Understanding why customer churn occurs is critical. Churn can occur when a customer's experience quality falls below a certain threshold relative to competitors or their own expectations. Surprisingly, a Loyalty Effect study found that 60-80% of customers who had defected had previously said that they were "satisfied" or "very satisfied".*
iRetain© interfaces with customer databases to identify and establish causal relationships between performance and churn, and produce customised reports to display this information. Instant analysis of closure reasons and reactions to products allows for rapid modifications to be made to products, campaigns or offers to improve their appeal, or identify underlying churn drivers.
Real time decision engines and dynamic scripting at the point of attrition can enable a reactive retention program through a customised 'recommendation' of more appropriate offerings for the customer; based on their profile and transactional history.
Additional mechanisms that can be used to reduce churn include:
- addressing churn due to changed circumstances
- using pricing strategies
- improving customer service
- using billing
- using personalisation
- using loyalty and affinity schemes
- using predictive churn modelling to target likely churners
Sample churn triggers for different customer groupings within the telecommunications industry is illustrated below.
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