Is Churn Rate Part of Your Customer Service Strategy?

Churn rate provides one measure of customer satisfaction…but only as a lagging indicator. It only tells you the percentage of customers you have lost within a period of time, but it doesn’t tell you why. If churn numbers are your only measure of customer loyalty, you will always be behind in influencing the future. What you really need to do is figure out what is behind the numbers. 

Here are the questions you should ask:

• What is the company’s role in causing customers to leave?

• What are our customers doing that makes them leave?

• How can we better serve them so they are more apt to stay?

Think of churn rate as an opportunity to improve your customer service performance. You want to see the number go down over time but you must also be sure that you are attracting the right kinds of customers. You may have more of an acquisition problem than a retention problem.

The point is that any metric can be helpful in your customer service strategy as long as you take care to understand just what is behind it and what it means for your business.

Learn more at: http://www.lsaglobal.com/customer-service-strategy/