Customer churn isn’t an isolated event. It’s a process that can start at any time. From when potential customers discover your offerings to when they finally make a purchase. Your company’s strategy to combat customer loss must work similarly. Provide an end-to-end solution — and it all starts with your data.
Use the customer churn calculator above to get an idea of the revenue your business could generate by saving at-risk customers, and why this is such a critical issue to resolve.
You can’t understand why customers decide to leave without observing interactions from their perspective. These clues include responses solicited from surveys as well as voluntary feedback such as social media mentions.
The customer’s point of view is the most important facet of churn. After all, her perception of an interaction relates directly to how well your company meets customer expectations. For example, you may look at a phone call to customer service and see metrics such as how long it took to speak with a representative as a factor in churn.
While this may very well be part of the picture, the customer will likely view it a bit differently. For her, the most important measures of success would be how effectively her problem was solved. Even if the issues had to be escalated to another tier of customer service. Or the suitability of any alternatives that were offered if her ideal solution couldn't be met. These are the most valuable metrics when it comes to customer-side data.
Innovations that the churn-battling companies have at their disposal are making it easier than ever to monitor major churn indicators in brick-and-mortar environments. These parameters range from traffic data, conversion rates and amount spent, to behaviors. Behavior may include where customers go in a store and what activities they carry out while they’re there.
Bloom Intelligence's churn indicator, for instance, provides a quantifiable overview of the percentage of a business’s customers that have not returned and are presumed lost during the selected time period. Behind the scenes, it calculates customer churn for each individual customer, based on individual customer frequency distribution.
Knowing your churn rate enables you to more reliably predict how many times customers will return. And, coupled with customer spending data, their lifetime value to your business. This, in turn, gives you a better idea of how much you are willing to spend in order to retain a current customer through restaurant marketing or other means. It generally costs your organization more money to acquire a new customer than it does to retain a current customer. This is why it is critical to understand your churn rate. And Why you should have automated processes to measure customer churn and to retain customers.
Putting it All Together
These parameters are all concrete, controllable elements, serving as the basis of an effective strategy to quash churn. Conducting continuous research and leveraging existing customer data to identify the most significant pain points is the only way to properly identify and eliminate the reasons for customer loss. It’s also the key to creating optimal experiences that don’t leave room for churn-inducing scenarios.
By connecting the feedback and other data from all sources, you can identify broad patterns in dissatisfaction and abandonment and then delve into the specifics of why each customer was lost.
Understanding churn requires comprehensive knowledge of the customer journey from start to finish. You also need insight into your clientele's needs and behaviors. This includes how customers interact with your company, what they do — or are likely to do — once interactions are complete. Each element is attached to an observable piece of data originating from a variety of sources. Sources may include customer service records, social media and technological tools. Analyzing this raw churn data requires a sound assessment strategy to predict and reduce customer loss effectively.
Using the customer churn calculator above can help you understand how much revenue your business could be saving by using Bloom's WiFi marketing and analytics platform to measure churn, create surveys, and create at risk customer campaigns.