Risk Management

Include ‘Safeguards’ in the Customer Lifecycle to Retain More Customers

The traditional customer lifecycle places plenty of emphasis on retaining customers who have cancelled or are on the brink – this is a flawed method. Sudarshan Ninjoor, in his article in Business2Community.com, urges people in charge of customer retention to include a proactive safeguard stage into the lifecycle to boost chances of retention.

The Safeguard Stage

The safeguard stage focuses on identifying customers at risk and engages them in a proactive manner, before the risk grows into a costlier retention problem. Let’s take a closer look at this stage.

  1. Risk-Based Segmentation: Signs received from customer interactions with call center personnel can provide signs of churn. Based on the signs received, customers can be segmented into high, medium and low-risk. Now, custom marketing campaigns can be carried out based on the risk- segment to reduce churn.
  2. Risk-Aware Care: Once the high-risk customers/callers have been identified by interactive voice response, they can be automatically shepherded towards agents specialized in preventing churn.
  3. Risk-Aware Marketing: Studying high-risk customers can provide an understanding of their profiles. Now, other customers who fall under similar profiles can be approached proactively via multiple channels, such as Facebook, mobile apps and websites with custom offers based on their root cause of churn risk.
  4. Risk-Aware Operations: The awareness of risk can now be shared across operations in the organization. This will allow for differential treatment to customers who have started exhibiting higher churn risk.

Implementing the Safeguard Approach

  1. Identify untapped sources of customer experience insights to help boost retention rates.
  2. Do away with siloed analytics and bring all sources under a single analytics hub.
  3. Treat customer risk as a lifecycle concern, and not just an end-of-term problem. This shift can help create proactive strategies to prevent churn risk escalation instead of only relying on reactive strategies.
  4. Train customer care representatives to carry out proactive engagement and resolution while a customer is on the call — this change leads to higher conversion rates compared to any other channel.

Click on the following link to view the original article in full: https://www.business2community.com/customer-experience/reimagining-customer-life-cycle-to-retain-more-customers-02172297

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