When competitors are improving their services, any businesses not doing the same are going to lose customers. When new competitors enter a market, they are agressively after one thing: your market share. One market saw a 40% churn rate in 2021. (source: Chargebee).
While different types of industries each have different factors that affect their customer retention, understanding that there are common factors can help businesses develop effective strategies to combat customer loss. Increasing the value to customers enhances customer retention. Understanding what customers and prospects will view as sufficient added vakue needs care review: customers with a 1080p TV, or a limited internet connection, will not upgrade to a 4K service if there is any price premium, as it has no value to them. Introducing a price premium will lead to a downgrade or cancellation.
Providers that offer a rapid service when it is wanted have an advantage over others that are slower. Consumers offered a five-day turn-round in a market that considers same- or next-day as standard will feel undervalued.
Putting up prices when a well financed competitor launches is an open invitation to customers with limited finances to swap to the new service.