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While I’ve Got You on the Phone… - 1/6/26


I’m a big planner.  Whether it’s strategic planning or planning out the year or planning my week first thing on a Monday morning, I like to plan.  I do this because it gets all of my action items documented and ensures that I have some understanding of what I Read more

Pass the Quick Impression Test - 12/30/25


Some studies have shown that people create an impression of you in less than a second when they first meet you face-to-face.  Other studies have shown that that initial impression can take up to 7 seconds.  Regardless, first impressions are quick.  First impressions are not always the lasting impression, Read more

2025 Holiday Poem - 12/23/25


We hear the word change And that change can be good, But we like things to stay same, And sometimes they should.   The weather can be wet And then dry as a bone. We know things will change, Even if all left alone.   Our customers change. Our co-workers do, too. It seems like our resources Are often too few.   The technology Read more

Make the Long Wait Feel Shorter - 12/16/25


When Greg entered the Tax Office, he was thinking only about two things: (1) How he was going to get the tax value on his home reduced, and (2) Whether the wait would be 1 hour or 2.  He checked in with the navigator who asked a few questions, Read more

When Kindness Means More in Customer Service - 12/9/25


Since a large part of the work we do at CSS includes customer research, we have seen tens of thousands of comments over the years about staff, and it is great to hear the positives that customers, fans, and account holders say about our clients’ team members. One word that Read more

Don’t Create the Second Complaint - 12/2/25


Maria was upset.  Rightfully so.  The product delivery was delayed, she couldn’t get anybody on the phone, and nobody would reply to her e-mails.  So, she went down to the store, and she found a customer service representative. After the initial greeting, the employee listened to Maria’s complaint.  While Maria Read more

Refresh on the Reasons to Appreciate the Customer - 11/25/25


This is a great time of year to give thanks, not just because it’s Thanksgiving week in the United States, but also because – with 2025 coming to a close - it gives us the opportunity to do some reflecting on the recent past. The idea of reflecting on reasons Read more

Confirm the Customer is Cleared for Takeoff - 11/18/25


An airplane pilot is told when they’re “cleared for takeoff” before they begin to accelerate down the runway.  The air traffic controller (ATC) has looked at everything in front of the pilot, on the runway and in the air space, and checked to ensure the pilot is good to Read more

Build Relationships with First-timers - 11/11/25


We’ve worked with one of our sports clients for over 10 years, and although the main focus of our work is research with their fan base, we also provide informal consulting advice and guidance whenever possible.  One approach we’ve talked about on and off for years is the need Read more

Last Impression Faux Pas - 11/4/25


Rightfully so, many customer service experts harp on the importance of the first impression.  It happens quickly, and it can impact the individual’s perception of you and the organization.  We even wrote a Tip of the Week on this years ago called First Impression Faux Pas. What many people tend 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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