Tuesday, October 17, 2023
“If I only knew then what I know now.” Have you ever thought that? Most likely your answer is yes. We all have. This common phrase is usually used when talking about life lessons such as relationships, opportunities, and decisions. But it also applies to business, an experience that is full of life lessons – yes – relationships, opportunities, and decisions.
Consider your clients, both past and present. Could you learn from your past clients that have left you for a competitor? What if you knew that 1 out of every 4 departed clients had no intention of leaving your organization at the onset of looking at another provider? In truth, not all departed clients were looking to leave.
In its purest form, Customer Churn research helps an organization understand why clients have left their organization for a competitor. Why does the story have to end there though?
When an organization uses Customer Churn research to develop insights and strategies that will retain existing clients, the ultimate benefit of such a program occurs. And if organizations are retaining clients, they are fueling corporate goals and adding to their bottom line.
You may be asking, “What’s the cost connection between retaining existing clients and saving my organization money?” Simple: It costs roughly 7 times more to acquire a new customer than it does to keep an existing one. When you factor in the cost of marketing, sales efforts, and onboarding for new clients, it becomes clear that retaining your existing client base is not only beneficial but cost-effective.
So, look back and discover how you can know now what you did not know then. Your past, present and future clients will appreciate it and so will your organization’s leaders. By retaining existing clients, you’ll not only safeguard your organization’s reputation but also save resources that can be redirected towards growth and innovation.
To read more about the benefits of Customer Churn analysis, check out other Anova Blog posts: