Use AI techniques to personalize and optimize your communications to reduce subscriber churn.

Stop Subscriber Churn in Its Tracks with These 4 AI-Powered Campaigns

Churn is a natural part of every business. However, no organization likes their users to churn. So, what should you do (especially after you’ve been trying tactic after tactic to no avail)? Use AI techniques to personalize and optimize your communications.

According to a recent “State of Marketing” report, there’s a 50% chance that customers will switch brands if brands don’t anticipate their needs. The goal of marketers is to build strategies and campaigns that will (1) keep active customers engaged, (2) re-engage “at-risk” customers, and (3) bring churned customers back into the fold.

So, what can growth marketers at subscription companies do to reduce churn?

1. Intervene before it’s too late!

“Newsletters are stupid,” said by Alex Shultz, Facebook’s VP of Growth. He believed that most companies today are sending marketing emails that are just spam. Why? Because that same newsletter will be sent to everyone in their email list — to someone who has been enjoying your product for three years and to someone who has just signed up to your site yesterday. No distinction at all, no personalization, no understanding of who that individual person is. Schultz said that companies should be focusing on notifications and triggers-based emails, SMS, and push notifications in reaching out to their customers.

Growth marketers will keep their customers engaged when they provide delightful, relevant content while personalizing it based on their customer’s expressed and perceived preferences. One way to do that is by relying on 1:1 marketing, with no two users receiving the same message at the same time.

IN SHORT: Keep customers interested in your products or services by sending personalized offers or incentives using targeted email or push notifications. (Hint: NEVER rely on a single channel to drive repeat engagement.)

2. Strike while the iron is hot. Quick, send them that enticing incentive!

According to a Pegasystems survey on customer engagement, 56% of top-performing companies are investing in AI to personalize and continuously learn from customer interactions. Today’s AI-powered productivity tools make it possible to anticipate customer needs which allow marketers to tailor highly-personalized campaigns to keep customers engaged.

One example is by using trigger-based email marketing, an example of a customer-centric, behaviour-based marketing approach. Recent Forrester Research showed that trigger-based email marketing campaigns can generate 4x more revenue and 18x greater profits. Subscription upsells are one way of retaining active customers by sending them personalized messages containing information on products they might be interested in. Offering incentives to customers to switch to the next subscription tier can also help in convincing them to upgrade their subscription.

IN SHORT: AI can easily help growth marketers gauge their customers’ willingness to accept an upsell.

3. Out of sight, out of mind? Go remind them.

Abandoned carts may mean that the customer has forgotten he added an item to his cart or he really didn’t want the item.

Growth marketers can still turn abandoned carts into revenue. Remember, these customers have already expressed an interest in the products and are engaged with the brand, all they need is a little nudge to complete their purchase.

With the help of AI, growth marketers can send targeted recommendations that are similar to the one that the customer already added to his cart. These recommendations may include product information on new arrivals, price drops on items with which the customer has engaged, or “back-in-stock” notifications. Even if the customer didn’t really want the abandoned item in his cart, his interest may be piqued by the new recommendations. These triggers are especially good for mobile push notifications since they are “newsworthy”.

4. Win them back.

Win-back campaigns involve the re-activation of churned or “about-to-churn” customers. Winning back churned customers so they can be active again is never an easy task. Move back from using traditional marketing campaigns which lack sufficient real-time data and insight.

AI helps in analyzing vast volumes of customer data especially in identifying the characteristics of high-value past customers. But for AI tools to work effectively in your win-back campaign, you need to feed it with the right data and algorithms.


Growth Marketers Guide CoverA well-designed AI system can streamline an organization’s complex processes. Leveraging marketing AI can provide a significant, tangible lift to an organization’s customer engagement efforts. You can learn more about how Growth Marketing drives increased user engagement by downloading our whitepaper.

 


 

Top Metrics Growth Marketers Need to Know

Top Metrics Growth Marketers Need to Know

As a follow up to our article about what Growth Marketing is, we next take a peek into the metrics that every growth marketer must measure. (Depending on your exact industry, there will be other metrics as well, which we will cover in later articles.) As a refresher, we defined Growth Marketing:

“Growth marketing drives increased user engagement, by extending the boundaries of the product into marketing channels.”

Growth Marketers Are ALL About the Metrics

We’ll focus on the first half of the definition that states “Growth marketing drives increased user engagement”. This statement is all about measurable results. In order to measure the results, we must first understand what KPIs and metrics we will use to gauge success. To say that growth marketers are numbers oriented is an understatement. Growth marketers are obsessed with metrics — they must look at deltas across time and cohorts to show growth in customer acquisition, customer retention, and customer win-backs.

How are we trending? What is our engagement looking like? How many users are we churning? How long does it take us to be profitable for each new user/customer? Am I really growing the business?

The metrics in this article will build the foundation for any Growth Marketer to be able to answer these questions. To provide order to the metrics, we will categorize the metrics through a simple series of lifecycle stages:

Activation – new prospects
Retention – drive incremental engagement and revenue from existing users/customers
Win-back – bringing churned users/customers back

Activation Metrics for the Growth Marketer

Activation is a stage reached when a user completes an action that’s indicative of getting value out of a product. What constitutes activation might be different for different services; e.g. a social app like Twitter might consider a user activated when they follow a certain number of other users within a given time-period; an e-commerce company might consider a user to be activated when they make their first purchase, or on a rolling basis, consider someone to be active if they have made a purchase in the last 6 months.

1-day & 7-day activation rates:
This metric gives a quick leading indication of how activation rates from a channel are trending. Marketers know that activation could often take months after acquiring a user, but they want a quick indicator of activation for new or recent sources of traffic. 1 & 7-day activation rates, coupled with simple data science models, can help forecast long term activation from the given cohort of users, and can be used to quickly estimate time-to-payback.

Time to payback by channel:
The amount of time it takes to recoup the cost of customer acquisition (CAC), through profits from customers. This is a measure not only of the efficacy of activation, but also of retention & monetization efforts.

Abandonment rate:
The percentage of customers who fail to complete a “conversion” event inside a single session.

Abandoner retargeting conversion rate:
The percentage of abandoners who are successfully converted based on retargeting efforts across multiple channels. Typically measured within a well-defined window of time, like 7 or 30 days.

Retention Metrics for the Growth Marketer

User retention is about continuing to engage activated customers so that they stay active. Customer engagement is the most important area that Growth Marketers must focus on when users/customers are in this stage. Always provide value. How do you know if you are providing value or that your users see value in what you provide? A savvy marketer will start with these two metrics:

Churn rate:
The annual percentage rate at which customers stop being active.Stickiness:
Typically measured as the ratio of DAU/MAU, this measure if most used in categories like gaming that truly depend on daily & frequent engagement. Stickiness is a good indicator of whether customers are returning frequently.

Win-Back Metrics for the Growth Marketer

Users who were once active, but have since lapsed, can be won-back into becoming active customers again. This is one of the hardest ways to gain active users, since these users potentially lapsed due to the product losing some relevance for them. It’s like raising the dead, however, it must be a part of a Growth Marketer’s strategy. To measure the success of Win-Back campaigns, there is on metric in particular to focus on:

Re-activation rate:
The percentage of previously lapsed customers who become active again within a given time period.

The Tip of the Iceberg…what next?

This is not an exhaustive list. It is meant to give Growth Marketers the metrics they need to identify success and address areas of improvement. These are the foundation to being successful as a growth marketer and owning these metrics for your organization gives you tremendous insight into the health of your business, marketing strategy, and customer base.

Watch out for more posts about growth marketing, and check out our comprehensive guide here for everything you need to know about the subject.

Growth-Marketers-Guide-to-Customer-Experience-720x180-blogfooter