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6 Key Trends Changing Customer Retention
The document discusses key trends in automated customer retention for B2B and B2C companies, emphasizing the importance of improving retention strategies. It highlights that many companies struggle with high churn rates and the cost of retaining customers versus acquiring new ones. Additionally, it outlines specific areas for improvement, such as enhancing customer support and education, while also discussing the average churn rates in subscription businesses.
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6 Key Trends Changing Customer Retention
- 1. Retention 6 Key TrendsChanging Customer
- 2. CEO & Co-founder/ Brightback Guy Marion GM / Crazy Egg Suneet Bhatt
- 3. Agenda What is automatedcustomer retention 6 retention trends for B2B and B2C companies Final takeaways Q&A Agenda
- 4. ` Automated customer retentionfor high-volume subscription business !4 TOP-TIER INVESTORS INTEGRATIONS SELECTED CUSTOMERS
- 5. !5 Live since 2005.On over 300,000 websites today. Crazy Egg helps you pay attention to the people visiting your website so you can make the most of every website visit.
- 7. $42M ARR lost in5 years… due to high churn, nearly 4X the total ARR reached by ARR MONTHS SINCE LAUNCH 0.5% Gross Churn (-3.5% Net) 1% Gross Churn (-2% Net) 2% Gross Churn (0% Net) 4% Gross Churn (3% Net) $57M $16M $26M $40M The fastest growing companies retain more
- 8. it isPLUS 7x acquire a customer more expensive to $ $ $ $ $ $ $ retain a customer $ than to
- 9. Yes No Does yourcompany have a published MRR churn goal?
- 10. of companies say customer retention… 97% 97%yes 2.8% no 2019 State of Customer Retention Survey is a big win!
- 11. 6 Key Trends Basedon the 2019 State of Customer Retention Survey
- 12. 1 B2C companies know theymust do better at retention.
- 13. Percent of companies that feel retention is prioritized appropriately 68% B2B 44% B2C
- 14. 2 B2Cs focuson support while B2Bs focus on customer education and on boarding.
- 15. Was customer satisfactionimproved through better experience and support? 14% B2B 32% Hybrid 56% B2C
- 16. Was customer satisfactionimproved through educating customers to facilitate usage and mastery of our services? 34% B2B 5% B2C 15% Hybrid
- 17. 32% B2B 28% Hybrid 11% B2C Was customer satisfactionimproved through on boarding new customers effectively?
- 18. 3 Companies turn to discountsand deals to retain customers.
- 19. of B2Cs offer bundles 51%58% ofB2Bs test discount offers AND
- 23. 4 The future: knowwhen to engage and why.
- 24. Never on-boarded or figured it out Aren’t seeing value (but still have the need) Think they don’t have features they need Feel ignored or frustrated by support 20% of customers cancel for the wrong reason
- 25. START First value (successfultrial) Grow value (deployment) Increase Users Increase Usage Expand Functionality Churn ChurnChurn Classify and auto- engage customers who fail
- 26. No. Yes, via ourcustomer support team. Yes, via our customer success team. Yes, via our product. Do you engage with customers at the point of cancel?
- 27. Excluding product improvements,which of the following initiatives would have the greatest impact on customer retention? B2C Faster response times and better trained customer support Developing predictive models to forecast customer propensity to churn or expand Proactively engaging at-risk customers with personalized offers Hybrid B2B 34% 15% 6% 27% 17% 12% 14% 22% 22%
- 28. 5 Subscription businesses churn anaverage of 2.0% - 3.9% of revenue each month
- 29. Monthly MRR ChurnRate 28% 26% 27% Average churn per month % of respondents B2C B2B Hybrid
- 30. Visibility into whycustomers cancel
- 31. 6 Only 1 in4 subscription companies are growing more the 30% YoY
- 32. Percent of subscriptioncompanies with growth between 30%-50% YoY 13% B2C 23% B2B 13% Hybrid
- 33. Agenda Bring acquisition andretention into balance Build a full retention lifecycle Look at cancellation like a funnel Establish a churn goal Takeaways
- 34. Thank You. CEO &Co-founder Brightback Guy Marion GM Crazy Egg Suneet Bhatt