Bain & Company
How Do Analytics Factor into Acquiring & Retaining Customers?
The Importance of Acquisition and Retention
Let’s start with a couple facts. It’s been shown that:
A 5% increase in customer retention can boost profits by 25%
Brand promoters are worth 3x more than passive customers, and 7x more than detractors
Companies with greater retention rates account for 75% of that additional value, and encouraging a passive customer to become a promoter is roughly 3x more valuable than convincing a detractor to become passive
The truth is, many companies have difficulty acquiring and retaining customers. So what’s the solution? How can you keep your business in motion and on an upward trend by not only bringing on new customers, but maintaining the customer relationships you already possess?
It’s Good to Get Analytical.
Analytics are critical for maintaining and growing your customer base because they play a large role in making those customers feel cared for. Analytics allow you to reach the right customers at the right time, increase your propensity to connect, convert and ensure customers are more likely to stay in contact with your brand. In addition, analytics let companies personalize the customer experience, reducing the need for mass sales pitches or blanket selling.
Our extensive analytical capabilities track (among other metrics) time of day, lead demographics and scoring, bucket reports (funneling customers to help drive conversion) and number of call attempts. And yet, analytics are practically useless unless you can truly put them to work.
Actionable Analytics: Why Analysis Matters The sad truth is that analytics are often only reported, and not analyzed. This leads to lowered effectiveness for the company as well as decreased revenue opportunities, as potential sales are lost by continuing to mass-sell (versus targeting preferred demographics).
But it doesn’t have to be that way. Data enables companies to build warm lead lists, predict propensity to connect and increase first-attempt connects, all of which can help increase your sales results as much as 20-25%.
The Bottom Line Access to analytics is important, but analyzing the analytics – putting the data to work for you – that’s where the difference is made. It’s all about predictive models that leverage diverse sources of data such as text, survey responses, and customer profiles.