Why do customers leave your company?

Customers leaving your company (also called customer churn) happens to almost every company. The reason for a customer leaving your company varies from customer to customer. The result however stays the same, you lose revenue.

There are a couple of reasons for a customer leaving you and they are tightly related to the factors that determine loyalty which were discussed earlier:

  • Critical episodes: Customers who move to a different country (or even city) are less likely to purchase at your (web)shop again. The same applies as customers grow up, start to study, get their first job, marry, divorce and, in the end, die. However, companies can find ways to survive these critical episodes. Offer (online) sales also in the region your customer is going, add news services which fit the new phase the customer has entered.. http://www.insightsfromanalytics.com/blog/bid/335381/5-Reasons-Customers-Leave-and-9-Ways-to-Keep-Them
  • Alternatives: When a customer looks online for products he or she will see a plethora of different results. Even if they did business with you in the past does not mean they will do this again if another shop offers the same service/product less expensive. Check at least once per year which alternatives the customer can consider and how you can improve your proposition towards these. The 5 Forces model of Porter may help identify alternatives.
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