Customer loyalty is a central goal for most companies. Rightly so. Existing customers form the basis for successful business and retaining customers is a significant indication of effective customer experience management (CX). And it pays! A one percent improvement on customer retention has a five percent impact on a firm’s total market value! Nevertheless, most organizations do not have a standing policy for retaining customers and for preventing churn.
Churn can easily be expressed in a number. The percentage of customers leaving each year is your churn rate. Although little scientific research is available, we now know well how to influence customers in this respect. In short, we state that the degree to which customers feel connected to a company, a product or a service, is a strong predictor of customer retention. The higher the Customer Engagement (CE), the lower the churn rate.
Comparable developed an Engagement Ladder, based on recent scientific insights and successful examples. An instrument with which customer engagement (CE) can be structured, understood and improved. The model has eight phases, starting with reject, ignore, via notice and explore to endorse, to co-make, own and lead. It becomes clear what customers experience and do, but also what companies have to do to reach a higher level in order to minimize the risk of customers moving away.
Interested? Contact us, we would be happy to tell you more.