Importance Of Value Propositions In Customer Retention

I lived it: My customer gave a 10 on an NPS survey and then churned the next renewal cycle. We have likely all learned that a high NPS rating may not be a renewal indicator on its own. Value Enhancement Scores, on the other hand, are what analysts are calling the leading driver for customer retention in 2024 - even above Customer Effort Scores. At Banzai we have started making a shift in the kinds of questions we ask our customers in an attempt to understand what value enhancement activities are leaving a positive impact on them, as well as how effectively our team is at enabling them. At scale, this can be easily done with an evolved NPS strategy. Instead of 'how likely are you to recommend us?' or 'do you plan on renewing?' we are reformatting our approach with our strategic segment to probe into the value received by the customer. Examples: "After purchasing the product, I can report a positive impact to my benchmarks" "After accessing the LMS, I feel more confident in my ability to use the product" "After working with my CSM, I am able to achieve more with the product" I'd love to hear how others are asking their customers the right questions to predict, prevent, and mitigate churn in a contemporary way. And as always - don't take my word for it! A link to my favorite analyst-approved VES resource is in the comments. #customerexperience #NPS

Three words: gross revenue retention. As I talk to CROs and sales leaders, it’s the one theme that keeps coming up over and over and over again. But the most savvy and strategic CROs that I’m speaking to are zeroing in on product adoption and activation. They understand that the key to reducing churn lies in a strategic sales process and empowering their sellers with the right tools. Specifically they’re investing in tools that give buyers a real sense and experience of the product. That means doing everything they can to show the product and consistently communicate the value, like: - more product training and enablement for sellers - arming sellers with demo environments that show the product actually working - enabling sellers with demo scripts that communicate the product’s value - finding ways to let buyers test the product themselves The root of churn often lies in misaligned expectations. By providing transparent and authentic product experiences in the sales process, you increase the likelihood of long-term customer retention.