Those who are attentive to their customers can usually recognize signs of a lack of customer loyalty and increasing customer churn early on. However, the first signs of customer fluctuation can be lost in the daily hustle and bustle. Therefore, entrepreneurs should regularly ask themselves the following questions:
- Has the number of buyers decreased significantly compared to previous periods?
- Has the customer distanced themselves in the last few months?
- Did the customer pay the last invoice with a noticeable delay?
Could you answer “yes” to one or more questions? Then this is a sign of customer churn. But don’t just bury your head in the sand and give up—lost customers can be won back within the framework of targeted recovery measures.
By now at the latest, you should turn to churn analysis. Because before these measures are implemented, the churn behavior of the customers should be carefully examined and the reasons for the churn determined. Understanding the source of customer dissatisfaction is a prerequisite for taking the right action.
And that is exactly what companies should do, because a lost regular customer cannot simply be replaced by a new one. In addition, acquiring new customers also costs a lot more than supporting customer loyalty, since marketing has to be in full swing when acquiring new customers in order to attract their attention. Therefore, one should bind the customers to the company for as long as possible.
And the following also applies: An ounce of prevention is better than a pound of cure. That’s why companies should deal with customer churn right from the start. As part of a so-called churn analysis, it is possible to effectively examine the topic, understand your own customers and develop measures to keep the churn rate as low as possible.