The Role of Analytics and Reporting in Improving Customer Retention

Analytics on LivePinch
Happy Customers = Returning Customers

Businesses concentrate on increasing sales and generating rewarding conversions when they should first align all their resources with the basics of customer retention. For established businesses, concentrating on returning clients is the best way to approach marketing. Moving forward, the answer to growth-related queries isn’t about acquiring new customers but to retain the existing ones.

Nothing against Acquisition!

We are in no way undermining the value of customer acquisition. Instead, we are projecting the fact that once acquired; the responsibility of a business is to retain the clients, under any given circumstance. Believe it or not, the first step of customer acquisition i.e. interaction is also the first step of customer retention.5% increase in the customer retention increases the profits up to 125% Click To Tweet

Based on studies, only a 5% increase in the customer retention rate increases the organisational profits anywhere from 25% and even up to 125% in some cases . Acquired customers remain skeptical and make smaller purchases whereas the retained clients have complete faith in the quality of business offerings. Therefore, they are better placed when it comes to making sizeable purchases and improving ROI.

CAC Concerns are real!

Every company spends a considerable amount of financial resource to acquire customers in the first place. Therefore, every sale made by the customers helps pay back the CAC or Customer Acquisition Cost to the enterprise. Companies who fail to retain customers never get back the CAC which is essentially considered as a net-negative factor.

Reports released via mobile intelligence platform signify that, on an average, most app-based firms only retain 10% of the existing customer base, each month.

Reporting and Retention

Businesses looking to track insights regarding existing customers, their preferences, buying habits and sales journeys can rely on functional reports. Most organizations have dedicated Customer Relationship Management tools that allow them to track customer data and generate actionable reports, if and when necessary.

Segregated UsersFigure 1: Segregates all the users visiting the web site from the anonymous users

Here is a customer activity overview report that gives an idea about the new users the website is getting. The difference clearly signifies the number of retained users.

However, leveraging the report depends on nature and area it covers. Organizations can have a fair idea of the sales funnel and its progress via the sales funnel and pipeline reports. Apart from that, the stage distribution report also gives a fair idea as to how and when the customer is interacting with the brand, after the first sale. The right set of reports empowers businesses and allows building detailed client journeys.

LivePinch Website Elements
Figure 2: Website Elements for Generating Reports – LivePinch Interface

In case business is encountering churn and losing customers, loss reason by source and stage conversion reports can actually come in hand. Dedicated Customer Engagement Platforms like LivePinch offer a host of report generating metrics for businesses to plan out effective customer retention journeys.

Role of Analytics

Analytics starts with the scope of reporting ends. To simplify things further, reporting reveals the data and the ‘what’ behind the customer behavior. Analytics, however, go a few steps further and process the data to understand the ‘why’ and to indulge in exploration, interpretation, and questioning of the available data.

New vs Returning UsersFigure 3: Raw data which gives an idea about the returning users and how long their sessions are active.

Presents a clear picture about returning customers showing interest in continuing sessions or not.

Analytics isn’t served to the businesses on the platter. Instead, these insights need to be pulled out to make strategies regarding customer retention. Although reporting is a generic way for understanding the platform-centric activities of the returning customers, analytics helps businesses to evaluate the trends and activities for finding the best route to minimize churn and increase sales.

Customer retention analytics comes in diverse forms and empowers organizations to reduce churn. Once the churn rates are taken care of, the next strategy is to tap into the journey analytics to get an idea of customers’ interaction with the website. Analytics leverages the data from diverse reports and helps create a homogenous view of the customer.

Once the customer preferences, reasons for minimal interactions, segmented association, and participation in surveys are noted, it becomes easier to implement the right set of actions for keeping them interested. The best tools for the organizations are to opt for prescriptive analytics i.e. using survey-based questions, descriptive analytics i.e. using raw data, and journey analytics for understanding the preferences of the returning customers.

How LivePinch Contributes to the Existing Arena?

Be it unified reporting or tapping into the analytical side of data deployment, a Customer Engagement Platform can help businesses keep a track of all the returning customers while offering details about their preferences, associated cohorts, and churn rates if any.

Profile AnalyticsFigure 4: LivePinch platform that reveals descriptive analytics and allows businesses to minimize churn

The platform allows businesses to target the core areas of analytical importance, including retention trends via traffic source, retention trends via marketing campaigns, and retention trends via platforms.

LivePinch is one such customer engagement platform, with a keen eye for customer retention analytics. LivePinch makes it possible for businesses to analyze the activities of returning customers and allows them to run marketing campaigns or take actions accordingly. LivePinch makes sales funnel, pipeline, and navigation reports available to the business. The interface also supports descriptive analytics where insights can be drawn from the available data, based on the combinations, website activities, and other factors.

Retention as the Stepping Stone to Increased Sales
Retention Rate = {(Customers at the end of the journey- new customer along the way)/Customers at the start of the journey} x 100 Click To Tweet

This formula clearly signifies the importance of reporting and data availability when it comes to analyzing the quantitative side of customer retention. Moreover, the cost of acquiring new customers is almost 500% higher as compared to customer retention.

Therefore, if you are looking to concentrate more on acquiring new customers rather than retaining the loyal ones, it’s time to reconsider. Moreover, customer retention isn’t a concluding process where businesses can look at the results at the end of a campaign. It is an iterative process and requires organizations to keep a continuous track of the data, reports, and analytics for monitoring each and every concern with immediate attention.

Every customer interaction is different and you can only understand the same with the right set of reports and analytics at your disposal.

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Mandeep

Cool Post!

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