Churn management for SMB without magic and data mining - III

In the first blog in the Churn Management series we determined customer value and defined some issues that happen while collecting customer feedback. Then we defined churn factors and symptoms that can be critical or recapitulative. It's time to organise conditions of customer base segmentation which help businesses act differently according to significance of issues to customers: using different communication options according to value rate and preferences, appreciating demographic criteria etc. Please don’t confuse churn segmentation with general marketing/sales segmentation. The major objective of this segmentation model should be based on all necessary components for preventing churn and increasing customer retention.

Now we are ready for action through segments. It’s not time to invent a process though. Here are two types of campaigns (processes) for churn prevention.

1. Proactive campaigns for churn prevention should ensure appropriate actions for estimating the current state of a customer and churn “prophylaxis”. Such campaigns should be regular, based on customer’s value, use preferable channels, personal and adopted according to segments. There is a wide range of practices like: welcome events/ monthly (weekly, annually?) status calls, personalized email notifications, satisfaction interviews (quality assurance), invitations, etc. Proactive campaign could also be part of a loyalty program.
2. Reactive campaigns for churn preventions (run according to symptoms). After detecting a symptom/summary of symptoms, a company should ensure appropriate action (according to segment and preferences) for contacting the customer in convenient ways with purpose to discuss a case/situation and to find the ways of improving the situation. Sometimes it makes sense to offer some kind of compensation (bonus, additional service) but this compensation can’t substitute open dialogue. It’s also important that compensational points have been agreed in advance before contact. It is a good practice to empower a sales representative to decide what to offer such customers during the course of a deal.

Certainly company needs to use appropriate software to streamline and automate mentioned activities. With our solution - BPMonline CRM – in just a few hours, the designed process performs the entire set of events, including:

1. Collect all vital data about customer and analyse real value according to your specific calculations

2. Easily create and run customer satisfaction polls

3. Identify risk factors by setting conditions

4. Monitor symptoms by using triggers

5. Design and execute churn prevention campaigns

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