Customer Retention: Why Your Dog Would Make More Money Than You

Chris Hexton
Chris HextonCo-Founder & CEO at Vero
CUSTOMER
RETENTION
OR
WHY YOUR
DOG
MONEY
WOULD MAKE MORE
THAN YOUVERO
DOGS COST
MONEY
GROOMING FOOD HEALTH
THEY
CERTAINLY
DON’T
MAKE
MONEY
YET...you’d never, ever LEAVE them,
would you?
BUT YOU’D
NEVER LEAVE THEM
IMAGINEIF YOUR ONLINE BUSINESS WAS AS
LOVED AS YOUR DOG
RETENTION
...AND YOUR CUSTOMERS
DIDN’T LEAVE. THIS IS CALLED
$0
$5,750,000
$11,500,000
$17,250,000
$23,000,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
20% churn - your business
5% churn - your dog
Customer retention affects
revenue DRAMATICALLY
$22M / year VS. $16M / year
EQUALSLOYALTY
CUSTOMER RETENTION
SO HOW DO YOU IMPROVE
RETENTION?
But how do you build loyalty?
Two things influence loyalty.
1. Behaviour
2. Attitude
1
KNOW WHAT
LOYALTY LOOKS LIKE
AKA: TRACK EVERYTHING
KNOW YOUR CUSTOMERS’
THOUGHTS BEFORE THEY DO
TRACK USER
FLOWS
TRACK
CLICKS
ASK
QUESTIONS
IF A CUSTOMER MOVES
FROM LOYAL TO NOT LOYAL
PULL THEM BACK
ENGAGED
EMAIL IS A
GREAT TOOL TO
KEEP YOUR CUSTOMERS
Remind your customers you exist. Useful reports like this from UserVoice...
...or this daily update from Quibb are extremely effective.
Send them regularly or when customers change their behavior.
Build emails around your core building block, e.g. profiles.
Gaming the system
Customers with multiple free trials, using coupon codes, etc.
Exporting data
Why are customers all of a sudden taking data elsewhere?
Credit cards expiring
Not renewing credit cards after they expire.
SOME OBVIOUS SIGNS OF A LACK OF
ENGAGEMENT:
RJMetrics
http://blog.rjmetrics.com/ecommerce-churn-rate/
Lincoln Murphy
http://sixteenventures.com/saas-churn-threats
David Skok
http://www.forentrepreneurs.com/why-churn-is-
critical-in-saas/
Totango
http://blog.totango.com/2011/10/3-ways-to-do-cohort-
analysis-on-saas-churn/
LEARN TO CALCULATE YOUR RETENTION
RATE / CHURN:
2
EARN YOUR
CUSTOMERS’ TRUST
AKA: SHARE, SHARE, SHARE!
TRUST IS DIFFICULT
TO PIN DOWN
COMMUNITY
BUILD A
Some ideas:
- Phone calls.
- Surveys.
- Blogging.
- Slideshows, etc.
SLIDESHOWS
VIDEOS
BLOG POSTS
EBOOKS
SHARE!
SHARED
EXPERIENCES
BUILD LOYALTY
Great companies, like SEOMoz, build great communities by sharing.
Inbound.org is a great example of how to build trust.
Email is your friend! Net-a-porter educate via “The Edit”. Full image link.
Digital magazine =
fashion education
KISSmetrics share blog posts constantly: they post every day.
This is what
blogging is about!
...they share different formats too.
Re-share content for IMPACT
Sharing your knowledge works. All the cool kids are doing it, like Wistia...
Fun, AND it works!
...and Help Scout. So why aren’t you?
PERSONAL
EMAIL IS
0%
25%
50%
75%
100%
Email Facebook SMS Twitter
% PEOPLE THAT USE EACH MEDIUM DAILY
WE HAVE A
WINNER!
90%+
EVERYONEHAS EMAIL
Plus, it’s PROactive
not PASSIVE
ENGAGED
TRUST
KEEP YOUR CUSTOMERS
AND BUILD
AND YOUR CUSTOMERS
WILL LOVE YOU LIKE
THEY LOVE THEIR DOGS!
WANT TO REDUCE
YOUR CHURN?
VERO
EMBRACE
LIFECYCLE EMAIL!
VERO
LEARN HOW
GET OUR FREE 30 DAY COURSE ON
HOW TO SEND LIFECYCLE EMAILS.
DELIVERED VIA SEVEN EMAILS, OPT-OUT ANY TIME.
CLICK IT
Learn to send better emails
WANT *EVEN* MORE?
SUBSCRIBE TO OUR BLOG, FULL OF
EMAIL MARKETING HACKS
Subscribe to our blog
PS - SHARE THIS
PRESENTATION IF YOU
FOUND IT USEFUL :)
...OR FOLLOW ME ON TWITTER
@CHEXTON
1 of 42

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Customer Retention: Why Your Dog Would Make More Money Than You