Today you’ll learn an extremely effective user retention technique that’s used by the top software companies in the world.
If you’re not getting the churn rate that you need to scale your business, this video and article are for you…
User Retention Video Training:
1 Customer Retention Strategy To Keep Customers Around
You’re about to learn a really cool churn reduction technique.
You may have already put a lot of focus on the customer acquisition and lead generation sides of your business.
But reducing churn rate is what will help keep your customers around longer.
This will ultimately increase your lifetime value so you can achieve significant growth.
This is something I’ve learned from companies like:
- Google Drive
And it’s currently being used by some of the best software companies in the world.
This technique is what we call Willful Customer Collateral.
Simply put, this is what it is:
In order to make a product more beneficial for the end user, they need to put more and more of their assets into the product itself.
The more personal and business assets they invest in the product, the more useful the product is for them.
And the more painful it will be for them to stop using it.
They’ll never want to quit.
This is 1 great way to achieve faster business growth.
How Salesforce Uses This User Retention Strategy
For example, let’s say you have a CRM software.
And we’ll say for the sake of illustration here that you’re using Salesforce.
If you’re using Salesforce and you’re a power user…
You build out:
- All kinds of email automations
- A pipeline of sales
- Your Facebook ads are pointing there
- Fulfillment systems inside your CRM
You could have 3rd party apps that are running your automations in terms of how your business is running.
What would happen if you suddenly lost all those things?
It would be horribly painful for you.
It might actually destroy your business.
But on the positive side of things…
The more you build out these powerful automations through a CRM like Salesforce…
The faster and easier it is to grow your business.
So there’s really big benefit in terms of building out and adding more assets.
You can make a lot more money.
Why Is This User Retention Strategy So Effective?
What would happen if you cancel your subscription when you have all your business automation systems within the product?
You wouldn’t want to leave!
Can you imagine all the pain you would feel from losing all of those assets?
The disruption of all these systems in your business is just too much.
What happens as a result?
You, and other customers, stick with the product longer.
Churn rate is reduced and the business grows as a whole.
Dropbox: User Retention Built Into The Product
Let’s take a closer look at Dropbox.
In order to get more benefit out of the product, what do you have to do?
- Upload your photos
- Store your important documents
- Host videos you want to share
All of your assets are in the software…
And the more that you put in, the more you’re invested in being their customer in the long term.
How This Can Grow Your Business
The main takeaway from today’s article is this…
What can you do to get your customers to decide to put more collateral inside your business?
How can you make this a greater benefit for them?
It needs to be a significant benefit.
Not just a 1-to-1 ratio, right?
Why should your customer (for example) put their whole customer list in?
What benefit do they get from that?
Why should they put their entire lead automation inside of your product?
Is it a strong enough benefit for them to do that?
Build The Benefits Into Your Products
Are they going to be able to work 24 hours a day without actually having to sit on their laptop?
Will the automation completely take care of their fulfillment?
Will they be able to spend 10% of what they were spending before?
And so as a result, they’re going to get their margin so much higher, 90% higher in this particular vertical, right?
You want to make it a very clear benefit to them.
What is the benefit your customer receives for putting their own personal collateral inside your product?
Think about that going forward.
This is a great way to make your product stickier.
Alright, thank you so much for reading.
My name is Steve Nixon.
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