What Do You Really Know About Churn?

Mike Hutchison attempts to set the record straight about 5 of the most common myths surrounding churn.

1. Pricing is always the key driver of churn

The Truth:

Through the analysis of the customer’s experience, interaction analytics has uncovered many drivers of churn for today’s top companies.

Unresolved issues often top the list, whether they be service or technical in nature.

2. Having a save queue is sufficient for addressing churn

The Truth:

A save queue is a great step in providing customers with the correct support, but it is inefficient if you haven’t first studied the types of interactions that will be sent there and equipped agents to deal with them appropriately.

Do your agents have the most effective offers to present to customers? Can they overcome technical issues? Do they have the correct authority to resolve issues?

3. I’m using all of the data we have available to us to study churn

The Truth:

While most companies believe this to be true, they’re only thinking about their structured data – and are forgetting about the unstructured audio being captured by the contact centre.

The behavioural events contained in the audio provide the missing insight about the customer experience not found in traditional data.

4. I am creating the best predictive models possible by utilising big data techniques

Predictive models are only as good as the information you put into them. If you’re ignoring the unstructured data that’s available in your audio, you’re leaving out a big piece of the puzzle.

Companies have experienced up to a 30% lift in the accuracy of their models when they add in this resource.

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5. Churn only matters in an over-saturated market

Mike Hutchison

The Truth:

While companies in markets such as telecommunications have a definite focus on churn, all businesses can benefit from having a solid understanding of what drives customers to withdraw their business and what can be done to save them.

With thanks to Mike Hutchison, Vice President of Business Operations and Sales Support at Nexidia.

Author: Megan Jones

Published On: 27th Aug 2014 - Last modified: 8th May 2018
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