How CX Can Combat Customer Churn

While offering a premier customer experience is sure to have a positive influence on customer retention, retailers must still attempt to measure just how effectively they’re retaining their customers. To understand the link between customer experience and retention, retailers can measure and track a few key metrics, the first of which being the repurchase rate. This rate is the percentage of customers who purchase again in a given timeframe. When customers make additional purchases, they are demonstrating loyalty that many retailers hope to continue receiving. In another vein of loyalty, there is the referral rate, which is the percentage of customers who refer other customers to a retailer. When customer experience is prioritized correctly, this rate can be much higher for retailers. Lastly, in the cases where customer experience fails, there is the churn rate. This is percentage of customers or revenue lost over time, or when retention fails. Analyzing these metrics will reveal the proportion of one-time buyers versus repeat shoppers. If retention is low, CX likely needs improvement. If retention holds steady or grows, you’re on the right track. To maintain on that track, be sure to heed the information found in the infographic paired alongside this post.

How CX Can Combat Customer Churn a resource provided by BillingPlatform, the premier choice for a cpq billing system