Churn Analysis is one of the most overlooked yet essential components of a strong business process. Every company should be looking at why they are losing clients to other deals or more especially why clients are canceling their contracts.
The truth of the matter is that most companies do not know how to find this data and most of the time do not learn why they are now looking for another revenue source. The answer to this can be answered by investing in both win-loss analysis and churn analysis. Here are the beginning ways to start analyzing your client churn.
- Ask the right questions. When you lose a client or are notified of cancellation it is essential to start the off-boarding process immediately. This includes asking a specific question to find the “why” behind the client cancellation. If you are just stagnant and let the client walk without finding out the reason behind the loss, how can you ever know how to improve your processes and team? Some questions to consider:
- What is the top reason you have decided to go in a different direction?
- If there is one part of the campaign that you would have liked to see improved, what would it be?
- What was the overall experience with communication?
- Take the data from questions and examine the results. This is one of the most missed parts in churn analysis. Companies will ask questions and never dig into where and what went wrong. The big part of this step is that companies do not know how to dissect this information. This is where it is essential to get professional help in finding the true why.
- Team collaboration takes the entire team to get on board to improve the process and the client experience. Once we have the data and can dissect it, teams must be aligned and committed to taking that information and adjusting the strategy to win more in the future and reduce client churn.
The overall goal of every company is to find the right partners and keep them for a long period of time. This is what creates more effective collaboration and success. The difficult part to accomplish this part of the job is, understanding the why behind what you are doing and what your client needs. This is where another service known as win-loss analysis comes into play. Knowing what wins and loses clients.
A win-loss analysis is a process that clients should be continuously investing in as there is always room for improvement. Especially as the market changes, adjust or new client opportunities arise. Having a strong and proactive plan in place to keep clients happy and in the team should be a top priority for any company.
Whatever you decide to do, invest in churn analysis early and often to improve the overall churn. Once your company finds the issue or reasoning behind the cancellation, take the next step and find out what you do well, how you can keep clients, and how to improve when you lose them.