- Posted04 June 2020
A decrease in customer churn rate can lead to:
- Increased revenue
- Higher referrals
- Higher lifetime value
- More customer acquisition channels
Customer retention rate and customer churn rate are essential growing models for businesses. Here are four (4) common reasons that drive customers from your business.
1. Lack of engagement
Customer engagement is the most important part of the business that determines whether your business will experience customers retention or customer churn. Having interactions with the customers with trained customer representatives enhance your engagement with customers.
2. Products unsuitable for market
Products and/or services should fit in or be relevant to the market when it comes to functionality, design or trendiness. It is important to look for the opportunities that benefit the end-users as well as profitable to the company. Be mindful of what the consumers need when providing products/services for the market.
3. Product performance
It is paramount to acknowledge that end-users often, if not always, expect the products they have purchased are performing as described and intended. The lack of proper communication opportunities can drive customers away when purchased products/services are not up to par.
4. Poor user experience
No customer would want to experience poor customer service regardless of business nature. User experience refers, but not limited to poor graphic design and/or a lack in functionality. Moreso when it comes to SaaS (software as a service), end-users tend to have high expectation in the usage of a software designed based on user-oriented experience.
These are the four (4) common factors that drives away customers. By decreasing the customer churn rate, your business can grow and be well-sustained.