Eight Phenomena Of Customer Churn

Everyone knows what customers mean to a company.

But why do we often lose customers? Have you ever had a situation like this? One day, one of your big clients suddenly told you that he decided to terminate the cooperation with your company and turn it into a product of a competitive brand. One of your company's salesmen resigned, and then several of the customers he was responsible for ended up working with your company. Your customer who has worked for three years has not been in stock for three consecutive months.

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The loss of customers usually occurs in the following situations:

1. Company turnover leads to customer churn.

This is one of the important reasons for the loss of customers nowadays, especially the turnover of senior marketing managers of the company, which can easily lead to the loss of corresponding customer groups.

Because of their professional characteristics, nowadays, marketers are the biggest and most unstable "mobile forces" of every company. If they are not properly controlled, they often lose a lot of customers behind their loss.

2, competitors take away customers.

In any industry, the customers are limited, especially the excellent customers. They are rare. Therefore, the excellent customers will naturally become the target of the big manufacturers.

Be careful, perhaps your main competitor is now moving on to your big client, making sense and inducement, so as to lure him to give up you and live on high branches.

Every brand or product must have soft edges, and competitors in business competition are often the easiest to catch your soft spot. If you have the chance, you will get in.

3, market volatility leads to loss of customers.

The fluctuation period of an enterprise is often a high frequency section of customer churn. Any enterprise will suffer shocks during its development. For example, there are contradictions at the top level, such as the temporary tension of enterprise funds, such as unexpected disasters, etc., which will make the market fluctuate. At that time, customers who are sensitive to smell may have to turn around.

In fact, in the commercial arena, the overwhelming majority of businessmen who take advantage first will be the grass of the fence, and where the money will earn, which side will they go to.

4, the details of negligence make customers leave.

Customers and manufacturers are linked by interest relations, but emotion is also a very important link. Negligence in some detail departments often leads to the loss of customers.

The owner of a business is rather miserly. One agent remitted 500 thousand in the morning and bought the goods himself. At noon, the company did not arrange the reception, but told him to eat a box lunch in the dining hall.

The agent felt very aggrieved and went back to adjust the business strategy to start another brand.

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5, integrity problems let customers lose.

There is a problem with the integrity of the manufacturers. Some business managers like to promise their customers freely, and the results can not be cashed, or rebates, rewards and so on can not be cashed to customers in time.

Once integrity problems arise, customers often choose to leave.

6, bullying customers, customers can not withstand pressure.

Shop bullying is a common phenomenon in marketing. The harsh market policies of some famous manufacturers often leave some small and medium-sized customers unbearable.

Or heart in Cao camp heart in the Han, holding a certain resistance to promote products.

When we meet the right time, we will go away.

7, business management is not balanced, so that small and medium-sized customers to leave.

Marketers all know that "80% of sales come from 20% of customers". Many enterprises have set up a big customer management center, and have taken no interest in small customers.

Advertising promotion policies are also tilted to large customers, leaving many small customers with psychological imbalance.

In fact, do not belittle the sales of 20% of small customers. For example, a company with an annual sales of 1 billion has calculated that its small customers generate 2 hundred million sales, and the net profit rate earned by small customers is often higher than that of large customers.

8, natural loss

The loss of some customers is a natural loss, the company's management is not standardized, long-term lack of communication with customers, or customers switch to job.