Customer Experience

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May 30, 2023

10 Ways To Churn-Proof Your Business in 2025 From 5 Lessons Learned In 2024

by Gordon Polovin

Customer churn (often called customer attrition) kicks in when customers, for various reasons, abandon a brand. The opposite of this dynamic is customer retention (maintaining long-term customer loyalty) – two sides of the same coin. (Prefer to focus on the positive? Start with the other half of this pair of articles, Customer Retention Strategies for 2025 and Beyond!) Churn is inevitable in every business in the US, even the most successful ones. Why? Revenue growth and churn go hand in hand – one is highly desirable, and the other unavoidable. Therefore, churn-proofing your business depends on understanding the difference between a healthy and threatening churn percentage. In other words, it’s critical to prevent overly destructive anti-retention drivers from throwing your customer base across the dividing line, where losing brand loyalty downgrades your ROI. We’ll deal with the “unhealthy” churn initiators below, but in a broader context, it boils down to a company’s failure to effectively address defective touchpoints in their customers’ journeys. A look back at customer experience (CX) interference in 2024 will help you springboard off solid retention fundamentals in 2025, with the vision of better customer engagement as a realistic goal What is customer churn and how do you calculate it? Using a simple formula, calculating churn is always over time (e.g., usually a year): Step 1: Total Customers on 31st December 2024 (3,000) – Total Customers on 1st January 2024 (3,300) = 300 customer churn without accounting for new customers during the year. Step 2: Total Customers […]

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