How many times have you lost customers and felt frustrated about it? I bet many! We don't always manage to meet other people's expectations, and that's normal. What's not normal is not learning anything from it.
Turn your frustration into learning. Face the reality of your losses and use this as data to evolve. The rate of customer loss is technically known as Churn. Understand how it is calculated.
Calculating Churn
First, you need to choose a period to calculate. It can be annual, semi-annual, or monthly. Thus, longer periods can yield more information.
Churn is calculated as a percentage. For example, if 20 out of 100 customers cancel the product, it means that the Churn rate is 20%. You can use this data to forecast the Churn rate for current customers and the next period.
Importance of analyzing losses
This rate is important to understand the causes and periods when losses occur most. In this way, you can identify patterns and prevent them.
All businesses tend to lose customers. Therefore, you cannot aim to zero the Churn rate, but it is expected to reduce it as much as possible. The customers you lost can signal causes and help you understand what's happening.
Create strategies based on their feedback and also on the patterns you noticed. Remember to base everything on data and not just on guesses and intuitions. Thus, the tests you conduct will also provide you with important data.
When you identify the periods when you lost the most customers, you will also see the period when customers stayed the longest. Use this information to strengthen strategies that are already showing good results and achieve more loyalty.
Common reasons for customer loss
The customer is going through a financial crisis and cannot afford the product/service. This has been one of the biggest current problems. Customers who like and value the service/product cannot maintain the same expenses.
On the other hand, some customers cannot see the value in what your company offers. So, they believe they don't need it and give up. In this case, it's ideal to rethink the marketing and the way the product is presented to the customer.
Another common reason is that the customer did not have their expectations met. Because what the company offers does not keep up with market evolutions, offers poor service or lacks quality. In this way, the customer prefers the competitor's product/service.