Focusing on churn alone can lead companies to underestimate the negative impact of a bad customer experience. Turnover isn’t the only way a customer’s experience costs your company money.
When responsibility for customer retention is dispersed throughout a company it impacts revenue and relationships with existing customers, but it can also hurt sales efforts with new customers. Fortunately, there’s a simple way to combat these problems.
I asked who was responsible for customer retention in his company. He looked startled by the question and replied, “Customer retention is everybody’s job!”
The idea that “everybody” is responsible for customer retention is a common belief, yet it’s fundamentally flawed. Worse, it can actually contribute to customer turnover.