An inevitable part of any business is identifying customers who are likely to continue and those who won't. Retaining customers who have a plethora of options can be a challenge. However, keeping existing customers happy is a better strategy than endlessly focusing on growing your base by acquiring new customers. Acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.
Customer churn is the percentage of customers that stopped using your company's product or service during a specific time frame. The trick to building predictable revenue is to retain and keep the existing customer base happy. In other words, finding out why customers are leaving and identifying customer churn patterns is essential.
Here are two effective ways to build predictable revenue for your food delivery business:
Taking Into Account New Changes
The food delivery apps business has noticeable customer behavior patterns. To strengthen the loyalty of existing customers, take these steps
Once customers sign up, 80 percent never or rarely leave for another platform, creating a strong winner-take-all dynamic, in which the reward goes to the player who can sign up the most customers in the shortest amount of time. The speed of delivery is the most significant variable in customer satisfaction, with an average 60 percent of consumers across markets citing it as a critical factor. The optimal wait time is no more than 60 minutes. Most orders—82 percent—were placed from home, while only 16 percent were placed from the workplace. The highest-volume days for the online platforms were Friday, Saturday, and Sunday, when 74 percent of orders were placed.
These sort of customer behavior expectations and patterns determine the number of customers that will churn. If the platform can meet these expectations overall, you can decrease the number of customers that churn.Using An AI Customer Churn Prediction Platform
With all the data that your platform gathers, it is wise to put that data to good use. Experimenting with the data is the key to monetizing the data. Using a prediction app based on AI, identification of customer behaviors, and patterns is made possible.
By knowing what causes the customer to stop using your app/platform, businesses now have the option of creating solutions and enforcing them in time. The problem with not using customer churn prediction is that pinpointing why customers left is impossible. Without knowing the problem, finding a solution for the same is not possible either - this means that the business may lose customers in the churn, who could be retained. Usually, customer concerns are not that difficult to handle. It is the speed and accuracy that solves the problem.
A customer churn prediction takes into account various factors and behaviors of customers that stopped using your service. The amount of money spent, the average monthly transactions, number of customers that dropped off the platform, number of support tickets, etc.
Using this data it predicts the customer churn rate. It also brings into perspective the significant causes of customer churn. Eliminating or using counter-strategies to lessen the impact of these on the customer churn helps to put the platform in the good books of customers - this increases the customer lifetime value, as customers tend to stay loyal to one platform.Taking timely action
With the help of predicted customer churn rate, it is possible to take action to prevent customers from churning. Time is of the essence here, as you want to make a positive impact that will stop the customer from leaving while creating an excellent impression on them. This step is the most important out of all 3. You may gain significant insight into why customers are churning, but if you don't do anything about it, it will not impact your customer churn pattern. Actionable analytics are what drive customer churn prevention. Let me tell you a real-life example that happened to me. I ordered three boxes of food from a particular restaurant. I had already paid online, so all I had to do was receive it. Unfortunately, the delivery boy arrived when I was in the bathroom. My family members took it but did not tally the number of boxes against the bill. It turns out that only two boxes of food arrived. I immediately contacted the food delivery platform over their chat assistance, sending them a picture of my bill along with a picture of the open boxes. They responded with a few messages, saying that they had contacted the restaurant and action would be taken soon. I also received credits for the amount that I had paid. I truly appreciated all the steps taken to ensure quality service and commended both the app and the restaurant for taking sincere, speedy action.
This incident is what kept me loyal to the platform, and I would recommend the same to a friend. What could have been a messy situation where they could potentially lose a customer turned into an opportunity to improve the image of the brand.
These are the three necessary steps that can be taken to build predictable revenue. One is to keep existing customers happy by complying with their expectations and taking care of their needs. The second is to use customer churn prediction to analyze the trends and patterns that churning customers follow, and then using countermeasures to ensure minimal customer churn.
Datoin is an easy-to-use, all-in-one sales support AI solution that helps businesses predict customer churn rates within three days. To see how it works, sign up Datoin for the free demo.