Customer churn:Are you aware of the consequences for your business?
Do you care about your customers? Well, you should care about them!
Customers bring much more to a company than you might think. Some businesses are not able to evaluate it properly and do not pay much attention to it, assuming that lost customers will be easily replaced by new ones.
Big mistake! Customers are not numbers but people, with all that that entails. And even if you have a gap in your heart and you don’t care if you are abandoned, you should know that customer churn can have certain consequences that will affect your wallet.
And although it’s not easy to make an accurate assessment, which will ultimately depend on the nature of each business, we can describe some aspects in which customer churn can affect your business.
– You will lose direct sales from the customer when it comes to customer churn
Okay, this is a no-brainer, but it doesn’t mean we should forget it or just stay on the surface.
Maybe you don’t care too much about losing a sale, but why don’t you take a look into the future?
You don’t have to get your hands on a crystal ball. Make an easy calculation: calculate the income a good customer has provided you over the course of a year and then multiply it, for example, by 10. Good money, right? And you are not considering another factor: many users increase their level of expenses as they become more familiar with the company’s products, so it is likely that the previous calculation was too low, since your lost customers would probably have meant a higher proportion of sales in the future.
Does that look like a lot of money to you? Well, keep reading.
– You’ll lose everything you invested to get your client
In order to make up for the losses of customers, you’ll need new customers, right? And do you think that it’ s going to fall from the sky? Losing a client means losing everything you invested in getting it and you will have to invest in order to get a new one.
Do the math: advertising, marketing, time that your salespeople spent getting the customer, wasted loyalty actions…. It’s money, right?
In addition, we know that getting a new customer can multiply the cost of maintaining an existing user by 5 to 10 times. Do you think it’s too little yet? Learn more.
– You will lose recommended customers
Have you ever heard of word of mouth? So where do you think a good part of your customers come from? Well, from your own people!
When someone is happy with the products or services provided by a business, it is normal for them to recommend these to friends or family. This is, without a doubt, one of the best sources of new customer acquisition, since it is very cheap and is often a matter of loyal users.
So when you see a customer walking out your door and never coming back, remember that he or she is not leaving alone, but is holding hands with dozens of potential users that he or she might have attracted to your business. Don’t you feel sorry for him? Well, read on and you’ll see, you might even have a little tear in your eye.
– You’ll get negative publicity
And here is the other side of the coin. Because customer churn
will not only mean you won’t get referred customers, it could even mean you won’t get customers that you could have gotten if you hadn’t lost some of your customers.
We must insist on this: customers have mouths, they use them, they talk and they communicate with friends, acquaintances and relatives, and even with strangers through social networks or opinion pages.
And just like a satisfied customer can recommend your brand to others, a dissatisfied customer can shout out their bad experience with your company. And in an era when social networks can viralize any incident, and when consumers go to opinion pages to get information before buying products, are you sure you want to give your customers reasons to abandon you and spread negative ideas that damage the reputation of your business?
Do the math. Add it up and you’ll see. The loss of customers can be a serious damage to any business, and that is why we should take care about that.
One of the determining factors when it comes to avoiding the loss of clients is the customer service. Often, customer service is the “last barrier” that will make the difference between a satisfied customer who sees how he or she is dealing with a brand that is able to serve him or her with kindness and solve his or her needs with ease, or a dissatisfied user who is confronted with a disorganized or carefree brand that he or she considers to be a nuisance to serve their customers.
Customer service is key in any company, and it is also a complex service. It requires a lot of effort, good organization and a team of good professionals with the necessary tools to do their job well.
Luckily, we live in the 21st century, which means that there are tools such as mobile phones, coconut openers, sticks for selfies or even software that are able to help with customer service management.
And, it turns out that one of them is ours, Integria IMS. Why don’t you take a moment to get to know it better?
Integria IMS is a computer software that has, among other features, an issue management system (help desk software) based on tickets (ticketing) which is capable of helping with the management of customer service in companies or organizations.
Do you want to know more about what the Integria IMS helpdesk tool can do for you? Okay then! Click here and you will see: https://integriaims.com/en/product/help-desk-software/
Or you can also send us any questions you may have about Integria IMS. You can easily do this using the contact form at the following address: https://integriaims.com/en/company/contact/
The Integria IMS team will be happy to help you!
Alberto is one of the translators of Integria IMS. He is also a singer-songwriter and he also can play the guitar and the piano.