Keeping customers is a big challenge for many businesses, whether they deal directly with the public or a range of channel partners. Often, firms will invest in processes to try and rescue unhappy customers, but these have very little impact on the business overall.
In fact, a study from PricewaterhouseCoopers (PwC) found that these methods only work between 30 and 40 per cent of the time, making them quite ineffective at managing customer churn. So, if efforts to recapture customers’ attention before they leave is proving costly, how can your company address customer churn?
Many businesses are now trying to predict these events before they happen and take proactive steps to ensure that customers do not have a reason to leave. PwC suggest investing in the processes that go into understanding how your customers behave. Customer tracking software and similar technologies can help you make sure that you comprehend the trends affecting your customers, including factors like when and how much they spend with you.
Once you have this information, you will need to understand how you can address high levels of customer turnover. For example, investing in an incentives program can be essential for making sure that your most valuable customers are staying with your brand and have good reasons to remain loyal to your products and services.
At the same time, you will need to acknowledge that some customer churn is inevitable. No matter how tirelessly your company works to keep customers, there will always be some who have no intention of staying with your business. That being said, taking proactive steps to address issues of customer churn before they develop can be an easy way to ensure that clients have no reason to stop purchasing from your company.