How to Manage Customer Churn: Cause, Assessment, and Solution

Acquiring more and more customers is what every business strives for. Keeping an existing customer base loyal and satisfied is also an important aspect. As many companies rush with their growth, conveying all the efforts into bringing new customers, they may face some dangers.

One of these potential pitfalls is customer churn. Statistics show that, on average, companies lose 10-25% of their customers yearly. Every business should focus on building strategies to reduce customer churn.

Customer Churn: Defined and Explained

What is customer churn? – A phenomenon is also known as customer attrition. It refers to the rate at which customers quit their relationship with a particular company and stop generating sales for it.

Businesses need to conduct a thorough customer churn analysis to understand why clients are leaving. It will help indicate possible problems people may be having with the company. Most often than not, the main issue lies in unsatisfactory customer experience.

Core Causes of Customer Attrition

Of course, each customer is different. They may have their unique reasons too. Most of the time, they round up to the following problems:

  • pricing, which may not be as cost-effective as one of the competitors
  • poor product/market-fit solutions
  • disorganized or difficult user experience
  • a disappointing customer experience that the lack of connection between the brand and its clients may cause.

How to Reduce Customer Churn: Most Useful Tips

Clients are at the heart of every business. To stabilize the customer base and ensure its further development, companies should work to adopt an effective customer churn strategy. It should be built around resolving existing issues as well as resolving possible ones. Learning how to manage customer churn is essential for business growth, and the following tips may help ensure the right path.

Improving Customer Service and Support

To maintain existing clients and spread the good word about the business, you need to understand your audience thoroughly. The better you are at fulfilling their wants and needs and identifying their pain points, the easier it will be to appeal to them. And it will also make it easier for a SaaS customer support team to find an appropriate approach and build rapport with the customers.

Maintaining Strong Relationships

Companies should concentrate on providing the audience more value when delivering the goods to the customers. Newsletters, tips-and-tricks articles, and how-to guides are a good start. Besides, these products offer helpful information to allow your clients to understand your products better and resolve any issues independently.


Another good way of preventing customer churn is improving the customer experience through personalization. That’s why gathering appropriate data and analyzing different audience segments is crucial. Behavioral, contextual, and demographic data will help you cater specifically to your customers’ personalities.

Leaning Into the Best Customers

For many companies, the solution to the churn problem lies in identifying the audience that is most likely to cancel subscriptions or quit using the products. However, when companies find such customers, they don’t need to redirect time and persuade all of them to stay. Instead, businesses should focus on the most profitable clients on the verge of leaving.

Asking for Feedback

Feedback is key to knowing what your customers like and what they don’t. It’s great for identifying customer frustrations and possible areas for improvement. In some cases, it can also answer the question of how to measure customer churn, at least the possibility of it. Besides, this also shows that the business takes care of and listens to its clients. And people love consideration for their ideas and opinions.

The Bottom Line

As companies learn on how to reduce customer churn, their growth potential will significantly increase. They are also more likely to improve their customer and user experience, as well as boost support service.

It’s then crucial that businesses know how to deal with the newly increased flow of clients. In that case, applying for outsourcing customer services may be reasonable.

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