Everyone likes to win, right? What is often forgotten is that in order to win, everyone has to spend time evaluating why they lost. Rather than spending excessive time, effort, and resources to keep existing customers, it is vital to understand why customers are leaving in order to increase retention rates and prevent recurring issues leading to loss.
That’s where churn analysis comes into play. The more you know about your customers and what they need, the better your company is able to fine tune its services and communication to better meet those needs and prevent churn. Take a moment to evaluate:
- Which customers cancel
- Why they cancel
- When they cancel
- Whether they could have been saved
Whether or not the answers to these questions are positive or negative, the more in-depth you are able to answer and address each one, the more equipped you are to identify and make improvements where necessary.
So are you ready to start!
Use CRM Data
Depending on the size of your company and client base, there often aren’t enough resources to investigate every lost deal. In order to accommodate these differences, break down the churn factors in your CRM to assess data that is relevant to your company and clients. Factors may include trends in different regions, by products, size of customer companies, pricing, and packaging differences, and more.
Analyzing these factors may alert you to specific discrepancies that could be largely beneficial to fix. Regular analysis will also help you stay informed on services provided by competitors that could be matched by your business and bring value to existing customers.
Choose Your Data Channels
There are a variety of data channels that can be harnessed in order to understand your customers and why they left, including CRM information, customer surveys, internal surveys, customer interviews, and internal interviews of the account stakeholders.
Data collected from real people who are connected to your business and its services is invaluable in understanding the why behind each loss and how to correct it to prevent losses in the future. Make time and a budget to collect and record this data.
Understand the Churn
The best way to understand why your customers are canceling or leaving is to talk to your lost customers. Preparing a generative interview process is the most accurate and relevant way to gather and assess this information.
Clozd has developed just such a process to ask probing, thoughtful questions to determine the root cause for customer dissatisfaction. Not only have we developed this cutting-edge churn analysis strategy, our consultants will also carry out the interviews for you, which will provide customers with an open and impartial party to give honest feedback.
Our progressive churn analysis strategy also incorporates interviewing buyers, or “wins”, in order to assess how you can win even more. Click here to learn more about our churn and win-loss-analysis methods.
- The strengths and weaknesses of your products or services
- Better ways and opportunities for customer communication
- Predicting and preventing future churn issues