanks to leading-edge predictive analytics, you will know the likely causes of your “at-risk” customers’ churn, which will allow you to respond with highly personalized retention strategies.
- Next Best Retention Action: Based on the identified causes, you will know what to do next and when in order to engage and retain each customer.
Why use this approach?
Because it is immediately actionable. You will not only know who is at risk of attrition, you will also know why so you can stop churn before it happens.