Managing customer churn can be difficult, especially in a crowded market. Consumers are overwhelmed with products and services wherever they go. With so many choices, it’s more than just making the sale. Once a consumer has subscribed to your brand in some way, you also have to work to keep them.
Maintaining a high level of service can be a major contributor to avoiding a high rate of customer churn, or rate of attrition. How do you do that when you’re managing so many aspects of your business?
Customer churn is the rate at which customers cease doing business with a company. The attrition rate formula is calculated by dividing the number of customers who left your company by the average number of customers over a specific period of time then multiplying that number by 100 to get your attrition rate percentage. This rate can be a great indicator to use when looking at your strategies.
Some customers will only be one-time purchasers, while others will return time and time again and consider themselves to be a life-long regular customer. However, every customer will terminate their association with a business at some point.
When considering your rate of attrition, its also important to look at the number of customers you lost after a specific time by the number of customers you had at the start of that period. For example, it could be a month, three months, or a year.
Obviously, the goal in attrition is to increase your sales and your retention, but how do you do this? Here are three causes of churn and steps you can implement to improve your attrition rate.
While most businesses recognize the value of customer service, not all prioritize it. There can be many contributors to poor customer service that have nothing to do with the amazing talent you have behind it.
Choosing to outsource customer service to call center outsourcing providers has shown to be both cost-effective and time-efficient, making it ideal for both small and big insurance companies. Outsourcing customer service also relieves your insurance business of the costs of employing, training, and maintaining support workers.
With the staying power of what we now call the “new normal”, the growth of digitalization has resulted in a large number of available online channels. However, in a world that’s increasingly reliant on smart technologies, this may not be sufficient. Having multiple points of contact without the staying power to back it up can leave clients awaiting answers and result in disappointing customer service.
It is critical that all personnel are well taught for product knowledge and company policies, but this can be costly and time consuming. Insurance companies may take an easy route when it comes to educating their employees, teaching them to refer concerns to specialized departments that can fix specific issues. By prioritizing adequate training and creating various protocols for escalated situations, this will help resolve your customers’ issues easily.
This is also a task that can be outsourced. By outsourcing customer service calls to a powerhouse partner, you know that the customer is being taken care of by a well-trained representative. This can cut wait times and keep customers satisfied.
At Staff Boom, we recognize that each company has its unique set of requirements, especially when it comes to customer service outsourcing. Let us help you “churn” your business around. For more information, contact us now!