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Dropout Analysis (Churn Analysis)

 
Are you missing someone? MEGAFON lends you a helping hand in understanding why you are experiencing client dropout.

Gaining new clients is often one of the most resource-intensive tasks for any company, but once you have established an effective bond of trust between your company and your clients — when they have had a positive experience of your services or products — the business potential is great.

However a world in constant motion poses a challenge to you, in regards to your existing clients — competing companies might attract the attention of your clients, and if you sit idle by your client might stray off path and acquire services from your competitors instead, resulting in your company losing business.

At the same time there is always the risk of losing freshly gained clients due to the challenge of change in routines — new clients might be used to doing business in one certain way, and can feel challenged adapting to the routines associated with doing business with your company. Change of routines requires time, and in this phase the company-client relationship is fragile, posing a great risk of clients reverting to their previous suppliers simply due to the convenience in not having to adopt new routines. In essence this is linked to ‘client loyalty’, a mutual bond established over time, also allowing for more forgiving clients — adversely this poses a threat to newly established clients, as they are more likely to react negatively to slight disruptions on your end, e.g. an uneven service or a faulty product, which in turn leads to new clients dropping out faster than already established clients. This poses a two-fold problem: Primarily the direct loss of business, and secondarily the wasted — and often cost-intensive — effort of attracting the attention of the client in the first place. Naturally this problem can be circumvented if you manage to regain the lost client.

A lost client already has knowledge about your company and your services or products, and you have the advantage in already knowing the client and his or her needs. Both parties have invested time in establishing a relationship in the first place, resulting in a sometimes latent mutual interest to re-establish the cooperation. Regaining a lost client hinges on precisely angled and timed communication, which demands a deep understanding of why the client was lost, and what you can do to get the client back into your fold. With this knowledge in hand you can angle and time your communication accordingly and thus vastly improve the odds of re-establishing a business-relationship with said client.

Losing clients is costly for any company — especially if these cannot be won over again — so it is always essential for any company to have a thorough knowledge as to why clients were lost. The benefit of this knowledge is two-fold: It provides greater odds of regaining the specific client, and it gives you a firm idea as to how you can limit client drop-out in general — in the longer run it is simply too expensive not to have this knowledge of your lost clients. In short: A drop-out analysis from MEGAFON can be a great benefit to you, your company and its profit margin.

Methodology

MEGAFON offers precise and thorough drop-out analyses, providing a clear image of the cause of the loss of clients and qualified advice on how to re-establish client relationships and how to minimize the overall loss of clients. We adopt a wide range of research methods, tailored to your needs and your specific problem.

On a general level the combination of qualitative and quantitative methodology provides knowledge on both a vertical and horizontal scale: Usually we apply the qualitative methodology (in-depth interviews and focus-groups) in the first phase, acquiring deep specific knowledge of the nature of the problem. This knowledge is then applied in the design of a survey-type questionnaire to gain a broader understanding of the problem, underpinned by the specific knowledge gained from the focus-groups or in-depth interviews — in short the application of both methodologies ensures that you will not be searching blindly for answers to your company’s problem, moreover providing a quantifiable basis for generalization of specific knowledge.

More information - please contact:

Dorte Krüger Molin
Sales Manager and Business Developer

Direct phone: (+45) 77 41 41 44
Cell phone: (+45) 20 97 68 17
E-mail: dkm@megafon.dk


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Jacob Falk Ebbekær
Research project consultant

Direct phone: (+45) 77 41 41 65
E-mail: jfe@megafon.dk


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CONTACT MEGAFON!
If you have any questions, please do not hesitate to contact MEGAFON at +45 77 41 41 41 or megafon@megafon.dk
FØLG MEGAFON
MEGAFON RESEARCH ANALYSE RÅDGIVNING | ALHAMBRAVEJ 12 | DK-1826 FREDERIKSBERG C | PHONE: +45 77 41 41 41 | E-MAIL: MEGAFON@MEGAFON.DK
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