Predict and Prevent Customer Churn using AI in Customer Service

Customer Retention using AI in customer service

Customer churn (AKA customer attrition) costs businesses tons of money every year. In fact, it’s been reported by The Forester that it can cost as much as 5x more to acquire a new customer than it is to maintain an existing one. Furthermore, KPMG has released data indicating that retaining customers is the primary factor affecting a company’s revenue.

Needless to say, it’s vital that businesses keep customer churn as low as possible.

How Customer Churn Is Expensive for Businesses

While it’s fairly intuitive, it is important to point out that losing customers is going to create a loss of revenue for a business. Customers who decide to move on to another company may spread negative information about the company they left and generally, a loss of customers leads to a bad word of mouth. This forces businesses to respond to negative rumors by running more marketing campaigns and devoting energy to addressing the poor publicity. 

All of these factors cost companies time and money.

Customer Churn Indicators

Luckily, there are things to look out for that can prevent customer churn before it happens. One such indicator is the amount of and nature of customer support tickets. For example, customers may be growing increasingly frustrated by a certain element of your business or your service. 

The easiest way to identify these indicators and make appropriate changes is to leverage AI technology. Well-designed AI can send you an alert if you receive a high number of at-risk customer support issues or when an overall negative sentiment seems to be developing around your business.

IrisAgent Can Help

IrisAgent can help address customer churn quickly and effectively in a number of ways. Two of these ways include:

  1. Through integrating IrisAgent with your sales CRM, you can easily identify how likely it is that customer churn will occur and how much it will cost you.

  2. Integration of IrisAgent with your business’s analytics software, you can gain insight into when product usage is decreasing or when customers are having difficulty with certain elements of your service.

It is significantly more expensive to acquire new customers than it is to keep existing customers. Preventing customer churn leads to a better reputation, increased revenue, and a better experience for both customer and company.

Interested in seeing how IrisAgent can help your business prevent churn? Check out our website!