- April 5, 2021
- Posted by: Vaibhavi Tamizhkumaran
- Category: Text Analytics
Acquiring new clients is a lot simpler than keeping existing ones. But if you can get your clients to be loyal, then your chances of having a profitable company are high.
In today’s world, depending on conventional retention methods simply won’t work.
This is where the turnover rate for consumers really comes into play. In assessing your overall market performance, it’s a crucial measure. On a single purchasing period, consumers don’t buy, so traditional emails almost always miss the mark. Add in the complexities of campaign design and cross-channel management and you’re left with a complicated problem. With marketing budgets and the onboarding phase costs, it is expensive to gain new customers. As a result, while it is necessary to increase your customer base, increasing the lifetime value of your current customers is an equally valuable (and more cost-effective) business strategy. In order to reduce customer turnover and improve customer lifetime value, brands should also introduce a set of three strategic safety nets around their clients:
- To maximise customer loyalty and minimise turnover, customer experience management
- Total loyalty partnership services and personalization to keep clients satisfied and returning
- Analysis of Churn prediction data to recognise high value clients and churn threats until it’s too late
- Churn analytics solutions help to recognise high value clients and churn threats until it’s too late
What is Customer churn?
Customer churn is when a client ceases his or her connection with a company. Usually, online companies regard a customer as churned after a certain period of time has passed after the last contact of the customer with the site or service. Both lost sales and the marketing expenses involved in replacing those customers with new ones are included in the full cost of churn.
For any company, the capability to predict its customer churn, when there is still time to do something about it, represents a huge additional potential revenue stream. In addition to the direct loss of sales arising from a customer leaving the company, the costs of attracting the customer initially may not have been covered by the spending of the customer to date. Also, the acquisition of a new customer is often more complicated and costly than the retention of a current paying customer.
All we know about how important Customer behaviour within our website is. You might also read on Voice Of Customer Analysis For The World`s Largest Sports Goods Retailer.
Role of Text Analytics in Customer churn prevention
There is a widely accepted notion that only 20% of the information available to an enterprise is structured data, implying that the majority of the 80% is in an unstructured form.
If companies were able to handle customer churn to some degree and increase customer loyalty to some extent only by analysing 20 percent of structured data, then in the study of unstructured data, there would be a huge opportunity waiting to be leveraged.
In contact centres specifically, it may not be appropriate to examine just the standardised data to understand the key cause of the customer call. Unstructured knowledge has secret perspectives that can assist us in discovering the true reason for the customer call. A few questions that will always run through your head, as a customer value boss, will be:
- What is impacting the experience of customers?
- How can I avoid customer turnover?
- How can I raise the loyalty of customers?
- Without affecting efficiency, how can I reduce the cost of service?
For any profitable company, these are the problems that need to be found and addressed. To the degree anticipated, you might have introduced the best technology but are unable to minimise churn and improve customer loyalty. Text Analytics is the solution to this problem! It focuses on collecting valuable pieces of data from consumer experiences, and these insights will assist you in making choices that transform into results-oriented behaviour.
Text analytics solution plays a key role in churn prevention and thereby increase ROI! It focuses on collecting valuable pieces of data from consumer experiences, and these insights will assist you in making choices that transform into results-oriented behaviour.
“McKinsey found that “executive teams that use consumer data analytics extensively across all business decisions see a profit gain of 126 percent over businesses that don’t.
A text analytics platform generates client insights from various data, leverages the importance of your agent notes. You can get answers to your most important questions by extracting information about customer sentiments, efforts, and purpose, such as:
- What is driving the experience of clients?
- Who are the clients that are at risk?
- Is it predicted that they would churn?
- What’s driving the repeated calls?
- Who are the right agents for me?
- How can I deal with the cost-to-serve?
A series of events that make them lose interest in your business are causing customer churn. So, using unstructured data and historical data effectively, and applying text analytics will allow us to understand the customers’ main problems; and you get a chance to deliver personalised tips or offers that your customers will not refuse by understanding their problems.
Feeding your customer data to a software that can analyse and bring out actionable business insights is the best way to go about with preventing your customer churn.
Text analytics software is the best in handling text data that can become actionable insights anytime!