Lost customer research: Extending the lifetime customer value

Lost customer research can help you understand why customers switch from one supplier to another, the ‘triggers’ that cause these changes in behaviour and what drives customers to a new supplier.

The probability of selling to an existing customer is 60 – 70% whereas the probability of selling to a new prospect is 5 – 20%. Keeping customers happy and reducing churn can therefore have a significant positive impact on your bottom line.

 

Our approach: Measuring customer lifetime value (CLV)

B2B International can use a lapsed customer survey and lost customer research to help you understand why customers switch from one supplier to another and the ‘triggers’ that cause these changes in behaviour.

customer lifetime value

  • Research has found that even if customers report good levels of customer loyalty (loyalty score of 7 or 8 out of 10), customer retention levels can still be very high.
  • The real difference occurs, and customer retention levels significantly rise, if the organisation manages to go the extra mile and deliver an excellent customer satisfaction (loyalty score of 9 or 10 out of 10).
  • The group giving a “middling” score often makes up the bulk of the customer base. It is this group who award passable but mediocre scores that are of greatest concern as their heads could easily be turned if some other supplier arrives on the scene with what seems like an attractive offer.
  • We deliver you the insights you need to turn mediocre customer loyalty scores into excellent ones, help you significantly reduce customer churn and build long-lasting customer relationships.
 

Case study: Helping a leading tool manufacturer reduce customer churn

Our client, a tool manufacturer and distributor with over 100 years heritage, had been losing up to 10% of their customer base each year for the last three years.

They wanted to understand why customers had defected and to develop a plan that would ensure customers stay happy and loyal in the future. Find out how we helped our client better meet expectations and significantly reduce customer churn.

lost customer research

 
 

Understanding why customers defect

Questions we will answer for you

  • Understand how price and, in particular, your treatment of lost customers around price affects their propensity to leave
  • Understand what role the competition play in your customers choosing to leave and go elsewhere (pull vs push factors)
  • Understand how you could win back customers who have left
  • Understand which of your competitors lost customers are going to and why
  • Determine the role that channel plays in their decision to leave/switch
  • Measure whether the competition has thus far delivered on promises and expectations
  • Gain an understanding of whether a certain type of customer/segment is more likely to leave
  • Determine whether the reasons stated for leaving change over time
 

lost customer research

What this means for you

A certain amount of ‘churn’ is to be expected within any business. However, with a large customer base, just a 1% churn amounts to a significant cost. Through lost customer research, you can truly measure the Return on Investment (ROI) if you implement the Lost Customer Research Programme with B2B International.

 

Activation services: Helping you get the most out of your research investment

 
Online Surveys
Advanced online surveys to high-quality, targeted respondents which offer cost savings, time savings and improved data accuracy.
 
Sales Battlecards
A “cheat sheet” used by account management and sales teams for engaging with a customer or prospect.
 
Personas / Segment Profiling
Bring your customers to life and gain a deeper understanding of their needs, challenges and behaviours in order to more effectively market to them.
 
Social Media Monitoring
Actively listening to your target audience across multiple channels to identify what they want, how they behave and what they think of you.
 

B2B Insights and Viewpoints: What we’ve learned from doing lost customer research

For more information on what makes people switch and how to win the devotion of your customers read some of our shared experiences in the following white papers:
Get in touch to find out how you can benefit from Lost Customer Research