CCR in e-commerce
The research ROI of Customer Experience conducted by the Tempkin Group shows that loyal customers are more likely to make purchases, give positive references to the company and are much more likely to accept the offer that is presented to them. Sounds interesting, right? These data are consistent with the theory that the cost of acquiring a new customer is higher than maintaining the loyal one. Do you know how many customers resign from shopping in your online store?
CCR indicator – customer migration or outflow
The CCR (Customer Churn Rate) is used to measure the percentage of people who abandon our services. The basic formula for CCR is as follows:
CCR = \dfrac{total\: customers\: at\: the\: start\: of\: given\: period - total\: customers\: at\: the\: end\: of\: given\: period}{total\: customers\: at\: the\: start\: of\: given\: period} *100\%
The high level of CCR means that many customers give up contact with your online store. It is a clear sign that the marketing and sales activities require optimisation.
The analysis of the CCR indicator is crucial for the implementation of the sales and development goals of your company. Monitoring customer migration is also the first step to getting to know the weak links in the functioning of the online store.
What factors affect the CCR level?
To identify early signs of customer resignation, you need to get a holistic view of your clients and their interactions with your brand. Analyse:
- Customer experience – in contact with your service, customer service, and the entire purchasing process. You establish relationships in these areas. If they are weak, customers will not hesitate to move to the competition. Take care of personalisation, keep promises, offer interesting loyalty programs.
- Multi-channel communication process – it’s very important that regardless of the purchasing stage your clients are on, they receive consistent messages that correspond to their needs – in mailings, social media and on your blog.
- Your brand image – modern consumers compare offers before buying, look for opinions, ask friends for recommendations. Take care of building positive experiences between customers and your brand. Then they will gladly come back and make another purchase, and the CCR indicator will be kept low.
