Preventing Termination

How to avoid interruptions in customer relationships

Cancellations do not necessarily mean that former customers will never find their way back to your company. Ultimately, however, each cancellation has a negative impact on the customer value, as the initial, repeated acquisition costs erode this, or it is necessary to initiate costly and individual offers that frequently include more attractive price structures in order to hold on to the customer. Although research on preventing termination is closely related to customer loyalty research, it places a strong focus on the singular event of 'cancellation', what prompted it and how ultimately it can be prevented. 

Your Questions

  • What were the customer's experiences leading to the cancellation? What motivated the customers to terminate the relationship?
  • Are there any features to be found in the master data indicating a connection to the cancellation?
  • What is the probability of the customer returning at some point in the future?
  • What similarities are there between cancelling customers? Is there a typology of cancellation?
  • Are trends emerging that require the initiation of measures to counteract a gradual, successive rise in cancellations as early as possible?

Our Solution

We employ neatly tailored, qualitative-quantitative research to get to the bottom of the moment of cancellation, overcoming the frequently rather polite and knee-jerk answer "the other provider was cheaper". Customer experiences are analysed in interaction with the respective customer type and considered within an integral framework. Furthermore, we investigate the sales channels and competitors used to entice away customers.

We initially carry out an inventory and in-depth analysis of the customers that have terminated. Thereafter, on request, we prepare a tracking in order to conduct interviews as soon as possible after the cancellations. At an early stage, this helps you recognize changes in motivation for cancellation which may require to take measures in customer support, services and product development – whether because the market environment and customer requirements have changed or because errors have entered the processes.

Your Results

  • Holistic, detailed analysis of the incidents, motives and types of cancellation.
  • Regular reports in order to recognize changes in the market, in customer requirements or company services as early as possible.
  • Derivation of measures to prevent cancellation.

Contact us

Thomas Donath Managing Partner
+49 (0) 21 03 / 25 819 - 22