Finding new customers and increasing sales is one of the key principles of any company that wants to excel within its industry, but businesses have learned the hard way that stopping at the sale, without taking into account everything that happens after the purchase, can be counterproductive and lead to reduced revenues and damage to the corporate image.
The relationship between company and consumer develops well beyond the buying and selling phase and finds its maximum expression immediately after the customer becomes part of the brand’s customer base. From that moment on, the company’s goal must be to maximise customer loyalty in order to increase Customer Lifetime Value and keep the Churn rate as close to zero as possible.
Churn Rate, or abandonment rate, refers to the relationship between outgoing customers and those linked to our company in a given period of time. As you can well imagine, this value must always be kept under control because it represents the litmus test of customer happiness, a key indicator that can show us without any filter if our company is moving in the right direction.
The issue of customer loyalty and keeping the abandonment rate at low levels is of dual strategic importance, on the one hand linked to the economic aspect and, simultaneously, to the reputation and image of the brand. On the purely economic side, a loyal customer increases the Customer Lifetime Value and directly affects the profits of our company, just as, regarding the aspect of the brand image, a satisfied customer not only brings profits, but it also improves the image perceived by consumers of our company, making the acquisition of new customers much more likely.
Focusing on the lowering of the Churn rate with activities aimed at increasing customer loyalty therefore becomes an essential aspect for modern companies, able to improve not only their turnover, but also their position within the target market.
The need for an Anti-Churn program that focuses on providing Customer Experience that can meet the demands of its customers with the ability to personalise it for each case, is particularly important in today’s context in which, given the almost complete interconnection of consumers through the digital ocean in which we are immersed, Customer feedback and opinions have an amplified resonance that must always be kept under control by companies so as not to run into unpleasant situations that, if handled incorrectly, can lead to serious problems.
To do so in the right way, companies must focus on new classes of technology, such as Artificial Intelligence, whose implementation within business models will allow companies to carry out in advance comprehensive analysis of available data and to provide output that, precisely because they originate from the study of customers, allows them to set strategies aimed at reducing the Churn rate through the implementation of loyalty activities personalised for each customer.
In this sense, artificial intelligence is able to generate predictive models to predict the probability that a given customer chooses to abandon a given service or product.
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