customer retention: why your dog would make more money than you
DESCRIPTION
Customer Retention is extremely important for any online business, though is often overlook. Learn how to increase your customer retention rate (and reduce churn) with these tips and tricks.TRANSCRIPT
CUSTOMER RETENTION
ORWHY YOUR
DOGMONEY
WOULD MAKE MORE
THAN YOUVERO
DOGS COST MONEY
GROOMING FOOD HEALTH
THEY CERTAINLY
DON’T
MAKEMONEY
YET...you’d never, ever LEAVE them, would you?
BUT YOU’D NEVER LEAVE THEM
IMAGINEIF YOUR ONLINE BUSINESS WAS AS
LOVED AS YOUR DOG
RETENTION...AND YOUR CUSTOMERS
DIDN’T LEAVE. THIS IS CALLED
$0
$5,750,000
$11,500,000
$17,250,000
$23,000,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
20% churn - your business
5% churn - your dog
Customer retention affectsrevenue DRAMATICALLY
$22M / year VS. $16M / year
EQUALSLOYALTY
CUSTOMER RETENTION
SO HOW DO YOU IMPROVERETENTION?
But how do you build loyalty?
Two things influence loyalty.
1. Behaviour
2. Attitude
1
KNOW WHAT LOYALTY LOOKS LIKE
AKA: TRACK EVERYTHING
KNOW YOUR CUSTOMERS’ THOUGHTS BEFORE THEY DO
TRACK USER FLOWS
TRACKCLICKS
ASK QUESTIONS
IF A CUSTOMER MOVES FROM LOYAL TO NOT LOYAL
PULL THEM BACK
ENGAGED
EMAIL IS A GREAT TOOL TO
KEEP YOUR CUSTOMERS
Remind your customers you exist. Useful reports like this from UserVoice...
...or this daily update from Quibb are extremely effective.
Send them regularly or when customers change their behavior.
Build emails around your core building block, e.g. profiles.
Gaming the system Customers with multiple free trials, using coupon codes, etc.
Exporting dataWhy are customers all of a sudden taking data elsewhere?
Credit cards expiringNot renewing credit cards after they expire.
SOME OBVIOUS SIGNS OF A LACK OF ENGAGEMENT:
RJMetricshttp://blog.rjmetrics.com/ecommerce-churn-rate/
Lincoln Murphyhttp://sixteenventures.com/saas-churn-threats
David Skokhttp://www.forentrepreneurs.com/why-churn-is-critical-in-saas/
Totangohttp://blog.totango.com/2011/10/3-ways-to-do-cohort-analysis-on-saas-churn/
LEARN TO CALCULATE YOUR RETENTION RATE / CHURN:
2
EARN YOUR CUSTOMERS’ TRUST
AKA: SHARE, SHARE, SHARE!
TRUST IS DIFFICULT TO PIN DOWN
COMMUNITYBUILD A
Some ideas:
- Phone calls.
- Surveys.
- Blogging.
- Slideshows, etc.
SLIDESHOWSVIDEOS
BLOG POSTSEBOOKS
SHARE!
SHARED EXPERIENCESBUILD LOYALTY
Great companies, like SEOMoz, build great communities by sharing.
Inbound.org is a great example of how to build trust.
Email is your friend! Net-a-porter educate via “The Edit”. Full image link.
Digital magazine =fashion education
KISSmetrics share blog posts constantly: they post every day.
This is what blogging is about!
...they share different formats too.
Re-share content for IMPACT
Sharing your knowledge works. All the cool kids are doing it, like Wistia...
Fun, AND it works!
...and Help Scout. So why aren’t you?
PERSONALEMAIL IS
0%
25%
50%
75%
100%
Email Facebook SMS Twitter
Email Facebook SMS Twitter
% PEOPLE THAT USE EACH MEDIUM DAILY
WE HAVE A WINNER!
90%+
EVERYONEHAS EMAIL
Plus, it’s PROactive not PASSIVE
ENGAGED
TRUST
KEEP YOUR CUSTOMERS
AND BUILD
AND YOUR CUSTOMERS WILL LOVE YOU LIKE
THEY LOVE THEIR DOGS!
WANT TO REDUCE YOUR CHURN?
VERO
EMBRACE LIFECYCLE EMAIL!
VERO
LEARN HOWGET OUR FREE 30 DAY COURSE ON HOW TO SEND LIFECYCLE EMAILS.
DELIVERED VIA SEVEN EMAILS, OPT-OUT ANY TIME.
CLICK ITLearn to send better emails
WANT *EVEN* MORE?
SUBSCRIBE TO OUR BLOG, FULL OF EMAIL MARKETING HACKS
Subscribe to our blog
PS - SHARE THIS PRESENTATION IF YOU
FOUND IT USEFUL :)
...OR FOLLOW ME ON TWITTER
@CHEXTON