Can deep learning improve customer retention?
Everyone knows that for a business to survive it needs customers. But more than this, for a business to grow, it needs to keep those customers coming back, again and again. Therefore, any organisation looking to succeed in an era of vast customer choice should have a cutting-edge customer retention strategy.
This blog will look at the importance of customer retention and show how the sophisticated AI technology known as deep learning is a crucial asset you should have in your arsenal.
The importance of customer retention
It literally pays to retain your customers. By retaining customers your organisation can:
- Experience a far better return on investment – Harvard Business Review found that an increase as small as 5% in customer retention can increase company revenue by between 25 and 95 percent.
- Save money – Research from TARP Worldwide found that it cost 5 times more to get a new customer, compared to retaining an existing one.
- Improve your reputation – good customer experiences and retention of customers leads to a better reputation which in turn leads to good word of mouth and more customers.
- Sell more easily – you can easily sell new products and services to a customer who is already familiar with you. You only need to upsell the new offering, rather than also having to get the customer to buy into your company.
Know what your customers want
There are hundreds of reasons why a customer stays with a particular brand or churns and leaves for another. To pinpoint exactly how or why this happens is difficult. However, there are best practices when it comes to making sure your customer retention strategy is on point.
The process begins with knowing your customer as well as possible. By understanding who they are, you can make sure that your organisation can do the following:
Understanding what is important to your customer should be central to deciding how you interact with them. Your goal should always be to provide them with what they need or want. The only way to do this is to treat your customers as individuals and personalise your interactions as much as you can. If you can distinguish between many types of customer, you can provide better value to each.
The modern customer has a million-and-one things vying for their limited attention. Because of this, they are each constantly on the look-out for signals they can safely ignore. This means that if you send too many interactions that offer no value to a user, you can guarantee they will stop paying attention to you entirely. Research from Localytics shows just how strong this effect can be: if your app sends its users 6-10 irrelevant messages in a week, a massive 32% will uninstall it.
Offering timely products or services to your customers is a proactive way of showcasing your organisation’s value to them. For example, offering a discount on camping gear to customers who are attending a festival or planning a camping trip before they have even started looking at shows that you can save them time and money. They will see the value of your service, and keep paying attention to it.
Evolve with customers’ needs and expectations
“You cannot look twice at the same river; for fresh waters are ever flowing in”. This was true in Heraclitus’ time and it’s even truer today, as the pace of change is ever-increasing. Your customers are constantly changing, both as a group, and individually. This means you always need to be on the look-out for demographic and behaviour changes in your audience and adjust your business accordingly. You also need to keep updating your understanding of each individual customer: collecting information on them once and then never updating that understanding is not going to be good enough.
These are essential components that make up any good customer retention strategy. And to ensure you can adequately address each one, you need the right tech solutions. This is where deep learning comes in.
Deep learning technology: an opportunity not to be missed
What is deep learning?
Deep learning is a class of algorithm that uses multiple layers of non-linear processes to ultimately give a piece of software, such as an app, the ability to ‘learn’ without the assistance of a human software engineer or data scientist. Deep learning is where AI algorithms create independent learning ability from large volumes of data and information.
Tech solutions that use deep learning can mimic humans and function in human-like ways, but because deep learning is effectively AI that learns without the interference of a human, the possible uses for the technology are extensive. This is especially true when we consider that unlike humans, deep learning has a potentially limitless learning capacity.
For an example from a totally unrelated field, consider how difficult it is to fully measure or understand an extremely complex system such as nature using our limited human brain capacity: an expert zoologist might be able to recognise by sight only ten or twenty thousand species of animal within his or her specialism.
However, a deep learning algorithm, which also utilises computer-vision, could learn to recognise all 8.7 million species of animals, plants, and fungi that live on the planet, given a good enough dataset to learn from. This algorithm could then be integrated into an app and a copy could be put in the pocket of every person on Earth – overnight giving everyone the nature recognition capabilities of all scientists combined. That’s how powerful deep learning is.
If we can harness the power of this technology, we can multiply our organisation’s ability to understand and use information many times over.
Pixoneye: cutting-edge technology that goes deep
Pixoneye offers a way to make use of cutting-edge deep learning technology to improve your customers’ experience. By analysing visual information from customers’ mobile devices, Pixoneye gives apps unique insights into its users’ lives, allowing brands to make recommendations that are personal and tailored.
Here is how Pixoneye enables you to hit those all-important customer retention goals:
Offer real value
Pixoneye uses super-private on-device AI to analyse user’s own data and generate an accurate picture of who they are and what they want, allowing your business to offer deals, promotions and other valuable services.
Pixoneye’s understanding of each individual is deeper, more accurate, and more robust than any other way of understanding users. This means you can make your communications hit the target every time, and drastically reduce churn.
Pixoneye’s machine learning is so advanced and has access to such high-quality data, that it can predict future events in customer’s lives. This allows you to pro-actively interact, before your competitors get a chance.
Evolve with customers’ needs and expectations
Unlike other static datasets, Pixoneye’s analysis is ongoing, constantly updating the understanding of each individual customer as new information appears. This means that you can be safe in the knowledge that your analytics, personalisation, and strategy are totally up-to-date.
Pixoneye analyses visual information from customers’ photos, it provides experiences and recommendations that are personal, targeted and what the people who buy your products or use your service are looking for.
It’s deep learning solutions like Pixoneye that will give organisations the ability to provide their customers with a better, more relevant and rewarding experience. Your customers’ needs and expectations are constantly evolving. Pixoneye simply enables your business to keep up.
To find out more about Pixoneye and how deep learning and computer vision can help your business improve its customer retention, get in touch with us today.
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