named a in the Gartner's
Magic Quadrant for
- Low-code platform
Churn management practice is strongly associated with industries that usually work with large numbers of clients. Try searching in Google, Slideshare as well as YouTube and you will see descriptions, presentations and even books for telecoms (mostly mobile), insurance, banking etc. Nevertheless churn prevention is a significant issue for every single organization. You cannot ignore or set low priority for it no matter how big or small you are. I’m not going to describe all facts why it is so important and cite examples here from researches. Instead, let me summarize the most significant points:
It reminded me a recent TFM&A event in London where lead nurturing tools were at the limelight. Is the battle for a new customer really tough? Unfortunately it seems that this fight will only become tougher in future.
So, without doubt existing customers are very important assets. While bearing in mind and appreciating the value of managing and preventing a churn, medium businesses experience lack of tools to design and execute such campaigns. Traditionally, enterprises have used complicated data mining solutions with prediction functionality (based on mathematical models). For lots of smaller companies this method is not affordable and takes too long time. Medium businesses expect to deliver actions rather than digging into mathematics. In fact as their customer base is not so large, they have more options to build personal relations with customers. Certainly tools should be different. So let’s have a look at how to simplify it.
Basically there are 2 ways how to ensure churn prevention. First is to deliver unique and exceptional customer experience (which by the way is #1 trend in today’s CRM environment). However if you are not Starbucks, Zappos or South-West Airlines you ought to figure out symptoms as well as internal factors which could cause a churn and act effectively at the right time with the right message leveraging all benefits of individual approach. Second option is to design and execute churn management campaigns.
Take a look at a high level model of such campaigns.
A start point is to assess the current state. Firstly, attention should be paid to defining customer value rate. One question that is so easy and so sophisticated at the same time: what constitutes the real value of a customer to a particular organization? Frankly speaking, a lot of stuff. However during the early stages, companies could use simpler models like the traditional Customer Lifetime Value(measured with calculator). Their value could be ‘existing’ as well as potential (a customer with strong potential for future cooperation however with small current profit). My suggestion is to map all components and place into a simple formula.
Additional components should also be taken into consideration (ad hoc example: company’s client pays a little money although provides a lot of references being brand advocate).
Having done the preliminary work, it’s time to move on to asking customers theirs opinion. This is perhaps the most important stage. Idea is to match traditional Voice of Customer programs (technique to collect insight from customers) and surveys with analysing what will make an impact on the decision to shift to competitor. The question of formulating right questions and regularly circulating the questionnaire is out of scope of this post. Anyway, there is plenty of advice on the web.
Let’s emphasize some general issues here.
I think this information is more than enough for a start. Next time we will talk about churn factors and symptoms, and see some examples of how to sense the symptom and initiate countermeasures.
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CEO and Managing Partner Creatio
The last 17 years have been an incredible journey for our team at bpm’online. When we started the company, it was just a handful of young graduates with big dreams, ready to work hard to achieve them.
Over the years, we have experienced lots of ups and downs of growing and running a business. However, there has always been one thing that inspired us: the powerful, unique solutions created on the bpm’online platform by our community of partners and customers, many of whom I am proud to call friends.
Our customers and partners use bpm’online platform and CRM solutions to bring business ideas to life through automation. Solutions that they create reflect unique differentiation of their companies, these solutions are their own creations. It is in the DNA of our customers and partners to generate ideas, create, and to change the status quo. And we’re thrilled to honor and support the creators in each of them!
With that, I am very excited to share the news… Our company has changed its corporate and product names to Creatio!
The new name reflects our strong belief that everyone will become a developer, able to automate ideas and create custom solutions in minutes. We call these solutions “creatios.”
We have rolled out the Creatio renaming on October 30, 2019. I hope you’ll enjoy a recording of an online launch event at creatio.com/new-watch
While our name is changing, the strategy, products, our team and commitment to empowering our users with the best low-code / no-code BPM platform and sophisticated CRM products remain the same. The new name only reinforces our vision of creating a world where any business idea can be automated in minutes.
Please visit our FAQ page for more information on the renaming process. As always, I'd appreciate your feedback and I'm happy to answer any questions.
CEO and Managing Partner