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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