Lifecycle Marketing: How to Renew Customer Contracts with Automation?

Marketing automation has been a heated topic for every company's digital transformation. Also, the customer experience on contract renewal is crucial to the company's profits particularly. The question is -

How can marketers leverage lifecycle marketing automation tools to simplify the communications process & maximise retention but keep the right level of human interaction?

I wrote this article to share my findings on the lifecycle marketing automation topics. Please feel free to follow me on LinkedIn Olivia Binxin HU, and I will keep offering more insights on CRM & Lifecycle Marketing, crowdfunding marketing and digital marketing.?Welcome to share your unique perspective in the comments.

Context Setting

Before solving the problems, let's define our goals for the customer renew communication process:?

1. Increase Automation: Reduce human touchpoints to achieve automated communications but allow sales to focus on high-value and unhappy customers.?
2. Increase Retention: Implementing a solid system for renewals helps reduce churn and allows for higher growth in terms of expansion of existing accounts and upsells.
3. Increase Engagement Rate: Email nurturing campaigns to see the opening rate, click rate, hard bounce, soft bounce and unsubscribe rate; In-product chat and posts to target the active users in the products to renew; Push notifications and SMS to engage with inactive users and remind renewal - Crucial KPI is CTR (click-through rate).?
4. Consider Risk Mitigation: Automation and humanity balance requires putting sales in the crucial steps; Also, external price competition requires managed discounts & negotiation.?

Given that each company has different contexts, this solution is based on the below assumptions:

1. Trigger time: Waiting until a few days before the contract expires can mean losing business. This system assumes 90 days, 60 days, 30 days before the renewal are the ideal phases for reaching out to customers, upselling the service and closing the deal.?
2. NPS (Net Promotion Score): Considering Net Promotion Score, this system assumes above 8 out of 10 means customers are satisfied with products. Vice versa, customers need more sales win-back interactions if it is below 8/10.?
3. High-value & Self-serve: Given Products' Pricing, this system assumes if the chosen package is below $100 monthly, self-serve automation is?suitable. If above $100 per month, this is a high-value customer, requiring additional sales interaction.

Automation Touchpoints

Segmentation & Targeting

Data Input

Marketing Copy

The Renewal Drip Campaign - 60 days before the renewal

Below is one of the communications I’ve outlined to send in-product chat for high-value customers to select the time for the sales renewal call and upsell product upgrade features.

Hi Carol,

As one of our most valuable and active users, you have leveraged our tools to delight your customers. Please check more tips on how to see even more values from our products.

As your contract will end soon, we'd love to connect you with our renewal specialist Michael Kelly to discuss your contract renewal plan! In addition, we want to make sure you can keep enjoying the exciting new features we will launch in the summer.

Can you select a few times for a video chat?

Find a Time

The content strategy is not just to remind customers that they need to renew their contract but also to remind them why they want to do so. The copy also includes information on some of the exciting new features that the company may plan to release this summer, tips on seeing even more value from products, and a small gift or special offer to show customers that the company appreciates their business. Most importantly, the copy allows customers to select times for sales calls.?

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2. IBackPack: Crowdfunding or Crowdfrauding with Digital Marketing