[TechSparks 2020] Businesses must be data-driven to ensure customer retention: Clever Tap founder
In a digitally connected world, brands are constantly engaging with their consumers through multiple channels.
Customer engagement strategies are being redrawn as the proliferation of networks, the boom in apps, and the pricing of data have led to an explosion in the use of smartphones and changed the way brands interact with consumers.
Speaking at TechSparks 2020, YourStory’s flagship event, Anand Jain, the Co-founder of SaaS-based customer lifecycle management and mobile marketing company Clever Tap, deliberated on retaining customers in a digital world, especially in the post-pandemic era.
“What is customer retention? Is it a notification to launch an app or to make it part of the home screen. Retention means you are on top of the mind for that category,” Anand said.
“Retention is not about being noticed; it is about understanding the user. It is about what is important to them. You have to communicate based on those needs. If you are building a company on this path, it is a science. Marketeers should not spend without looking at the science of customer retention because of the 90 percent uninstall rate," he said.
CleverTap, which is used by more than 8,000 brands, enables businesses to deliver omnichannel experiences to millions of customers in real time with its proprietary big data and AI engine. It enables companies to segment users and uncover key insights to drive effective user engagement.
Marketing could be a lot more secular if marketeers had all the information on a single dashboard to win customers. In a world where real-time segmenting of the audience has become a reality, all departmentsmust work together to retain the customer.
Track monthly retention rates
An HBR report says brands spend 25x of their marketing spends to acquire a customer only to lose them with an uninstall.
"Marketeers must track monthly retention rates. They should also look at the lifetime value of the customer.
"If you want to be profitable, track how many times you have touched the customer. Have you messaged them with a high level of personalisation? Change their experience and you will retain them,” Anand said.
The most important Clever Tap user segment is on-demand tech startups that process millions of data points in real time and custom-make communication.
“Personalisation is the last frontier for brands. In the early days, you had to fill up a form regarding your preferences. Today, it's about understanding what customers like dynamically.
“For example, what type of news do they want today? There are two aspects here. Can executives predict what a person will be interested in? Can marketeers understand how to bring them back - not with discounts, but with what the customer is looking for?” Anand said.
Brands need to work with data scientists and customer success teams to communicate and articulate customer needs. It is vital for companies to measure outcomes, work with teams directly related to customers, and create campaigns that can be automated at scale.
“Invest in brand building but also look at measurable RoI. Get people to come to the app and track why some stayed longer with you. Audience segmentation is key, but be data-driven,” Anand said.
For more information on TechSparks 2020, check out our TechSparks 2020 website.
TechSparks - YourStory's annual flagship event - has been India's largest and most important technology, innovation, and entrepreneurship summit for over a decade, bringing together entrepreneurs, policymakers, technologists, investors, mentors, and business leaders for stories, conversations, collaborations, and connections that matter. As TechSparks 2020 goes all virtual and global in its 11th edition, we want to thank you for the tremendous support we've received from all of you throughout our journey and give a huge shoutout to our sponsors of TechSparks 2020.
Edited by Teja Lele