How Responsiveness Decreases Customer Churn


happiness gaugeIt’s been found that companies lose $1.6 trillion per year due to customer churn, which is a staggering statistic. It’s even more appalling because there’s a lot that organizations can do to prevent such churn and revenue loss. Here’s a look at one of the most common causes of customer churn, along with a key remedy, so you can ensure your own company doesn’t fall prey to the same unhappy ending.

Customer Experience is the Catalyst

While multiple factors can cause customer churn (e.g. a decrease in available budget, a change in decision makers, etc.), one study found that 70% of churn is caused by poor customer service. You might be shaking your head right now, wondering how companies can treat their customers so poorly. But what a consumer perceives as “poor” customer service can vary greatly. Even average experiences today may now be viewed as “poor” when compared to the elevated customer experiences more and more businesses are striving to create. It’s all relative, and the bar keeps getting higher for everyone.

So in order to decrease churn, organizations need to keep up with increasing consumer expectations around customer experience. Customer experience has a lot of different definitions, but it really boils down to how your customer feels during every interaction they have with your company. You can’t fix all of this in one fell swoop, but there is one area you can hone in on to make significant headway fast: responsiveness.

The Instant Gratification Age

Research shows that 71% of consumers between the ages of 16 and 24 believe that a quick response from your service team can drastically improve their customer experience. And, as much as 90% of customers rate an “immediate” (loosely defined as 10 minutes or less) response as important or very important when they have a customer service question. This reinforces what most people already know based on anecdotal evidence: we live in an instant gratification age.

When a customer has a problem, they want you to fix it for them – now. If they have a question, they want you to answer it – right away. If your organization fails to do so, that customer is highly likely to take their business to a competitor and never come back. All it takes is one bad experience for more than one-third of consumers to never buy from a company again. That means it’s not just the first impression that counts; it’s every single impression you make.

This may sound like a lot of doom and gloom, since very few companies are well-funded and well-staffed enough to respond to every single query from a prospect or customer within that oh-so-important 10-minute window. But there’s hope. Thanks to chatbots, you don’t have to require that your customer service reps be responsive at superhuman levels. You can rely on technology to scale your support operations cost-effectively.

Chatbots for the Win

Unfortunately, some people have misconceptions about chatbots. They think that using chatbots on your website can make customer service interactions feel less personal or create a frustrating experience. But, this technology has come a really long way in the last few years and is extremely advanced and seamless now. One of the best uses of chatbots is to automate some of your communication with prospects and customers, deploying bots to provide responses to common questions.

This accomplishes two goals: 1) Your buyer gets a truly immediate response (often within seconds, not minutes) and 2) It saves your human agents considerable time. The time that the chatbots have freed up for your staff can then be used toward providing better, faster, higher-quality service to customers and prospects with more complex questions or even crises. And since they’re no longer stretched thin and having to respond to everyone every time, customer service reps are usually calmer and more ready to handle the customers they do speak to with grace and clarity.

Using chatbots in this way can decrease escalations in customer complaints, and strengthen the relationships between your customer service team and your customers. Best of all, it improves responsiveness which drastically increases the quality of your customer experience. The last domino to fall in this sequence is, of course, a decrease in churn. But it all starts with an understanding of what customers expect and need, and how you can leverage technology and scale your team to better orchestrate the right responses. Make responsiveness in customer service your one priority today, and your business is sure to feel the positive effects tomorrow.

Interested in seeing more?  Visit to view out our next-gen chatbot and automation platform and schedule a demo.

Sign me up for blog updates