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EXCLUSIVE REPORT: Customer Intelligence for Software Companies

We wrote earlier about Aberdeen’s groundbreaking research into the value of customer intelligence: companies which use customer analytics in their customer facing business processes see 3x greater customer retention and 20x greater account value growth year over year.

Read our INITIAL BLOG on this here.

An EXCLUSIVE REPORT from Aberdeen shows that companies that use customer analytics experience 17x better revenue preservation from existing customers than non-users (page 5 of the report).  Customer analytics users also experience a customer lifetime value that is 5x greater than non-users and overall revenues more than 2x greater (page 16 and 21 of the report).

Download the EXCLUSIVE REPORT here.

Now Totango partnered with Aberdeen to bring you a unique perspective on customer intelligence for software companies. What can software companies learn from the use of customer intelligence in other verticals? A lot as it turns out.

Software companies lag behind best-in-class companies from all industries in many ways. What I find most astounding is that 69% of software companies cannot identify “at risk” customers in a consistent fashion.  Moreover 18% of software companies don’t even measure customer retention and 25% don’t measure customer satisfaction, whereas none of the best-in-class companies ignore these metrics.

Software

Best-in-Class

Difference

Report

Customer retention

68%

84%

-16%

Page 14

Know time it takes to identify “at risk” customers

31%

76%

-45%

Page 18

Know time it takes to act on customer data

82%

100%

-18%

Page 18

Measure customer retention

75%

100%

-25%

Page 19

Measure customer satisfaction

72%

83%

-11%

Page 19

Measure customer profitability

19%

61%

-42%

Page 19

Aggregate internal and external customer data

47%

70%

-23%

Page 20

Target high value customers with personal message

26%

48%

-22%

Page 15

Optimize product based on behavioral data

68%

84%

-16%

Page 20

Aberdeen has these 10 recommendations for software companies:

1.     Establish a single view of customer data across your enterprise
2.     Aggregate customer events from multiple sources
3.     Train your employees on why/how to use customer data
4.     Ensure your team acts on customer data in a timely fashion
5.     Measure customer retention, satisfaction and profitability religiously
6.     Know how to identify “at risk” customers
7.     Target high-value customers with a personalized message
8.     Don’t ignore product usage data; use it wisely
9.     Optimize the product based on customer behavioral data
10. Convert your “power-users” into brand evangelists

Download your complimentary copy of this EXCLUSIVE REPORT here.

Ellis Luk

I'm the marketing and communications manager at Totango - but you can call me Chief Content Officer. When I'm not writing, you can find me obsessing over memes, debating grammatical usage or getting distracted by the latest Tumblr gif blogs. Customer love starts with a friendly hello!

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