Almost every company experiences customer churn. It’s simply the nature of doing business. However, if you can predict and prevent customer churn, it will have a significant impact on your bottom line. In this article, we want to discuss what is customer churn, why it matters, and give you 5 tips to help predict and prevent it. Let’s get started!
What is Customer Churn?
Customer churn is defined as the number of customers who discontinue their use of a product or service. In other words, it’s when customers stop doing business with you. It can be caused by a variety of factors, including price changes, lack of features, poor customer service, and more.
Why Does Customer Churn Matter?
Customer churn matters because it can have a significant impact on your bottom line. Let’s take a look at some numbers. If you have a customer base of 100,000 and lose just one percent of those customers, that’s 1000 customers. At an average revenue per customer of $100, that’s $100,000 in lost revenue. That’s a significant number, and it can have a major impact on your business.
5 Tips to Predict and Prevent Customer Churn
Now that we know why customer churn matters, let’s take a look at five tips to help predict and prevent it. Below is the infographic from GetVoIP that include the customer churn model along with 5 customer churn problems with solutions. So, let’s get started!