Customer Churn Reduction-Mbinu za Kupunguza wateja kuondoka
Customer Churn Reduction-Mbinu za Kupunguza wateja kuondoka
Customer
churn refers to the number of customers leaving a business
out of the total numbers customers acquired in a period of time.(Churn rate =(Customer leaving/Total
customers)*100%)
Customer leaves business for different reasons which
calls for a work to be done to find out the reasons for churning since customer
behaviour differs from one to another and varies with changing times not only
that options is high it is easy to switch from one supplier to another.
The true purpose of business is to create and keep
customers -Peter Drucker
Some few
facts
1. According
to chargebee research 68% leaves the
business because they believe you don’t care about them.
2. According
to super Office Most significant revenue drivers is due to 52%
Customer retention and 45% customer
acquisition meaning more concentration to be put on retention.
3. According
to Harvard Business review-some facts
i.
10% Increase in retention can grow your company value
by 30%
ii.
It is 7 times more expensive to acquire a customer
than it is to retain one
iii.
A 5% increase in retention rates can lead to 25% to
90% increase in profit
Few things
to do to reduce your customer churn
i.
Have
a means of having continuous customer engagement-like (Call centres, Emails,
Physical visitation, Social media platforms, zoom, Skype, special software’s)
make sure you are in contact with your customers. Doing this will give you the
best insight of what is going on with customers what are their dissatisfactions
what they think should be improved what things can make them stay longer with
your business
ii.
Upgrade
your data collection capacity internal and external data
of your customers Accenture article regards customer as an Asset.
iii.
Use
analytical tools to have insights of the customer behaviours.
iv.
Research
of new customer
needs and what the competitors are doing that will provide value to your
customers.
v.
Internal
disruptions organizations needs to ensure they are improving and
renovating themselves.
vi.
External
business disruptions considering of going into new depths and arenas
companies challenging the legislations to conduct new businesses beyond what is
allowable.
vii.
Devising
new business models that will help in reaching more customers at a more
effective ways through mergers ,partnerships,franchising,digital channels-pandemic
has demanded it etc
viii.
Employee
developments by giving them necessary skills to deal with the over
changing customer behaviours and consumptions mode and needs.
Bain& Company on their consultancy with one of the
company proposed the restructure of the organization structure into four broad
categories Customer engagement (User Insights, user-engagement planning, user –engagement
Implementation and result evaluation. The best football team Coach hires the
best scorers also do not forget to hire best
Goal keepers and Defenders. Prepared by
:Stanley Mkolangunzi
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