Stop customers before they churn
In this day and age, escalating market competition calls for a close and careful observation of the customer -who is the focal point of marketing- from within the scope of their consumption behavior and habits. At this point, considering today’s consumption habits in a situation where a company’s survival highly depends on the customer, it is certainly safe to say that the customer is the one setting the rules of the game, and companies are just the players.
Customer Churn analysis is critically important, especially if you’re in an industry with a membership-based revenue model and customer continuity, such as banking, insurance, and telecom. This is because most of the time, keeping existing customers demands a lower cost of operations than acquiring new customers(1). In addition, the value of these businesses is directly proportional to the number of active customers. Therefore, many parameters such as costs, profitability, size, investment capacity, cash flow of the enterprises depend on the number of customers and thus the loyalty of the customers. Also, research has shown that long-term customers have higher profitability. In order to understand this profitability, methods such as customer life cycle (CLV) calculation are used(2).
“Churn kills businesses!”
Be aware of the fact that you have more customer data than you think! Using this data, you can take actions specific to this audience by predicting your customers who will churn in advance with Netmera machine learning data analysis. With Push / Web Notification, E-mail and SMS channels, you can immediately take action for your audiences who are likely to churn!
“You Don’t Have Many Chances To Get It Right!”
Even if your customers love your company or your product, as we saw from the survey, in the U.S. 59% will walk away after several bad experiences, 17% after just one bad experience. ( Source: PwC Future of Customer Experience Survey 2017/18)
“Know your customer!”
The difference between a customer’s expectations and their actual satisfaction is the area of opportunity for a company. It has now become much easier to detect, measure and fill this gap with software technologies.
Price and quality remain top of mind for customers as they make purchasing choices. But when customers think about their interactions, positive experiences influences purchasing decisions in almost every industry, but are particularly influential in healthcare (78%), banking (75%), restaurants (74%) and hotels (74%). (Source: PwC Future of Customer Experience Survey 2017/18 )
As we can see from the survey below; In order to keep the difference between customer expectations and satisfaction at a minimum, you should know your customers before Churn and take actions towards fulfilling their expectations.
“The experience gap leaves an opportunity sweet spot!”
(1) Zero Defections: Quality comes to service., Reichheld & Sasser. Harvard Business review 1990.
(2) Van Den Poel; Lariviére (2004). “Customer Attrition Analysis For Financial Services Using Proportional Hazard Models”. European Journal of Operational Research 157: 196–217. doi:10.1016/s0377-2217(03)00069-9. CiteSeerX: 10.1.1.62.8919.