Customer retention involves the number of customers lost over a period of time. Typically calculated by the percentage of lost customers versus existing customers over a period of time, such as quarterly or annually, customer retention rate does not tally new customer acquisitions. Businesses and organizations often struggle to keep up customer retention rates for a multitude of reasons. However, there are customer retention strategies and customer retention software programs that improve customer retention rates.
It’s crucial for businesses to invest in customer retention software because customer a study conducted by Bain & Company, along with Earl Sasser of the Harvard Business School, shows that increasing customer retention rates by 5% increases profits by 25% to 95%. The study reveals some other notable facts about customer retention as well:
Realize dramatic improvements in customer retention with Lily Enterprise, an advanced customer analytics and data-driven software solution. Get in touch via email or phone to speak with an NGDATA representative today.
Traditionally, businesses and marketers were concerned more with driving sales and acquiring new customers than with engaging customers, building customer loyalty, and increasing customer retention rates. Now that there is overwhelming evidence that existing customers are more profitable than new customers – Gartner Group projects 80% of future profits come from just 20% of your existing customers and Marketing Metrics has found that the probability of converting an existing customer is 60%-70%, while the probability of converting a new prospect is only 5%-20% – customer retention and retention marketing are taking center stage.
Learn more about Lily Enterprise, NGDATA’s premier customer analytics solution offering a complete, 360-degree profile of every customer, Customer DNA. Get in touch by email or phone to talk with an NGDATA representative today.
So, the challenge becomes retaining customers. And, retaining customers requires giving customers an excellent customer experience and personalizing service. Brand loyalty is a natural result of improving the customer experience and delivering the personalized service that customers expect today. The only way to deliver truly personalized service and create meaningful customer experience is to completely understand customers.
That’s where Big Data and customer retention software come in. Your customers generate data at every touchpoint, but harnessing all of that customer data is a nearly impossible task without utilizing data-driven technology, like that offered by NGDATA. NGDATA’s Lily builds individual customer DNA profiles in real-time, enabling the enterprise to deliver more personalized customer experiences. Lily connects all of the data sources required to get a comprehensive, 360-degree view of your customer in real time, which makes it possible for the enterprise to better engage customers with more effective marketing campaigns that result in greater customer lifetime value.
Retain more of your customers with Lily Enterprise’s Customer DNA, giving you deep insights into exactly what makes your customers tick. Learn more about Lily Enterprise by getting in touch with an NGDATA representative by email or phone today.
When you utilize NGDATA’s customer retention software, Lily, you have access to thousands of metrics for each one of your customers, regardless of her stage in the customer lifecycle. You will get a clear picture of your customers so that you can deliver personalized customer experiences. The singular view of customers created by Lily’s Customer DNA provides a standard, customer-centric approach with thousands of pre-defined metrics that are centrally managed, continuously updated, and made available for all applications, so that you are able to provide the best customer experience possible.
The difference with NGDATA’s customer retention software is that it discriminates between two chief data sources: interaction-based and entity-based data. Interaction data originates from transactional behavior including payments and online tracking. The data is available as individual interaction log lines. When Lily ingests the interaction-based data, it augments it with contextual information to provide an even more detailed picture of the customer. In terms of entity-based data, Lily manages that customer data in relational databases and supplies it in batch and as individual record updates.
Lily is an advanced customer retention software solution that carefully maps each data source into a standard data ingest model as the first step in building customer DNA. Lily not only bases identification on externally supplied identification codes, but it also generates its own unique IDs when tracking web visitors with the optional Lily User (Web) Tracking Service. Both data types, entity-based and interaction-based, are linked to those individual customer IDs while Lily ingests data. Lily also matches individual data records from multiple sources with IDs to create unique master records for each customer. These unique IDs form the basis for Lily’s customer DNA.
Businesses then take control of the Lily Customer DNA not only by selecting the range of metrics that are of most relevance to their marketing and sales goals, but also by defining favorite collections of metrics. With Lily Enterprise, enterprises also are able to put individual metrics into perspective by comparing individual customer DNA with a set or sets of DNA metrics. Enterprises also know exactly when to engage with customers and how, thanks to Lily alerts. Alerts can be set up based on customers at the individual level or at the set level.
Enterprises readily become customer-centric when they understand the whole customer, and they improve customer retention rates when they have the actionable insights it takes to provide personal experiences for customers. Overall, NGDATA’s Lily delivers the singular, 360-degree view of customers that is critical to increasing customer retention rates.
The world’s leading customer-centric enterprises rely on Lily, an advanced customer analytics and data-driven solution, to fuel their customer retention efforts. Learn more about how Lily can help your enterprise retain more customers than ever before by getting in touch by email or phone to talk with an NGDATA representative today.
NGDATA helps brands in data-driven industries, such as financial services, telecom, utilities and hospitality, to drive connected experiences. Our Next Generation Customer Data Platform, Lily™, puts people at the center of every business via Lily’s Customer DNA, which continuously learns from behavior to deliver compelling experiences for companies, such as Belfius Bank, Innogy and Telenet. NGDATA is headquartered in Gent, Belgium and has offices in the United States, Europe and Asia-Pacific.Learn More...