Continuous service improvement (CSI) should be a high priority for any organisation that wants to just maintain their market share, let alone increase it. When competitors are improving their services, any organisations not doing the same are probably going to lose customers. When new rivals enter a market, their primary objective is to take a share of that market away from you.
One market saw a 40% churn rate in 2021. (Source: Chargebee (Opens a new window)).
While each industry has unique aspects that influence customer retention, understanding that there are similar factors can help firms build effective customer retention strategies. Customer retention is improved through increasing customer value.
Understanding what consumers and prospects would consider to be extra value necessitates a thorough examination: Customers who already have a 1080p television and a slow internet connection will not pay a price premium to upgrade to a 4K service since it adds no value to their lives. As happened with the streaming service Netflix (Opens a new window), introducing a price premium might result in people opting for a downgrade, or even service termination.
Providers that offer a rapid service when it is expected 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.