The amount of channels you can use to communicate with your customers has expanded and continues to grow. To help you communicate with your customers, MarketingSherpa commissioned a study last month and asked 2, American adults about their channel preferences.
Why Did This Happen? Based on data and user feedback from previous efforts, Mention already had a good idea of what their customers responded to.
Using this information, they were able to craft a strong communication plan that ultimately made their service more valuable for customers—giving them a reason to stick around. Show them Email marketing case studies 2013 tips, guides, and success stories. Engagement flags, and your product or service goes from an everyday occurrence to being used once a week, then once a month.
Think project management eg. Basecamp and Mavenlink or accounting software eg. As the image above depicts, an individual customer might be on holiday or working on different projects, therefore their usage will temporarily stall.
When companies measure churn based on cancellation alone, they miss the opportunity to reengage the once-a-week user who, unlike the cancelled user, can still be retained.
The key is understanding that churn happens long before customers decide to cancel. They have different relationships with your business, and sending the same email to these two customers would be a huge misstep.
For long time customers, define the metrics that indicate a drop in engagement. If your product revolves around team usage, find ways to bucket their usage together and measure that over time. Teams are less likely to churn if they are happy with your product because of the costs to move to another software solution.
Accept that you will not be able to retain or re-engage every customer, and it will only hurt your reputation to fight back or spam them for months after cancellation. Lowering acquisition costs is one way to lessen the burden, but lowering churn is also critical, as the longer customers stick around the more they end up paying in subscription fees.
Because churn is a complicated metric, HubSpot wanted to implement a more concrete measure of customer success.
Yet customer satisfaction is critical to keeping churn low. The Execution Rather than looking at churn alone, HubSpot uses their Customer Happiness Index as a more holistic representation of success. Though many customers are familiar with inbound marketing, others are starting from scratch, and HubSpot offers a mini-education in inbound marketing to help customers achieve the highest CHI score possible.
Regardless of age or experience, each customer receives a personalized monthly account review, the goal of which is to help them get as much out of their subscription as possible. HubSpot uses CHI as a gauge of how much value the service is delivering—a critical component to lowering churn.
Actionable Advice To identify the factors that contribute to customer happiness, measure as many dimensions of usage and engagement as possible. Identify the segments with the highest success based on satisfaction, engagement, retention, or another metric that matters to you.
Run regressions to identify which factors contributed to the success of your power users, and combine them to create a scale or score that predicts whether or not other customers will be successful. Make changes to your acquisition, onboarding, support, and more to drive that score up for each and every customer.
Employees were up close and personal with customers, giving them the ability to ensure that the product was delivering value. Today, online sales are fairly anonymous, especially in larger organizations with a high volume of customers.
The Execution Zack wanted to help Zendesk avoid being the kind of company who only calls when seeking renewal, so he helped the company to implement a Customer Account Management CAM team that reached out to Zendesk customers using a 12 month program with regularly scheduled check-ins, phone calls, and emails.
This proactive approach helped to identify and curb potential issues before they could contribute to a negative experience with Zendesk, and the close relationship between Account Managers and customers meant that issues like new management or lack of engagement both of which put an account at risk for churn could be identified and managed early on.
CAMs also provided information about new features, best practices, and resources to help customers get the most out of Zendesk, and they connected customers with Support and Engineering to help resolve problems quickly and efficiently.
This ongoing relationship helped Zendesk to earn trust with customers, resulting in more upgrades and referrals, as well as below-industry churn rates.
Adopting a new software solution can be difficult. Until customers are reaping the benefits, they see it as more of an obstacle to overcome than a valuable part of their business. By assigning customers a CAM, Zendesk helped to make the transition easier, forming a positive relationship in the process.
I have done this at both BigCommerce and Mavenlink, and highly recommend it. Though a high-touch CAM team might not be right for you, the only time customers hear from you should not when you ask them for money.
Use analytics to identify the points at which customers are most vulnerable to churn, and craft a plan for reaching out in a genuine, human even if automated way.
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