This Customer Retention series teaches you everything you need to know to get predictable customer retention results. By the end of this Customer Retention series, you’ll be on your way to confidently increasing your customer retention.
Price is the first reason potential clients tell me when I ask them why their customers churn. This is hard to say but they’re wrong. Price is commonly used to justify why customers churn. But, as you’ll soon see, something entirely different than price is causing your customers to churn.
Why Customers Churn
Neuroscientists discovered that humans make decisions based on their feelings first. Then they justify those feelings with reason.
Think back to your own experience. When you were unhappy about a product, was it because of the price? Or . . . was it because you experienced a negative feeling and then you quickly reasoned that the price was too high. You may have experienced disappointment, anger, frustration or impatience or some other negative feeling. Once you felt those feelings, suddenly the product was no longer worth the price.
I know I’ve experienced this so many times in my life. I was happy to pay the price for the product until I was suddenly faced with negative emotions because the product didn’t live up to my expectations or my customer experience was poor. Once those negative emotions crept in, very quickly the price of the product became a big problem.
I went from feeling great about my purchase to regretting what I had just bought.
This phenomenon is called Buyer’s Remorse.
Everyone experiences it. Including your customers.
When customers are purchasing your product, their positive emotional state is at its peak. At a minimum, they are hopeful. At a maximum, they are excited.
Depending on their experience, they might remain at that high level. Or they might plummet into the world of Buyer’s Remorse where they feel negative emotions including frustration, anger, disappointment and regret.
By understanding this quirk of human behavior, you can use it to your benefit — you can start easily and predictably increase your customer retention.
However, you’ll want to know the best way to use this knowledge.
Find out more about using this quirk of human behavior by reading the full article.
You’ll also learn about:
- the 22 churn factors that you can control and the 3 you can’t
- the 2 best places in the post-sale customer journey to focus on retaining your customers