Customer Churn as a Purchasing Journey Stage

Abstract:

The company must be prepared not only to serve customers who buy products or services, but also those who resign from services or return them. Customer churn are a natural consequence of market operations and all enterprises must be prepared for them. During the leaving process consumer comes into contact with services delivery system of services provider. From the customer point of view services delivery process is named customer journey (Havorsrud, Kvale, Folstad 2016). Havosrrud, Kvale and Folstad note that customer journey approach versus service blueprints represent customer-centric perspective on services delivery process. Contact with services providers and its touch points may provide customer experience, which creating customer value (Jain, Aagja, Bagdare 2016). By examining customer experiences, Lemon and Verhoef (2016) define three phases of customer journey - pre-purchase phase, purchase phase and post-purchase stage. These authors define customer experience during purchase cycle as a dynamic process, that incorporates previous experience and external factors during experience any touch points in each stage.

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