Good cloud cloud retention, better

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by CNBCTV18.com Contributor IST (published)

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Cloud computing has made a huge contribution to business and has become the delivery pipeline for every digital service – from streaming media services to e-commerce pages, from IoT infrastructure to office documents.

Cloud computing has made a huge contribution to business and has become the delivery pipeline for every digital service – from streaming media services to e-commerce pages, from IoT infrastructure to office documents.

Part of the appeal is its accessibility. With the only threshold being cost, it leveled the playing field and allowed even small businesses access to unlimited computing power — previously only available to large businesses. Even better, the technology allows small startups to grow exponentially, without worrying about servers downtime or running out of hard drive space.

Cloud services launched cooperation and growth

The deluge of cloud services has created a tsunami of collaboration opportunities. Every company communicates via Slack, Teams or JIRA, conducts meetings on Zoom, and makes pores in spreadsheets in Google Drive or Office 365. Remote work has gone from being a feature to being an ubiquitous reality thanks to the cloud and SaaS.

The real evidence of the contribution of cloud computing to growth? Companies spend a lot of money on it. Gartner expects global spending on cloud services to reach more than $482 billion in 2022. According to IDC, spending on public clouds will grow from $229 billion in 2019 to about $500 billion in 2023.

Essentially, cloud services make every technology faster to use and more accessible to customers, which is why migration to cloud platforms is inevitable for any business that wants to expand its user base.

The Next Big Cloud Challenge: Be Real-Time, Customized, Unlimited

So far, we’ve examined cloud computing from the point of view of benefits – how it has combined collaboration and efficiency, making it affordable and leveling the playing field. But let’s shift our perspective for a minute to look at some of the disadvantaged areas that need cloud services to ramp up and spur growth.

This is in CRM, engagement and customer experience. Here is the reason:

Demand for customization…and competitive advantage

Customers request real-time customization. They’re used to Netflix recommending something to watch in advance, or Amazon sending out real-time alerts for the products they like best. They will not settle on general alerts and spam sent to the entire database.

In fact, 71% of consumers expect companies to recognize them as individuals and their interests, according to a report by McKinsey & Company on the value of personalization in marketing. And 76 percent of those surveyed get frustrated when companies don’t personalize or prove they know them.

If you are able to provide a highly relevant and personal experience to your clients from the start, you will have a significant competitive advantage over others in your field. Customers won’t leave if you consistently delight them with the VIP treatment and the type of content they want, which drives us to keep.

UA cost to keep

Retaining existing customers is more effective and less expensive than acquiring new ones. As Reforge says, the only growth metric that drives acquisition, monetization, and outreach.

Acquiring a new customer is five to 25 times more expensive than acquiring an existing one, according to basic research from Bain & Company.

Even in our study of e-commerce apps, for example, we found that after the first week, the average retention rate for new users was 24.3 percent. In comparison, the average retention rate for existing users in the first week is 47 percent.

In the long run, persuading existing users to stay provides more ROI than struggling to fill a leaky bucket with new users.

Build vs. Buy Discussion

Third, building a real-time personalization system internally will be more difficult than purchasing a cloud service that does this.

Even a quick look at Phiture’s Mobile Growth Tech Stack shows that there are endless options for the tools and functions available to you. But between the opportunity costs, technical debt and deficit, and the sheer amount of resources needed to code a system out of nothing, you’ll face an uphill struggle the whole way if you choose to take the risks of building your own real. Cloud customer experience time using different point solutions.

On the other hand, buying is a simpler transaction: you’re betting on a proven solution that actually works and let your SaaS provider worry about maintenance and updates.

Where does that leave us?

Faced with the demand for relevant content, businesses need cloud-based solutions that deliver real-time personalization, improve retention efforts, and are proven to have a lower total cost of ownership (TCO) than building it yourself.

It’s time for a cloud keep

The solution must be more than just a technical set of point solutions that are grouped together. It should be a complete retention cloud – a cloud-based platform that provides your business with everything necessary to better understand, engage with and retain customers.

Here’s what this service will need to be useful to growth marketers and business owners:

A way to understand user behavior and trends

This is behavior analysis. The more data you have about users and their behavior, the more relevant your user interaction campaigns will be.

If Taylor watches horror movies or TV series, your streaming app should recommend the latest episode of a new show. Or if Alex orders Thai food for dinner every other Friday, send a push notification every second Friday at 5:00 PM as a reminder to order something spicy.

A way to classify them by behavior

Division is the second key. But beyond just demographics and geography, a retention cloud should have a way to segment audiences by the actions they’ve taken – or might take – on your app or website.

Keep in mind that AI can be used to predict potential user behavior based on past actions on your digital characteristics. If you can segment by expected results, you have an immediate retention strategy. Imagine a query like: “Show me all users who are likely to uninstall my e-commerce app in the next 30 days.” The next step is obvious: send them a promotional coupon or a huge discount to get them to spend money on the app!

way to influence their decisions

This leads us to messaging and over-personalization. Once you segment your audience, you’ll want to convince them to take action. Engagement campaigns use multiple channels: emails, push notifications, in-app notifications, and text messages. You can retarget them on Facebook and Google. Or use messaging channels like WhatsApp.

But more than just sending them generic messages, your retention cloud needs to send messages that resonate with your audience. This is where customization comes in.

If Alex hasn’t watched the latest season of Stranger Things, sending an email saying “The Upside Down misses you” is probably better than recommending Kitchen Nightmares – because it’s relevant to his past tastes and actions.

A way to break boundaries and make all that data actionable

The last requirement for a retention cloud to make sense for business is to maximize the vast amounts of user data that you are already sitting on.

Data review period: Keep in mind that most martech tools only allow 90 days of user history review. This means that Elena, your customer for five years, may be sent an email or push notification that does not celebrate his loyalty or even give her any kind of VIP treatment.

Data accuracy: Many modern marketing and CRM tools are limited to 250 data points per user per month. So those diamond earrings Elena bought last year for her wedding? The system won’t see it and can’t take action on it because it’s bought a thousand more things since then.

Machine Learning: Leveraging rich and granular historical data about the user to get more accurate predictions or customization is a stated business need. Most martech point solutions cannot fully take advantage of machine learning due to data storage limitations.

With these kinds of limitations, companies cannot unlock the full potential of user behavior data for personalization, sharing, or retention. This presents an opportunity for a cloud service to retain space and provide companies with ways to access and populate the data they already have. That is if they are willing to offer unlimited access to data review periods, or data accuracy, and allow companies to send messages at scale.

Cloud retention is the future

Cloud services have already changed the world on their way. The fact that this was written on Google Doc and assigned to an editor via Asana with my reviews submitted via Slack proves it.

But a paradigm shift is set when a retention cloud can be created to provide companies the ability to invest more in their technology stacks and in the data they own. Expect the world – and revenue across the board – to change for the better when that happens.

This article was written by Anand Jain, co-founder and chief product officer of CleverTap. The opinions expressed are subjective.

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