We know you - and your business - have learned it the hard way: That cost and pain of losing customers or churn. In fact, the Customer Lifetime Value (CLV) metric determines not just their happiness index but your long-term profitability. Churn, therefore, is one of the most critical metrics that informs most of your strategic growth prospects, such as the below.
- Rapid business expansion
- Improved customer engagement
- Consistent platform enhancements
- Higher customer acquisition
- Faster penetration into new customer markets
- A proactive approach to market changes
- An agile organizational setup
The current subscription landscape offers more revenue opportunities after a customer onboards than when a customer is initially acquired. According to foundational marketing studies referenced in Forbes and other publications, existing customers are 50% more likely to try newly-launched products and spend 31% more than new customers. Well, that’s the ideal picture of a highly profitable subscription business built on cost-effective growth strategies.
To make this revenue opportunity a reality, you’ll need a robust AI-driven analytical engine as your backbone. With an AI-powered subscription platform, you’ll reap the true value of a retained customer.
Here are 5 ways how AI can boost your customer retention leading to a skyrocketing growth rate. Give these a read - and some consideration. You’ll be glad you did.
1. Customer Study
Today, the opportunities to get to know your customers are abundant. To truly leverage this wealth of data for an enhanced customer experience, carve your business strategy around an astute, AI-powered streaming platform that can derive powerful customer behavioral trends and insights while transforming your platform with hyper-personalization.
2. Churn Education
While acquiring a customer requires much effort, more is needed to retain that customer. As a high-growth subscription provider, you are in a conundrum of balancing customer acquisition and customer retention. However, understanding your current churn rate is a must for your retention game plan. An AI-powered subscription management platform does just that. Enhancing your platform with the ability to predict and mitigate churn - down to the acceptable level between two and eight percent - is cardinal for higher retention.
3. Tailored Promotions
Rebounding at-risk customers through targeted promotions equips your platform with agility to alleviate churn before revenues take a hit. An AI-powered subscription platform instills hyper-automated workflows to predict churnable cohorts and develop tailored promotional campaigns to retain those customers. The Evergent Monetization Platform’s offer management module is a worthwhile engine for this kind of catered customization.
4. Payment Flexibility
Besides customers voluntarily opting out, payment failures make up 40% of your involuntary churn rate. Insufficient funds and inactive or expired credit cards can forever end your hard-earned customer relationships. Retention techniques, including the following, are a great start toward building a robust retention engine.
- Pre-dunning messaging to intimate customers about credit card expiry
- Enabling customers to accrue and redeem loyalty points
- Personalized customer service with tailored offer displays
- Enabling a flexible payment system with alternate payment gateways
- Enhancing the platform with the subscription pause and resume capability
Explore the Evergent Captivate Product Suite for a multifaceted toolkit that proactively prevents both voluntary and involuntary churn.
5. Mixed Monetization
Mixed monetization is a revenue model that combines two or more independent revenue monetization models for enhanced subscriber management. With mixed monetization, you get multiple customer touchpoints to maximize your revenue while streaming a single video.
An AI-powered subscriber management system can build your business's right mix of monetization models with a personalized monetization strategy. The Evergent Monetization Model equips you to strengthen customer engagement with a tailored monetization mix, boosting customer retention significantly.
Understand how to maximize customer care and build a highly-trusted customer fraternity over a call with our experts.