A Smarter Way to Reduce Customer Defections
HBS Working Knowledge
Research & Ideas, 11 Nov 2013
Companies can’t afford to lose hard-won customers, but in truth some are more important to keep than others. Recent research by Sunil Gupta and Aurélie Lemmens explains how to find them.
Companies spend significant sums to acquire customers. Once hooked, marketers protect those investments by attempting to keep patrons happy, engaged, and most of all, loyal.
Reducing customer attrition, or “churn” in marketing parlance, often involves offering incentives such as discounts to individuals identified as likely to defect. The tricky part comes in figuring out exactly who should be targeted.