“If I only knew then what I know now.” Have you ever thought that? Most likely your answer is yes. We all have. This common phrase is usually used when talking about life lessons such as relationships, opportunities, and decisions. But it also applies to business, an experience that is full of life lessons – yes – relationships, opportunities, and decisions.
Consider your clients, both past and present. Could you learn from your past clients that have left you for a competitor? What if you knew that 1 out of every 4 departed clients had no intention of leaving your organization at the onset of looking at another provider? In truth, not all departed clients were looking to leave.
In its purest form, Customer Churn research helps an organization understand why clients have left their organization for a competitor. Why does the story have to end there though?
When an organization uses Customer Churn research to develop insights and strategies that will retain existing clients, the ultimate benefit of such a program occurs. And if organizations are retaining clients, they are fueling corporate goals and adding to their bottom line.
You may be asking, “What’s the cost connection between retaining existing clients and saving my organization money?” Simple: It costs roughly 7 times more to acquire a new customer than it does to keep an existing one. When you factor in the cost of marketing, sales efforts, and onboarding for new clients, it becomes clear that retaining your existing client base is not only beneficial but cost-effective.
So, look back and discover how you can know now what you did not know then. Your past, present and future clients will appreciate it and so will your organization’s leaders. By retaining existing clients, you’ll not only safeguard your organization’s reputation but also save resources that can be redirected towards growth and innovation.
To read more about the benefits of Customer Churn analysis, check out other Anova Blog posts:
The Doctor is In: How Departed Client Analysis is Like Getting an Annual Physical
It’s Over: Life after a Client Ends the Relationship
Closure: Giving Customers the Final Word
William Shakespeare said it best over 400 years ago when he wrote one of the most iconic lines from Romeo and Juliet: “Parting is such sweet sorrow…”
Ending a relationship hurts. Shakespeare, no doubt, was not thinking about a business relationship when he penned one of the world’s most revered pieces of literature.
And yet, he certainly succeeded in capturing a shared sentiment when someone departs a relationship, especially a business one.
It’s always hard to see clients go. It is costly (you probably lost some reoccurring revenue) and hard to explain (what are you going to tell your boss or the salesperson that closed that account?). But truth be told, clients exiting relationships is part of the normal rhythm of business. Clients come and clients go.
The good news is: You’re not alone. We’ve all lost a client (or two) before.
The bad news is: They have already left and there is likely nothing you can do to get them back.
However, there is a silver lining. By learning the reasons behind why these clients departed, you can help preserve current relationships and retain your existing customers.
A Departed Client program’s purpose is to identify the real (and sometimes unexpected) reasons why clients are leaving. By learning from recently departed clients, you move from the “not knowing zone” to the “knowing zone”, and it is this learning that can help you prevent other clients from leaving too.
Engaging in a Departed Client program will allow your organization to:
One of the best things you can do when a client departs is to understand why they did. Not to get that specific client back, but to help your existing clients stay put.
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