Many companies actively manage customer churn but aren't seeking out the best customers to retain, warns Harvard Business School professor
It’s a sad fact of doing business: customers leave.
“You’d like to have 100 percent of customers stay 100 percent of the time,” says Harvard Business School Professor Sunil Gupta. “But that’s just not the case.” There can be plenty of reasons why a once-loyal customer jumps ship—maybe they were unhappy with customer service, or your prices went up, or a competitor offered a better deal.
But if a company lets too many customers show themselves the door, then they’ll waste too much of their time recruiting new customers.
This article was provided with permission from Harvard Business School Working Knowledge.