According to the late great Steve Jobs, ‘Innovation distinguishes between a leader and a follower.’ And in an increasingly competitive landscape, the need for businesses to innovate and improve on performance is crucial in the war to win – or more crucially, retain – the hearts and minds of consumers.
Customer churn is among the most impactful issues a brand can face. 70% of customers leave a business not because of issues with their product but because of the poor quality of service they have received. A more worrying statistic is that 91% of unhappy customers will not do business with your company again if they feel their issue wasn’t effectively dealt with.
From a revenue perspective, customer churn can be a nightmare. 80% of your future revenue is set to come from 20% of your existing customers. Simply put, to succeed in your market-place you need to ensure you win the battle to retain your customers. For one thing, it’s considerably cheaper to keep your existing customers than it is to recruit new ones.
With challenger brands increasingly emerging across sectors, consumers have more choice in the brands they want to do business with. Yet what makes this even more challenging is the role of innovative technology and how customers are now able to churn quicker than ever before. Simply with the click of a button.
It’s not me it’s you
Within the telecoms space, Sky Mobile are currently (July 2019) running a campaign centred around ease of switching provider. The campaign message is simple, yet effective: “It’s not me, it’s you.” It perfectly summarises that for aggrieved customers, you can now switch providers without the stress. You don’t even need to inform your existing provider. By sending a text message to Sky Mobile they’ll handle all of the paperwork and deal directly with your current mobile provider. It’s that simple.
Unhappy? Simple solution – just leave.
In fact, only 27% of your customers will take the time to complain if they experience an issue. The rest will switch brands.
Fintech company Plum, a savings and investment app, is also supporting easy supplier switching, in partnership with green energy company Octopus. If Plum detects that a user could reduce their home energy bill, it sends them a message offering to initiate the switch on their behalf. If the user agrees, then Octopus energy take care of the rest.
Churn made simple thanks to innovation in technology and challenger brands.
Progress means embracing change
Consumer complaint guru Martyn James, has his own views on the association between the breakdown of trust between businesses and consumers and how this also contributes to greater levels of customer churn:
“For a variety of reasons, people have become distrustful and cynical about businesses, organisations and Government over the last decade. This lack of trust has led to a level of cynicism where many form the conclusion that businesses in a sector are ‘as bad as one another.’
“But this is changing. Business practices that were industry ‘sacred cows’ are now being questioned, while regulators are pushing to have these practices stopped. This has been demonstrated recently by the focus on ‘loyalty charges’ – the increase on annual payments for services for people who remain with businesses.
“When it comes to switching between brands, businesses embracing faster switching between providers are ahead of the curve – because soon this will be a requirement. By recognising that former business practices are unfair and being upfront about their commitment to change, these progressive businesses make the case for why their customers should stay loyal to them. Ironically, the firm that makes it easier to leave, is the one you’re likely to love the longer.”
Embracing a world in which consumer switching is the norm and part of best-practice means you need to be operating as efficiently as possible to stay ahead of the pack. Having access to the appropriate data and the ability to extrapolate clear insights are a big part of this brave new world.
Fight technology with technology
If the old saying was to fight fire with fire, in this modern innovation-led arena businesses need to fight technology with technology.
If you want to prevent customer churn you need access to high level business intelligence that provides you with genuine actionable insight. Preventative measures can then be deployed to stop issues growing out of control. It can also help identify deeper systemic problems within your company impacting your performance in comparison to your rivals.
This is where Egeria Insights can help.
Egeria Insights is leading the way in transforming complaint data into powerful analytic reporting and predictive modelling. With over 4 million complaint case files, our insight tools include competitor benchmarking, in which businesses can effectively measure their performance in redress, resolution-time and complaint ease.
We’ve also developed predictive modelling techniques to accurately identify which of your customers are at high risk of impactful vulnerability issues and which are likely to have their complaint escalated to regulators. In short, we can warn you which of your customers are at risk of churn.
The ability to take pre-emptive measures to resolve customer complaints should be in every customer service department’s kit bag. If you’re being targeted by tech that enables your customers to churn on a whim (and at the click of a button) you need to be arming yourself with the insights to identify these unhappy customers and move quickly to resolve their issues before it spirals out of control.
So, unless you want to be considered the follower in Steve Job’s assertion that innovation distinguishes between leaders and followers, then you’d best be prepared to embrace change and to fight technology with technology.
Speak to Egeria Insights directly to arrange a demonstration and see for yourself how we can secure your future revenue stream by helping you to increase brand loyalty and customer retention.