Customer retention that works
The co-founders, Mike and Libby, worked together for many years in a large enterprise transforming customer experience where we focused on getting better connected customers through our website. As we kept adding new features and improving the website, more and more of our customers shifted to the online self service channel.
We were fixated on ways we could improve our customers’ life through all the different channels. We spent time in the contact centre on service calls, talking to billing and collections about improving the customer experience and talking to product people about giving customers more hands-on control of their products.
With all this investment in self service we had to measure and report benefits to keep accessing capital. We built a structured framework lining up investment with benefits and it was during this time we noticed just how strong the connection between the way customers engaged with us and their likelihood to stay with us was.
The opposite was true for operational issues. Each time there was an error or a delivery issue the call centre took an avalanche of calls from unhappy customers. Our systems couldn’t give us a view of an individual customer’s experience. We wanted to see if individual customers had been victim to multiple operational issues. The only way we found out when a customer had been hit with a number of issues was when they rang to complain.
It wasn’t rocket science, but we figured out that when customer engagement was up through self service and they didn’t experience operational issues they tended to stay with us. Customer retention could be something we could measure. So from their behaviour combined with how we delivered for them was a predictor of retention. We understood how important this connection could be if we could predict customer churn.
Thus the idea for SmartMeasures was born. We built a solution to collect data from across the business to measure individual customer’s experiences and consolidate this into a health score, a Customer Retention Health Score to be exact.