Applying a successful customer retention strategy
Customers today have higher expectations than ever before. Whether they are individual consumers or businesses, they all seek personalized experiences based on their needs. In other words, they respond to experiences that are:
- Tailored to their preferences
That’s why these days, it is only possible to increase customer retention by leveraging analytics.
Despite the rise of connected, agile, customer-focused products, brand loyalty has been declining. The issue is clear: while connectivity equips companies with a way to measure customer satisfaction, it does not help deliver a truly personalized experience.
More than ever, customer churn is the number one challenge most customer companies are facing.
Before looking at real-life examples of customer retention analytics and strategies, it is essential to take a step back to better understand the evolution of customer needs.
Evolving with customer needs
Staying relevant in a fast-paced market means more than just providing the right price or a good product to keep customers coming back. For businesses to keep up, they need to evolve with customer needs.
Companies who rely on customer centricity as a key differentiator have to recognize what that really means. It means understanding the customer, which is not something you can do without data and analytics.
But understanding the customer needs is only the first step. To truly increase customer retention, you need to leverage analytics.
How to increase customer retention?
As we mentioned before, customer retention starts with data. However, not all data is valuable. For instance, in the smart home industry, product usage and performance data are likely to lead to the most valuable insights.
Rotimatic – a smart, fully automated flatbread-making device – leveraged product usage and performance data to reduce churn, drive brand engagement & ultimately increase customer retention. Read more about it in our case study.
To propel a connected product strategy, companies like Rotimatic need to enable actionable insights that deliver value to the different stakeholders – product, operations, services, etc.
How IoT analytics help with customer retention
Some of the cross-functional benefits that are enabled by IoT analytics include:
- Customized experience for different users based on user behavior and needs
- Real-time understanding of the impact a new firmware release has on product performance and the customer satisfaction score
- Identifying gaps in the customer experience that can improve the overall experience
A recent Harvard Business Review (HBR) study found that 58% of companies have seen a significant increase in customer retention and loyalty after using real-time analytics. IoT analytics empower companies with a better understanding of usage throughout the customer journey.
Companies who effectively use engagement analytics benefit from an increase in customer retention and loyalty, revenue growth, and speed-to-market.
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