Help your customers reduce churn and you’ll reduce your churn – sound pretty simple, right? Customer churn analysis is a vital part of any company performance evaluation that identifies specific areas where the customer loss rate is high. By providing your customers with a few key metrics from your platform’s data, you enable them to find context for their experience and a barometer of success in using your application. This helps find any operational weak points they may need to address or demonstrates where an approach is working well.
This type of information could be new to some users, so it’s important not to overwhelm them with statistics. Metrics displayed for customers should be clear in their value and carefully curated to display information relevant to the most number of users. Start with a simple approach that shows the value that your platform provides – here are a few examples.
Show your ROI
Return On Investment (ROI) means defining a cost ratio between your company’s net income and investment. To convince customers of your platform’s ROI, you need to show them both its efficacy and its value. As a performance measure, illustrating ROI lets users know why they are using it and if they are using it correctly.
To do this you’ll first need to have a clear value prop for your product. Let’s take Eventbrite as an example. Eventbrite is an online event management and ticket selling platform. Users take to the site to create and promote their own events to a local audience, as well as to browse for and buy tickets. They state their platform value for event organizers as the following:
- Creating professional listings
- Building your community
- Making data-driven decisions
With these 3 value propositions stated, what data for each metric could be shared to back them up?
Metric 1 – Create professional listings
Simply put this is about creating events and selling tickets. The metrics that back the ROI of this value prop are would be the platform’s core services for events and tickets.
Organizers creating or promoting events will want to be able to keep a record of both future and past listings. With a large organization, there may also be different views for managers versus event planners. Additionally, users might want to know the number of available tickets and tickets sold. (This can also be thought of as product sales.)
Metric 2 – Build your community
This value prop is all about new customers and building relationships. The metrics to focus on here would be to display the ROI of building your community with Eventbrite. A key piece of data for this metric could include the number of site visitors. To evaluate the performance of an event, organizers need access to how many views their event pages are receiving and where the traffic is coming from, as well as what sources are the most profitable.
Metrics for marketing performance can also include understanding email campaign effectiveness. Important data here would be the deliverability, open rates, and resulting purchase rates from a campaign. Lastly, crucial to understanding success in community building would come from analysis of customer activity: how many recurring customers and how many new customers were being generated would be good starting points.
Metric 3 – Make data-driven decisions
This value prop is about taking a broader approach to your event analytics and decision-making. For this, event organizers need to understand performance across all of their events. This aggregate view of data allows users to see correlations easier.
Correlations can then be further analyzed and forecast as performance trends. Comparing event performance data by type, owner, time, etc. provides the opportunity to see the common bright spots across events to inform future decisions.
When first starting to define the metrics to share with customers, remember to begin with the value that you want them to see. While customers will ask for more specific details and metrics as they get more comfortable using your platform’s analytics dashboard — with your key value prop metrics you’ll be able to clearly show the ROI that you create for them. These value prop metrics are integral to showing customers the value of your platform and reduce their churn rate as a result.