This is a guest post by Josh Schachter, founder and CEO of UpdateAI.
As a post-sales leader, my role hinges on increasing revenues from existing customers. One of the most effective ways to achieve this is to leverage AI for customer retention by using it to understand customer trends and mitigate churn risks.
In this blog post, I’ll walk you through how AI tools like UpdateAI, along with others, can be used to enhance customer retention by identifying, investigating, and acting on key trends across accounts. And yes, there will be some shameless plugs for UpdateAI—I’m not just the Head of Customer Success and Community; I’m also the biggest fan of our own product!
Speaking of AI… I was blocked on this blog post for two weeks. Then I took a LinkedIn Class from Allie K. Miller called How to Use Generative AI: Building an AI-First Mindset (10/10 highly recommend). I started to talk to the AI as if I was talking to an intelligent coworker or innovative thought partner, explaining what I wanted to communicate, who the audience was, and what I wanted them to walk away thinking about. I even told the AI to ask me questions if it needed more information. It asked and I answered, ensuring that the material was mine and not a generic post that anyone could write.
I was blown away by what the AI returned. Was it perfect? Not even close! Did it need editing so it sounded like me? Absolutely! Did I have to go in and add clarity around complex topics? I sure did! But even with all of that, it was exactly the antidote to a blank screen (or really, a kick in the proverbial butt) that I sorely needed. So, if you find yourself stuck, don’t hesitate to ask for a little AI assistance. Now, back to crafting those perfect customer experiences—happy retaining!
How to leverage AI for customer retention by identifying actionable trends.
AI has revolutionized how we handle account management, from initial conversations during prospecting to closing an expansion deal after multiple years of partnership. It provides us with the ability to analyze vast amounts of data, uncover hidden trends, and predict customer behavior with remarkable accuracy.
Looking across accounts for trends involves using AI tools to sift through customer data and identify patterns that could indicate potential churn or opportunities for upsell. Here’s a detailed step-by-step guide on how to effectively use AI for this purpose.
Use your AI tools to surface hidden trends.
Step 1: Collect and aggregate data. Start by aggregating data from various customer touchpoints. This includes product usage data, customer feedback, support tickets, and any other interaction data. Tools like UpdateAI can automatically collect and organize this data for you. Think of it as your personal data butler—always ready to serve up exactly what you need.
Step 2: Utilize AI analytics. Use AI-powered analytics platforms to process this data. UpdateAI, for instance, can analyze customer conversations and identify sentiment trends. Other tools like ChurnZero offer powerful analytics capabilities to uncover patterns in customer behavior. If you’re not using AI, you might as well be trying to solve a Rubik’s cube blindfolded.
Step 3: Visualize the data. Visualization tools like Tableau or Power BI can help you create dashboards that highlight key trends and anomalies. This makes it easier to spot trends at a glance and understand the bigger picture. Plus, it looks impressive during meetings—you’ll be the rockstar of the office.
Understand which trends are worth investigating, and prioritize.
Step 1: Define key metrics. Identify the key metrics that matter most to your business, such as customer health scores, usage frequency, and NPS scores. Focus on trends that show significant deviations from the norm. If it sounds like a lot of work, that’s because it is—good thing you’ve got AI to do the heavy lifting.
Step 2: Prioritize based on impact. Evaluate the potential impact of each trend. For example, a drop in usage frequency among high-value customers warrants immediate attention. On the flip side, if a customer who shares critical feedback often, indicating a lack of understanding about your products main purpose, you can feel feel comfortable looking at those only when you have time. AI tools can help prioritize these trends by calculating the potential revenue impact of each anomaly. It’s like having a crystal ball, but without the dramatic music.
Step 3: Set alerts for critical changes. Use AI to set up automated alerts for critical changes in customer behavior. UpdateAI can notify you of sudden drops in the number of advocacy moments collected, or unexpected increases in churn risk detection, allowing you to act quickly. Because nobody likes unpleasant surprises—unless they’re birthday parties, but that’s a different story.
Use AI tools to investigate and analyze each trend.
Step 1: Drill down into data. Once you’ve identified a trend worth investigating, drill down into the specific accounts affected. Look at individual customer journeys and touchpoints to understand the context behind the trend. Think of it as being a detective, but instead of solving crimes, you’re solving customer churn mysteries.
Step 2: Conduct root cause analysis. Use AI to perform a root cause analysis. For example, if there’s a spike in support tickets, AI systems like Thena.ai can analyze the content of these tickets to identify common issues. UpdateAI’s conversation analytics can be particularly useful here. It’s like having a magnifying glass that sees through customer complaints.
Step 3: Engage with the customer. Reach out to the affected customers to gain deeper insights. Personalized surveys, direct conversations, and customer interviews can provide valuable qualitative data to complement your AI-driven insights. Just remember to smile and nod—a lot.
Talk to people who are close to the accounts.
Step 1: Collaborate with sales executives, account managers and customer success managers. Share your findings with the folks who interact with these customers regularly. Provide them with the data and insights you’ve gathered and discuss potential solutions. Together, you’ll look like the heroes of the story to those around you, and everyone loves a hero.
Step 2: Create a unified action plan. Work together to create a tailored action plan for each account. This might include offering additional training, addressing specific pain points, or proposing new features. Remember, teamwork makes the dream work!
Step 3: Monitor progress. Continue to monitor the account closely using your AI tools. Track the effectiveness of the implemented changes and adjust your strategy as needed. Because nothing feels better than seeing your hard work pay off—except maybe a standing ovation at your next stand-up gig.
Keep learning and improving.
AI is a powerful ally in the quest to improve customer retention and manage churn risks. By systematically identifying, investigating, and acting on customer trends, you can build stronger relationships and drive growth from within your existing customer base. Tools like UpdateAI and others in the market make it easier and more efficient to use AI for customer retention, allowing you to focus on what matters most – delivering exceptional customer experiences.
And if you’re still not convinced, just remember: I’m not just the Head of CS and Community at UpdateAI—I’m also a satisfied user. Now, if only AI could help me with my stand-up comedy routine…
Want to hear more from Josh and the UpdateAI team? You can follow them on the UpdateAI blog, and the Unchurned Podcast.
