Industries that Need Better Customer Retention Programs Due to High Customer Churn!


Across subscription-based businesses, the B2C (business to consumer) market has higher churn rates than the B2B (business to business) market. This is across several industries, according to recent relevant studies. A primary reason behind this is that retail industries tend to consist of more impulsive purchases, as opposed to B2B markets that generally consist of more complex setup processes. This makes it difficult for B2B buyers to pull out from a subscription deal, so a lot of thought is put into the initial decision of signing up for an offer. However, industry players in both markets will still benefit from implementing cost-effective customer retention programs into their front and back end processes.

So, which industries have the highest churn rates for the past few years? We've compiled the list below for your reference. Now, let's find out!

Top Industries Requiring Cost-Effective Customer Retention Programs Due to High Churn Rates

First, the MLM (multi-level marketing) industry remains unsurpassed when it comes to the highest churn rates recorded for the past few years across B2C subscription markets worldwide. Many players in this industry badly need the right customer retention programs. One of the main reasons behind the high churn rates of the subscription-based models offered by many MLM brands is the tainted reputation of the entire industry, in terms of scams, criminal activities and the like.

Knowing the right prospects to target can be among the initial customer retention programs of an MLM business. After all, retaining more paying subscribers starts out by getting the right ones. Plus, your MLM brand can optimize your content marketing and brand positioning campaigns by using the most relevant details in your ideal target customer profile. This can in turn manage the expectations of your target audiences before they sign up for your subscription offers. And, your follow-up marketing materials can in turn build up your reputation as a trustworthy resource of helpful products and services across your existing subscribers, especially if these are well-crafted to effectively resonate with the relevant interests, preferences, expectations and habits of your ideal customers.

Second, video on demand (VOD) subscription businesses have the second highest churn rates, as reported by some authority news media agencies across B2C markets. Some analysts point out that the most significant part of a VOD subscription company's customer retention programs should be to offer better prices and more compelling content to their ideal subscribers. After all, copyrighted videos and other multimedia content materials are widely available all over the Internet and even illegally sold in offline storefronts. Plus, lots of players are competing in this industry, so a VOD subscription business needs to come up with uniquely captivating, enticing, interesting and compelling offers to make their subscribers stay with them.

Third, many niches in the education industry are said to have the next highest churn rates among B2C markets around the world. Players in these niches that encounter the highest churn rates are mostly those that offer their products and services through crash course subscriptions done through the Web, online tutorial service centers, email series courses, podcasts, apps and the like. These players also badly need cost-effective customer retention programs for their subscription-based business models.

As with the other industries in this list, businesses that have the highest churn rates in relevant education niches can lower down their subscriber attrition rates by crafting more compelling content and services that are effectively targeted at the currently relevant intrests, preferences, habits and lifestyles of their ideal customers. Coming up with the right prices for their offers, in direct relation to the buying preferences of their target subscribers, should also be a significant part of their customer retention programs.

So, if you run and operate a business in these industries, then you should develop cost-effective customer retention programs to avoid high churn rates. That's if you aren't getting high attrition rates at the moment. Remember, the main objective of a subscription-based business is usually to make their customers stay with them, rather than generate repeat sales for other relevant products, which seem to be the model of players at these industries that are currently experiencing some of the highest churn rates in related B2C niches.

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