{"id":3196,"date":"2017-03-22T10:55:53","date_gmt":"2017-03-22T14:55:53","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=3196"},"modified":"2019-09-25T07:59:03","modified_gmt":"2019-09-25T11:59:03","slug":"what-really-drives-customers-to-churn-and-how-you-can-avoid-that","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/what-really-drives-customers-to-churn-and-how-you-can-avoid-that\/","title":{"rendered":"What Really Drives Customer Churn and How You Can Avoid It"},"content":{"rendered":"<p>Visionary co-founder and former Apple CEO, Steve Jobs, challenged, <em>\u201cGet closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.\u201d&nbsp;<\/em><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Too many businesses take a reactive approach to customer service. But one of the most&nbsp;successful companies in the history of the world has a different priority: Push yourself to innovate the best possible experience for your customers. Understand your customers\u2019 desires and motivations, without losing sight of the fact that you are the expert. The secret of Apple\u2019s strength and the source of its innovation and success are found in the interactions with their customers\u2014not in technological leadership.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>Customer Satisfaction, Customer Expectations, Customer Loyalty\u2026<\/strong><\/p>\n<p>Any way you look at it, it boils down to the experience a customer has when interacting with your company and brand. Today\u2019s distracted consumers, inundated with information and options, often struggle to find the products or services that best meet their needs. With increased competition and saturated markets, it becomes imperative for not just customer experience personnel, but for everyone associated with your brand to know what customers think about it.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>Customer Experience Plays a Vital Role in Customer Retention<\/strong><\/p>\n<p>Companies have been trying to perfect the most appropriate means and measures, and are constantly debating, on how to consistently deliver unsurpassed customer experiences. Consumers typically respond to an \u201coutstanding\u201d customer experience by making a mental note to buy from the company again, telling friends and family, and commenting on social media. In an Economist Intelligence Unit (EIU) study, 45% of respondents cited that, in consumers\u2019 eyes, the obstacle that most prevents companies from providing an \u201cideal\u201d experience is a lack of interest in customer satisfaction.&nbsp;Make your customers feel special, loved and valued, connect with their emotions:<\/p>\n<ul>\n<li>Bring the wow factor every time<\/li>\n<li>Always know your churn and retention<\/li>\n<li>Be the one to reach out first<\/li>\n<li>Follow-up with what you\u2019re doing to improve<\/li>\n<\/ul>\n<p><strong>Empower Employees to Rapidly Address Customer Feedback<\/strong><\/p>\n<p>Even the best systems that support efforts to reduce churn aren\u2019t enough to curb the tide of customer defections. Companies need highly engaged employee teams with the right data and customer feedback, and a culture that focuses on their customers\u2019 priorities. Successful companies also encourage cross-functional collaboration to make changes leading to a great experience for customers.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>For employees to effect change, it\u2019s imperative to build customer feedback into daily operations and quickly share comments with the employees most responsible for the experience. That feedback supplies the data for a root cause analysis of problems that could eventually lead to churn.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>Customer Experience Surveys<\/strong><\/p>\n<p>To improve customer retention through better customer experience, companies must understand the loyalty of their customers. By listening to customers you gain an understanding of customer perceptions. Being innovative and assuming what customers need or want is essentially a stab in the dark. By talking to customers, querying them, and listening to them, you gain the best possible insight to show them just how valuable they are to you.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>There is an array of methods that gauge customer experience. Surveys can provide a lot of feedback from customers, but they have to do be done right. While you probably have no shortage of potential questions, keep it simple or people will view it as work; you won\u2019t get accurate data because people will \u201cfatigue\u201d and think less and less about the questions as they just want to complete the survey. Keep it short, and you\u2019ll get better responses and more accurate data.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Companies that utilize a <a href=\"https:\/\/www.sogolytics.com\/blog\/net-performer-score-the-ultimate-survey-question\/\">Net Promoter Score (NPS)<\/a> regularly ask customers one question: \u201cOn a zero-to-10 scale, how likely is it that you would recommend this company to a friend or colleague?\u201d The companies sort their customers into promoters (9s and 10s), passives (7s and 8s) and detractors (zeros through 6s). The NPS is the percentage of promoters minus the percentage of detractors.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Through a series of follow-up questions, companies gain valuable customer feedback to quickly identify what they are doing right and where improvement is needed. The company can then take action to improve the experience, which helps to turn customers into promoters who don\u2019t want to leave for a competitor. Many companies find that improving their NPS relative to competitors\u2019 correlates with reduced churn.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>The longer you retain customers the more loyal they become, and the more valuable they are to your business. Loyal customers also tend to spend more over time because they are less sensitive to changing prices. So, find out what your customers really value\u2014ask for&nbsp;feedback and turn loyal customers into advocates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Visionary co-founder and former Apple CEO, Steve Jobs, challenged, \u201cGet closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.\u201d&nbsp; Too many businesses take a reactive approach to customer service. But one of the most&nbsp;successful companies in the history of the world has a different priority: Push yourself to innovate the best possible experience for your customers. Understand your customers\u2019 desires and motivations, without losing sight of the fact that you are the expert. The secret of Apple\u2019s strength and the source of its innovation and success are found in the interactions with their customers\u2014not in technological leadership. Customer Satisfaction, Customer Expectations, Customer Loyalty\u2026 Any way you look at it, it boils down to the experience a customer has when interacting with your company and brand. Today\u2019s distracted consumers, inundated with information and options, often struggle to find the products or services that best meet their needs. With increased competition and saturated markets, it becomes imperative for not just customer experience personnel, but for everyone associated with your brand to know what customers think about it. Customer Experience Plays a Vital Role in Customer Retention Companies have been trying to perfect the most appropriate means and measures, and are constantly debating, on how to consistently deliver unsurpassed customer experiences. Consumers typically respond to an \u201coutstanding\u201d customer experience by making a mental note to buy from the company again, telling friends and family, and commenting on social media. In an [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204],"tags":[176,25,183,54,60],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Really Drives Customer Churn and How You Can Avoid It - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"Visionary co-founder and former Apple CEO, Steve Jobs, challenged, \u201cGet closer than ever to your customers. So close that you tell them what they need\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sogolytics.com\/blog\/what-really-drives-customers-to-churn-and-how-you-can-avoid-that\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Really Drives Customer Churn and How You Can Avoid It - Sogolytics Blog\" \/>\n<meta property=\"og:description\" content=\"Visionary co-founder and former Apple CEO, Steve Jobs, challenged, \u201cGet closer than ever to your customers. So close that you tell them what they need\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sogolytics.com\/blog\/what-really-drives-customers-to-churn-and-how-you-can-avoid-that\/\" \/>\n<meta property=\"og:site_name\" content=\"Sogolytics Blog\" \/>\n<meta property=\"article:published_time\" content=\"2017-03-22T14:55:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-09-25T11:59:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2018\/12\/cust-2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"487\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Sogolytics\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/what-really-drives-customers-to-churn-and-how-you-can-avoid-that\/\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/what-really-drives-customers-to-churn-and-how-you-can-avoid-that\/\",\"name\":\"What Really Drives Customer Churn and How You Can Avoid It - Sogolytics Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\"},\"datePublished\":\"2017-03-22T14:55:53+00:00\",\"dateModified\":\"2019-09-25T11:59:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/137ad89cc093b0bb889c68e4b1825fb1\"},\"description\":\"Visionary co-founder and former Apple CEO, Steve Jobs, challenged, \u201cGet closer than ever to your customers. 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