Customer Churn: What It Is and How You Can Prevent It

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A profitable business is a thriving business. How did the business become profitable? The customers. The customers are the ones that allow a business to grow and retain a name in the challenging entrepreneur world. Now, existing customers take need more TLC than a new customer because the new customer is impressed from the start, which is why they became a customer. An existing customer has fallen in love once enough to buy, but the momentum needs to be there to keep them buying. This is where the churn metric measurement takes effect to manage the business success. The higher the churn rate plus new customers actually harm your company. So, how can you prevent this and fulfill your retention rate of your current customers on a monthly basis? First off, what is customer churn?

From a business definition perspective, customer churn is described as a metric system that collects the percentage of retained individuals to a particular business or service who ultimately terminate their order or subscriptions with that brand within a given time period. This means a measurement is used to see the rate that which you are losing customers.

How to prevent it?

If you are tracking your business and would like to reduce the customer churn, there are a number of ways to prevent it, but below are the top three ways.

Provide Excellent Customer Service

In business, there is something called the S.T.A.R technique. This technique is composed of analyzing the situation, tackling the task, initiating an action, and concluding a result. This is a broad technique that is used in several business models. When it comes to customer service, this can be applied by properly training the employee. Have them understand the mission statement of your business so that they can consciously take the right approach. Having an attentive, understanding, a quick problem-solving employee can drastically reduce the chances of an upset customer that will suspend their actions with your company. Do role-playing to make the connection for the employee of what is expected as excellent customer service in different scenarios with different customer personality types.

Create an item that keeps customers coming back

Some brands will send out emails that have special offers for their customers or clients to indulge in. When it comes to preventing this, you want to prevent the customer from turning your business away and going elsewhere. Create items that draw them in every chance you get, but don’t overdo it. It is possible to send out so many special items or offer integrated options that the customer feels overwhelmed and will sense the “sellsy” vibe from your business. This is obviously a way to create a downward spiral for your business. Once every two weeks or once a month is great because they have time to use what you offered and by the time something new comes out they will have thought, “I wonder what is new with this company.”

Engage with customers

Certain businesses are competing against each other in a crowded niche and the competition is fierce. In this competitive world, customers get a lot of options and you are not the only one who fulfills their requirements. There are several ways to engage with your customers to reduce the churn rate. Focus on satisfaction and a strategy for your business to increase the engagement. You want to create a trusting rapport with your customer so that they believe in your business and do not mind helping your business grow with their loyalty.


In order to reduce the churn for your business and to thrive, customer service, engagement, and incentives should be applied to your strategy. Putting the customer first, targeting their needs that help grow your business, and continuously offering something to keep them as a loyal customer will reduce the churn rate and grow your business.


Author Bio: Adrian Rubin is a freelance writer and Philly photographer.

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