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G.A.B. – The Survey Guiding Principles - 3/28/23


You’re excited!  The company has okayed your conducting a survey, and you immediately think of a half dozen questions you want to ask every customer.  You document your questions, get input from others, and all of a sudden you have a Word document with 36 questions instead of 6.  Read more

Build Your Shield - 3/21/23


When the customer complains or the boss gets upset, when the negativity gets too personal or you get that unprofessional e-mail from the angry client - those are the times when we can feel hurt.  Those are the times when we in customer service roles can feel that physical Read more

Avoid the Aggravation; Confirm the Key Point - 3/14/23


In this age of instant information and auto-completion of texts or e-mails, we are quick to get one thing done and move on to the next thing.  Technology often helps us to complete our work more quickly.  Yes, there’s even AI technology that’s starting to wreak havoc on the Read more

Frame the Ways to Get Back Your Customer - 3/7/23


Every organization that gains customers is in a position to lose customers.  For the sports organization, it’s the lost account holder.  For the healthcare provider, it’s the member who enrolls with the competitor at the end of the year.  The retailer, the software provider, the financial services firm – Read more

RELATE to Your Customers - 2/28/23


One of the more interesting processes we go through with some clients is the development of Customer Service Standards.  One might think that the expectations that organizations have of their staff are pretty consistent when it comes to customer service and relationship-building.  However, the Standards are often unique because Read more

Show Progress to the Customer - 2/21/23


When I enter the Chick-fil-A drive-thru lines, there are typically 10-15 cars ahead of me.  The cars move slowly but surely.  Employees take your order.  Others confirm your order.  Others provide the food.  In a study conducted a couple years ago, Chick-fil-A was noted as having the longest drive-thru Read more

Provide the Promise of Patience and Kindness - 2/14/23


Patience and kindness go a long way in life, and they go a really long way in customer service, as well.  These are two of the harder qualities to exemplify in customer service, particularly when you are spinning multiple plates, have a backlog of work or calls or contacts Read more

When You Can’t Say “Yes to the Address” - 2/7/23


I was interviewing a frontline staff person for one of our local government clients recently as part of our CSS Training Development Process.  They described their customers and the difficult situations that they face, their tougher conversations with customers. This individual supports local events, so there’s a lot of planning involved.  Read more

How to Fix Other People’s Problems - 1/31/23


I was helping a friend navigate some healthcare processes recently, so I conducted a 3-way call with my friend and the physician practice to try to get things cleared up.  The employee I spoke with on the phone - let’s call her Katie. There had been poor communication between different Read more

What to do When You’re in the Middle - 1/24/23


Bob and Sarah are arguing, and you’re in the middle.  Bob’s an employee, and Sarah is a customer, and they have a difference of opinion.  Somehow you’re involved even though you didn’t have anything to do with the interaction in question, the complaint being addressed.  You find yourself being Read more

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How Fast are Your Customers Churning?

Posted on January 25, 2011 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?

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