Is customer attrition silently killing your business?

Customer attrition is a big business killer and every business deals with it. It is one of the few metrics that can be directly correlated to revenue. Reduce attrition among paying customers, and you’ll be rewarded with higher revenue, guaranteed. It’s a tough situation for businesses, but one that can be tackled and overcome. So, how businesses can reduce churn and save your bottom line?

Many companies have a sense that customer retention is a challenge, but they don’t have the systems in place to obtain the actionable data required to remedy this issue. Keeping your customers is not magic. There are many reasons why your customer base could be churning. To reduce churn rate, all it takes is learning how to spot where the leaks in your bucket are and knowing what to do to plug them. Consumer lending is a competitive business and lenders must remain vigilant at the threat of losing their existing borrowers. Borrowers are more likely to consider refinancing options whenever existing mortgage deals revert to a standard rate. Unfortunately, this means that the lending industry has some of the worst customer retention rates of any businesses.

What does it take to manage to retain your best customers?

Customer retention doesn’t improve overnight. The first step to increasing retention is to understand why you’re losing existing customers, or what stops them from coming back.

Customer Retention Strategies

Customer retention means that a single customer will continue to buy from you over several years – which is described as the Lifetime Value (LTV) of your customer. Establishing the LTV of a customer over the lifetime of their business relationship with you shows the importance of looking after your customers.

However, if you have a few solid strategies up your sleeve, you can coax repeated customers more!

1. Create customer loyalty schemes

2. Improve customer experiences across channels

3. Build trust through relationship

4. Empower customers by setting expectation

Businesses can leverage the power of AI and Automation to retain customers for life!

Insight Consultants offer

Insight Consultants will help their clients to predict and reduce customer churn using advanced technology and financial management services.

1. Create customer loyalty schemes through AI-powered segmentation

2. Add intelligent automation to existing IT systems for a personalized customer journey

3. Identify and score churn indicators through Predictive Modelling

4. Share customer performance through reports and dashboards

Businesses should not underestimate the actual value of customer retention and start being proactive in keeping their customer base. In other words – the customers you have are your best shot at maximizing your revenues and making your business more profitable!