“In this world, you’re either growing or you’re dying, so get in motion and grow.” – Lou Holtz
These words of wisdom from a Hall of Fame football coach are the same sentiment many investors share when they evaluate companies – particularly companies in the B2B tech cybersecurity industries. 2020 was a turbulent year for many global businesses. The need to implement work-from-home strategies and procedures, increases in phishing attacks, remote worker endpoint security threats, and proliferation of sophisticated ransomware attacks resulted in a massive year of growth for the cybersecurity industry. Unfortunately, the one challenge that many cybersecurity companies have yet to conquer is how to make their customers feel valued – post-sale – to reduce customer churn. Luckily, customer churn issues are solvable.
If you leverage and analyze customer data that you’re already collecting, you’ll be able to put a comprehensive strategy into place to turn customers that you acquired today into customers for life. In this blog, we will look at the different churn types, how to analyze them, and we will answer your questions regarding customer value and ways to ensure your customers realize it!
Analyzing Churn Types
When it comes to B2B turnover, companies that lose customers aren’t just losing one person; they’re losing a partnership or an entire team. Though understanding the overall churn rate is critical, the key is understanding the cause. There are several categories of partner attrition that may happen along the customer journey.
A few of the most common partner attrition examples are:
- Onboarding Churn – This happens in a customer’s first 90 days as they start to assess a company’s product, solution, or services against their needs.
- Product Churn – Cybersecurity is one industry where the product needs to work 100% of the time. If a product, solution, or service doesn’t solve for the customer’s desired outcome, you can bet they’ll walk away disappointed quickly. What’s worse, they may share their negative experience with others.
- Champion Churn – When the customer champion leaves or is replaced with someone new who may want to use a different product, solution, or service.
So how do you use customer churn analysis to create customers for life? Businesses must position and prioritize the customer experience to maximize revenue retention.
Using Data to Improve the Customer Experience
At the end of the day, your customers are no longer simply buying your product/service. They are buying the value of a great customer experience. Improving the customer experience begins with monitoring onboarding, adoption, and usage data to measure if your customer is using your product and finding value.
A couple of basic questions to ask:
- Are your customers using all of the features?
- Do they realize the value of your product/services?
- How quickly are you responding to and resolving customer issues?
Collecting quality data is essential to providing accurate insights. Acquiring real-time data will provide you with the insights needed to create a timely opportunity or challenge that presents itself.
Some of the customer success data fields you could be collecting include:
- Usage – Event type, logins, feature usage
- Customer Service – Number of tickets submitted and what type, days unresolved
- Health Rating – Risk assessment meters, user activation %, account expansions
By collecting and analyzing these data points, you’ll be able to assess the usage of your products/services, health, and sentiment of your customer journey experience. It’ll also enable you to capitalize on upselling and cross-sell opportunities to make your products/services stickier within an organization.
The root of churn is customers not feeling valued or finding value in your products/services. Leveraging usage data throughout the customer’s journey with customer churn analysis provides a giant first step forward for cybersecurity companies struggling with churn.
This alone, however, will not fix the problem.
While understanding and even predicting (with pinpoint accuracy) what the end customer is likely to do, having the right Customer Success team to engage the customers at the right time with the right message is the key to executing an effective churn reduction strategy.
At ServiceSource, we understand the science behind customer retention and the value of the customer journey experience. We leverage a best practice approach to customer success and renewals management to minimize customer churn on behalf of our partners.
Schedule a call with us today to learn more about ServiceSource’s Customer Success solution.