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Analytics and Customer Retention

The increasing relevance of analytics and technology to the field of marketing is music to my ears.

Yet, many of my fellow marketing brethren find these analytics aren't always useful to their overall business strategy. I was stunned by the statistic quoted in this blog post from Position 2 that states less than half of marketers find the web analytics they collect to be useful for decision making. A sobering thought, indeed, for those of us who rely heavily on a variety of tools and solutions to glean business insights from the data we collect.

Luckily we strongly believe that the analytics we deliver at Vindicia are relevant not just for internal strategy but also for the marketing and business executives at our clients. Just last week I sent to one of our clients a single-page chart obtained from our dashboards that highlighted our customer retention success rates for their products. The data for July 2012 showed that we saved over 1100 subscribers for this client via our customer retention capabilities. More importantly, the client executive now has the ability to understand the impact of this retention on her customer lifetime value, probably the most important metric for her to focus on. With an average lifetime of about 17 months at $10/month, that implies a total revenue increase of about $187,000 just from July's transactions.

One of my favorite webinars in our archives is one that centers around the common mistakes digital companies make when thinking about customer retention. Data and analytics are critical, but ensuring you have the right strategies and processes in place to keep customers loyal, happy and recurring is the most important aspect of your digital business.

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