Successful businesses rely on loyal customers. In fact, the cost of keeping existing customers is much lower than the costs businesses incur to attract new customers. Building a loyal base isn’t easy. In addition to great products and customer service, it requires insight and measurement. Churn, or customer turnover, is an important measurement for any consumer company that wants to gauge its success in retaining customers.
Two factors can help maintain a low churn rate: quality and service. In a survey on brand loyalty by ClickFox, more than 80 percent of respondents said quality was the number one key to their loyalty. Customer service, at 72 percent, was close behind. Successful companies invest in products and provide strong customer service to bring these two elements to the forefront of their customers’ experiences.
For the 10th consecutive quarter, Verizon Wireless reported the lowest postpaid customer churn rate (0.91 percent), meaning that fewer than 1 in 100 customers left Verizon Wireless during that three month period. That was the lowest churn rate of any of the nation’s major wireless providers.
Investing, on average, more than $6 billion a year in coverage and expanding the capacity of our nationwide network has kept Verizon Wireless’ reputation for quality wireless network service high on consumers’ radar screens. Emphasis on customer service through offerings such as Wireless Workshops gives customers hands-on training from device experts. And, Verizon Wireless regularly gets high ranks for both network quality and customer service of independent, third-party surveys, including RootMetrics and J.D. Power and Associates.
The research shows that by focusing on ways to enhance quality and service, companies can reinforce customer loyalty and create a positive experience that draws other customers.