1. They forget about your products and services.
2. They don’t use your product or service efficiently and need help using it.
3 They don’t know you sell related products they could use.
4. They don’t know you can customize a purchase of products or sell packages/bundles.
5. They get a call from a competitor that offers to discount what they buy from you.
So how does sales decrease customer churn rate? In the CRM system sales can generate reports of customer buying habits. Sales can look for longer than usual timelines between repeated sales. These reports will also show the churn rate of customers monthly, quarterly and annually. Sales should have a goal of keeping the churn rate at under 5%. Obviously the lower the better but 5% is considered a “good churn rate” in any industry.
If your customer churn rate is averaging over 10% you’re in trouble!
Just think about what results this has on your company’s sales and profitability. We know it is more expensive to generate and convert more prospects to customers. Now your sales team is working over 10% harder to find more customers above the monthly customer generation rate in your industry. It means longer hours, extended time to convert to customers and increase expenses to go through your sale funnel to conversion.