It’s no secret that keeping existing customers is cheaper than landing new ones.
In fact, just a 5% increase in customer retention can boost your profits by up to 95%. Not to mention that acquisition costs five times as much as retention.
And when you compare sales successes? New customers buy at a rate of 5 – 20%. Existing customers blow that figure out of the water—buying at a rate of 60 – 70%.
Which is why if your focus, strategy, and budget are all about acquisition, we think you should reevaluate.
And if you are committed to prioritizing subscription renewals by existing customers? Here’s how we can help.
The goal: subscription renewals
When it comes to retaining customers and increasing lifetime value, there’s more than one way Lytics can help. But today, we want to talk specifically about renewals.
What do we mean by renewals? We mean encouraging customers to stick around when they have a renewal coming up.
Increasing renewals: 3 steps to success
So, how exactly does Lytics help you increase that renewal rate?
Here are our steps to success:
1. Identify upcoming renewals.
Everything starts with using customer data to figure out who has a renewal date coming up. After all, you can’t target the right customers if you don’t know who they are.
This is the most basic use of a Customer Data Platform (CDP)—collecting and organizing data so that you can use it to answer key questions about your customers. In this case: Who has a renewal date coming up soon?
2. Figure out how likely the customer is to renew (or churn).
Knowing who’s already happy and engaged and who’s likely to churn can help you send customers the right messages, at the right time.
A churning customer might need to be reminded of the value of your service. Or perhaps they need an incentive—like a discount or added valuable content—to stick around.
A happy customer likely to renew, on the other hand, might just need a gentle nudge, a quick call from your sales team, or a one-click option to renew early.
With Lytics’ behavioral scores and built-in data science, you’ll automatically be able to see who’s likely to stick with you and who’s likely to bid your service farewell. From there, you can make educated decisions about who gets what message, when, and where.
3. Send the right messages across channels.
Once you know who you need to target, the next step is to send them the right message across the right channels at the right times.
For some, the right message may be a coupon or special. For others, a gentle reminder that it’s time to renew. For still others, a reminder of all the great things they’ve gotten out of your service during their subscription.
Whatever the messages your business needs to send out, Lytics can help you automate the process.
A step-by-step guide for increasing renewals with Lytics
Need more details on how to accomplish all this in Lytics? Our product team wrote a step-by-step guide for you, complete with screenshots.
And if you’re not a Lytics customer? We’d love to chat about how we can help with use cases like these (not to mention customer winback, acquisition, and increasing customer lifetime value).
Contact us today for a free demo.