3 Lessons you should learn from customer churn

3 Lessons you should learn from customer churn

Faith Ocampo Published on April 18, 2017

problematic business partners with headache surrounded by leaving people

Customer churn is one of the biggest nightmares of business owners, but you can turn it into a learning experience.

No matter how popular your brand is, losing customers is something you can’t avoid. But instead of panicking and worrying incessantly when your customers start leaving, you need to face the situation with an open mind. Harsh as they may seem, here are the lessons you should try to learn from this kind of disaster.

1. The value you offer to customers is declining.

overhead shot of crying business surrounded by bills

One of the most common reasons customers are abandoning your brand is that the value you’re offering to them is diminishing. This immediately tells you there’s a problem with your product design and development processes. The products you’re making may not be fine-tuned to the needs and preferences of your target consumers. Often, this results from the following mistakes:

•     lack of market research
•     not giving customers a platform to voice out their opinions
•     failing to integrate customer insights with product development
•     a weak or non-existent company vision

Brands who are guilty of this are often perceived by consumers as incompetent, since they often fail to adopt new trends or introduce a unique innovation. When this happens, customers may quickly switch to a new company, which brings us to the next item in this list.

2. Keep a close eye on your competitors.

business team looking out office window using binoculars

Most of your repeat customers probably won’t cut ties with your brand unless there’s a new and better player in the market. It’s thus important to familiarize and update yourself about the most recent events in your industry. Watch out for mergers and acquisitions, startups that are growing quickly, and new products being launched.

Armed with this information, you can make better decisions regarding your business strategies, including product development, marketing, and even customer service techniques. This brings us to the next item in this list.

3. Look closely at your failures.

problematic business partners looking at office reports

Customer churn, especially if it’s happening on a wide scale, is a clear indication that you’re doing something wrong. Most business leaders often take this fact for granted because they think they can make up for this by acquiring new customers. But in reality, loyal consumers do more than just increase your sales. Beyond this, they help you build a long-lasting brand by strengthening your market base and helping you expand it through organic means (mainly through word of mouth).

So when your most loyal customers are leaving, take the situation seriously. Figure out what’s really prompting them to leave—whether it’s the poor quality of your customer service or ineffective marketing strategies. Don’t be afraid to look closely at your failures. Only when you’ve learned to investigate your own mistakes with an open mind can you come up with more robust and effective business strategies.

 

Faith is a digital media enthusiast aiming to become an active part of the tech world by sharing her insights. She likes to blog about everything digimarketing, technology, and social media.

Leave a Reply

JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO1 day ago
CCAP is a non-profit association made up of the top call centers in the Philippines.

As its newest member, Open Access BPO is looking forward to helping the local #BPO industry advance in the global scene.

Read more: https://buff.ly/3wOs1yW

#WeSpeakYourLanguage #Outsourcing
Open Access BPO
Open Access BPO4 days ago
Don't let unmoderated user-generated content harm your brand's reputation.

See how #PhotoModeration can help your brand maintain quality and order in your online community: https://buff.ly/3cQAxoR

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO5 days ago
Open Access BPO is honored to be the newest member of the Contact Center Association of the Philippines - CCAP.

We support the organization's initiatives to drive industry innovation and elevate service quality among Philippine-based contact centers.

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO6 days ago
"We look forward to working with the Contact Center Association of the Philippines - CCAP and other players in the local sector to champion the Filipino contact center industry in the international arena." - Joy Sebastian, Open Access BPO's Global Vice President

View the full story: https://buff.ly/2TykIwo

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO6 days ago
Outsourcing your #DataManagement to #offshore hubs like the Philippines or India will save you money and time. But is your data safe?

Here's how seasoned outsourcing providers ensure data security: https://buff.ly/3gsPbVR

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO1 week ago
Tailor your #CustomerCare strategy according to your customers' needs.

Here are the four different kinds of shoppers and the #CustomerSupport approach they prefer: https://buff.ly/3xpzHqW

#WeSpeakYourLanguage
Do NOT follow this link or you will be banned from the site!