When a customer finds that they are dissatisfied with a company’s services or go as far as deciding to leave a company, there are usually warning signs. The churn rate of a company can be managed and kept down if the whole company works for it via analyzing customer interactions, customer activities and takes steps to avoid losing customers before they leave. Such activities have to be done using all relevant stakeholders.
Every leaving customer is a loss for a company. In this post, we will go into the subject of managing churn rates via analyzing customer actions and interactions.
Could you catch your customers before they are out of the door?
To understand the risk of losing customers, one needs to look at the current churn rates and think about what is acceptable for the company. If your churn rate is 1%, that percentage may seem small, but the number of actual customers behind that one percent may be quite big.
If your customer has already stepped out of that door, it’s often too late to go running after them. There are definitely warning signs to customers thinking about leaving. The information may be there, but noticing it and acting on it is something that can be difficult.
What are the warning signs?
Customers tend to start behaving differently or show warning signs before they actually decide to leave. They might unsubscribe from your emails, stop checking your websites or call customer service to ask for a better offer on their current plan or service. Such customers also tend to tell customer service about issues with their services or show negativity towards customer service.
When it comes to checking customer interactions on websites, you may look at the topics that they look into in your FAQs (like canceling a service for example). If customers unsubscribe to your emails, this may hint to dissatisfaction.
When it comes to customer recovery, the faster that the customer is brought back, the cheaper it is for the company. Steps should be taken as soon as they are found to be needed.
Analyzing customer interactions to understand churn risk and train agents
What is a bit more straightforward is the way that the customer communicates to customer service. When you listen to call recordings, you may catch some phrases that specifically show that there is a churn risk. If you use Feelingstream’s call analytics platform to go through the call transcripts, you can find those calls, group and analyze them to learn from your customers.
Churn risk is very high when a customer explicitly states that they are thinking about leaving your services or say that they do not think they would have such issues with a competitor of yours. Such customers may have already looked into what your competitor has to offer and may be considering leaving.
If the customer mentions that they have called your customer service multiple times or have repeating issues, their dissatisfaction with the services may lead to them leaving. If customers are unable to use services properly and have to keep contacting customer service, their frustration with the service and company will grow over time, so they need some extra attention.
When it comes to the cost of keeping old customers versus finding new ones, then focusing on new customers is five times more expensive than keeping existing customers happy. If your call quality manager looks into the “churn risk phrases”, analyzes the way that customers with churn risk are handled, which of those customers are saved and how, they can gather data that they can use to improve the customer service as a whole. Such work does need some time and thorough analysis of call transcripts.
Good customer service that catches the churn risk is more likely to save such customers and keep them from leaving. If customer service agents are trained to look for warning signs, they are much more effective in working with unhappy customers, as they will have strategies already in place for such instances.
Get everyone involved, lowering churn rates is a team effort
Reacting to churn risk, dealing with churn rate, and making plans to keep existing customers happy is a task that requires a lot of parties to be involved. When it comes to sales goals and keeping subscriptions going, it’s the head of retail that needs to be involved. Marketing and telemarketing have to be on top of their game to make offers and advertise to customers that are thinking about leaving.
If customer service agents are on a phone call that ends in the customer service agent thinking that the customer will leave the company, maybe a callback team specialized in bringing customers back with special offers is the way forward? Campaign deals can also be sent to customers who have given signs that they are dissatisfied with the services thus far.
If analysis already shows that there is a churn risk with a customer, it is also possible that the IT team can do something to alert customer service agents to pay special attention to such customers even before the churn risk becomes evident in their phone call. For example they could add a warning on their dashboard during the call.
Churn rate shows the health of your company, so you need to pay attention
If you initially thought that your company can live with a 1% churn rate, it really should not. 1% per month makes 12% per year. Churn rate is a health indicator for subscription-based companies and it should be taken as that. Work can always be done to decrease churn rate, improve customer service, target marketing, etc. Customer segmentation can also be a big part of this work to ensure that problematic customers are targeted based on their needs and profiles. The main point is that all stakeholders need to take part in this continuous effort.
If you wish to find out more about how you could use Feelingstream’s automated call analytics platform to measure your churn risk and decrease churn rates, contact us for a live demo.