A recent report from SugarCRM revealed that customer churn is heavily costing organizations across various industries.
While digitalization has provided more opportunities for organizations to reach customers across multiple touch points, this has also created fierce competition. It has only become more difficult for customers to hold on to their customers. A new study has revealed that customers are abandoning their partners at an extraordinary rate, and most organizations are unprepared to tackle this situation. In fact, as per a report from SugarCRM titled “The 2022 CRM Impact Report,” customer churn is costing organizations £4 million.
Based on a 1600 global sales and marketing professionals’ survey, the average customer turnover rate is now nearly one-third globally. While multiple factors influence this customer churn, the most critical is the customer experience. Technology plays a crucial role in ensuring customers can seamlessly access products and services in today’s data-driven environment, which heavily relies on convenience and speed. If customers do not receive the experience they desire, they will look for someone else.
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As per the report, 71% of the respondents suspect customers are abandoning them due to poor customer service or experience. 70% of the respondents said they take initiatives that will improve customer trust in the brand, as 73% of the respondents highlighted the need to act on customer feedback to improve customer service and experience.
At the heart of driving the customer experience sits CRM. It can help businesses boost customer engagement while simultaneously delivering a customer journey that nurtures brand loyalty if used effectively. Yet, as per the SugarCRM report, many companies are selling themselves short by not leveraging their CRMs to their full potential. The survey findings highlight the hurdles the respondents are facing due to the traditional CRM solutions that are not purpose-built to tackle the challenges of post-pandemic customer experience realities.
61% of the sales respondents are exhausted and frustrated with the CRM admin burden their teams have to deal with. This ends up wasting their valuable customer-facing activities.
Additionally, 54% of the respondents think their CRM is costing them monetary loss, while 55% stated that their present CRM could not be appropriately customized to meet their needs.
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Not having a customized CRM solution in place makes it harder to identify the customers who are planning to leave. Around 55% of the respondents agreed that not having the ability to identify customers creates the chances of their leaving. Not only that, 57% of respondents said they find it difficult to track customer churn effectively.
The opposing view of the legacy CRM solutions is leading to 55% of the respondents admitting that they are considering changing their present CRM platform within the next 12 months. Moreover, more and more sales and marketing leaders are considering plans to incorporate AI technology, with 91% of the respondents planning to deploy AI technology that will enhance their present processes to increase over the next two years.
To deliver their customers a seamless and consistent experience, organizations should ensure their systems are not working in silos while incorporating a complete historical record of every change event in the customer journey. Doing so will empower organizations to directly impact their customer lifeline value and also determine and reduce churn, while positively impacting their sales while meeting the bottom line.
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