How to Reduce Churn Rate & Improve Retention with Marketing Automation?

Marketing is not just a process, one can’t describe it with just promotional and advertising concepts. Companies focus on building their brand reputation, engaging the audience, increasing productivity, growing brand expertise, and combining all is what makes marketing a term worth a definition professionally.

In today’s era, technology has become so flexible that marketing concepts are being integrated, resulting in marketing automation. Since there are various objectives behind utilizing marketing procedures, it is necessary to use the trending and advanced methods.

Marketing automation can be a perfect way-out for your business in today’s world. Whether you want to convert your leads into sales or increase your retention rate, you need to know its significance.


Marketing Automation Purpose

Marketing automation refers to the utilization of tools and technologies such as mobile frameworks, software applications, cloud platforms and so on to automate your marketing campaigns across multiple channels.

You just need to set up these resources according to your marketing objectives, and these applications will work automatically to help you achieve quick outcomes.

Marketing automation has the capability to serve various purposes for companies – from creating content, optimizing strategies, and aligning schedules to generating leads, managing sales, and allocating resources. It will help you sustain and increase your Monthly Revenue Rate (MRR) as well as your Anual Revenue Rate (ARR).

To understand the comprehensive benefits of automating outbound and inbound operations in Revenue Operations, explore our guide on Benefits of Automating Outbound and Inbound Ops in Revenue Operations.


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The Process Consultant by Fruition RevOps

The main Key Elements of Marketing Automation

1. Building Action-based Models

Marketing automation can be empowered or integrated with other advanced technologies like Artificial Intelligence (AI). To monitor the actions of the users and their interests, this can help present the recommendations. 

2. Automation of Business Development

Businesses are looking to generate more revenue for the steep growth and development of the brand. For this, marketing automation helps generate and monitor leads, resulting in conversions and providing more opportunities for business profits.

This includes the use of various platforms like social media analytics, finance management tools, audience follow-up platforms, and many more all at one place in a marketing automation platform. They can determine the journey of leads and buyer’s interest in every phase.

3. Workflow Automation

Another significant element of marketing automation is automated workflow management. You can align several tasks according to a particular schedule, such as sending emails or newsletter at the right time to get profitable leads.

The tasks will include:

  • Personalizing the content of the emails/newsletters

  • Pitch relevant services or products 

  • Following up buyer’s or interested people

  • Propose the latest offers that can drive leads

The fundamental purpose of every element here is to ease the process of marketing through automated means. For insights into automating both inbound and outbound strategies seamlessly, discover how our guide on Automate Your Inbound Strategy and Automate Your Outbound Strategy can elevate your marketing efforts.

Three Keys to Reduce Churn Rate using the Marketing Automation Platform?

1. Bring Attention to Monthly Churn Rate

A churn rate describes the loss percentage of a company regarding unsubscribed customers or clients in a given time frame.  The monthly churn rate will be equal to the number of customers lost divided by the total customers present at the start of the month.

It would be best if you analyzed this rate at the end of each month to know how your business is progressing. The result will help you to build marketing automation strategies that can lead to profitable outcomes.

Multi Attribution Strategy | Fruition RevOps

2. Create & Implement Drip Campaigns

In general, setting up a drip campaign includes sending marketing content to your target audience at a specific period. For this purpose, emails, SMS, and newsletters are the critical resources for automating the processes.

Drip campaigns help to reduce the churn rate by keeping the audiences engaged with your brand. Also, there will be more opportunities for generating leads that can further result in conversions.

3. Keep a Customers’ Point-of-View

You can’t predict what a customer thinks of your business. But you can analyze them closely and determine when they start taking an interest in your services or products.

One good example is customers who wishlist their favorite products in their account.

This will give you an idea to optimize your strategies that can make these customers put products in cart and not wishlist.

And yes, marketing automation here plays a significant role in monitoring the customers’ behavior and giving you real-time updates of their actions. Make sure you analyze their point-of-view well enough to keep them engaged with your brand and turn them into leads.

How to Utilize the Hubspot- Marketing Automation
to Increase Retention and Reduce Churn Rate?

The average customer churn rate ranges between 16% to 40%. AND 63% of the companies who are winning over their competitors use the marketing automation platform.

Hubspot’s marketing automation platform comes with features that allow you to generate, manage, and convert leads along with supporting your buyer’s journey at every step. Integrated MAP, CRM, and Analytics tools all at once place gives you a panoramic picture of what is happening with your sales strategies, how your marketing campaigns are performing, and how to support your buyer’s journey. 

Let’s take a look at some of the features that can help reduce your leads churn and increase retention rate –

  • Smart Mails – With Hubspot Smart Mails, your sales team can quickly schedule follow-up emails efficiently and with ease.

  • Third-Party Integrations – Hubspot support all popular third-party integrations such as Zoho, PipeDrive, Nimble, and so on to give your sales team an unparalleled power to support and engage with customers.

  • Pipeline Visualization – You can create visual sales and lead pipelines to quickly grasp the progress and make sales decisions right away from dashboards.

  • Customer Lifecycle – Hubspot gives you a bird’s eye view of your customer’s entire history in his life cycle that you can use for engagement to increase retention rate.

  • Reporting – Hubspot’s CRM reports provide you with measurable and actionable reports for Pipeline, Conversion, Activity, Projections, and such to help you focus on areas of improvement. 

Improving retention and reducing churn rate are two major factors that drive your business towards success with the help of marketing automation. If you utilize the right MAP, you can see some enticing results from your campaigns and increase your MRR and ARR.

For a deep dive into unlocking Hubspot’s full potential, consider reading our guide on Unlocking Hubspot’s Full Potential: A Deep Dive into Onboarding and Beyond.

RevOps and Data Flow to Reduce Churn Rate

Integrating RevOps for Enhanced Customer Retention

In the context of reducing churn rates and improving retention, integrating Revenue Operations (RevOps) into your strategy can be transformative. RevOps brings together marketing, sales, and customer service departments under a unified strategy, ensuring that data and insights flow seamlessly between these key areas. This integration is crucial for understanding and addressing the factors contributing to customer churn.

1. Understanding Customer Churn through Multi-Attribution

  • Utilize multi-attribution analysis within RevOps to gain a comprehensive view of why customers may be leaving. This involves looking beyond surface-level metrics to understand the deeper reasons behind churn, such as customer dissatisfaction, unmet needs, or competitive offerings.
  • By analyzing data from various touchpoints, RevOps can identify patterns and trends that lead to churn, enabling targeted strategies to address these issues.

2. Aligning Departments to Combat Churn

  • RevOps ensures that marketing, sales, and customer service are not working in silos but are aligned in their efforts to retain customers. This alignment is crucial for providing a consistent and satisfying customer experience, which is key to reducing churn.
  • Regular cross-departmental meetings and shared KPIs can help maintain this alignment and focus on common retention goals.

3. Leveraging Data for Proactive Customer Engagement

  • Proactive engagement is essential for retention. RevOps facilitates this by leveraging data to anticipate customer needs and address issues before they lead to churn.
  • For example, if data shows a decrease in engagement from a particular customer segment, targeted communication and special offers can be used to re-engage these customers.

4. Personalizing Customer Experiences

  • Personalization is a powerful tool in reducing churn. RevOps enables businesses to personalize customer experiences at scale by using data to understand individual preferences and behaviors.
  • Tailored marketing messages, personalized sales approaches, and customized service interactions can all contribute to a more engaging and satisfying customer experience.

5. Continuous Improvement and Adaptation

  • The battle against churn is ongoing. RevOps supports continuous improvement by providing a framework for regularly reviewing and adapting strategies based on the latest data and insights.
  • This might involve refining customer segmentation, tweaking communication strategies, or introducing new loyalty programs.

Hubspot is a comprehensive, easy-to-use, powerful marketing automation platform with robust features, performance, and functionality.
It is one of the most flexible platforms in the market, offering stable behavior-based marketing,
blog builders and landing pages, social media management, dynamic forms, and many more. 

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  1. Utilize the Funnels in Revenue Operations
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  3. How to Automate the Process for Enhanced Efficiency