Since customer retention is a vital pillar in any business that uses a subscription-based model, no metric is as vital for such businesses as keeping track of customer churn (customer attrition).
If you’re able to predict churn before it happens, your retention game will be at the top-most level. That’d be attributed to the increased ability to address pain points promptly, increasing customer satisfaction.
Here are the top reasons to consider using churn prediction solutions in a SaaS business:
1. Detect At-risk Accounts
In most cases, businesses react to customer attrition when it’s quite late. If you were able to identify churn signs even before it happened, then you’d be at an advantage. You’ll have adequate time to react with increased support and better marketing efforts, thus you’ll be running your business proactively.
Advanced subscription management tools like Cleverbridge take advantage of machine learning to give insights into client behavior and attrition probability. Cleverbridge’s analytics suite, CleverInsights, offers subscription analytics and churn prediction dashboards. That way, you’ll not only enjoy unparalleled visibility into recurring revenue but also customer behavior, so that you can launch countermeasures before it’s late.
2. Mark Out Pain Points
Businesses are different, thus your company’s reasons for losing customers will be distinct from another’s. What’s more, one customer’s reasons for leaving your company may also differ from another’s. These factors put together are the reason why you need an advanced tool that helps you identify pain points and act upon them.
Pain points could be anything from bad quality or absent features in a product, to poor customer service or an uninviting design of the product. Whatever the case, you need to take into account the details that you think aren’t important, but that your clients take seriously. Keep in mind that there’s always room for improvement. Even if your product is nearly perfect, some attractive discounts here and there may increase retention rates.
3. Determine Methods to Implement
Once you’ve identified the root cause for customer attrition, you’ll want to take action. For example, you may decide to reconsider and rebuild products or change your business strategy.
Using a churn prediction tool that leverages technologies like Machine Learning and AI makes it easier to master your domain and come up with the best solution. The best part of it is your solutions are based on real data, behavior, and processes.
4. Create Growth Opportunities
When used in the right setting, a customer churn prediction solution can convert your at-risk customers into prime customers. When you offer them solutions that they are looking for, you can easily convert them into candidates for advocacy or even target them with cross-selling or upselling campaigns.
Talk about next-level conversion of lemons into lemonade.
5. Better Customer Success Playbooks
Despite the importance of playbooks in the different departments of a company, a popular survey revealed an astonishing fact – 62% of post-sales executives don’t take playbooks seriously. When optimized correctly, customer success playbooks can take your business to a level you’ve only dreamt of.
Churn analysis serves as a central foundation for optimizing customer success while basing it on current trends.
To Sum It All Up,
Churn prediction is all about feeling the customers’ pulse. It’s looking at multiple points and fixing every issue that exists and can lead to churn.
With a tool like CleverInsights from Cleverbridge, you don’t have to guess what’s making your customers leave.
