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Bring Magic to Your Account Management - 1/19/21


One of our first sports-industry clients was the Orlando Magic.  They were a true leading-edge organization in the early 2000s when it came to dedicating resources to season ticket holder retention.  They didn’t make customer service, relationship-development, and renewals simply a function of the Sales department.  They broke it Read more

Customers Want Easy, but Easy is Difficult - 1/12/21


New employees go through days of training to learn products and services.  They have formal workshops to learn how to use their office applications, web functions, and whatever programs are specific to their department.  They test new technology, and they get quizzed on knowledge of policies.  This is hours Read more

Make 2021 the Year of Building Relationships - 1/5/21


I’ve been very fortunate over this company’s 20+ years in business to have great and long-lasting relationships with many clients, colleagues, business partners, and co-workers.  It’s a gift to be able to call on these individuals for advice or referrals or to be a sounding board.  And it’s just Read more

Bring Warmth During Winter - 12/29/20


Winter is upon us.  Now, winter can mean different things to different people in different regions, but just the word conjures up cold.  It conjures up visions of snow.  It conjures up feelings of wind and lack of warmth. Although some of us may like the cold at times of Read more

2020 Holiday Poem - 12/22/20


When in the role of customer service,We are wired to give and give.It’s built into our DNA.It’s simply the way we live. In order to give to others,We need to find ways to give them their fill.We need to pour empathy and openness into them.To serve, we need to have Read more

It’s NOT about the Cinnamon - 12/15/20


It was happening again.  Jessica had just handed the freshly made concoction to her coffee shop customer, and less than a minute later, the customer was in Jessica’s face, red as a beet, ranting and raving:  I specifically asked for extra cinnamon on top!  Does this look like extra Read more

Locke-in from the Start - 12/8/20


John Locke was a 17th century English philosopher, physician, and researcher.  He wrote many papers arguing particular points, oftentimes using reason and facts as the basis for his position.  He noted that many disagreements start because there is – in my words – a lack of real clarity about Read more

The End of the Tunnel - 12/1/20


Have you ever heard the expression:  There’s light at the end of the tunnel… In this COVID-era world, it sure does feel like the tunnel is long, doesn’t it?  It sure feels like this is not a light that we’ll be at in 2 seconds after the train goes another Read more

A Lesson in Gratitude - 11/24/20


Mr. Robinson went to the hardware store with his teenaged son, Steve.  Steve was starting his first woodworking project – building a small coffee table – and needed supplies.  As they walked the aisles, Mr. Robinson and Steve couldn’t find the exact type of wood they wanted, so Mr. Read more

Why Your Job is Important - 11/17/20


I was speaking with a client recently, and she was telling me about one of the classes delivered by their professional development team. Her description of the course reminded me of some client workshops we’ve conducted where a part of the outcome is having individual staff develop Personal Mission Read more

How Fast are Your Customers Churning?

Posted on in Business Advice, World of Customer Service Please leave a comment

In the TMC.net article titled A Challenge for T-Mobile: Reducing Sky-High Customer Churn Rates, author Tracey Schelmetic discusses the high turnover rate of customers at T-Mobile and what the company is doing about it. Essentially, over 2% of customers leave their long-term contracts monthly, or about 25% per year. To address that, the organization is going to make several changes – the first of which is tying executive compensation to customer turnover.

So this article begs the question for every company – what is your customer churn rate? I know every business has a Profit & Loss statement that shows top line revenues, but what percentage of the customers that produced those revenues last year are producing revenues for you this year? How much money did you lose last year that you have to backfill with new business this year?

Let’s just say it’s 25%. What is that in terms of dollars? How much effort has to be put into place by your Sales & Marketing forces to attract that level of dollars in new business – just to get you back to where you were last year?

Any business – large or small – needs to know their customer churn rate, their revenue loss. When you do, you begin to realize the true financial impact of customer retention. You begin to understand the importance of every interaction with customers. You begin to define how you can improve your bottom line by improving your customer service.

So how fast are your customers churning?

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/