Why customer experience and retention are desirable – Not churn and burn.

As marketers and business owners/brands, the experiences that your customers have will play a key role in your Customer Churn Rate (CCR) and your Customer Retention Rate (CRR).

Customer Experience (CX) refers to your customers’ perception of the experiences that they have with your business/brand throughout the entire customer journey, from the awareness stage all the way to the purchase and post-purchase stages. These perceptions are developed through every interaction (i.e. touchpoints) that they have with your products/services and the people that represent your business/brand.

Today’s customer is empowered because they have many options, can easily switch brands, and can easily voice their opinions and experiences and have a wide reach when doing so given social media and online reviews. Therefore, a business/brand needs to focus on improving customer experiences by showing empathy, building relationships, providing a means for customers to voice their concerns, actively listening to those concerns and recommendations, showing them that you truly care about their problems, and showing them that you want to find a solution to their problems because their perceived experience will be the determining factor of whether your customers stay or go.

Customer Churn Rate (CCR) is the “go” action I just mentioned. The CCR refers to the rate at which customers decide to go with other products/services/brands because of the experiences with your business/brand or lack of their needs being met by your business/brand. Customer Churn leads to reduced profitability and higher customer acquisition costs because it is more cost-efficient to retain a customer than it is to get a new customer, and current customers are likely to spend more with a brand than new prospects would. When determining the CCR for your business, it is important to analyze the entire customer journey and not just the point at which the customer departed, because their leaving could have been attributable to several factors and those are the factors that would need to be identified and remediated.

Customer Retention Rate (CRR) is that “stay” action. Retaining customers is an important goal for all businesses/brands because, as mentioned before, it costs less to retain a customer than to acquire a new one, loyal customers advocate for the brands that they love and this provided free, word-of-mouth marketing, they provide valuable feedback for improvements, and they are more likely to spend more and pay premium prices. To retain customers you must get to know them, pay attention to them, respect them, continue to meet their needs, seek feedback through surveys and focus groups, facilitate ease of providing said feedback with an efficient communications process, and be prepared by providing solutions to anticipated problems that may arise.


If customers are unhappy, they will leave, you will have fewer profits, and it will cost you more to replace them with new customers. Therefore, the focus for any business/brand should be to get customers, make and keep them happy, and keep them coming back.


Check out last week’s post

Marketing B2C and B2B. What makes them different?

This Post Has 2 Comments

  1. erotik

    Im grateful for the article. Really looking forward to read more. Fantastic. Olly Dom Brindle

    1. Jewel

      Thank you for your feedback!

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