It doesn’t matter if we are talking about a large corporation or a small business: organizations all over the world are trying to consistently attract new customers. Of course, not all of these customers choose to stick around: they might decide that the product/service is not worth the money, or that a competitor is superior. However, a business is only successful if they are able to limit the amount of customers that leave for other options.
This might be more difficult than one expects. After all, technology evolves extremely quickly – and there might be a real disruption that affects your sector significantly. It is hard to downplay how much the Internet has disrupted the retail industry, given the fact that consumers can now order products on their smartphone and have it conveniently delivered to their home. Either way, there are still many reasons why customers churn.
Usability And Design
One of the many reasons why customers churn is that they end up feeling like the product or service isn’t that easy to use. If you are selling your product on a website, have you done everything you can to make sure that the website is responsive and looks great on mobile?
If not, customers might end up purchasing from a competitor with a website that makes it easy for them to buy a product with a couple of clicks. The right design and UX can go a long way, and it might be more important to customers than you realize.
Lack of Support
A customer wants to feel valued and appreciated, and it’s often not just about the product that they are purchasing. The product might be adequate, but a customer might have additional questions about the company or the overall experience.
If a customer sends an e-mail, and never gets a response…they might feel as though the company doesn’t really value them, and decide to begin checking out competitors and what they have to offer. In fact, customers might only find that the company is scrambling to respond once they have cancelled the service. This approach to customer support can come across as cheap and desperate.
Many organizations have certain hours when it comes to their customer service, but what if you can’t even get a hold of a customer service representative during these hours? If you are worried or concerned about customer churn, you might want to make sure that you hire the right individuals for customer support. You might consider paying them more, hiring workers with more experience, or revamping your training process.
Price Point
Consumers all over the world want to purchase high-quality products and services that will improve their lives. Some might also purchase items because of their beliefs. For example, someone who believes that human beings should think more about how they affect the environment might go out of their way to purchase clothes and products that are sustainable.
However, there is one major reason for customer churn: the price point simply doesn’t make sense. It doesn’t matter how incredible your bike or bookshelf is if a consumer can do a quick Google search and find a similar product for half the price. At the end of the day, you should go out of your way to make sure that the price makes sense not only to you, but to the demographics that you are targeting. This also isn’t just about your product/service being too expensive – customers might also feel like your product/service is too cheap, which is also a bad thing. A price point can say a lot about a company, and a lot of thought/research should go into finding the right number(s).
