Nobody likes customer churn but the cold, harsh reality is that it happens. You dedicate yourself to running and growing your business all you want but your customers either stay or leave for greener pastures. It’s rough, it’s unpleasant, but it’s not the end of the world because there are ways to avoid it. First and foremost,your team has to know its customers inside and out. By having critical insights into your existing customers’ behavior through the use of business intelligence and a sales insights platform, you can anticipate their needs and problems, and work to meet their expectations and make sure you meet them.
In this post, we’ll show you how to fight the nasty churn and optimize your sales effort in the process, by identifying behaviors that require special attention. We’ll teach you how to do that using SimilarTech’s real-time alerts.
Leveraging data to your advantage
In this fast-paced tech world, changes happen in a blink of an eye. It’s important to be able to track changes in real time in order to identify customers who are on the verge of churning and work to increase their satisfaction. The key is to detect an issue early enough so you can react appropriately. With SimilarTech, you get an option of Website alerts, where you can be notified when a customer starts using a competing technology, possibly entering a trial with your competitor. This is as good of an indicator as you’ll get, sounding the alarm that something important needs attention: that your customers are considering leaving you.
With a real-time alert, you get a second chance to reach out to your customers quickly to decrease your churn rate. Let’s say CloudFlare, a CDN and DNS provider is your customer. As you can see on the image above, they recently added MailChimp to their tech stack, among other things. If you’re in the business of providing marketing automation like MailChimp, you should be worried. MailChimp offers both free and paid options so this could very well be a trial period to test the service.
By looking at your customer’s tech adoption history, you can get a sense of their historical trends: what they added, when they added it, and what they also tried in the past. By knowing their past and current buys, you can get a sense of what went wrong, as well as how your solution can bring improvements. This will allow you to personalize your approach with your customers and understand their motives and the ever-important value. If there isn’t enough value to customers, they’ll have no incentive to continue paying for your service.
Turning churn into retention
As each business is unique, it’s difficult to say what you should consider a tolerable level of customer churn. One thing that can be said, though, is that you should strive for a little of it as possible (ideally negative churn). To do so, you should focus on your retention effort. The often quoted Bain & Company report shows increasing customer retention rates just by 5% increases profits by 25% to whopping 95%. Churn and retention are the two sides of the same spectrum. As such, retention is most likely the best way to beat churn by delighting your customers.
Customer delight is more of an abstract subject that is extremely important in the churn/retention scenario. It sort of looks like proper customer service but it’s more difficult to measure: it’s about going the extra mile, providing that something special to the usual service. The information you gain by investing in this enhanced customer experience will be vital in converting churn-ready customers into loyal ones. You will gain insight into their sentiments and form a more personal relationship which, in turn, will provide you with all you need to deliver customer delight and add more value on a frequent basis.
In that regard, it helps to know what your correlated technologies are. These are technologies that are a prominent part of your customers’ tech stack. By implementing our Technology alerts, you can track which companies are adding and removing a specific technology, including yours. Churn-wise, these alerts can be used to keep an eye on your customer’s tech stack and be notified when they remove technologies that could very well hint you’re next on the chopping block, or if they add technology (or more of them) that are correlating to your competitors. This way, you can strike while the iron is hot and proactively deal with their concerns, instead of looking at the wrong side of the cancellation request.
An example of Technology Alerts
Get to the root of the problem
If you want to retain your customers, you have to not only analyze which ones are likely to churn, but also understand key drivers behind the change. A lot of factors affect churn, be it customer satisfaction and service, cost, value, etc. One sure-fire way to cure the case of fleeing customers is by providing actionable data at the right time. Customers need to see value in your solution. If there is an obstacle standing in the way of it, you need to do everything in your power to help the customer successfully navigate around the obstacle by providing additional features or services, expertise, knowledge, and so on.
With SimilarTech’s, you get a much-needed ally in the battle against churn, be it through crucial actionable insights on customer behavior, their buying patterns, needs, and historical trends. Focusing on improving your customer retention simultaneously improves your sales effort by adopting a more customer-oriented approach. The more satisfied customers are with your service, the less likely they are to leave. By implementing real-time alerts and tracking your customers’ digital footprint from the tech stack point of view, you give yourself a fighting chance to stay ahead of churn and beat it.