Sales activity data can provide accurate customer churn predictions. But only if you have a comprehensive sales activity data set in place.
Although each customer is different, many of their behavior patterns are the same. As you analyze your sales activity data, you will find there are very specific patterns throughout the different parts of the customer lifecycle.
High-performing customer success teams figured this out long ago. For example, they know what kind of communications to expect from the customer and when.
Once a customer tells you they are thinking about leaving, it’s already too late. But when you track real-time sales activities, you’re able to use your customer data to tell you when churn is about to happen—weeks ahead of time. This gives you the ability to reach out to the customer, and see what you can do better. That extra bit of attention and love from the customer success team can make all the difference.
Having this level of insight makes it easy to see when a long-time customer may be considering making a move away from your product.
Gleaning Communications Data Insights
Unfortunately, not all companies have reached this level of sophistication. Many still rely on customer success, sales people and social media channels, to alert the business when a customer is in danger. And unless your salespeople are incentivized for customer longevity, it’s unlikely they’ll be in a position to tell you.
A better way to gain this insight is automatically monitoring customer success and sales team activity to see if customer communication patterns change. This early warning system would help predict when customers are about to churn.
We do this internally at People.ai where we run two graphs on our dashboards at the same time:
- Product usage (sessions in our product)
- Inbound communication volume from the customer
When both of these indicators are dropping, we know the customer is in trouble and automatically put them in red category and set off the alarms. The whole company, including the VP Success and our CEO activate and reach out to the customer proactively, giving them all the love needed in their moment of doubt.
This gives the organization the opportunity to pre-empt the churn with massive amounts of love, discounts, a management intervention, etc.
When you can head off churn by reaching out to a customer who is just starting to think about leaving, this could be like magic. A vendor that’s so attentive that he shows up and fixes your problems before they become deadly? Amazing!
Putting Sales Activity Data to Work
This kind of data can be used in predictive models or as a part of systems like Gainsight.
To ensure you have the data you need to make informed interventions, you can easily setup activity SLAs around for customer communications with your sales and customer success teams, using People.ai goals. To see this in action, request a People.ai demo.