Onboarding customers and reducing churn
The key objectives of an onboarding strategy are to provide exceptional customer service and guarantee that your new customers receive the same treatment as your leads. You won’t know how your customer turnover rate is affecting your overall revenue if you don’t know how many customers are departing or not coming back. Furthermore, you won’t be able to make changes to lower the turnover rate. As a result, if your onboarding strategy is effective, you can reduce customer churn and raise client lifetime value.
Here, we provide a helpful innovation vocabulary from several current and emerging technology. Find below the core innovation definitions, along with related articles and startups.
B
Business Analytics
Business analysis (BA) is a quantitative method for solving business dilemmas/problems using a rationale collected through statistical models, data analysis, etc. This includes the iterative and systematic study of an organization’s data, focusing on statistical analysis, Artificial Intelligence (AI), and machine learning to guide decision-making. Thanks to the rapid development of data, these companies see data as their business assets and are always using it to get an advantage, especially in the marketing field. The success of business analysis depends on the quality of the data sample, experienced analysts who understand the industry and, or market, and the efforts to use the data to obtain information that will lead to business decisions.
“Teams that rely heavily on customer data analysis for all of their business decisions have a 126% increase in profits compared to companies that do not.” (McKinsey, 2014)
Startup:
25sprout (Taiwan)
25sprout is a digital creative consulting firm that offers website development, SaaS, business automation, software, and application design.
Awoo.ai (Taiwan — Japan)
Awoo AI is an artificial intelligence marketing system that enhances the online buying experience by analyzing customer behavior in actual stores. It democratizes decision-making by using artificial intelligence to connect every company with the intentions of its customers.
C
Churn
Many customers stop doing business with you in a given period. Thus, churn calculation always goes hand in hand with the retention rate. Churn Rate can be calculated in any given period, but mostly it will be calculated based on monthly, quarterly, and, or yearly.
Here is the formula to calculate the churn rate in a given time.
- Churn Rate (%) = (Number of Customer Lost/Number of Started Customer)*100
- Churn Rate (%) = 1-Retention Rate (%)
A minor 5% increase in customer retention and preventing churn can increase profits by 25% to 95%. (Harvard Business Study, 2000).
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) is software that helps companies manage their entire customer lifecycle, including sales, marketing, customer service, and call centers. Compared to Enterprise Resource Planning (ERP), CRM solutions manage external business relationships and communications in all contexts of marketing, sales, and purchasing. Reciprocity is built, and successful relationships can be achieved through many communication channels. There are two types of CRM software available today: (1) traditional licenses and (2) cloud-based software (SaaS), usually sold as a subscription.
Incorrect behavior of services can reduce the number of transactions by 78%. (Source: American Express)
Startups:
OakMega (Taiwan)
OakMega is a provider of CRM solutions for cross-platform messaging applications for marketers. Oakmega strives to connect brands and people with a human touch-based on moral values and a winning culture.
Cooby (Taiwan)
Cooby is a customer relationship management platform. It increases your conversion potential by giving your sales representatives the tools to create customer profiles automatically, document meetings, track conversations, and manage tasks.
Resource: Crunchbase
D
Data Management Platform (DMP)
Data Management Platform (DMP) helps manage first-party data segments, integrate third-party data, and process data to other systems. There are three main types of data:
- First-party data: Information/ data owned by the source/company itself. For example, data from a website, mobile application, and CRM.
- Second-party data: Information/data gathered through inter-company cooperation. For example, online campaign data and customer journey data.
- Third-party data: Information/data supplied by the market. For example, market research on the Euromonitor.
There are also three main types of data collected by DMP:
- Observed data: the digital footprint of the internet. For example, search history in the web browser.
- Inferred data: data based on the user’s behavior.
- Declared data: data provided by the users from online forms or application sign-ups.
A study by Lotame and ExchangeWire found an increment of 49% from 2015’s number after purchasing a professional DMP in 79 percent of agency-side media.
Startups:
Aseal focus on big data applied to service and has been analyzing more than 3.5 billion events of users’ behavior data per month, operating data analytics, data mining, mobile ads, and digital ads.
Snowflake (Australia)
Snowflake is a global network that allows thousands of organizations to mobilize their data with scalability, parallelism, and almost unlimited performance. In the data cloud, Snowflake can easily aggregate and organize data, securely discover and share managed data, and run various analysis tasks.
Hevo (India — Bangalore)
Hevo is an automated, integrated data platform that helps companies better understand their users and customers. Hevo solves the problem of information and data that are frequently siloed and difficult to obtain a complete picture of customers and business performance.
Resource: LinkedIn
S
Sales Funnel
A sales funnel, also known as a purchase funnel, is a visual representation of the customer’s journey and represents the sales process from perception to action. There are four steps to making decisions that consumers need to consider before buying a product and, or service.
Illustration of Sales Funnel:
All in all, sales funnels are essential to determine the success of the campaign. Whether it is a short and, or long campaign, everything should be considered in the sales funnels, since great sales funnels are a winning formula.
Therefore, why does a company need a sales funnel? Because it is a proven winning formula that turns customers into customers. Companies that make the buying process simple and easy are 62% more likely to convert to a successful sale. And companies that excel in growing leads get 50% more leads ready for sales at a 33% lower cost. (Forbes, 2022).
Startup:
Wavenet utilizes its background in advertising technology, providing advanced marketing solutions and the development of extended functions or services to establish a comprehensive marketing ecosystem. They achieve precise digital marketing through big data analytics and the new 4Ps of marketing, people, performance, process, and prediction.
CartFlows is a powerful sales funnel generator for WordPress, which includes all the features that customers want to improve their e-commerce store. It includes one-click upsell, order history, conversion templates, payment editor, basket abandonment recovery, and A / B testing tools. Anything that helps customers earn more. CartFlows are designed to be easy to use and easy to implement and are expensive to convert.
SMART Goal Framework
SMART is an abbreviation for Specific, Measurable, Attainable, Relevant, and Time-bound. This is a practical basis for establishing a clear framework for all objectives, especially regarding reducing barriers. Moreover, it is a proven strategy for creating more specific and achievable goals using benchmarks that help measure progress.
A study by the Dominican University of California Found that 76% of participants scored their goals, along with a list of goal-oriented activities, and sent a weekly progress report to a friend. Goal achieved — this is 33% higher than those with written goals.
Z
ZMOT
ZMOT is the abbreviation of Zero Moment of Truth; it occurs whenever people find that they require products or services to solve their problems. Thus, they are researching the products/services that are suitable for them; if they are impressed with them, people will buy/use them (initial purchase).
However, research from P&G in 2005 shows the critical condition that not all customers are loyal to the brand, but they are loyal for their needs at that particular time. (Figure 1). To address this problem, every brand, like P&G, is working to create a positive way to maintain the excitement when people buy its products/services to maintain their loyalty. (Figure 2). By maintaining the good experience of customers using their products/services, brands can maintain their loyalty and start to build their way as market leaders.
In comparison to the companies that did not prioritize the customer experience, the numbers of shareholders returns can increase as much as three times for companies that prioritized customer experience. (McKinsey)
