In Fact, we don’t just strive to understand and address churn – we even welcome it. Investigating churn uncovers vital information for company growth.
What is Churn?
Examples of churn are when a customer doesn’t renew a subscription, closes an account or cancels a service. There will always be a certain percentage of churn but a high rate means lost revenue and stunted company growth. Your sales team could be doing a great job signing up new customers but if you’re losing them just as fast, or faster, you need to do some investigating and come up with a plan.
Churn doesn’t only mean lost revenue and stunted growth. It has other equally harmful consequences.
Happy customers are great for growth. But when you’re leaking defectors back to the market who are spreading negative word-of-mouth, then your reputation is taking a huge hit. Your old customers, who were your brand advocates, are now a liability.
How Do You Minimise Churn?
It’s thought that over 90% of unhappy customers churn without ever complaining. To prevent this, it’s vital to have a Customer Loyalty Team and Customer Retention Program in place. This team needs to be proactive in preventing churn by communicating with customers and identifying any common issues such as, product features or price, that have and can lead to defectors.
Simply call your customers, talk to them and thank them.
There are many ways that you can begin to understand churn. Adding automated quick surveys to online bills/invoices lets customers easily highlight where they need help or what they’re unhappy with.
This data not only helps you prevent churn but it can be crucial to new product and service development.
Why Outsource Your Customer Loyalty Team?
A good experienced outsource provider understands the customer cycle.
Current statistics show it is 5 - 10 times more expensive to onboard a new customer than retain an existing customer. For some companies this statistic is even quite conservative, so it is essential to keep your current customers happy and have a Customer Win-Back Strategy for any ones you lost.
No company boasts a 0% churn rate. However, by talking to and surveying your customers you will:
- understand why people are defecting
- be able to identify customers likely to defect
- be able to discover your ideal target customer demographic
- improve products and services
- stay ahead of your competitors
- and more importantly, you’ll be keeping people happy and be known as a great brand
At Zevas we understand the valuable lessons that can be learned by communicating with your customers. We know how to use this information to prevent churn, target the right people and help you improve your products and services. Talk to us today.