Churn rate is a figure that represents the percentage of customers or subscribers who cancel a subscription to a service that your business provides. It is a critical metric for any company with clients that pay for something on a recurring basis.
Customer churn is bad - because it often means your clients aren’t happy or that your product or service no longer helps them in any relevant way. Churn can also cost you more than simply lost business because if a customer bails out quickly, it can mean you also lose some of your customer acquisition costs.
In many cases of dissatisfied customers, churn can be prevented. In fact, research from Kolsky finds 11% of customer churn could be avoided if the business simply reached out to the customer. Keeping those who are happy is also key to reducing churn. A 10% increase in a company’s customer satisfaction score leads to a 12% increase in trust from customers, according to the Institute of Customer Service.
Get to know your customer with powerful data
In order to get ahead of customer churn, you need insights and analytics you can use to improve customer service and keep your customers loyal.
The first step is to make a great impression when customers first become subscribers. From the moment someone makes a purchase or signs on for your service, you should be harnessing data to generate meaningful welcome emails, create educational content and formulate onboarding processes that ensure your customers are getting the most out of their relationship with your business.
Throughout the customer relationship, consistent communication and feedback are essential to ensure they are optimising their use of the product or service. Check-in with them during key moments or milestones in product use. Using the power of data, find ways to engage with them using content they may find relevant or useful.
It is also a must to be responsive during times of need. Whether it is a service outage impacting many, or an individual problem affecting one customer, it is essential to be responding to customer outreach in any way you can.
Be proactive about customer churn
Unfortunately, a zero-churn rate is nearly impossible, customers will leave. But when they do, that is your opportunity to use data and figure out what went wrong to prevent a similar customer from leaving in the future.
Even better, use analytics to get on top of churn patterns in order to reach out to the customer and take the best action to stop them from leaving in the first place.
Dynamics 365 Customer Insights can helps stop and predict churn
Dynamics 365 Customer Insights can assist you to predict and stop customer churn. With Dynamics 365, you can employ quickstart machine learning templates to predict churn or the next best action. The tool allows you to discover new audience segments with AI-driven recommendations or create your own. You can embed Customer Insights cards into your Dynamics 365 business application or external applications to drive informed action. You are able to trigger workflows in response to customer signals by using Power Automate to initiate action.
In partnership with Microsoft, MOQ is offering eligible customers an incentive for up to $5,000 AUD to stand up Dynamics 365 Customer Insights as a Proof of Concept. We will educate your team on the capabilities of the product and drive a greater understanding of your needs for unified customer information across your organisation. Microsoft Dynamics 365 Customer Insights gives your organisation the ability to unify customer data across multiple sources, allowing other tools like AI, Machine Learning and Power BI to provide intelligent actionable insights derived from unified customer data.