What is the customer's fluctuation?
Customer turnover, also known as Churn and customers wear, happens when the company loses customers. The customer's turnover calculation is associated with a formula that takes the number of lost customers and compares it to the number of customers obtained. It can be confusing when, because no customers are obtained, the formula shows no turn. In preventing the customer's loss, many businesses improve transport and customer service speed and ensure that the customer feels valuable because these are common reasons why the customer has left the company. Getting new customers is harder and more expensive than maintaining old ones, so businesses focus more on maintaining customers they already have.
businesses will lose customers all the time. It could be the fault of business that the customer no longer needs a service or moved to another area and cannot buy in the same business. This process of losing customers and acquiring new is a known customer turnover. Most businesses prefer low turnover, PRThis stabilizes the customer base. The turnover is based on a standardized period of time, such as the beginning of the quarter or year.
The calculation of the customer's turnover is initially difficult, because it is calculated only if more customers are added compared to a number of lost customers. For example, if the company has 1,000 customers, it will lose 100 customers and not added, then there is no turn. If there are 1,000 customers, 100 lost and 125 obtained, then the turnover is calculated based on the amount of customers replaced and added. The turnover itself is 100 divided by 1,000, which is equal to 10 percent, and the increase would be calculated by 25 to 1,000, increasing by 2.5 percent. Customers who have not been replaced over the time period show a decline in the total customer base.
Firmys focuses its efforts most on maintaining old customers and preventing customers' turnover because maintaining youHTO customers are much easier and cheaper than finding new ones. The most common reasons why customers leave and contribute to customers wear are that the service is missing, packages last too long to reach the goal, and the customer feels as if he is not appreciated by the company or employees. If the company is only to replace new customers, then the potential for greater profits can be lost when gaining new customers.