Customer Churn & Retention
We help organizations to systematically identify the root causes of churn & eliminate them.
It’s sick to see customers leaving. Sometimes it hits us hard, but many times we even don’t know if a customer has really left!
Customer Churn is the proportion of customers who wouldn’t return back to do business with an organization as a proportion of their total customer base. It’s also called known as Customer Attrition or Customer Defection.
Why customer retention is important now?
Sources: Leading research & consulting firms
- 5% increase in retention can see up to 50% increase in profits
- 2% increase in customer retention has the same effect as decreasing costs by 10%
- 80% of satisfied customers are open to offers from competition
- On an average, companies lose 20~40% customers every year
- 80% of marketing efforts are spent on new customer acquisition & 20% on retention
- It costs 16 times more to market to a new customer as compared to an existing customer!
Characteristics of high churn industries
Companies experiencing high churn have one or more of these characteristics:
- Repeat and annuity business models
- Regulations doesn’t discourage customer migration
- Low/no commercial/contractual barriers for customer migration
- Low migration cost for customers
- Competition from multinational companies
- Price sensitive products
- Low/no differentiation in product/service features
- Short product life span
Reasons for customer churn
There are a myriad of reasons for customers to leave. Broadly, they can be grouped as organizational factors, environment driven and customer driven factors. To know more, download ‘Customer Churn Boilerplate’.
Download Customer Churn Boilerplate
To know more about computation of Customer Churn, download calculator below.
Download Customer Churn Calculator
How can we help you?
We use a structured 5 step diagnostic approach called ‘IDEAS’ to identify the real root causes for churn that are specific your organization and fix them.
Download Customer Churn & Retention Management Report
If you are looking for Customer Experience (CX) consultant in Chennai, Bangalore, Mumbai, Delhi and across India, contact us.