Where do you start if you are responsible for churn reduction?
First, define a consistent set of metrics by which you are able to measure customer churn. This area is more complicated than it should be as many public companies use the most aggressive calculation of customer retention.
The best place to start is by developing a churn reduction scorecard that captures elements your management team believes are indicative of customer health and probability to renew or upsell. Over time, factors on this scorecard can be derived through data science, but near-term, intuition is a great place to start.
The attributes of a healthy customer might include:
- Key feature usage: Is your customer using key / differentiated features or services?
- Training: Has your customer purchased training, been trained and/or are they adept at your product?
- Support: Is your customer logging high volumes of issues, and having a positive experience with your Support organization?
- NPS: Is your customer providing positive feedback on your Net Promoter surveys?
- Billing: Is your customer paying invoices in a timely fashion?
- Reference: Is your customer acting as a reference, both privately and publicly?
You need to understand these attributes before delving into strategies for churn reduction.
And that’s where Gainsight excels. It’s a platform that is focused entirely on customer retention and churn reduction.
The highest marketing priority in today’s competitive environment is churn reduction. The high churn rate or attrition rate is damaging for any business. Companies, therefore, must employ effective ways to reduce churn.
Gainsight, a customer success management company, understands the importance of reducing churn to achieve the business objectives of ensuring customer success and sustained revenue growth. Customers are the lifeblood of every business and losing customers to competitors seals the fate of every company. Gainsight prevents such a situation from emerging by exploring different ways to reduce churn.
Gainsight’s churn reduction strategies include:
- Targeting and attracting right customers
- Constantly adding value around product or service offerings
- Tracking and analyzing customer behavior and interactions to improve customer service
- Ensuring an engaging and personalized customer experience
- Tracking and measuring metrics to identify ‘at risk’ customers
- Ensuring customer success at every stage of their lifecycle
- Leverages customer intelligence and automation to reduce churn, manage retention and explore opportunities
