Brian Gatti, partner at Inspire, was recently quoted in an article by NGData to discuss strategies on how to reduce customer churn.
In the article, Brian discusses how to use closely managed customer experiences to reduce customer churn.
“This isn’t a quick tip, but it is the most effective way to reduce customer churn…
Closely managed customer experiences. If your firm is experiencing customer churn, it’s often caused by friction in your processes, not because your service no longer meets a client’s needs.
Typical points of friction are when sales transitions to service (the service doesn’t work as promised), when customer service fails to deliver (a problem occurs and the customer service representatives don’t have the will or ability to fix it), or when the service itself is unreliable.
We recommend closely evaluating where in the process flow customers tend to depart. Look for patterns in the issues that arise and in the customer feedback that’s provided.
As an example, imagine a firm where the customer feedback was that the price was too high. The problem is that customers know what the price was when they started and they all started dropping off at the three-month mark.
A review of the situation would show that the payoff expected at the three-month mark wasn’t happening, which meant that the service wasn’t priced right for the customer.
So the firm needs to set the expectation up front that the benefits kick in at month four (and see if new or existing customers will accept it at the same price), lower the price (because they can’t deliver at three months) or find a way to deliver at three months (and keep the pricing the same).
Either way will reduce customer churn because expectations are now properly managed and the firm can be successful in meeting them.”
If you’d like to read the whole article, here it is.