Ed Lamb

Churning is for Butter, Not Customers

When customers become unhappy with their experience with your company, they go to one of your competitors for that same product or service. Then you have to make up for that loss in revenue by acquiring new customers...THAT is customer CHURN.

It is therefore financially critical for companies to minimize customer churn by improving the customer experience. As the former EVP Global Service Delivery for Vonage Communications, it was obvious that customers disliked needing to call companies for information or to resolve an issue, especially customer contact centers.

My view is that customer contact centers are lot like hospitals. You only want to go there if you are sick. And, there are only two ways you leave a hospital...either better, or worse than when you went in.

Research shows that there is a clear correlation between the frequency of customer contacts and the level of customer 'churn'. The reasons and frequency that force customers to call are varied, but interestingly may also be avoidable. There are many ways to apply targeted talent, effective process, and friendly technology to make your customer's contact with your company into a positive event.