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 enterprise2. Aggregate customer events from multiple sources3. Train your employees on why/how to use customer data4. Ensure your team acts on customer data in a timely fashion5. Measure customer retention, satisfaction and profitability religiously6. Know how to identify “at risk” customers7. Target high-value customers with a personalized message8. Don’t ignore product usage data; use it wisely9. Optimize the product based on customer behavioral data10. Convert your “power-users” into brand evangelistsDownload your complimentary copy of this EXCLUSIVE REPORT here.
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