The thumbnail version:
- Customer churn explained.
- Troubleshooting customer churn.
The full version:
Customer churn refers to the loss of customers over a given period of time, and the customer churn rate is the rate of loss expressed as a percentage of all customers. It’s most commonly used with reference to online subscribers but is equally applicable in a non-digital sense.
In the previous post we talked about letting go customers you’d rather not have. Now we’re discussing retaining customers you’d like to keep but who, for one reason or another, are showing signs of disengaging from your business. And one reason you’d like to keep them is because it’s easier to sell to people who have been customers in the past than it is to attract new customers.
The key is to be proactive and not wait until they leave but to instead look for signs that they may leave and then deal with it. Some of the signs include a long interval since the last purchase, not opening your emails, or unsubscribing from your email list. But in order to spot these signs you must constantly monitor your customer base.
You then need to troubleshoot. But you can’t troubleshoot if you don’t know what the trouble is. The best way to find out what might be going is to have a chat with the customer and address whatever issues may be bugging them.
Customer churn—it’s just another one of those business realities that you have to deal with.