Churn: if you know it, you’ll avoid it

Copyright Ottantaventi srl 2011-2016

Adriana Galganowww.ottantaventi.it

[email protected]

OTTANTAVENTI TRAINING

Churn: if you know it, you’ll avoid it


WHAT IS CUSTOMER CHURN?

It is when your

customers stop doing

business with you


customer loyalty was the rule, today it

risks to become an exception

IN THE PAST


On the average a company loses from 10%

to 40% of the existing customers every year

These churn rates have never

been registered before, wherever in the

world

IT IS HAPPENING NOW


AND…DO YOU KNOW

How many customers

leave your

organization every

year?

Why do they leave?

?


KNOWING THE CUSTOMERS' LOSS NUMBER

allows you to calculate

the churn rate of our

company.

Thus we will have a

specific parameter to

decide whether to

intervene to reduce it.


CHURN RATE

Total number of lost customers at the end of the period

_____________________________________

Total number of existing customers at the beginning

of the period


dissatisfaction with the price / quality ratio

dissatisfaction with product/service quality

changes in customer's situation

new technology

targeted actions by competitors

CAUSES OF CUSTOMER CHURN


THE THREE DEGREES OF CHURN

CUSTOMER

reduces the number of

products / services used

decreases the amount /

intensity of use

leaves the company


Newly acquired customers

Buying less

Threatening cancellation

CUSTOMERS AT HIGH RISK OF CHURNING


Unavailability of the decision makers and the

usual contacts

Even more short-term projects

Requests to reduce the duration of contracts

Slowdown in payments

Slowdown in the acceptance of new

proposals

Complaints

CUSTOMER SIGNALS


allow us to take action

to prevent the

abandonment by

customers

THE SIGNALS


ACTION IS IMPORTANT

Because to

acquire a new

customer costs

from 5% to 25%

more than it

does to keep an

existing one!


is one of the key drivers of the growth in

turnover and profits in this volatile market

CHURN MANAGEMENT


shows that loyal customers spend

more, have higher margins and

speak well of our company

RESEARCH


means increasing customers

loyalty and profits!

WORK ON CHURN


a strategy have to be created

TO HAVE SUCCESS


OBJECTIVE OF THE STRATEGY

is decreasing the

number of customers

that reduce its business

with us or who decides

to leave by acting

preemptively and in an

organized way


THE STRATEGY IS IN 5 STEPS


Quantifying

Analysing the causes

Setting the plan

Training

Acting

THE 5 STEPS ARE


IT IS INDISPENSABLE

training people who work

in Churn project.

Hasty strategies or

improvised contacts

might result in

suggesting to the

customer the idea of

abandoning our

company!

How to

reduce

il Churn


What could be worse than

losing customers?

Do not do anything to keep

them!

Thanks to Ottantaventi

training and methods you

keep the customesr in your

organization

CONTACT US FOR MORE INFORMATION

MY EMAIL IS [email protected]

mailto:[email protected]

Business

Churn: if you know it, you’ll avoid it