How much is your disgruntled ex-customer costing you?
At Exceed Global, we often come across organisations measuring churn (customers leaving) purely from a lost revenue perspective. Failing to find out and quantify why customers are walking out the door can be a massive missed opportunity.
Wildly chasing after deserting customers with crazy win-back offers seems to be the status quo in some cases and can often be a false economy. If you have had a shocking customer service experience, sometimes even a lifetime free offer will be rejected!
Research has shown that consumers are twice as likely to tell others about a bad customer experience over a good experience. The social reach of a bad customer service experience has been measured and found, on average, people tell 16 people about poor experiences. Research has found that these 16 people are very unlikely to become customers in the near future!
Picking Up the Pieces
The first step is identifying why customers are walking out the door. A helpful tool to measure the reason customers are leaving is a Customer Churn Framework. This identifies:
the drivers of churn;
precursor behaviours or activities to customer churn to understand the propensity to churn;
opportunities to address operational or process change reducing customer churn.
This analysis will provide a point-in-time consolidated view looking at churn activity holistically across the business, enabling the organisation to better understand the high-level demands, trends and drivers across different channels, and the baseline metrics that can be used to quantify and support change.
How Great CX Can Stop the Rot
Whilst a feedback system can be a valuable tool to measure why your customers are leaving, a far better option is to have early intervention processes in place to recognise dissatisfied customers and turn them around before they exit the building.
One option is to engineer processes into your business's customer journey that identifies scenarios that lead to poor customer experience (such as customers calling multiple times about the same issue or slow response times on social channels), resolving these issues as a priority.
A great CX ecosystem should help mitigate the instances of disgruntled customers, helping your business focus on growing and delighting your existing customers.
What is your company doing to identify dissatisfied customers and use their insights to improve Customer Experience? Contact Exceed Global to discuss how we can help you create a great CX ecosystem.
Luke Cottom
New Business Strategist
Exceed Global