Here’s a quick article on using data analytics for client retention (Analytics Boost Customer Retention for Ohio Mutual). Although I like the article because of its obvious retention-focus, some of the key nuggets relate to the metrics that Ohio Mutual utilizes including:
- Retention/renewal rates (historically 87%)
- Profitability of the renewal business (15%-20% higher than the profitability of new customers)
- Identifying premium increase opportunities (upwards of $175 annually for some clients).
Does your organization have similar metrics? If not, just take a minute to think of how your strategies and decisions would be different if you knew retention rates, profitability of renewal v. new customers, and specific dollar increase opportunities with existing clients.
If you can’t afford a SAS solution, we’ve worked with many organizations on analyzing retention rates, at-risk profiling, retention and growth strategies, client exit interviews, etc. without using some high-end system. It’s not about the system. It’s about you, your customer, and the methodology to uncover retention opportunities and act on them.
Know your numbers to better target and achieve retention and growth with current customers.
For more information, check out: http://cssamerica.com/cssstrategy.htm