The boostCX Blog

Are you feeling the pinch of customers leaving your business? Are you struggling to understand the how and why? Customer churn rate may provide the information you need. You may be asking – what is customer churn rate – and boostCX has the answers. This metric reveals the percentage of customers who stop using your service over a specific period and high churn can stifle growth. This quick overview explores customer churn rate and how boostCX empowers you to identify churn risks, improve customer satisfaction, and ultimately improve customer churn rate.

How To Improve Customer Churn Rate

Calculating your customer churn rate is a pretty straightforward mathematical equation. Divide the number of customers you lost in a set time period – typically a month or year – by the total number of customers you had at the start of that period. Multiply that result by 100 to express the result as a percentage.

(# of Customer Lost ÷ Total Customers at the Start) x 100 = Customer Churn Rate

Businesses that want to know where they stand will find that a good churn rate is generally below the 5% mark – indicating a healthy customer base. Customer churn rates between 5% and 7% are considered average and anything above 7% is considered a below average or poor customer churn rate. How you classify your customer churn rate may vary based on your industry.

By understanding your customer churn rate, you can identify areas for improvement and take proactive steps to retain your customers. The most common causes of a poor customer churn rate include – price, user experience, customer experience, and the market fit – and this is where boostCX can help. Here are methods you can use to improve customer churn rate.

1. Gather Customer Feedback

Gathering valuable customer feedback is the key to reducing churn. boostCX empowers you to  collect feedback through multiple channels and on multiple platforms – whether it’s surveys, social media, or direct engagement. Not only does this feedback help you understand customer pain points and frustrations and address concerns promptly – it allows customers to see that you care about their experience, fostering long-term loyalty.

2. Be More Proactive

Proactive engagement and communication is a powerful weapon against customer attrition. Use customer feedback to anticipate customer needs and address concerns before they arise. This helps you nurture trust and loyalty. Regular updates, personalized outreach, and addressing potential pain points proactively can significantly reduce churn and keep your customers happy and boostCX can help you engage with customers via a wide variety of channels.

3. Create a Customer Roadmap for Your Customers

Developing a customer roadmap for new or returning customers fosters deeper customer engagement at many levels. This roadmap outlines specific onboarding processes, ensuring a smooth start for new customers. By visualizing the customer journey through this lens and across these touchpoints, you can identify areas for improvement and proactively address potential pain points before they lead to customer attrition. This customer-focused approach builds trust and loyalty, ultimately reducing churn and driving business growth.

4. Analyze Customer Churn as it Happens

Waiting to analyze churn is a recipe for lost customers. Analyzing churn in real-time with  boostCX’s analytics is crucial to improving your customer churn rate. This allows you to see when in the customer journey the churn is happening – are they dropping off during onboarding, after a service issue, or at contract renewal? By understanding these critical moments of truth, you can act immediately with targeted communication, personalized solutions, or special offers. Proactive intervention based on real-time data is your best defense against churn.

5. Create a Community for Your Customers

Fostering a customer community can be a game-changer for customer churn rate. By creating a space for peer-to-peer learning and support – as well as customer engagement – you build brand loyalty and trust. This sense of community helps reduce customer churn rate by increasing customer satisfaction and making your customers feel valued beyond

In the automotive landscape, the car buying experience is about much more than just the final sale – it is a customer journey that shapes a customer’s perception of your brand and your business. Many factors can leave potential customers feeling frustrated and alienated when they leave an automotive dealership and many automakers want to know how they can improve the car buying experience and create a smooth, positive journey that builds customer loyalty. boostCX is a leading provider of customer experience management solutions that gives automakers the tools they need to revolutionize the car buying experience and drive success with data-driven strategies and innovative technologies.

Top 3 Ways to Improve the Car Buying Experience

From excited car shopper to frustrated buyer –  the car buying experience can be a real rollercoaster at times. When automakers and automotive dealerships examine the car buying experience, it is important to first identify the customer pain points for those potential customers who walk in the door. boostCX provides innovative customer experience management solutions that will help automakers and dealerships collect and analyze customer feedback to identify those customer pain points.

Key Car Shopper Pain Points

• Long wait times at dealerships are the most frustrating part of the process for 41% of car shoppers and car owners who visit a service department
• Pressure from salesmen to make a purchase right then and there can be aggravating and drive customers away
• Going from office to office to organize financing, tax and title documents, the sale price, and more is a pain point for many car shoppers
• Mountains of paperwork to fill out and sign when you purchase a vehicle is frustrating

We know those pain points can be stressful for car shoppers and the automakers and dealerships who have vehicles to sell. But there are more than a few ways to address those pain points. Here are a few ways for automakers to improve the car buying experience and ensure a happy customer and a successful sale.

1. Start the Process Online

Dealerships and automakers can eliminate many potential customer pain points by creating an online shopping experience. Improved online processes empower customers to start and finish key aspects of the car buying process online, streamlines the experience, and saves valuable time. Imagine browsing inventory, pre-approving for financing, and even scheduling a test drive – all from the comfort of your couch. This online convenience reduces pressure, promotes informed decision-making, and sets the stage for a more efficient and positive in-person dealership visit when it is time for car shoppers to drive home in their brand-new vehicle. boostCX allows dealerships and automakers to identify pain points and can provide insight into how online processes can be improved.

2. Remove Unnecessary Purchase Touchpoints

A simplified purchase process at dealerships helps eliminate stress for buyers and sellers.  Automakers and dealerships that reduce unnecessary touchpoints in the purchase process and streamline the process will make it more pleasant for car shoppers AND dealership employees. This process could involve consolidating paperwork, offering online signing options, and ensuring a smooth transition from online research to in-person finalization. Fewer hurdles to jump equate to a more relaxed and positive experience for the customer and more future business.

3. Create a Memorable Buying Experience

In the competitive automotive market – it’s the experience that seals the deal, not just the models and features. boostCX empowers you to go beyond the vehicle and craft a memorable buying journey for every customer. Imagine personalized recommendations, transparent communication, and a streamlined process online that prioritizes their needs. Armed with this customer-focused approach and backed by boostCX data-driven insights, dealerships and automakers can create an environment of lasting brand loyalty and sky-high customer satisfaction – setting your automotive business apart from the competition.

Don’t let the car buying experience be a roadblock on the path to customer satisfaction at your automotive dealership. Automotive businesses that prioritize a smooth and positive buying journey, can turn car shoppers into loyal brand advocates. Learn more about how automakers can improve the car buying experience with the help of data-driven strategies and innovative technology provided by boostCX.

The automotive industry is always growing and changing, with new technology, new models, and trends emerging all the time. The automotive industry includes much more than automakers like Ford, Chevrolet, Toyota, and GMC – it includes rental agencies, service centers, and more. No matter what type of business it is – the customer experience is a key element to success. Here is a better look at the Top 5 Businesses in the Automotive Industry and how boostCX can help them upgrade the customer experience and drive success.

What Businesses Are in the Automotive Industry?

boostCX provides customer experience management solutions for a variety of industries – and the automotive industry is included in that list. Businesses in the automotive industry that support customers are always looking for ways to drive customer satisfaction and customer loyalty – whether it is an Original Equipment Manufacturer (OEM) like Ford, a service center, or a rental agency – and boostCX may be the answer.

Original Equipment Manufacturers (OEMs)

The engine that drives the automotive industry is the Original Equipment Manufacturers (OEMs) – the companies that design, develop, and manufacture the vehicles we drive. Automakers like Ford, Chevrolet, GMC, Toyota, and more fall into this business category. For OEMs, a focus on exceptional customer experience goes beyond the quality of the car itself. It encompasses every touchpoint, from the initial research phase to after-sales service, and boostCX can be a valuable tool for OEMs that want to upgrade the customer experience. By making a seamless and positive experience a priority throughout the customer journey, OEMs can drive brand loyalty, encourage repeat purchases, and stand out in a fiercely competitive market.

Parts and Component Manufacturers

Supplying the nuts and bolts of the industry, automotive parts and component manufacturers are the unseen heroes keeping vehicles on the road – whether it is supplying components for electric vehicles, aftermarket parts, or general automotive parts. The customer experience is just as important to these businesses as it is to automotive dealerships and OEMs. boostCX empowers parts and components manufacturers to streamline communication and collaboration with OEMs and dealerships, fostering stronger relationships across the industry. This translates to a smoother supply chain, faster problem-solving, and ultimately, a more efficient and positive experience for everyone.

Automotive Dealerships

Dealership showroom floors and lots are crucial battlegrounds in the automotive industry, with dealerships acting as the face of the brand to potential buyers – and they may be where the customer experience is most important. boostCX gives dealerships the tools to transform the customer experience, from personalized recommendations to streamlined financing options and much more. By focusing on the customer experience at every step, dealerships can drive key performance indicators (KPIs) like customer satisfaction and customer retention that translate to sales volume, brand loyalty, and positive reviews that set them apart from the competition.

Automotive Service Centers and Departments

Automotive service centers and garages keep your vehicles running smoothly – but the customer experience can be an afterthought when compared to the nuts and bolts. boostCX helps these businesses to go beyond the wrench and facilitate online appointments, provide transparent communication about repairs, personalized service recommendations, and collect customer feedback. This focus on customer experience builds trust and loyalty, keeping cars – and customers coming back for repairs down the road.

Rental Agencies

In the fast-paced world of rental car agencies, customer service is the engine that drives success. boostCX allows rental agencies to identify and eliminate pain points in the rental process, engage with customers on a variety of platforms, and provide exceptional customer support at every turn. With the help of boostCX customer experience solutions, rental agencies can build customer loyalty, ensure positive online reviews, and keep renters coming back for future trips.

The future of the automotive industry is being shaped by a variety of businesses, all playing an important role in the customer journey. From OEMs to rental agencies, prioritizing a seamless and positive experience is key to success in these Top 5 Businesses in the Automotive Industry – and many more.

Customer feedback is essential for any business and collecting customer feedback is a vital part of the process – but low survey response rates can leave you with a limited and potentially misleading picture of the customer experience at your business. Improving your survey response rates isn’t simply about getting more responses. It is about collecting accurate and actionable data that gives you the knowledge you need to improve your products, services, and overall customer experience.

Do you want to learn how to improve customer survey response rates? boostCX is here to help you explore effective strategies to increase survey participation and gain the insights you need to thrive and succeed. boostCX is a leader in customer experience management solutions in industries that include retail, automotive, hospitality, and more. boostCX provides a suite of tools and expertise to help you craft compelling surveys, maximize response rates, and transform customer feedback into actionable strategies.

Top 5 Tips to Increase Survey Response Rates

Want to hear more from your customer base but get crickets instead? The average online survey response rate is 44.1% – with most acceptable survey response rates in the 20% – 30% range. boostCX may be able to help you boost your survey response rates with a few quick tips. Armed with these tips and boostCX solutions, you can gain more knowledge of the customer experience, discover pain points in the customer journey, engage with your customers on a variety of platforms, and improve brand loyalty.

1. Personalize Your Customer Surveys

Personalization may be the key to improving your survey response rates. Tailoring surveys to specific parts of the customer experience increases response rates and makes customers feel acknowledged. boostCX empowers you to engage customers across multiple channels, lets customers choose the channel where they are engaged, offers multilingual survey options, and employs a user-friendly mobile app for a personalized approach.

2. Use Multiple Channels

It is important to engage customers where they are and in a way where they are more active. Businesses that provide surveys across multiple channels like SMS, email, phone, intercept, and in-app give you a better chance of reaching your customers and increases response rates by providing flexibility and convenience. boostCX provides businesses with the tools they need to provide engaging customer surveys.

3. Provide Incentives for Responses

Incentives – monetary and non-monetary – to respond to customer surveys are a proven method to improve response rates. Monetary rewards can boost response rates by an average of 19%. Non-monetary incentives in return for customer responses have been proven to increase survey response rates by as much as 8%.

4. Target the Right Customers

To get the best results and increase your survey response rate, it is important to target the right audience. Sending surveys en masse may not yield the results that you had hoped for – but sending surveys to your most relevant customers based on customer demographics and past interactions gets you better responses and more actionable insights.

5. Keep it Short

Surveys that are short and to the point are more likely to be completed, leading to higher response rates. Studies show a significant drop in participation for surveys exceeding 12 minutes. Respect your customers’ time by crafting focused questions that gather valuable feedback without becoming an overwhelming chore.

Unlock the power of customer feedback and learn how to improve customer survey response rates with these quick tips provided by boostCX. By following these simple yet effective strategies, you’ll be well on your way to gathering a wealth of valuable customer insights.