Three Paths to Understanding Why Customers Leave Your Brand

Retaining customers is one of the best ways to ensure that your brand is building a strong bottom line and an ever-improving experience, but keeping customer churn low is easier said than done. Customer churn is, unfortunately, an unavoidable fact of doing business, but that doesn’t mean that brands have to let it happen in vain. Today, we’re going to give you a quick rundown on understanding why customers leave your brand so that you can prevent future churn, retain loyal clientele, and continuously improve their experience.

Enabling Storytelling

One of the best ways to become aware of friction points within your experience is by letting customers point them out in their own words. We’re not just talking written survey answers, here; experience feedback programs that enable multimedia feedback are among the most powerful tools for learning about problematic or broken touchpoints in your customer journey.

Think about how much more human it is to see and hear customers express their concerns instead of just reading about them. Multimedia feedback empowers brands to understand customer concerns on a much more human level than surveys allow, which is also important for motivating employees. In short, empowering customers to express their concerns in their preferred format and sharing that frank feedback with the relevant teams is one of the best ways to motivate genuine improvement.

Seeking Disclosure

Receiving feedback from current customers is important, but what about past customers? What about the competition’s? The best customer experience platforms are sustained by the best market research, and brands that opt for the former can often receive the latter. Databases, customer panels, and other sources of market learnings are now available at the push of a button, and brands that want to understand their experience from all angles should seek this knowledge out as resources allow.

Once you have all of this feedback and intel from customers both inside and outside your brand, a handy next step is to feed all of that structured data directly into a real-time text analytics engine. This tool is incredibly helpful for brands because it can extract customer sentiment and reinforce organizations’ knowledge of customer churn’s root causes. 

Keeping Churn at Bay

Like we said earlier, brands can’t keep customer churn out of the equation, but they can do a great deal to prevent it with tools and methods like these. Reducing churn in this way is also great not just for churn reduction’s sake, but also for creating a more human experience, instilling greater loyalty in customers, and creating a stronger bottom line.

Want to read more on how you can improve customer retention? Our new eBook walks you through exactly how to build a holistic initiative and the math that will prove the value of your efforts! Check it out here.

Why Customers Churn—And How Your Brand Can Respond

Of all the inevitable frustrations that come with doing business, perhaps none are so consistent as customer churn. Though countless organizations have made churn reduction a continuous goal, seeing customers leave in spite of your best efforts can be quite a headache in multiple arenas—building loyalty, evaluating effectiveness, and of course, creating a stronger bottom line.

Today’s conversation will be a quick rundown of some of the biggest reasons customers leave and what your organization can do about it. We’ll cover the churn you can control, the churn you cannot, and how to boost your own churn reduction efforts.

The Churn You Can’t Control

Let’s get this out of the way first thing—some churn is beyond any organization’s control. No matter how proactive your customer experience (CX) team is, some amount of churn is inevitable and to be expected. It’s unfortunate, but it’s also a fact of doing business.

Why might some customers invariably leave your brand? Sometimes, they really just don’t need whatever product or service you’re offering anymore. In other instances they might fall on hard times and no longer be able to buy what you’re selling. If your brand serves one or a few given areas, they might move beyond that radius and thus cut themselves off that way. All of these things are beyond your brand’s control.

However, none of this means that brands should throw their hands up in frustration. It certainly doesn’t mean your organization shouldn’t focus on churn reduction.. While some fraction of churn may be unavoidable, quite a bit of it can be controlled and can be managed by organizations. This brings us to our next point: the churn you can manage.

The Churn You Can Control

Brands can and should use customer experience programs to manage the churn they can influence, as well as evaluate what they could’ve done better. For the most part, controllable churn occurs when your product isn’t a great fit for a customer’s needs, poor communication occurs, or a myriad of other possible causes. However, your brand can respond to and control these issues.

Your customers can use feedback tools to bring problems like poor service experiences directly to brands’ attention. Organizations can then digest the feedback and formulate an action plan to combat that problem. Other churn catalysts like superior competition, product and services disconnects, or deficient employee training can be brought to light this way, as well.

Taking Action

Learning about preventable churn through a customer experience program is powerful stuff, but brands can’t stop at knowing about churn catalysts if they want to retain customers. Rather, brands need to design their programs around the audiences from whom they hope to glean intel about churn causes, listen carefully to those individuals, understand the common sentiments amid all the feedback, and then transform the business accordingly.

With this method, brands can realize a lower rate of churn for themselves and continuously apply customer feedback toward that goal. This process can help brands get churn out of the way of their goals: a better experience for all and a stronger bottom line.

Interested in learning more about reducing customer churn? Click here to read my full-length point of view on the subject and to learn additional strategies for reducing churn at your organization.

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