It doesn’t matter whether your business is big or small. Customers/clients are essential for your business because they drive revenue. Retaining a modern-day customer is harder than ever before. They need high-quality service from you without wasting their time. As per Salesforce, the customer retention rate you should aim for is at least 85%. That means your customer churn rate should not be more than 15%. That’s a difficult number to maintain in this competitive world. But it is not impossible.
Here’s what you can do to achieve that.
With the advancements in artificial intelligence and machine learning, it has become easier to understand customer behaviors and activities. By analyzing customer data and extracting insights, you can make well-informed business decisions. When done well, customer analytics will allow you to:
- understand your customer well,
- optimize their customer journey,
- identify inefficient processes that need reengineering, and
- most importantly, reduce your Customer Churn Rate.
Though customer analytics is the need of the hour for every business, it is not as simple as it seems.
The most challenging part of it is the customer churn analysis.
And if you want to do it yourself, you need to be aware of a few things first.
Let’s go through some challenges you might face while performing customer churn analysis.