Customer Churn – The Spoiler Alert to your business

  • October 12, 2020
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Have you ever wondered how long is a customer lifetime in your business? Has your business lost a few customers recently? Does this happen with every business?

The average business loses 10 to 25 per cent of its customer base per year. That is the impact of customer churn on business. What is that? How customer churn rate affects industries? What should be the ideal customer churn rate? That is what you are here to read and learn. 


A Customer Churn in a layman’s language is the number of customers lost during a given period of time. 

What? Talk to me in numbers, please!

Say you had 300 customers on the 1st of September. Due to some reasons, 17 customers stopped buying your products. In this case, your customer churn rate is 5.6%.


The roots of this problem must not be ignored. And the most common reasons for customer churn are 

  • Bad customer services.
  • Lack of brand loyalty.
  • Disappointment with the quality of the product.
  • Poor communication.


It is ok to have a little churn – mind it A LITTLE. 

If your customer churn rate is 5 to 7 % you need not worry. As long as you are able to bring new customers and retaining a balance, you need no warning. 

What if you have over crossed this rate?? Here is what you can do…


Learn your flaws

The first step to reducing customer churns is by knowing the exact reason why the customers are not coming back to buy your product or what is wrong with the end of your sales funnel. 

Have a look at the entire customer journey and find out where you lag. Overview your entire product, compare it with your competitors in aspects of your quality, price, accessibility and make a note of all the required changes.

Look at your Onboarding process

Your UX is what you should work upon. Every $1 invested in UX results in a return of $100. If you fail to make this process smooth, you will lose your customers in two folds. Which factors should you focus upon here? Look at this.

Any glitch or bug here will result in unsatisfactory user experience. You want your customers to keep coming back to you, don’t you? Then this is where you should focus upon. 

Keep your best occupied

You need people who can convince customers to not take that final step. You need to put your best foot forward and listen to what these customers have to say.

Use a live chat feature, chatbots may be, in order to deal with the issues of the customers – immediately. Your customers rely on the customer service department. You have to make sure that you have representatives who can convince that you really are the best!

Being ignorant of your customers will drop your brand value and customer loyalty. And of course, all of this will lead to a tremendous drop in sales and you really don’t wish for that. So start hopping up your bests for customer services.

Flaunt your difference.

You have to start flaunting what makes you different at this stage. Why? To show to the audience what a loss it will be for the audience if they stop purchasing your product! How?

There are various brands that have highlighted their competitors and created an entire ad war. The most famous example is that of an Audi v/s BMW billboard war wherein Audi challenged BMW and the result was historic.

You can start by making a brand promise that none of your competitors has to offer. Brand Promise offers a wide range of benefits and here are a few benefits for you!

  • Increases Brand Reliability.
  • Increases Brand Trust.
  • Includes the benefit of customer loyalty.

Here’s an example – Marriott promises to remain consistent with its experience. Be it New York or Mumbai, Marriot promises to deliver the same experience everywhere. And that’s what makes it one of the most successful companies in the hospitality industry. 

In such ways, you can flaunt to your audience how confident you are about your own brand and create an impeccable impression on your audience. No one is going to trust you unless you show them how you are better. Hence start making marketing strategies in this direction. 

Let a surprise be your Midas Touch 

Make your loyal customers feel special by giving them special offers and discounts. You add value for your customers and insight to providing better services to your customers. Adding value to your customers will affect the customer churning rate. Scroll to know how?

Just like Starbucks, most brands build various strategies that work on creating a successful loyalty program. If you want to create one, focus upon the following:

  • Use a tier system to encourage more purchases.
  • Structure the program around customer’s values.
  • Include all-inclusive offers.
  • Include VIP benefits.

This creates a great opportunity for your customers to return to your brand and create a sense of trust for the audience on your brand. Glorifying your tweets and just including some posts on Instagram won’t crack the deal for you. You have to hover around strategies like a loyalty program to increase your consumer retention.


1into2 advises these tips to avoid customer churn and keep these customers engaged with your business for a long time. Try these and promise you won’t regret.

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