Turn anonymous sales invoice data into actionable insights and boost retention by analyzing churned customer profiles. Customer retention pays less money than customer acquisition. Here are a few ways to improve your retention tactics and money flow.
Boost retention by analyzing churned customers
Teams work hard to attract Customers. We exist to serve our Customer needs. We invest a lot of time, effort, and money in gaining our Customers’ trust.
If a Customer is happy with the service, they will stick around for a long time, and the money flow that can be made from that Customer will increase considerably.
On the other hand, if a Customer is unhappy, they will churn quickly, and our business will likely lose money on the investment that we've made to acquire that customer.
Customer retention tells about the ability to turn Customers into repeat buyers
Customer retention tells about the ability to turn Customers into repeat buyers. It indicates whether our product and the quality of our service please our existing Customers.
Customer retention is different from Customer acquisition or lead generation. It focuses on Customers who have already signed up for a service or purchased a product from us.
Retaining customers is about relationships with friends. Friends are reliable, authentic, and aware of what matters to them.
Retaining an existing Customer pays less money
than acquiring a new Customer
Retaining an existing Customer is more cost-effective than acquiring a new Customer. We don’t need to spend big on marketing. It is easier to turn existing customers into repeat ones since they already trust us from previous purchases. Loyal customers are also more likely to give free recommendations to their peers. Increasing retention rates by just 5 percent can increase money flow by multiple factors.
How to measure Customer retention?
Customer retention is measured using sales invoice data: it tells how & when the Customer has bought the service. Customer retention is based on unit economics. Customer retention
Customer retention is the number of Customers who remained loyal to our business over a period of time, like last month or quarter. Also, recency and frequency of activity are also good indicators of customer engagement. Zoom in to each customer with a full history and prediction of future purchases at riskrate.
A less direct indicator of customer retention is our churn. It's the number of Customers lost during a period of time, like last month or quarter. Companies that struggle with customer retention usually have a high churn rate. Boost retention by analyzed churned customer profiles at riskrate.
Customer lifetime value
Customer lifetime value measures the total revenue you can expect from a customer, during their lifetime. It helps a business discover its most loyal customers. Zoom in to each customer with a full history and prediction of future purchases at riskrate.
Some tactics to help to reduce churn
Low retention rates or high churn rates could be bad signs. They may signal that something about your customer experience isn’t going well. But don’t panic—here are some tactics to help to reduce churn.
Call to Customer
The first place to start is to call the customers that are canceling to find out why. It’s recommended that a Founder or CEO themselves make these phone calls. This function is far too important to delegate.
Look for customer profiles that correlate with churn
For example, you might be selling to small and large customers. If so, it’s likely that you will find that your smaller customers churn more than your larger customers. This might incline you to focus more of your sales efforts on your most profitable type of customers. But you might also find customers from a particular vertical have a tendency to churn more.
Use purchase behavior analysis to incentive loyalty
Rewarding customer loyalty is a good way to increase customer retention. Customers like it when services appreciate them and give them reasons to stick around. Strong incentives include loyalty programs or special offers. The more purchasing data you have available, the more personalized rewards and offers you can provide to your customers.
Consistently gather customer feedback
Customer feedback is one of the most valuable tools you have to increase customer retention and reduce churn rates. If you want to know what is and isn’t working for your customers, it helps to hear it straight from the horse’s mouth. If you make contacts more convenient, personal, and rewarding for your customers, they’re likely to be more loyal in return. Identify customer profiles
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