In any aspect of life, creating is always harder than destroying. Depending on the object in focus, building can take days, weeks, months, and even years while destroying can only happen in the blink of an eye. The same goes for businesses — working on its reputation and customer service ratings takes a lot of hard work while losing everything can happen because of a single mistake. Because of this, businesses experience customer churn.
Losing customers one — or many — at a time
Customer churn happens. Even the best brands experience it. Last year, the cable industry received the highest customer churn rate at 31 percent while the retail industry ranked second at 27 percent.
The figures from one business or industry to another varies. Some companies lose customers one at a time while the others experience a total attrition. In which side do you think does your business belong?
The root of it all
Customer service is one of the factors that determine the level of attrition an organization receives. As your service worsen, the level of customer churn increases.
Poor customer service drives even your most loyal customers away. When this happens, your business’ bottom line will suffer.
Each year, businesses lose more than $75 billion due to poor customer service, according to the 2018 ‘Serial Switchers” report of NewVoiceMedia. That figure is $13 billion higher compared to its last report two years ago.
If that figure does not compel you to improve your customer service, this statistics might.
The Serial Switchers report also added that 39 percent of customers stopped doing business with a company that has bad customer service. Meanwhile, 36 percent would extend their complaints to the company through letter or email.
What does this mean?
Customer churn translates to additional effort and higher budget allocation in looking for new customers. As the research of Harvard Business Review revealed, it is anywhere from five to 25 times more expensive to acquire a new customer than it is to keep a current one.
Customer churn can destroy your business. Before this happens, it is important that you avoid it at all costs.
Investing in a relationship is the key to better customer service
Customer churn is an ever-present element in any businesses — big or small, traditional or online. Although inevitable, you can still think of ways to minimize it.
But how?
In a Forbes article, the customer service expert Shep Hyken stated, “While the overall service experience is important, it’s the connection to the customer that can make an even bigger difference. Satisfied customers aren’t the same as loyal customers. Satisfactory is a rating. Loyalty is an emotion.”
Investing in relationships by showing positive human emotions results in outstanding customer experience. Show your customers that you care about their well-being and the rewards will follow. The numbers prove it. The same report that NVM released revealed that 66 percent of customers tend to become more loyal to a company that provides good service. There are also 65 percent of customers who are willing to recommend the company to others and another 48 percent who are likely to spend more money.
Showing your customers that your products and service are worth their money can lessen the level of attrition. Make sure to keep churn at bay by providing excellent customer service.
Before you lose the majority of your customers, allow us to help you. Contact us for more details.
