How to take QA call auditing to the next level
Once you automate your QA with conversation analytics and capture information from 100% of your customer interactions, shift your QA team’s focus to higher
February 6, 2023
March 6, 2023
You might think you already know your customers. Here’s the truth: In times of economic turmoil, even the most loyal customers can become unpredictable.
It doesn’t take an official recession for customers to change their behaviors. Speculation, headlines, and scrutiny about the economy can affect customers’ behavior even when individuals don’t personally feel affected.
Debate about an impending recession looms over us - and has almost since the last significant downturn. With inflation, spending, and the job market all in flux, it’s time to start asking how your customers are responding.
How are the current economic conditions influencing customer retention and churn? Check these metrics to analyze consumer behavior and see if your customers feel the pinch of economic conditions.
Before the economic conditions affect the customers already paying you, you’ll see patterns among your prospective buyers as you try to acquire new customers.
Consumer spending slows when people begin to feel economic uncertainty - and so you’ll see signs of trouble among your prospects before you notice them among your current customers.
Has a customer who couldn’t get enough of you suddenly turned cold? Your engagement with existing customers can signal a weakening relationship, which could later lead to customer attrition and increased customer dissatisfaction.
Engagement metrics can include:
Your customers' lifetime value to a company largely depends on your product and industry. Still, nearly all business models offer some type of variable spending. When your customers disposable income decreases (or they merely worry that it could), they may begin cutting spending. This can signal price sensitivity that you may not be able to measure otherwise.
For example, lowered customer spending might show up when you see declines in:
Sometimes, customers may simply forget to pay on time. But an overall spike in late payments can signal your customer base feels economic pressures, even if they still pay their bills.
It's important to note that delayed payments don't always mean your customers don't have the means to pay. For example, during the time period immediately after the onset of the COVID-19 pandemic, many consumers took advantage of companies that offered delayed payments on mortgage payments, even though they remained employed, as they waited to see if their job was stable.
Economic uncertainty, or even a recession, doesn't automatically equal the loss of customers. Economic circumstances are just one reason your customers might leave. Customer churn analysis can help you understand if your happy customers are leaving because they didn’t have another option, or if there are opportunities to improve your customer experience or product offerings that could reduce customer churn.
If you analyze your customer feedback and churn rates, you can understand what issues led to customer churn and work to gain back loyal customers.
Customers who have a negative experience with customer service are more likely to churn.
Customers want to feel valued and appreciated. A lack of personalization in the customer experience can make customers feel like they are just a number and can increase the likelihood of churn.
Customers may churn if they feel like they are paying too much for a product or service that they can get elsewhere for a lower price.
Customers are unlikely to stick around if they are consistently dissatisfied with the quality of a product or service.
Customers may churn if they are not aware of the full range of products or services that a company offers, or if marketing materials are not compelling enough to retain their interest.
Customers want to feel like they are in the loop and that their opinions matter. A lack of communication can lead to confusion and frustration, which can increase churn.
Customers want products and services that are easy to use and readily available. If a company's products or services are difficult to access or use, customers may be more likely to churn.
Customers expect a seamless and enjoyable user experience. If a product or service is difficult to use, unintuitive, or not aesthetically pleasing, customers may churn.
Customers may churn if they are offered a better deal or experience from a competitor.
Sometimes, customers churn due to life events such as moving or changes in financial circumstances. While these factors are beyond a company's control, companies can still take steps to retain customers in the face of these challenges
Get the latest insights from the Tethr team and level up the metrics that matter!
February 6, 2023
Learn how insights from Tethr can help you spot churn risk factors and retain more customers.
August 1, 2023