Increase Customer Retention with the Help of AI
Photo credit, YMIJAN; Customers lineup at Glossier
Increasing Customer Retention with the Help of AI
A Forbes report reveals that acquiring a new customer can cost five to seven times more than retaining an existing client. These numbers show businesses how important it is to satisfy their customer base. But customers often stop service for unknown reasons leaving companies to figure out what went wrong.
A&I products present an innovative solution. They can improve the customer experience to boost satisfaction. They can also determine the reasons for customer churn so businesses can retain more clients.
A&I Products Identify the Reasons for Customer Churn
The best digitalni marketing practice for reducing customer churn is determining why it happened. If a business knows why a client left their company, they can revamp their systems to avoid similar behavior in the future. But customers often leave without explanation.
AI can help by:
· Gathering Customer Data: AI can gather customer data like demographics, behavior, journey, and economic factors and weigh them against product pricing, transactions, and competitor activity to create a model that indicates a customer's churn risk. Businesses can use this data to determine the next best action (NBA) for customer retention.
· Identifying Trigger Events: Customers don’t always give businesses reasons for stopping their service. But AI can scan their history to determine causes such as price increases, service outages, or unpleasant interactions. Organizations can use this data to improve customer satisfaction and prevent churn.
· Scanning Interactions: AI can analyze interactions like online chats, emails, text messages, and phone calls to determine possible sources of customer dissatisfaction. Businesses can leverage this data to update their technologies and retrain their employees.
How AI Improves the Customer Experience
AI can help companies identify the reasons customers leave so they can update their systems accordingly. But more importantly, it can help businesses improve their services so customers are less likely to leave. Here are some of the ways AI improves the customer experience.
·Personalized Service: Today’s consumers don’t want to feel like ‘just another customer’. Businesses can use AI data to determine the best products, services, and pricing structures for each customer to send out personalized communication.
Chatbots: Chatbots can answer customer questions after hours to reduce frustration and prevent consumers from seeking out a competitor.
Reduces Errors: AI-powered systems tend to produce fewer errors that could hamper the customer experience.
Minimizes Employee Burnout: AI takes over for humans and performs repetitive tasks to reduce employee burnout. Workers who feel good about their jobs provide better customer service and are more productive.
Anticipate Customer Needs: A&I products can determine customer needs such as when a customer is due for a reorder. They can also make the ordering system more convenient.
AI is revolutionizing the world of business by reducing customer churn. It provides processes to determine the reasons why customers leave, and it helps organizations offer better customer service. Companies that leverage this technology in their digitalni marketing efforts can spend less time and money courting new clients and concentrate on making existing clients happy.
Want to learn more about how AI can help you retain your customer base? Book a call with Ground AI today.
