登录查看更多内容

Last updated on 2024年10月29日

How can you measure the success of your ERP software customer retention campaign?

由人工智能和领英社区提供技术支持

Customer retention is a key metric for any business, but especially for those that sell ERP software. ERP stands for enterprise resource planning, and it refers to a system that integrates various functions and processes across an organization. ERP software can help customers improve their efficiency, productivity, and profitability, but it also requires a significant investment and commitment. Therefore, retaining existing customers and ensuring their satisfaction is crucial for your revenue and reputation as an ERP software vendor. In this article, you will learn how to measure the success of your ERP software customer retention campaign using four indicators: churn rate, retention rate, customer lifetime value, and net promoter score.

此文章中的业界达人

由社区从 6 条内容中精选。了解更多

Federico G.

MidMarket Sales Manager @ Oracle | Sales Leadership, MEDDIC Sales

1 Churn rate

Churn rate is the percentage of customers who stop using your ERP software within a given period, usually a month or a year. It reflects how well you are meeting your customers' needs and expectations, and how loyal they are to your brand. A high churn rate means that you are losing customers faster than you are acquiring new ones, which can hurt your growth and profitability. To calculate your churn rate, divide the number of customers who left by the total number of customers at the start of the period. For example, if you had 100 customers at the beginning of the year and 10 of them canceled their subscription by the end of the year, your annual churn rate would be 10%.

添加您的观点

Federico G.

MidMarket Sales Manager @ Oracle | Sales Leadership, MEDDIC Sales
举报内容
La tasa de abandono, como sabemos mide el porcentaje de clientes que dejan de utilizar los servicios de una empresa en un período de tiempo determinado. Al final es un resultado donde es conveniente identificar su origen. Ma gusta el análisis de causa- efecto desde la persona ( Persona – Puesto – Responsabilidades – Resultados- Negocio) Diagnosticar desde : - Validación estrategia de expectativas y resultados desde la silla de cada área del cliente. Cada área tiene funciones .KPI y OKRS ( Objetivos y Rendimiento) - Talento involucrado + Aprendizaje + % Adopción practica + Resistencia - Implementación realizada Vs Expectativas - Entrenamiento - “Do it right the first time” Diciplina como habilidad . (Trazabilidad y relacionamiento datos.

已翻译

赞
Ramesh Ganapathy CA CMA (USA) (SAI) Scrum Master and Prince2

Business Finance/ Process Improvement ERP Functional Leader- Solution Architect, Transformation Leader, Integrator,
举报内容
Churn Rate can be reduced, by getting into their business needs, do the process according to their business requirements even this churn rate can be reduced

已翻译

赞
Darrick "DJ" Johnson MBA

Director Specialist Data & AI @ Microsoft | MBA
举报内容
Churn Rate Definition: The percentage of customers who stop using your ERP software within a certain time frame. Calculation: (Number of Customers Lost during the Period / Number of Customers at the Start of the Period) x 100. Goal: A lower churn rate indicates better customer retention.

已翻译

赞

2 Retention rate

Retention rate is the opposite of churn rate. It is the percentage of customers who continue to use your ERP software within a given period, usually a month or a year. It reflects how well you are delivering value and satisfaction to your customers, and how likely they are to renew their contract or upgrade their plan. A high retention rate means that you are keeping your customers happy and engaged, which can boost your revenue and reputation. To calculate your retention rate, subtract your churn rate from 100%. For example, if your annual churn rate is 10%, your annual retention rate would be 90%.

添加您的观点

Darrick "DJ" Johnson MBA

Director Specialist Data & AI @ Microsoft | MBA
举报内容
Retention Rate Definition: The percentage of customers who continue to use your ERP software over a given period. Calculation: (Number of Customers at the End of the Period - New Customers during the Period) / Number of Customers at the Start of the Period x 100. Goal: A higher retention rate signifies successful retention efforts.

已翻译

赞

3 Customer lifetime value

Customer lifetime value (CLV) is the total amount of revenue that you can expect to generate from a customer over the course of their relationship with your ERP software. It takes into account the initial purchase, the recurring payments, the cross-sells and upsells, and the referrals that a customer can bring to your business. It also factors in the costs of acquiring, serving, and retaining the customer. A high CLV means that you are maximizing the return on your investment in each customer, and that you are creating long-term value and loyalty. To calculate your CLV, multiply your average revenue per customer by your average customer lifespan, and subtract your average customer acquisition cost. For example, if your average revenue per customer is $10,000 per year, your average customer lifespan is 5 years, and your average customer acquisition cost is $2,000, your CLV would be $48,000.

添加您的观点

Darrick "DJ" Johnson MBA

Director Specialist Data & AI @ Microsoft | MBA
举报内容
Customer Lifetime Value (CLV) Definition: The total revenue you can expect from a customer over the duration of their relationship with your company. Calculation: Average Purchase Value x Average Purchase Frequency Rate x Average Customer Lifespan. Goal: An increase in CLV indicates that customers are staying longer and possibly spending more over time.

已翻译

赞

4 Net promoter score

Net promoter score (NPS) is a measure of how likely your customers are to recommend your ERP software to others. It is based on a simple question: On a scale of 0 to 10, how likely are you to recommend our ERP software to a friend or colleague? Based on their response, your customers are classified into three categories: promoters (9-10), passives (7-8), and detractors (0-6). Promoters are your most loyal and enthusiastic customers, who are likely to spread positive word-of-mouth and generate referrals. Passives are your satisfied but indifferent customers, who are unlikely to promote or switch to another vendor. Detractors are your unhappy and dissatisfied customers, who are likely to complain and churn. To calculate your NPS, subtract the percentage of detractors from the percentage of promoters. For example, if 50% of your customers are promoters, 30% are passives, and 20% are detractors, your NPS would be 30%.

添加您的观点

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Darrick "DJ" Johnson MBA

Director Specialist Data & AI @ Microsoft | MBA
举报内容
Customer Satisfaction (CSAT) Score: Measures immediate customer satisfaction with your ERP software and support services. Customer Engagement Levels: Tracks how actively customers are using your ERP software, indicating their dependence on and satisfaction with the product. Customer Support Metrics: Analyze the efficiency and effectiveness of your customer support in resolving issues, which directly impacts retention. Renewal Rates: Specifically for subscription-based ERP services, tracking renewal rates can directly indicate customer retention success. Upsell and Cross-sell Rates: Measures whether existing customers are purchasing additional features or services, indicating satisfaction and loyalty.

已翻译

赞

Technical Sales

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can you measure the success of your ERP software customer retention campaign?

1

2

3

4

5

1 Churn rate

2 Retention rate

3 Customer lifetime value

4 Net promoter score

5 Here’s what else to consider

Technical Sales

给文章评分

感谢您的反馈

更多Technical Sales相关文章

更多相关阅读内容

How can you measure the success of your ERP software customer retention campaign?

1

2

3

4

5

1 Churn rate

2 Retention rate

3 Customer lifetime value

4 Net promoter score

5 Here’s what else to consider

Technical Sales

给文章评分

感谢您的反馈

查看其他技能