- Feb. 24, 2020
-- Latest research from Go Inspire Group, covering customer churn rates in eight key business sectors, reveals that six of the sectors studied are experiencing a rise in churn. This research underscores the importance of effective churn management strategies and programmes, as badly managed churn has a severe impact on revenues and profitability.
Media-neutral Go Inspire Group conducted the research in eight sectors where consumers tend to have an exclusive, or at least a principal, relationship with one supplier. This means that these sectors experience lower rates of churn, whereas other sectors such as fashion, beauty, entertainment, holidays, hospitality or restaurants typically see churn rates in excess of 40%+ in any given year. In all cases, failing to address churn effectively costs millions in lost revenue.
The Go Inspire study examines drivers of churn, and emphasizes the importance establishing a data-driven programme that monitors customer value and loyalty. Such programmes provide the infrastructure to spot signs of churn early on and take remedial action. They also allow companies to understand the customer journey from new, lower value, through to high-value, high-loyal. Managing churn in this way not only yields rapid financial benefits, but also helps cement customer value in the longer-term.
Pat Headley, Group Chief Executive for Go Inspire, comments, "The importance of effective churn management cannot be over-emphasized. Get it wrong, and the adverse impact on the bottom line is tremendous. Get it right, and the gains will cement healthy revenues and margins for years to come. I would suggest that most companies need to take a good look at how their loyalty schemes (one of the key methods of managing churn) are working – after all, many are older than the current emerging Generation Z. Many either need, or are going through, a serious overhaul and modernization to make them fit for purpose in today's dynamic marketplaces."
---end---To see a breakdown of customer churn rates across selected key sectors, download a copy of the Go Inspire study on churn – 'Staying Power' - here: https: https://www.goinspire.co.uk/whitepapers-guides/staying-power-churnFor further press enquiries, please contact Sarah Nurgat at firstname.lastname@example.org