Causes of Customer Churn
Reasons for customer churn can be personal and unique to each customer, but they usually fall under a few common categories:
Price is a common objection for salespeople and customer success managers alike. If customers find a more cost-effective solution to the problem they want to solve, they may churn. This is why it's important to establish value and customer onboarding and education so customers feel that the purchase is worth the cost.
Poor product/market fit is a common reason for customer churn and speaks to the need for close sales and customer service alignment. If salespeople are hustling to hit quota and aren't incentivized to sell to good-fit customers, the result will be churn within a few months of purchase when the customer realized they can't achieve their goals using your solution.
If the user experience with software or applications is buggy, glitchy, or otherwise difficult for them, they'll be less likely to use it on a regular basis and build expertise with it, making it more likely that they'll stick around.
Finally, if a customer's experience connecting with other aspects of your brand — your marketing content, social media channels, customer support team, and account managers -- isn't positive, they may be likely to churn. Customers want to feel welcomed and valued by communities they support, and if they don't have positive experiences interacting with your company, they won't want to stick around.
While these factors typically cause customer churn, there are few different types of churn you should be aware of as well. In fact, you might be surprised to find that some churn is actually good for your business.
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