Customer Churn Strategies To Reduce Customer Churn Rate

Customer Churn Strategies

What is customer churn?

According to (Optimove. 2022), customer churn also termed customer attrition implies the time when any customer can cease a relationship with an organization. Here the customer can act as a purchaser, player, user or subscriber to any company. Nowadays online e-commerce business treats consumers as churned once they get the full expected amount against the product or service provided to the customer once and after some period of time when customer face any issue regarding the product or services they might be treated in an unexpected way. Customer churn can also be defined by the extent to of customers leave any company’s service by ending the relationship on an unsatisfactory note during the period of time. More concern, customer churn can show how the company is able to hold their customers for long periods not only with good products, and services but also by maintaining a good sense of behavior and interaction. According to (SearchCustomerExperience. 2022), customer churn shows the number of customers who pay money against any products or services they availed before is not going to become repeat customers of the concerned organization. 

What is the customer churn rate?

According to ( 2022), customer churn shows a quantifiable rate of change that occurs over any particular amount of time and denotes the rate of customers leaving or ending a relationship with an organization. Churn rate shows that customers would stop availing the service or paying for a business in relation to an organization after one of a few time periods where the rate can be applied to the number of users who can cancel their use or subscribers who can cancel their subscription or stop renew the subscription for various purposes. The higher the rate of customer churn the more the consumers would leave and stop holding relationships with the business and the more the company is being impacted in an adverse sense. To know more about customer churn rate students can take help from SourceEssay online assignment help Sydney experts.

How to measure churn rate

According to ( 2022), the calculation of churn rate is considered more straightforward, to begin with. There are some factors that need to be taken into account for the measurement of churn rate including the number of customers that one may lose previous quarter and dividing that by the number of customers that an organization has in the last year. The outcome is the percentage rate of customer churn. So the main consideration here is the number of customers that the company lost in the year and the number of customers the company has in the given period. The divisional outcome of these two factors gives a churn rate where after multiplication these churn percentages can be measured. 

Source: (CleverTap. 2022)

Why does churn matter?

According to (Acquire. 2022), the Customer churn rate can be considered as a real loss and stress for organizations and even an industry as they found one customer’s leaving with a bad experience can impact old customers and even new ones as well. This increasing rate decides the company’s future position and possibilities to stay in the market by holding up a similar or more satisfactory position as compared to other competitive rivals. Customer churn rate matters for the companies as it can create a bad impact on other customers and the overall market as it shows how the companies are good to maintain their relationship with the customers even after their purchases were made earlier. One of the noticeable reasons which show why this rate matters in respect of financial prospects and monetary benefits the company can continue to get from their customers when they are able to maintain a good relationship with the customers and serve them better and hence able to hold low or nil customer churn rate. As opined by (Zendesk. 2022), customer churn rate is considered an important measurement for a brand as it is used to track the ability and performance of the company by comparing the last and current financial year where higher revenue can be observed with a low churn rate. Churn rate is important to take into account as it can have a serious unmanageable impact on the bottom line. According to the report (Law, 2022), the company can possibly be zero at any period where the acceptable churn rate is nearly 5-7% as annual determination depending on the factor where any company is able to measure their revenue and number of customers in every year. 

What causes customer churn?

Each and every company are different from one another. different factors exist that lead the customer to churn, and that rate varies in respect of different nature of companies. The main cause of customer churn is stated in the following.

Source: ( 2022)

The company might attract the wrong kinds of customers: It’s found surprising that customers sign up for all the products except the full understanding of the products to meet all the customer needs. The company is sometimes unable to find out whether their products are required by the customers or not. If the products the company is offering are not the usual fit for the customers that subsequently reduce the demand and also increases the rate of customer churn. 

Existence of competitors: This is another factor that causes customer churn for any company. Every customer always prefers good quality and minimum cost to purchase any product as per their choice when they find any firm is offering the same or better-quality product at a minimum price they shift to that firm and that increase the customer churn rate for the concerning firm who losses their customers to competitors. 

Closing a deal: Closing a deal can be a big problem for some companies where the company successfully meets up and approach their product or services o the customers but is unable to close the deal. This happens when customers are not satisfied with the offer or unsatisfactory occurs due to unmatched price range which increases the customer churn rate. To know more take assistance from dissertation assignment help experts.

Customers may not achieve desired outcomes: Here it’s considered to note that customers do not prefer to use or sign up for the product only because of its first look. Moreover, customers make their purchase or go with the deal only when they found their use, sign up, or invest a certain amount would go to the right quality product and the right brand with excellent features. If these features and quality of the product would not meet the consumer’s expectation it generally increases the customer churn rate. 

Source: ( 2022)

Survey says customers of any brand become very easily frustrated or patientless when it comes to the key features and the quality of the brand. This doesn’t seem to work in the right way when a company is unable to offer the best and most suitable product features and make customers influenced by the service including help for the customers to make them understand the use of the products. Here lack and inefficient onboarding process, and inefficient service to the customers are some of the major causes which play a huge role. 

According to the customer support team is not capable enough: most of the savvy consumers run through the issue and without getting satisfactory customer support from the brand they easily move into other options available in the market. At the time when customers find any difficulties in product use, they do not prefer to waste time by identifying solutions the first thing they do is to connect with the customer support team of the brand where they expect to get maximum solutions and support. Poor customer service can create high churn. 

Strategies to reduce customer churn rate

Analyze the reason for churn: Before going into tackling the issue it’s important for the firm to measure the reason why customer churn is increasing. Gathering customer feedback and response about the products, services, and others need to be taken into the account. According to an experts, whenever any firm obtains churn rate is increasing as compared to the previous year the immediate action is to connect with the customer and then appoint a survey to measure their perceptions about leaving the brand service. 

Connecting with the customers over SMS, email or only phone would not be just a great and actual way to show that customers are valuable to the brand. Here the best shot would be obtained through the information around the reasons to churn which can make a real distinction. The survey can also be proved as a useful strategy where if the customers do not prefer to discuss the issues over the phone or another non-verbal medium. 

Engage with consumers: Engaging with the customers can be considered as another way to prevent increasing customer churn which is actively engaging with the customers about the products. This strategy can be termed relationship marketing and that gives the customers a cause to stay with the brand or come back after they’re leaving after they observe their value with the products and services. For continuing with this strategy, start-ups or new-formed companies who are in the way of reducing customer churn for the very first time with less experience can provide versatile and ample content about the key benefits of the products with regular news updates. According to (Venkatesan, 2017), most of the customers in the market follow engagement channels in B2B businesses where email marketing and website marketing become the medium of engagement for ensuring an existing customer base. 

Source: ( 2022)

Educating customers: This is another important strategy to prevent churn rates. When a firm has enough efficient quality products and services it’s important to provide educational support to the customers to help them know about the brand, and features of the products and even help to improve the retention rate and so reducing customer churn rate. Free meetings, campaigns, webinars, training and retention, video tutorial, and demos can help customers to be enough educated about the brand, and products and also help them to gain trust for the brand in near future. This prevents customer churn rate by making them informed, guided, and comfortable.

Source: ( 2022)


After the end of the blog, it can be concluded that the customer churn rate may cause by various factors where ignorance of the brand to value their customers, pricing policy, quality assurance, and competitive rivalry has been considered as the major reason. Companies nowadays need to become more concerned about this increasing customer churn rate where after identifying the reason of their increasing churn rate it’s important to idealize some strategies to prevent the churn rate. Customer support, service, and making them convinced about the future support, brand quality, and features can work to reduce the churn rate whereas per the above discussion communication has been evaluated as the major factor to put focus in. 

Reference list

Acquire. 2022. How to Reduce Customer Churn Rate: 11 Solid Strategies. [online] Available at: <> [Accessed 23 June 2022].

CleverTap. 2022. Churn Rate: How to Define and Calculate Customer Churn | CleverTap | CleverTap. [online] Available at: <> [Accessed 23 June 2022].

Law, R., 2022. SaaS Churn Rates: How High is Too High? A Meta-Analysis of 6 Studies. [online] Available at: <> [Accessed 23 June 2022].

Optimove. 2022. Customer Churn Prediction & Prevention Model | Optimove. [online] Available at: <,with%20the%20site%20or%20service.> [Accessed 23 June 2022]. 2022. Why Customers Churn: Top 8 Causes of Churn. [online] Available at: <> [Accessed 24 June 2022]. 2022. How to Calculate Customer Churn Rate and Revenue Churn Rate. [online] Available at: <,stop%20buying%20from%20your%20business.> [Accessed 23 June 2022].

SearchCustomerExperience. 2022. What is customer churn (customer attrition)? – Definition from [online] Available at: <> [Accessed 23 June 2022]. 2022. How to measure Churn rate. [online] Available at: <> [Accessed 23 June 2022]. 2022. Customer Churn: 12 Strategies to Stop Churn Right Now!. [online] Available at: <> [Accessed 24 June 2022].

Venkatesan, R., 2017. Executing on a customer engagement strategy. Journal of the Academy of Marketing Science, 45(3), pp.289-293.

Zendesk. 2022. Customer churn rate definition + how to calculate. [online] Available at: <,impact%20on%20its%20bottom%20line.> [Accessed 23 June 2022]. Protection Status
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