What are some churn reduction initiatives that you have experienced success with?
Created 15/04/2019
11 months ago
The key is a Retention Strategy; Rewards, loyalty programs may be similar among competitors but a retention strategy moves beyond cosmetic to real initiatives. Give them a reason to stay…could be new products and ability to switch to these easily, flexibility to return if one leaves, innovative packages based on market expectations and do not forget Customer Service/ Call Center - the interface that may be instrumental to solving issues that compel shift. Number portability has reduced efficacy of brand association as earlier Image of owning/associated with a certain network was also an element.
11 months ago
Although retention and loyalty programs work for a period of time, I have found that it is the first interaction between the customer and agent that really sets the tone for the customer’s expectation. Customers expect agents to be passionate about the products they represent, but more importantly, it about the attitude and willingness of the agent to help the customer the FIRST time. No one wants to have to call back with the same issue; etc. That is why I believe the call center is your key to customer retention. The incentives, loyalty programs, are just icing on the cake.
Firstly, get a good understanding of what is driving churn and develop data centric metrics and activities to combat. Getting cross-functional buy in and actions is critical e.g. Customer Service, Collections, etc must understand how they impact churn. Having robust and customer centric join journey, collections journey and catching repeat callers into service will all impact positively.
Surprise and delight. Give something small without asking for anything in return. Eg in telecom to give your best 5 star customers a voucher for an ice-cream just before entering into prolongation period. Just a token of appreciation.
11 months ago
Also do not forget to reflect your market and customer portfolio structure. Some geographies/markets may be very price sensitive while other would appreciate rather introduction of innovative products. But in general, I would agree with previously mentioned “first contact resolution” - it is very important KPI in terms of retention that works across customer segments.
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