7 key factors that lead to customer churnby Jency Jane 5 years of experience in writing. I love my work l
‘Customer Churn’ is a deadly word for any business. Simply referring to the percentage of users who stop using a product/service, customer churn portrays statistics about the bitter truth like customers lost, the value of recurring business lost, and the percentage of recurring value lost.
Failures are inevitable in any market, but businesses can be well prepared for such uncertainties if they pay heed to customer churn factors.
Why do you need to focus on customer churn?
Focusing on customer churn is a healthy way to realize
- If you’re enticing the correct customer
- What your customer thinks about your competitor
- If your customer has achieved their desired outcome
Additionally, performing customer churn analysis can help you avoid losing your product’s value and going down the competitive landscape.
In this article, we discuss the 7 key factors that contribute to customer churn
1. IMPROPER CUSTOMER SEGMENTATION
Customer segmentation is necessary to define demographics and reach out to the right customer at the right time. Broadcasting product details and offers to irrelevant customers makes them agitated and lose interest in your product and brand leading to customer churn. Performing customer segmentation enables you to identify your valuable customers and understand your customer’s purchase behaviour to avoid churn factors.
2. MAYBE YOUR PRODUCT IS RIGHT, BUT NOT THE TARGET MARKET
Inconsistent communication between customer success, sales, and marketing teams leads to a misconception of market needs.
Often times it’s not the wrong product but the wrong market. Remember you are at high risk when you set your customer’s expectations with promises. In such a scenario your product can be better than your competitor’s; but still will not be appreciated by your customer as they end up feeling cheated.
3.LACK OF ONGOING CUSTOMER SUCCESS
Customer’s desires keep changing from time to time. Today they may like your product’s usability and features, tomorrow they may expect more. Hence it is imperative to maintain customer success by constantly engaging with them to comprehend their goals and provide upgraded products/services.
Created on Dec 4th 2019 05:34. Viewed 117 times.
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