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December 13th, 2019

Why the Concern for Churn?

Why the Concern for Churn?

Do you feel like every article you read nowadays is about churn? Maybe… but have you wondered why so many people talk about it and why it seems so important? Well, there are a few reasons. It can be cheaper to keep existing customers than to get new ones, you can have a better success rate selling new products to existing customers, and existing customers may bring in new business from referrals.

But let’s take a deeper look:

 

Cost Effective

There have been a number of studies that suggest it can be approximately 5 times cheaper to retain current customers than to acquire new ones. Moving new leads all the way through your funnel can be a costly process.

 

Current Customers are More Receptive

There can be a better success rate for selling new products and upselling to current customers than new ones. This may be because you have had more time to build trust.

 

Loyalty is Infectious 

There is a chance that existing happy customers may turn into brand advocates promoting your product to others and setting up referrals. All helping to increase profitability. 

 

Live Support and Churn Reduction

Live support can help to reduce churn and support some of the benefits above. Here’s how: 

  •     Providing customers with an exceptional level of service may help to reduce your churn rate. Live support helps your business to provide a high level of consumer satisfaction with a customer support service that is personal, instant and accessible. Hello happy customers.
  •     Reducing effort for customers is another thing that may help. Live support makes it easy for customers to get help in a matter of clicks. 
  •     One of the factors that contributes to nurturing brand advocates is consumer satisfaction. Live support can help to keep this high as people love getting their problems solved quickly and efficiently.
  •     Live support can be used to upsell to your existing customers and to tell them about new products. 
  •     In order to reduce your churn rate you need to find out why customers leave you. You can use post-chat surveys to ask your customers opinions, look at previous chat transcripts and make use of the analytics your live support software provides to help you understand why.

 

Now That You Know Why the Concern, Make Friends With Churn

Putting a spotlight on your churn rate can help to increase the profitability and success of your business as a whole, and live support can be a great help for this. A quality live support software such as Xeno gives you the tools to implement this effortlessly. With a range of analytics, post-chat history, self-powered CRM and consolidated inbox. Get started with Xeno today.

Avatar Nick
Written by
Nick
Nick is a digital marketing expert. When he isn’t writing he likes to unwind spinning records and making music.
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