April 6, 2022
4 ways Lexer's CDXP helps you know your customers (even when you have millions)
Some degree of customer churn is unavoidable, but that’s not to say that you can’t understand and combat that churn. By deploying a CDXP you’ll discover innovative ways to create the experiences that keep your customers loyal to your brand.
Acquiring new customers is always going to be harder than reducing customer churn and retaining existing customers. That said, only 18% of companies concentrate more on customer retention over acquisition. While bringing new customers to the fold is essential to any retailer, you’ll find far higher profits when you focus on reducing churn and boosting retention rates.
With the data insights from a Customer Data and Experience Platform (CDXP), you can create the engaging experiences that retain your customers and keep them from churning from your brand.
Unfortunately, some churn Is unavoidable
Customers can leave your company for various reasons, be it poor customer service, budgets, or even changing interests. As a retailer, you need to understand why you're losing customers and implement measures for stopping the hemorrhage rather than accepting it. This means creating the personalized and engaging experiences that urge your high-value customers to stay with your brand.
A CDXP enables you to manage churn by providing insights into customers who are likely to stay or leave. From this insight, you can implement targeted marketing campaigns aimed at retaining at-risk customers and ensuring your engaged customers stay that way.
How to reduce churn with a CDXP
Pinpoint your at-risk customers
It's worthwhile to identify the customers at risk of leaving and use a retention strategy to convince them to stay.
A CDXP helps you understand the characteristics of your churned customers. Afterward, you can launch lookalike modeling to create profiles for your high-risk customers. With these models created you can highlight the similarities among your current customer base. You can then identify the high-risk customers and target them with personalized reengagment campaigns.
Remember that at-risk customers are always going to be easier to engage than new prospective ones. Investing in a CDXP can help you identify the factors that makes them at-risk of churning, and help inform strategies you can use to bring them back into the fold for good.
Develop highly personalized customer experiences
Customers are more likely to stick around if you provide relevant and tailored experiences that match their needs and behaviors. A CDXP can help you satisfy customers who are likely to churn out by delivering insights that inform highly personalized customer experiences.
A CDXP will help you understand your customers individually rather than as a group. When you implement those insights, customers will feel valued by knowing they're more than merely a point of revenue. Send personalized content to them, so that they feel legitimately heard. Doing so can help you engage your customers at the individual level, including those that may be ready to churn.
As you consider how to create personalized experiences, you should focus on understanding who your most high-value customers are. A CDXP unifies your customer data into accurate and actionable profiles, which you can use to define customer attributes, personalize your re-engagement campaigns, and elevate the customer experience.
Gain a better understanding of churn rates
If your business keeps losing its previously engaged customers, figuring out the underlying cause can be challenging. Is it because your customer service is frustrating? Is your product's quality low? A CDXP answers these questions by helping you to get ahead of your company's churn rates and understanding precisely why your customers churn in the first place.
Since e-commerce and retail businesses handle hundreds, if not thousands of customers concurrently, the biggest challenge they face is a lack of in-depth customer understanding. With a CDXP, you can combine critical data from every source within your e-commerce/retail ecosystem. Through this combined database, you can craft profiles that detail each customer's engagement history.
Having all your data on one platform provides a better understanding of how customers engage across your ecosystem. It also helps you create comprehensive customer personas to personalize and segment your communication with engaged and at-risk customers.
Measure and optimize customer retention metrics
Regardless of your industry, measuring critical customer retention metrics can help reduce churn rates. These metrics determine where your business stands, monitors change, and can be used to set milestones and goals. The critical customer retention metrics you should monitor include churn risk and customer lifetime value (CLV).
A CDXP makes it easier to measure and optimize customer retention metrics across your business ecosystem by analyzing data aggregated from sources like product usage, support tickets, and purchases. These platforms also help identify key attributes relevant to churn behavior.
Reduce your churn rates with Lexer’s CDXP
Lexer’s Customer Data and Experience Platform (CDXP) is built for businesses that want to understand their customers better and use those insights to elevate the customer experience. The platform transforms siloed data into a unified customer database that can be used to launch actionable insights for re-engaging at-risk customers and accelerating business revenue growth. As a retail-focused CDXP, Lexer helps businesses by helping them understand their customers so that they can create the experiences that engage them.