Posts Tagged ‘customer attrition’

I received a surprise in the mail today – a women’s magazine I don’t subscribe to. But, according to the address label, I’m going to be getting the magazine for a full year. Three words come to mind: Gift. Horse. Mouth. Has this ever happened to you? I called the magazine to see if

Here are is a very interesting point about the power of negative customer service (from a study of companies based in Australia, New Zealand, and India). "... in most cases the individual will turn to a competitor for the business, in over 30% of instances the consumer simply decides not to spend any money – a decision the survey said potentially undermined local economies." You don't

This past weekend I was reading my favorite customer strategy magazine, 1 to 1 Magazine (published by the Peppers and Rogers Group) and I came across this startling fact: "In mature telecom markets, on average, it takes three years to pay back the cost of replacing each lost customer with a new one." What a wake up call that is on customer churn costs. The

For those of you who regularly read my blog you are noticing I keep emphasizing the point that you need to make it easy for customers to do business with you. I’m going to make this point again because it can be such a powerful element in creating loyalty. Here is another example of making is easy for your customers. My old laptop was at

…being nickled and dimed to death with fees. (Yes, I am being sarcastic.) Do you know what I mean? When you are in a relationship with a business that tacks on all kinds of little fees every time you use their service they are likely lowering customer retention and may be encouraging negative word of mouth. A lot of businesses don’t

You've likely heard that it is 7 times cheaper to keep a customer you have than to get a new one. This is because the effort (time, expense, etc) it takes to convince an individual to consider your service or product is huge in comparison to the effort it takes to nuture and sustain an existing customer relationship. Advertising expense grows at the

Have you thought about why your customers leave? If you don't know why, now is the time to start asking them when they exit (via phone, online survey with only a few questions, etc). This data is critical. I wish sometimes that businesses had asked me why I end relationships with them. Because I want to tell them. I want them to