AI plays an instrumental role in tackling the churn risk and protecting customer revenue. For many dominant recurring revenue businesses, AI, online accounting software, transforms customer retention by securing the consumer data. Not only this, machine learning and advanced analytics extract additional intelligence or drive multi-channels to retain customers. Maybe today’s customers are overwhelmed by a continuous surge of promotions and advertisements. They’re tired of making choices amongst brands.
How to Master Client Retention using Online Accounting Software
It is obvious that not every brand is available, but businesses start to realize that they no longer rely on manual accounting strategies. It’s better for them to understand the current customer situation and then focus on customer retention, not acquisition.
Statistics Showing Customer Retention Advantages
1) It’s 6 times more cost-sufficient to keep a current customer rather than acquire a new one.
2) Increasing the customer retention rate by 5% will increase the profit margin by 25% to 95%.
3) 50% of existing clients are more likely to try new products or consume 31% more cash as compared to new ones.
4) In spite of this overwhelming proof, just 18% of businesses make retention a foremost initiative.
This blog will cover all five strategies to retain customers with the help of online accounting software.
1) Unified Client’s Data
Acquiring online accounting services secures client data, unlocks valuable insights into customers and enables personalizing user experience. This enables businesses to improve their relationship with customers and increase the chances to stay with them. However, the most significant barrier that organizations usually face while searching for analytics is that it’s soiled. They might have huge customer data but it’s distributed among various channels and departments like sales, marketing campaigns, call centres, billing history, transactions, loyalty programs and other services. To get a complete view of customer characteristics and anticipate their alternate needs, the company needs online accounting software that can unify all crucial customer data.
2) Analytics Capabilities
Even a broad view of valuable customer data is of no use if the company has insufficient analytical ability to make sense of it. It is crucial to consider that 80% of customer data is available in an unstructured and structured form. For example, survey responses, agent notes, service requests, and support chats. This unstructured data holds the key to unlocking complex needs or behaviour and is the customer's voice.
3) Predictive Modeling
Online accounting software predicts emerging churn risk earlier in a client lifecycle. They easily collect data from every customer channel and touchpoint, which helps in anticipating customer intention better than ever. AI uses multiple predictive models that are designed to give instructions and predicts churn drivers, risks, health indicators and NPS risks that add up to an explainability element. Due to these predictions, it’s easier for companies to analyze the risk difference by comparing every customer. Not only this but how to minimize the risk and what kind of offers are relevant for every customer.
It’s a necessary step in retention games. A huge retention rate offered at the last minute is proven to be highly expensive and least effective. However, unnecessary interactions with unfair offers can even lead to a consumer loss who is not even at risk, spiking up the churn likelihood. Rather than investigating customer interactions and all other crucial details of every customer. Online accounting software helps in identifying high-risk and valuable consumers and personalizes tools to target only high-risk clients.
This reduces the demand for last-minute offers, raises the offer acceptance rate and stimulates overall ROI.
5) Call-Centre Agent Empowerment
RecordMe, an online accounting software, increases human intelligence that ensures the company has all the required and relevant intelligence. Health indicators and added context are handy so that customers can have better interaction. Advanced online accounting software also involves real-time financial insight access to guide about the next best action and offers to extend the lifetime of at-risk customers who are in action. This guidance adjusts intelligence and authorizes agents with the capability to make decisions and improve customer lifetime value. For consumers, it means that there are more meaningful interactions that offer less time on call.
Customer-centric companies should look to transform client retention strategies that use AI. Because every AI-powered retention success story has some strategic enablers that work behind them. That’s why these enablers are crucial to achieve customer retention targets.
How RecordMe Improves Customer Retention Rates?
RecordMe is an online accounting software that assists healthcare, IT, and many other fields. By acquiring our services, businesses can easily and instantly connect with other contractors or employees. New features in RecordMe include the capability to automatically fetch receipt data and eliminate the requirement to enter information conventionally.
Users can stop and restart the timer that records the time for any project. They can also create proposals and estimates by using online accounting software and have the facility to connect applications with bank accounts to ease the handling of expense management. RecordMe features also include solid inventory management characteristics that provide new users with directions for everything from general to writing an invoice. That makes it easy to set up new businesses instantly and quickly.
Users can also add tax preferences to existing vendors and customers. RecordMe proves to be very valuable in saving essential business resources i.e., time and money.