By Dennis Mortensen In Metrics, KPIs, Best Practices | March 2024

Use Churn Rate to show that Customer Support is NOT a Cost Center

Use Churn Rate to show that Customer Support is NOT a Cost Center

How effective customer support boosts retention and reduces churn

Customer support teams are often, unfairly, undervalued with many not recognizing their true value in driving revenue and ensuring customer success. However, by leveraging their positive impact on churn rate—an essential metric that measures the rate at which customers discontinue their service—a more compelling narrative can be presented. This metric obviously serves as a tangible indicator of customer satisfaction and loyalty, where effective customer support can dramatically influence a company's ability to retain customers. This metric is often owned by other departments, but customer support should not shy away from using it to emphasize the positive contributions they make. By framing the role of customer support with the proper data and statistical backdrop as a true contributor in impacting and reducing churn rates, it becomes somewhat evident (to me at least) that support teams are far from being a mere cost center. Instead, they are critical to sustaining and enhancing business growth. And, if we are being brutally honest, many times good customer support interactions outshine new features trying to combat the same illness.

Reducing churn with accurate and updated help center collateral

The frustration customers experience when encountering outdated help documentation, especially with product images, cannot be overstated. This frustration, which is often compounded by the lag between product updates and the corresponding refresh of help materials, directly impacts trust and contributes to churn.Implementing a fully automatic screenshot process ensures that help documentation remains accurate and up-to-date, significantly reducing customer frustration and the likelihood of churn. This proactive measure not only enhances the customer experience but also underscores the importance of customer support in maintaining current and useful help resources, and thereby contributing to lower churn rates. The images in your help articles are the most immediate way your customers identify what the article is trying to help them solve so always showing the most accurate version of your product in help articles is an important step in combating churn.

Using case studies of proactive support to highlight churn reduction

Highlighting case studies where proactive support measures, such as early problem identification and resolution, have successfully reduced churn rates can powerfully illustrate the value of customer support. These examples showcase how support teams, by identifying and addressing potential customer dissatisfaction early, can play a pivotal role in preventing churn. Furthermore, comparing your churn rate against industry benchmarks offers insightful perspectives on the effectiveness of your customer support initiatives. This comparison not only highlights the positive impact of your support team on customer retention but also identifies opportunities for further optimization. Presenting customer support through this lens allows your organization to reimagine support as a key driver of customer retention and business success, integral to reducing churn and fostering a loyal customer base.