Recently, we reported that approximately $83 billion is lost in marketing each year due to a poor customer experience. Additionally, it costs about five times as much to attract a new customer as it does to keep an existing one. But what if you had a reliable way of predicting which of your customers was likely to continue on as a customer and those that weren’t? Today Scout Analytics announces a closed-loop Renewal Performance Management Solution.
What Can Actionable Predictive Analysis Do For You?
Scout Analytics, known for its innovative analytics tools, has introduced a tool that predicts renewal revenue opportunities and then tracks the resolution to continuously improve revenue yield.
How does it do it?
By applying actionable predictive analytics to maximize customer lifetime value, the new Scout Yield Optimizer is able to analyze historical data, including the sources of up-sells and churn. It then prioritizes sales, marketing and support resources for maximum renewal revenue yield.
It’s all powered by something called the Renewal Performance Calculator, which automatically computes each renewal’s impact to monthly recurring revenue and classifies subscription as up-sells, down-sells, cancellations, or new. It also allows sales and marketing to continuously improve predictions by correlating monthly recurring revenue (MRR) growth and churn to customer usage patterns.
Maintaining a Subscription Economy
For subscription businesses, managing the cost of renewals and up-sells is critical to profitability. And it can be expensive to lose a regular customer. In fact, research from OPEXEngine suggests that the cost of renewal comprises an average of 10-20 percent of a contract’s annual value. However, in order to reduce the cost of renewals one must invest a considerable amount of time and money into analyzing customer data. Scout Analytics’ new tool leverages that data for you, so sales and marketing teams can spend their time more effectively targeting the right people.