Artificial Intelligence and Anti-Churn Strategies: How to minimize the risk of customer abandonment from your customer base

It is essential for companies to be able to set up strategies capable of decreasing the churn rate which, if uncontrolled, can have serious repercussions on both revenues and corporate image, and which are called “anti-churn strategies”.

The profitability of a company depends largely on the ability to retain existing customers. Industry research say a 5% increase in loyalty can increase profits by 25% to 95%.

Keeping a customer in a company’s customer base certainly costs less than acquiring them a second time. Moreover, keeping a customer helps to enhance the brand as well as the product marketed by the company: a customer who stays with the company is a person satisfied with what they buy or have purchased, especially for those subscription services or with recurring payments.

Analyzing the churn probabilities of the customers present in the customer base allows the company to better understand the needs of its customers: knowing what the reasons are that push them to abandon helps the company to understand which are its own points of strength and weakness those of the proposed product or service. By doing so, it is possible to implement retention strategies, but also opening new ideas of change for the product or service that in turns make the customers to change their mind or even anticipate their choice of abandonment, solving the problem before it even happens.

To be able to better analyze their customer base and understand their customer’s needs in depth, companies must focus on cutting-edge technological solutions to be able to analyze huge amounts of data that are generated with every interaction with their customers, and hence draw up the necessary strategies to reduce the possibility of churn.

It is therefore necessary to rely on Artificial Intelligence, capable of providing in a few moments an exhaustive picture of the needs and requirements of its customers and, in particular, capable of solving the most common problems affecting customers who are at risk of churn.

The first reason why customers are inclined to abandon a company is linked to price. If customers find a more convenient solution to solve their problem, they may decide to switch supplier. Not only with the classic market analyses, but adding those carried out by the AI, (which allows us to study both the industry market and the competitors), we can see what the average prices of the sale of a product or service are, and above all, how much consumers are willing to spend to obtain that product or service. This information serves your teams to know which proposal to make and in the best price range.

A second issue relating to the risk of customer churn refers to the inadequacy of the product or market in which the company is located. If salespeople are struggling to meet quotas and not understanding clearly their prospects’ needs, the result will be that customers will abandon the product or service within a few months when they realize that they cannot achieve their goals using the solution. Also in this case, by relying on Artificial Intelligence, it is possible to analyze both the market and your product in order to identify in advance what the unsatisfied needs of consumers are in order to present yourself as the solution.

A final factor to take into consideration which increases the risk of churn of your customers is linked to the customer’s experience with your brand. If the experience of using a software or application is buggy, faulty, or otherwise difficult for the customer, they will be less likely to use it regularly or recommend it to a friend. Similarly, if a customer’s experience with a marketing content or the customer service team is not positive one, they may be more likely to go elsewhere.

Customers want to feel welcomed and valued by the communities they support. If they don’t have positive experiences interacting with the company they choose, they won’t want to stay.

Using artificial intelligence, it is possible to correct these problems before they see the light and risk affecting the customer’s life value in your company.

But how can you implement artificial intelligence within your company?

With BigProfiles, which provides its customers with an easy and intuitive artificial intelligence platform capable of analyzing very large quantities of data in a very short time, suitable for both sector experts and those with no knowledge of coding.

Thanks to it, your teams will have the possibility to predict any customer’s behavior within your CRM and consequently set up models capable of tracing the best possible strategy to be able to reach your retention, acquisition, cross-selling or debt collection objectives.

Do you want to know more about how to implement BigProfiles within your company and start harnessing the power of Artificial Intelligence?

Fill out the form below and request a free demonstration with one of our consultants!