In our previous blog post, we talked about the importance of measuring churn. We also discussed why leveraging A.I. can help with predicting and prevent churn, and ultimately boost your bottom line.
Measuring churn is crucial when building Customer Lifetime Value (CLV). CLV is the most important metric to judge your business by, whatever industry you are in. But even once you learn how to measure churn with accuracy, you still have the problem of stopping it.
How to think about Churn
Churn is ultimately a backward-looking metric. And once you have an accurate measurement of churn for a given cohort of your users, that cohort has already left. So to take action against churn, the key is to look ahead.
And that’s exactly how some of the biggest subscription companies in the world like Netflix think about customer churn. Instead of looking at it backwards as a customer retention problem, they look at it forwards. This makes it a customer loyalty mission. Knowing how to predict loyalty, engage customers and have them fall in love with your product is the key to maximizing CLV. And if you can make every one of your customers loyal to your brand, your churn rate automatically begins to fall.
So how can you make this happen – how do you get your hands on this crystal ball of your customers?
Driving Customer Loyalty: Understand Them First
Driving customer loyalty depends on understanding the behaviors and characteristics of the customers who are your most loyal fans. Armed with that understanding, you can predict which customers are likely to engage with your brand more, as well as which customers are unhappy and at risk of churning.
By getting ahead of the game and knowing what your customers will do next, you’ll be in the box seat to understand what makes them loyal and drive up CLV. If you’re interested in learning more about how we’ve helped Fortune 500 companies boost their CLV through predicting customer loyalty here at Vidora, we’d love to chat.