It is reported that 50% to 60% of customers who move away from your business don’t come back. This is why transforming your business to be more customer centric has become a strategic necessity.
According to the Harvard Business Review – The development and retention of profitable customer relationships is vital to the health of every business. Companies need to be concerned with the future revenue & profit streams associated with the ongoing satisfaction & retention of their core, profitable customer bases. The companies that fail to recognize this truth overspend in marketing to acquire & retain less profitable or even unprofitable customers and do not spend enough on keeping profitable ones.
So when was the last time you analysed your customer billing data to understand which of your customers you should be targeting – and what you should be targeting them with?
The majority of today’s marketers think that new customer acquisition is the most important advertising goal, but over their lifetime loyal customers tend to spend 10x more, which is a big impact on the bottom line. In addition businesses that have a customer centric approach tend to get 60% to 70% of their customers coming back on a monthly basis. Which is a good enough reason to analyse your customer billing data, helping unearth trends, predict behaviour and hone directly into your most profitable customers. Allowing you to establish not only better customer relationships but helping you maintain and enhance them in order to improve customer profitability.
Even at the very basic levels, it is beneficial to understand more about your customers. Things like purchase and payment history, which can easily be tracked through their billing history. When you understand their preferences and needs and respond to them you will find that their experience of doing business with you is improved, turning them into more loyal customers.
In these times of economic uncertainty knowing who are your most profitable customers, and who are likely to become more profitable is hugely beneficial.
Why do businesses need billing analytics?
- To substantially reduce your customer service costs – empowering customers to self-serve and resolve their own billing queries
- Enables you to understand customer behaviour and maintain proactive customer relationships