Churn is partly independent of the company
Finally, some external variables, such as changes in economic or technological conditions, also often affect churn , sometimes significantly. It is worth monitoring these factors and adjusting the company's strategies to reduce the impact on customers.
An individual entrepreneur does not have any real influence on such aspects as inflation or the emergence of new laws that significantly change the market situation. However, it is up to him how he will react to them. With a suitably creative approach, what appeared to be a challenge can, in the long run, translate into greater success for the company.
A good example is the restaurant industry during the coronavirus pandemic: many businesses have gone bankrupt or their churn rates have increased dramatically. However, some have managed to turn the difficulties into profits (e.g. by switching to offering takeaway food, or ready meals, preserves and other products).
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How to prevent churn?
There are many effective strategies that help reduce churn rates and increase customer loyalty. It is not necessary to implement all preventive measures at once. The key to their effectiveness is to properly adapt the strategy to the specifics of the industry, budget and current circumstances. To do this, you must first precisely diagnose the source of the problem.
At the same time, it must be emphasized that it is almost unrealistic for a company, even the most efficient one, to always maintain a churn rate of 0%. This can happen in the case of small companies that have literally a few extremely loyal customers. The more contractors an entrepreneur has, the greater the chances that someone will eventually give up on hi