Matt Shanahan
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Are Analytics Helping or Hurting Your Customer Success Operations?
If you implement scoring rules for identifying at-risk customers, you will want to be sure the rules actually help your customer success organization, i. e. , that the rules provides a return on investment (ROI). A scoring rule with low accuracy hurts your organization by reducing efficiency and effectiveness. Many scoring rules are developed from the experience and intuition of customer success managers, but most have not been validated as to their customer coverage or predictive accuracy – the two facets that determine ROI in predicting churn.
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State of Behavioral Targeting in B2B Media
In my most recent benchmarking project, I asked a series of B2B digital media brands if they had a behavioral database that the editorial, audience development and sales could use. All of them responded “no,” which means they are not able to operationalize behavioral targeting. This was surprising, as behavioral databases are required to answer such questions as:.
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How Usage Data Drives Revenue Growth in the Subscription Economy
The “Use It or Lose It” dynamic in the Subscription Economy means that if your customers don’t use your service, you’ll lose the customer, the renewal and the revenue. The relationship between subscriptions and usage illustrates this dynamic well. If a customer’s usage meets specific thresholds, the subscription revenues are retained at renewal.
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Why Churn is a Problem for Digital Media
At what point does churn rate inhibit growth and profit in a digital media business model? Both in the information services and SaaS industries, a churn rate over twenty percent is problematic for the business model. In both of these industries, sustainable profits exist at around ten percent churn. In controlled circulation of print media, a twenty percent churn rate would have been difficult to sustain.
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Why Data Trumps Exerience in Trial Conversions
Probably one of the biggest mistakes publishers can make on converting trials is relying on experience and intuition. The art of implementing and managing trials doesn’t match the science of new data-driven techniques. Using predictive analytics to qualify trial users and focus on those that are most likely to convert can double conversion rates.
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Why Metered Pricing Models Maximize Revenue
Maximizing revenue from digital subscriptions is dependent on monetizing usage rather than the users themselves. Comparing print subscriptions to digital subscriptions highlights why usage behavior is the basis of revenue, and applying the principles of yield management shows why metered pricing models produce the most revenue.
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How to Measure and Evaluate the Efficiency of Your Pricing
Segmentation in all pricing helps companies develop targeted plans for different groups of customers. Segmentation can be based on demographics, firmographics, or behavior. From Scout® Research’s benchmarking, demographic and firmographic segmentations consistently underperform behavioral segmentation in yielding the maximum revenue. How much opportunity exists to increase revenue from behavioral segmentation? The following infographic illustrates how to measure and evaluate the efficiency of your pricing.
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Leveraging the Multiplier Effect of Renewals to Increase Profits
In subscription-based services, revenue comes two sources: customer acquisition and renewal acquisition. Once renewals become more than 50 percent of the revenue, sales and marketing costs associated with the renewal process begin to become a larger factor in managing profitability. The interesting dynamic is that while the acquisition phase occurs once during the lifetime of a customer, renewal acquisition is an annual event.
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What is the Revenue Potential of an Event? Measure Your Audience
Through 2015, much of the B2B media revenue growth forecasted by Veronis Suhler Stevenson shows a substantial portion will come from events — both live and virtual. Most notably, over 70% of clients are increasing investment in geographical events that can be replicated in multiple locations – geo-cloning, as one client called it.
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Measurement is Key for Paywall Success
From following the paywall hashtag on Twitter over the last 18 months, there has been a steady increase in the debate about paywalls, both pro and con, but mostly without any data or revenue models. Our previous research (http://blog. scoutanalytics. com/advertising/the-digital-drop-off/) showed that the move from print to digital significantly reduces the revenue capacity of a publisher.
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