Customer churn refers to the percentage of customers who leave a brand or stop using its product within a given period of time.

Customer churn, also known as customer loss, is considered an important metric because the time, cost and effort required to acquire new customers is very high compared to retaining existing customers.

Why is customer churn rate important?

– Customer churn rate helps determine the number of customers leaving the brand.

– Churn rate can be determined based on product, category, etc.

– Once a company starts analyzing employee turnover, it can easily be minimized.

– Helps to understand customer behavior patterns.

– Customer churn increases when consumers switch to competing brands.

How do you measure customer churn rate?

Customer churn (total number of lost customers / total number of end customers)*100

Customer churn rates by industry

– Credit card companies in the USA – 20% customer churn
– Mobile operators in Europe – 20% – 38%
– Software – SaaS – 6% – 7%

Causes of customer churn

– Inappropriate customer onboarding
– Lack of relationship between brand and customer
– Missing value for the product
– Low product quality
– Competitor products at a cheaper price
– Product diversity of competing brands

Ways to reduce customer churn

– Top customers who have demonstrated their loyalty to the brand should receive special attention.

– Understand churn as it happens by analyzing the customers who churn.

– Build a connection with customers and make them feel valued and part of the company.

– Increase customer loyalty by giving your customers a reason to come back as repeat customers.

– The customer should be kept updated through webinars, video tutorials, product demos, etc.

– Offer incentives such as special discounts, coupons and money-back guarantees to attract repeat customers.

– Complaints should be dealt with as quickly as possible.

– Take a step forward and always do more than others expect of you.

– Pay attention to customers, because they are the backbone of every business.

Examples of customer churn

1. Netflix
2. Amazon

This video is about customer churn and includes the following subtopics.

time stamp
0:00 Introduction to customer churn
00:20 What is customer churn?
00:45 Why is customer churn rate important?
01:14 How do you measure customer churn rate?
01:44 Customer churn rates by industry
2:00 Causes of customer churn
02:36 Ways to reduce customer churn
02:40 Top customers should be the focus
02:51 Understand the fluctuation as it happens.
03:09 Make your customers feel that they
02:23 Increase customer engagement
03:37 The customer should stay informed
03:55 Motivate customers
04:05 Complaints should be processed
04:21 Always do more than is expected of you
04:27 Pay attention to what customers say
04:38 Examples of customer churn
04:41 Customer Churn Rate Example – Netflix
05:41 Customer Churn Rate Example – Amazon

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