Skip to main content

What is Customer Churn and How Can You Reduce It?

Customer churn, also known as customer attrition, is a business metric that directly represents the number of customers who cease to be your customers over a given time period. Customer churn has been a problem since the days of brick-and-mortar stores. With the rise of fully digitized, online businesses, calculating and reducing customer churn has become even more important.


What exactly is customer churn?


Customer churn, also known as customer turnover or defection, is one of any company's worst enemies. Customer churn is the number or percentage of customers who stop paying for your subscription, product, or service during a specific time period.


Customer churn directly results in a loss of returning revenue.


Customer churn stifles company growth:


A company's growth refers to its financial value or market share increasing. This can be accomplished in a variety of ways, primarily as the company's user base or site visitors grow.


When customers stop using a company's product or service, the company's brand reputation suffers, slowing the company's overall growth.


3 Ways to Reduce Customer Churn:


Now that you understand the causes of customer churn and how to anticipate it, you can consider various strategic options for reducing it. We've listed 3 of them so you can start using them right away.


  1. Choose the "Right" Customers:


Choosing the right target audience for your company is critical to its success and customer satisfaction. If your consumer's needs do not match the needs that your product is attempting to solve, you will inevitably have a high customer churn rate.


  1. Work on Customer Retention Activities:


Attracting customers comes at a high cost, making many customer relationships unprofitable in the early stages. Relationships generate large returns only after their total customer lifetime value exceeds the cost of acquiring their business and keeping them loyal. The key component of that equation is keeping them loyal.


  1. Make use of marketing automation software:


Marketing automation platforms are software applications that assist businesses in increasing the effectiveness of their marketing efforts. The marketing software handles the rest after the gaming operators enter their data into it. Marketing automation software frequently helps businesses maximize their marketing efforts by removing the need for manual marketing.


What is the best gaming marketing automation software?


OptiKPI is marketing automation software that was created specifically to promote online gaming products. The main characteristics of OptiKPI are compliance, marketing, and risk management. It aids gaming platforms in the long run by utilizing consumer data. To increase client lifetime value, OptiKPI employs a long-term strategy.


OptiKPI uses player behavior to send relevant messages to the right customers at the right time. Gaming companies benefit from having real-time knowledge and technologies at their disposal. OptiKPI is a versatile and easy-to-implement program that provides immediate solutions.


Book a free demo today https://www.optikpi.com/scheduledemo



Comments

Popular posts from this blog

What is player segmentation, and why should you use it?

  The worldwide online gaming industry expands quickly, earning enormous money. The top gaming businesses are constantly looking for new and innovative ways to grab substantial chunks of the industry. As per statistics, more than 2 billion players around the globe generate mind-blowing data every day. Therefore, the introduction of Big Data technologies in the gaming business is hardly surprising. It paves the way for a more refined marketing approach that is efficient and cost-effective. Have you heard about player or gamer segmentation? Let us see in the article. What is player segmentation? Player segmentation or gamer segmentation categorizes customers based on shared characteristics in any dimension important to your gaming business, such as player wants, channel preferences, interest in certain games, customer profitability, etc. Then, you can target each group with offers and information suited to the individual interests. You can also segment games and find out the most pla...

Best customer churn prevention strategies

Customer turnover is a company's number one public adversary. Customer churning has always been one of the most challenging difficulties a business has had to deal with from the beginning of time. That being said, in today's environment, this problem has only grown worse. Customer turnover is a primary concern for online organizations, and if not addressed promptly, the situation will worsen beyond repair. The internet's incredible connectedness has aided in the total digitization of online enterprises! And this is one of the primary reasons why customer attrition has skyrocketed. Continue reading to find out why! The "Online Gaming Industry" suffers from high client attrition. The Online Gaming sector has been increasing since the pandemic. Do you believe Covid19 delayed the business? No, it was the opposite effect.  What exactly is customer churn rate KPI in the gaming industry? Customer churn or churn rate KPI   is the number or percentage of customers who disc...

What is Journey builder feature, and how is it useful for online gaming marketing

  Player behavior may be described as the characteristics of players that cause them to behave in a particular manner. Let us go into leveraging player behavior in the following parts. This post will also go into the various aspects that influence player behavior and an intriguing feature from OptiKPI called "Journeys." The online gaming business is very competitive, with dozens of powerful platforms competing for first place. Only effective marketing tactics will enable gambling businesses to compete effectively. Leverage player behavior to acquire the much-needed competitive advantage. As a result, we must first evaluate the participants' activities to understand them better. The player's interest changes depending on their background. The Journey Builder feature enables casino operators to study and leverage player behavior into commercial growth. It identifies the preferences and dislikes of participants. OptiKPI encourages responsible gaming and the abolition of ...