Customer Churn Verses Retention: Why you should focus?

Retaining customers is often the difference between a successful business and one that struggles to keep their doors open. With customer churn, you are losing customers who have decided to move on to the next best thing. With retention, your loyal customers are renewing or making new purchases with you.

How to Compile a List of Customers Who Would Be Likely to Leave?

If you want to figure out who your customers are likely to leave, it is best to compile a list of customers that have churned in the past. Churn events are a good place to start as this is when customers do actually decide to stop doing business with you.

How to Increase Customer Retention Today?

One way to increase customer retention is by investing in customer service. Customers are more likely to stay with a company if they have a positive experience and feel valued by the employees. If you want more customers, try having an online chat system. This will allow customers to contact you at any time for problems or questions about their order.

Why you should focus on retaining more customers?

Retention has a 90% chance of keeping a customer while churn has a 10% chance of retaining. There are many reasons to retain customers rather than churn them. When you have better retention, your lifetime value increases and your cost of marketing decreases.

When you retain customers, they spend more time on the product, as well as more money. Retaining customers helps reduce negative word-of-mouth and generates new opportunities for cross-selling or up-selling products. Retailers, like other businesses, have a lot of options for engaging with their customers to drive new sales. But there’s only one way that consistently delivers powerful returns year after year—retention marketing.

Retention marketing can help you keep your most profitable customers coming back and spending more with every visit. It might not be as easy as acquiring new customers, but it may actually hold the key to your long term goals.

Conclusion:

The blog concluded with the idea that a company should focus on making sure the customer is happy, and if it does so then the customer will be less likely to churn. If you need deeper insights in understanding what churn prediction entails and who it might be useful for, and also better ways to predict churn than just looking at past customer buying habits, your business can refer this blog: DIALDESK BLOG LINK: Click here