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Posts tagged ‘understanding’


No level of customer churn is acceptable: make it so !

image source: Wikipedia

What would happen if your business ran out of viable customers? What if the pipeline of new blood permanently dried up?

The continuous rotation of campaign taglines, creative messages, and clutter-busting noise helps to keep a baseline level of acquisition activity. OK.

And somehow along the customer life cycle, we loose them. They churn, churn, churn.

I think the starting point of doing business should be:


The cost of acquiring new customers

Companies today are using advertising, promotions and lead generation campaigns to attract new customers. All these tactics take a big chunck out of your marketing budget. I’m not going to repeat that acquiring new customers is more expensive, we all know that.

So we use these tactics to attract new customers, because we know they work.

The problem with these tactics is that they are not working anymore, or not working as good anymore as they used to do:

  • 86% of TV viewers admit to skipping advertisements.
  • 44% of direct marketing doesn’t get opened anymore.
  • 99,9% of on-line advertising is not clicked upon.

Additionally, sometimes your budgets are cut because of a multitude of reasons, giving you even less arm-length to reach our to buyers.

Why do companies churn?

Usually companies switch because of the following reasons:

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