Covering Disruptive Technology Powering Business in The Digital Age

Today’s customers hold an unprecedented level of power, and the adage that the customer is king has never been more true.

With numerous options at their fingertips, they have the freedom to choose what, when, and how they purchase. They expect brands to interact with them on a deeper level, engaging in sustainable practices and reflecting their individual preferences – or they just move on to the next competitor who better understands and fulfils their needs.

Unfortunately, according to SugarCRM’s survey of over 1,600 professionals worldwide, businesses are ill-prepared to counter the trend of customer turnover which is now nearly one-third worldwide.

Retaining customers is a top priority for businesses, and competition is fierce (and global)! Acquiring new customers is way more expensive than retaining existing ones. Repeat business from existing customers can not only provide a steady revenue stream, but according to Frederick Reichheld of Bain & Company’s research, the company that invented the Net Promoter Score, increasing customer retention rates by 5% can raise profits by 25% to 95%!

So how do you halt the churn? This brings to mind the famous quote by the poet John Lydgate, “You can please some of the people all of the time, you can please all of the people some of the time, but you can’t please all of the people all of the time.”

The key is to maximise retention and keep the right customers.

And by capitalising on the power of Artificial Intelligence (AI), businesses can increase their capabilities to retain customers by providing a great customer experience. SugarCRM shares three ways by which AI achieves this feat:

• Data is the secret sauce – Understanding customers and using the data to increase customer retention requires a full view of customer data.With AI, businesses can analyse a wide range of data that can come from internal sources such as sales systems, and finance, and when combined with data from external sources, it creates a comprehensive understanding of customer preferences and behaviour. Armed with these insights, businesses can tailor their marketing, sales and services strategies to address any potential churns.

• Identify customers at risk of churn – In a Deloitte article, it suggested that businesses should seize the opportunity to revisit customer loyalty strategies and remove friction points in the customer journey.By using an AI-enabled CRM, businesses can actually uncover blind spots that could limit their visibility into the customer journey. The data that is presented to the businesses can be intelligently interpreted so that businesses can identify which customers are at risk and when they may possibly churn.

• Aid proactive decision-making – Maintaining customer retention can be a tall order, especially with the increasingly high demand for support at every touchpoint. Through using AI-powered predictive analytics, businesses can start making data-driven and informed decisions that maximise opportunities for customer retention.With AI, businesses can generate accurate predictions about customer behaviour, preferences and potential churn. Armed with this knowledge, businesses can tailor strategies to anticipate and meet customer needs. A proactive approach like such can help to retain customers by providing them with tailored experiences that drive satisfaction and brand loyalty.

For the not-so-technically savvy, if an AI-enabled CRM sounds like too much hassle, it is worth noting that innovations such as no-code/low-code user interfaces can reduce the time, cost, and technical expertise typically needed to get AI up and running.

Treating customer intelligently is critical to increasing customer retention and reducing churn, and AI empowers businesses to do just that.

Listen to this on-demand webinar: AI: Technology’s Invisible Hand in Business to find out more about AI-enabled CRM. Alternatively, if you’re ready to find out more, reach out to schedule a demo or assistance.

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