How to Reduce Customer Attrition by Investing in Your Most Valuable Asset

How to Reduce Customer Attrition by Investing in Your Most Valuable Asset

Last Updated on December 17, 2019


Customer attrition, also known as customer churn, customer turnover and customer defection, is bad news for your business by any name.

It would be a big enough problem if your business was simply bleeding customers. One estimate puts the cost of customer attrition within the telecommunications industry alone at a staggering $10 billion per year. That’s a lot of cash to leave on the table.

But compounding the problem is the fact that when a customer turns his back on your business, he more often than not runs into the arms of your competitors. According to a 2011 report, 89% of consumers admitted to abandoning a company in favor of the competition.

Customer attrition diminishes revenues, makes it more costly to acquire new customers, and can spell the difference between being in the red or the black at the end of the year. Clearly, this is a problem no business can afford to leave unresolved.

Mounting an Offensive Against Customer Attrition

The American consumer is increasingly taking his business online. We all know this. The assumption has been that as online purchasing increased in the U.S., more and more consumers would turn to the Internet as their medium of choice when it comes to resolving customer service issues.

For the most part, this assumption has proved sound. A recent customer service report found that U.S. consumers turn to a company’s website or email 67% of the time to resolve a complaint. However, what might come as a surprise is the fact that while a growing number of consumers are using the Internet to seek resolution to a customer service complaint, they’ve in no way abandoned the telephone.

The same report revealed that a full 90% of consumers prefer the telephone when it comes to resolving customer service problems.

These findings suggest that a business’s call center is the front line in the battle to overcome customer attrition, and customer service representatives are the foot soldiers responsible for either ushering in victory or surrendering to defeat. How confident do you feel in your “army’s” ability to claim this critical victory?

Claiming Victory in the War of Customer Attrition

Let’s start with the bad news: customer service in America is in pretty lousy shape, and it’s one of the leading causes of customer attrition. Forrester’s Customer Service Index 2012 indicated that 64% of brands received an “OK”, “poor” or “very poor” from their customers when rated for customer service. Yikes. That’s a lot of soldiers asleep in the trenches.

Now for the good news: only 26% of companies have a well-developed strategy in place for improving customer service [Econsultancy 2012]. As a savvy business general, I trust you see the advantage of becoming one of those top 26%; you’re instantly ahead of the 74% of companies who have no such strategy in place.

In today’s relational market, customer service is more important than ever before. The business that excels in this area can claim victory in the war of customer attrition and will be positioned to do better than its competitors in customer loyalty, brand recognition and profits.

How do you provide exceptional customer service that gives your business a competitive advantage? Invest in your most valuable asset.

If your business is in the business of making consumers happy, your customer service representatives are arguably your most valuable asset. After all, to the frustrated consumer who dials your contact center, your customer service rep does more than just represent your business – she is your business. By investing in your customer service rep with relevant and ongoing training, you’re investing in the long-term success of your business.

Call recording software is one of the most effective training solutions available because it allows businesses to adhere to customer service training protocol, while simultaneously tailoring coaching sessions to meet the needs of individual sales reps.

Versadial Makes it Easy to Train Customer Satisfaction Experts

With a call recording solution from Versadial, you can monitor calls live, extract portions of a call for reviews and training, allow customer service reps to listen to only their calls and more. This kind of personalized training will transform your customer service reps into highly-skilled customer satisfaction soldiers. Customer attrition (and the competition) doesn’t stand a chance!

To learn more about how Versadial’s call recording solutions can help you claim victory over customer attrition, contact them today.

Last Updated on December 17, 2019