Customer churn can be arduous for even the most well established of businesses. After all, lost revenue isn’t the only thing at stake. According to statistics from Small Business Trends, 65 percent of an organization’s business comes from existing customers. On top of that, the probability of selling to an existing customer is 60-70 percent, while the probability of selling to a new prospect is 5-20 percent. While attracting new customers is certainly important, nurturing existing clients by 5 percent increases profits by 25 percent to 95 percent, according to research by Frederick Reichheld of Bain & Company.
Historically, retaining customers has been a straggling business indicator. By the time organizations could assess what things were going wrong in the customer journey, the customers had already churned. Today, increasing access to data means businesses can leverage predictive churn analysis capabilities to identify at-risk customers and prevent them from leaving.
Are you ready to increase customer loyalty and avoid revenue loss?
The 411 on machine learning
Leveraging artificial intelligence (AI) and machine learning to forecast behaviors can help businesses grasp unbury once hidden indicators of future churn. Using platforms like Tethr, organizations can collect raw data on interactions with customers and transcribe it into a searchable format, while collecting powerful insights to help leaders immediately zero-in on the best opportunities for driving transformation. These insights can uncover reasons for customer dissatisfaction, compliance risks, problem agents and areas of customer effort.
Hindsight is 20/20, but your customers don’t care
Without machine learning solutions like Tethr, businesses aren’t aware that a customer is a churn risk until it is too late. By the time they try to step in with a better solution, an apology or a discounted rate, the customer has already decided to take their business elsewhere. What good is an excellent save offer if your customer has already signed a contract with someone else? Your customers are already telling you what is and what isn’t working with your products and services each and every day. Platforms like Tethr allow you to listen to these customers and step in as soon as they become a churn risk.
Effort is the strongest driver to customer loyalty — or disloyalty
Real time effort tracking has arrived. The Tethr Effort Index (TEI) helps companies track Effort levels in real time, immediately drilling into those high-effort interactions that are likely to create disloyalty and churn. Coupled with the Effort dashboard, leaders can quickly pinpoint the biggest opportunities for improvement in the customer experience—whether it’s a better mobile experience, a product upgrade or an opportunity to coach agents on new skills.
Reacting to churn is no longer enough. Prediction and prevention of customer churn requires advanced analytics that provides a more thorough understanding of the customer experience. Companies who learn to utilize these analytics to reduce churn will offer a stronger customer journey, a more positive brand experience and a huge competitive advantage.