We wrote earlier about Aberdeen’s groundbreaking research into the value of customer intelligence: companies which use customer analytics in their customer-facing business processes see 3x greater customer retention and 20x greater account value growth year over year.
Read our INITIAL BLOG on this here.
An EXCLUSIVE REPORT from Aberdeen shows that companies that use customer analytics experience 17x better revenue preservation from existing customers than non-users (page 5 of the report). Customer analytics users also experience a customer lifetime value that is 5x greater than non-users and overall revenues more than 2x greater (page 16 and 21 of the report).
Download the EXCLUSIVE REPORT here.
Now Totango partnered with Aberdeen to bring you a unique perspective on customer intelligence for software companies. What can software companies learn from the use of customer intelligence in other verticals? A lot as it turns out.
Software companies lag behind best-in-class companies from all industries in many ways. What I find most astounding is that 69% of software companies cannot identify “at risk” customers in a consistent fashion. Moreover, 18% of software companies don’t even measure customer retention and 25% don’t measure customer satisfaction, whereas none of the best-in-class companies ignore these metrics.
|
Software |
Best-in-Class |
Difference |
Report |
|
| Customer retention |
68% |
84% |
-16% |
Page 14 |
| Know time it takes to identify “at risk” customers |
31% |
76% |
-45% |
Page 18 |
| Know time it takes to act on customer data |
82% |
100% |
-18% |
Page 18 |
| Measure customer retention |
75% |
100% |
-25% |
Page 19 |
| Measure customer satisfaction |
72% |
83% |
-11% |
Page 19 |
| Measure customer profitability |
19% |
61% |
-42% |
Page 19 |
| Aggregate internal and external customer data |
47% |
70% |
-23% |
Page 20 |
| Target high value customers with personal message |
26% |
48% |
-22% |
Page 15 |
| Optimize product based on behavioral data |
68% |
84% |
-16% |
Page 20 |
Aberdeen has these 10 recommendations for software companies:
1. Establish a single view of customer data across your enterprise
2. Aggregate customer events from multiple sources
3. Train your employees on why/how to use customer data
4. Ensure your team acts on customer data in a timely fashion
5. Measure customer retention, satisfaction and profitability religiously
6. Know how to identify “at risk” customers
7. Target high-value customers with a personalized message
8. Don’t ignore product usage data; use it wisely
9. Optimize the product based on customer behavioral data
10. Convert your “power-users” into brand evangelists
Download your complimentary copy of this EXCLUSIVE REPORT here.
