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Customer Retention
As Jerry Seinfeld might say “See, you know how to attract the customer. You just don't know how to retain the customer. And that's REALLY the most important part of the customer, the retention.” This week we’re taking a look some effective approaches for hanging on to those customers you want to keep.
Meanwhile, in product news, ESPN uses AI to talk about soccer, two tools using AI for potentially useful purposes, and Google and Apple both denied appeals of large EU fines.
7 Steps to mastering customer retention in product management. Customer retention requires a strategic and systematic approach that involves understanding customer behavior, expectations, and feedback, designing product features and experiences that delight customers, and communicating and engaging with customers effectively and consistently. Ilyas F shared 7 steps for mastering customer retention in product management.
Customer retention metrics: What they are and how to improve yours. Retention often doesn’t get talked about as much as user acquisition in SaaS. Yet your customer retention metrics can make or break a business. Craig Zingerline, Founder and CEO of Growth University, looks at the core customer retention metrics you’ll want to monitor, along with how to measure and improve them.
Product market loyalty. Product market loyalty is a multifaceted concept that encompasses several elements, including customer satisfaction, brand loyalty, and customer retention. It is a measure of how likely customers are to continue using a product or service, and how resistant they are to switching to a competitor's offering. The folks at Untaylored delve into the intricacies of product market loyalty, its importance in product management, and how it can advance a product manager's career and boost revenue growth.
Deep-Dive: Creating effective retention strategies. There’s a metric that often separates the good products from the great ones: retention. While acquiring new customers might give you a temporary high, it’s the ability to keep them coming back that truly defines long-term success. At its core, retention refers to a company’s ability to keep its customers over time. It’s not just about preventing churn; it’s about creating such value that customers can’t imagine their lives (or businesses) without your product. Mike Belsito explores the world of retention, how to measure it accurately, understand the psychology behind why customers stay (or leave), and uncover data-driven strategies to improve it.
Inclusive Decision-Making to Drive Retention. Successful products have a strong North Star metric in place to help guide their overall strategy — and oftentimes, that metric revolves around retention. However, people often miss one very important aspect when it comes to retention: being inclusive. Laura Teclemariam, Director of Product at Netflix, explains when you take an inclusive approach to building products, you can have even more successful outcomes.
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This week on Rocketship.fm:
Mastering Internal Partnerships: The hidden skill of a great product manager
In this episode of Rocketship.FM, we dive into an often overlooked but crucial aspect of product management: working effectively with internal partners and stakeholders. Join host Mike Belsito as he interviews John Haggerty, a seasoned product leader and coach, who shares insights on how product managers can build stronger relationships within their organizations.
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In 10 days, 500+ product people from around the world will gather in Cleveland, Ohio, for INDUSTRY: The Product Conference. Here's the event in numbers:
- 2 day experience (3 days with optional 4hr workshop) allowing you to fully immerse yourself in the world of product.
- 12 keynotes exploring everything from the impact of AI to behavioral science.
- 4 breakout talks by front-line product management experts.
- 10 roundtable discussions with your product peers.
- 2 interactive 1 hour working sessions digging deep into AI and customer research.
- World-class event with a 60+ NPS score year over year.
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Increasing retention
We all know the thrill of landing a new customer, but here's a mind-blowing stat: increasing customer retention by just 5% can boost profits by 25% to 95%. Yeah, you read that right.
So, why is retention such a big deal in software? Simply put, it's cost-effective, drives growth, and creates advocates. Acquiring new customers is expensive, but keeping existing ones is much cheaper. Happy customers tend to buy more, upgrade, and become your best marketers.
Now, how do we nail this retention game? There are a few ways…
First, ensure your customer success team becomes product experts. They should know your software inside out, building trust and solving problems faster. Next, define and measure success for each customer. Create a "success matrix" - what does winning look like for them?
Listening and adapting is crucial. Regular check-ins and feedback sessions are gold. Use them to improve your product and service. And always follow through - set clear expectations and deliver on your promises.
Foster connections between customers, and they'll feel more invested in your ecosystem. Remember, customer success isn't just a department—it's a company-wide mindset. From C-suite to development, everyone plays a role in keeping customers happy and sticky.
Now, I've got three challenges for you to move the needle when it comes to retention:
- Audit Your Retention: Take a hard look at your customer retention rates. Are they where you want them to be? If not, identify one area where you can improve in the next 30 days.
- Learn from the Best: Reach out to a SaaS company you admire and ask about their retention strategies. What can you adapt for your own business?
- Empower Your Team: Schedule a cross-functional meeting to discuss how each department can contribute to customer retention. Remember, it's everyone's responsibility!
These may seem like small things to do, but if we can increase our profits by as much as 95% – I’d say it’s well worth the effort!
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You can spell goal without AI. This weekend, ESPN began publishing AI-generated recaps of women’s soccer games, with more sports to come. It’s using Microsoft AI to write each story, with humans only involved in reviewing each recap for “quality and accuracy.” ESPN says these stories will “augment,” rather than detract from, its other content — but the results so far have been… bland and missing important nuance. ESPN argued that AI summaries free up its writers to focus on more in-depth work, such as “more differentiating features, analysis, investigative, and breaking news coverage,” such as NFL draft predictions in September.
It's like thousands of interns collecting data without the interns. Have you ever had to collect loads of data and enter it into a spreadsheet without an intern to give that task to? The folks at Paradigm have you covered. This new tool puts swarms of intelligent agents at your fingertips to gather, structure, and take action on data with human-level precision. Even better, Paradigm is 1000x faster than manual data collection, completing an average of 500 cells per minute. If you’re interested, you can add your name to their waitlist.
It’s like a bar napkin without the bar. Or the napkin. Have you ever wanted to sketch out your ideas for a presentation or blog post, but your drawing skills are - sorry, couldn’t resist- sketchy? You may want to try out Napkin. This AI-powered tool helps transform your business communication by turning text into engaging, clear visuals. This makes your ideas easier to understand and more impactful. It’ll also save you from spending more time hunting for images than you spent writing your presentation in the first place… or is that just me?
They fought the law, and the law won. The European Union’s top court rejected Google’s appeal against the 2.4 billion euro ($2.7 billion) penalty from the European Commission, the 27-nation bloc’s top antitrust enforcer, for violating antitrust rules with its comparison shopping service. Apple also lost its challenge against an order to repay 13 billion euros ($14.34 billion) in back taxes to Ireland after the European Court of Justice issued a separate decision siding with the commission in a case targeting unlawful state aid for global corporations. These findings signal the start of an era of intensifying scrutiny for Big Tech companies. Talk about you don’t know what you have until it's gone.
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