A crucial performance indicator for any business is the rate at which customers stop purchasing your product (or subscribing to your service), over a period of time – otherwise known as churn or attrition.
Whilst the optimists amongst us will be focussing on retention rates, it is vital you keep a firm check on churn, to help you understand why people stop buying your products.
If the churn rate is high but you are still selling products, is that a problem?
Yes! You will need to continually target and acquire new customers – this is timely, costly and it will limit your business’ ability to grow.
If you invest time and resources in to retaining those customers, rather than finding new ones, you will build brand loyalty and it will cost you less in the long run. This can be achieved by predicting their behaviours and delivering a more personal experience.
An existing customer will have a lot of historical data attached to them, which you can easily access through an ERP system like Business Central.
Using this data you can predict what and when they will want to buy, so you can target them better.
It can also help you identify customers at risk of churn. By accessing a single view of a customer and their ordering data, you can identify issues, deliver a better service, keep them engaged and reduce churn.
Microsoft Dynamics Business Central helps you to create a consistent and personalised experience – at scale.
Microsoft Dynamics 365 Customer Insights is a brilliant customer data platform. The connected data sources give a comprehensive view of the customer, providing real-time rich insights.
Recent updates to the platform have added AI-powered suggestions to help segment customers for more personalised messages, plus features like predicted customer lifetime value, which predicts the potential revenue of a customer throughout the entire interaction with a business.
Product recommendations can be generated from purchase behaviour and customers with similar purchase patterns.
Plus, transaction and subscription churn will help to identify high-value and at-risk customers it thinks will stop using your service in a certain time frame so you can do something about it!
To find out more about how Business Central can help retain customers, give us a call today on 01952 897 010.
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etac Solutions are long established suppliers of Microsoft Dynamics NAV and now provide Microsoft Dynamics 365 Business Central as part of our ERP services. We pride ourselves in taking a different approach in order to craft the most appropriate solutions for our customers. We are a technology partner who can integrate, implement and then support your ERP solution at every step.