How to Reduce Customer Churn Rate with an Efficient Queue Management System

How to Reduce Customer Churn Rate with an Efficient Queue Management System

Business in Dubai and all around the UAE are bearing huge costs and losses due to weak policies and inefficient strategies that results in unhappy customers. Unhappy customers will not going to cost you only the amount of the purchase they have made or they were intended to made, but the unhappy customers can harm a business’s reputation and its brand identity, which have serious consequences in long term. That is why business are investing heavily in customer satisfaction solutions and trying to transform their customer journey with innovative tools and unconventional strategies. Unhappy customers are most likely to never return to the business. Especially in UAE when there are so many options available for a customers they will never think twice before switching to another business. That is what makes customer satisfaction even more critical for success and long term growth.

How to Reduce Customer Churn Rate with an Efficient Queue Management System

There are so many factors that contributes to the customer happiness and customer satisfaction. Here in Dubai and all around the UAE we have witnessed that most of the medium and small sized businesses and even some large enterprises are often overlooking a lot many things or either doing them incorrectly which is costing them a lot of customers and revenue of course. One of the most important factor is the customer churn rate. Here is what customer churn rate is and how it can be reduced with the help of a queue management system:

What is Customer Churn Rate?

Customer churn rate is a simple calculation of the number of customers a business lost during a certain period of time. For service based industries usually the customer churn rate is the measurement of the number of customers or their percentage who have signed-up for a queue or arrived at the business but left before availing the service. That is the simplest definition of customer churn or customer churn rate. There are many other types of customer churn, for example the revenue churn is not necessarily means that a business is losing customers, but in fact it means that a business is not making enough from a certain quantity of the customers in a certain period of time as it was making previously. There are so many factors that contributes to the customer churn, such as a competitor intervention, lacking desired features in products/services, cost, difficult or no proper on-boarding process, etc.

What is Customer Churn Rate?

However, the most impactful factor that is a major cause of customer churn in service based industries is the customer journey and customer experience. If a business failed to deliver a desired customer experience, the customer will leave. If the waiting time is too long, the customers will leave, if the waiting areas is crowded, the customers will leave, if the staff is manually managing the queues, then there would be a lot of problems, due to which your customers will leave without availing the service. One of the best solution to reduce the customer churn rate is deploying an efficient queue management system.

An Efficient Queue Management SystemReduces Customer Churn Rate

A queue management system is basically a combination of software and hardware tools which are used to streamline the customer flow to reduce the customer wait time andto improve service delivery and other processes to enhance customer experience for maximum customer satisfaction. The customer satisfaction and the customer churn rate are both opposite to each other. More the customer happiness and satisfaction will be less the customer churn rate will be and vice versa. Here is how queue management system’s features and benefits can help businesses in reducing the customer churn rate:

Queue Management System Reduces Wait Time which Reduce Customer Churn Rate

One of the major cause of customer churn is the wait time. When the queues are managed manually the waiting lines are always long. Studies have shown that an average bearable wait time is thirteen minutes, any time more than that will start reducing the quality of the customer experience and the customer will start getting stressed out. Another problem with the manual queue management is that a business will have to acquire a lot of staff to accommodate heavy foot fall during the busy work hours. Which not only reduce the customer experience but also cause additional expense and raise the per service cost for the business. Obviously hiring too many employees is extremely expensive so business maintain a suitable number for the medium levels. Which could quickly increase work load during busy work hours and can result in decline in staff performance and their work quality.

Queue Management System Reduces Wait Time which Reduce Customer Churn Rate

All these factors contributes in customer churn. If a customer will have to wait in poorly managed waiting lines, and then they meet with the employees who are already exhausted due to workload, the customer satisfaction will decline and the churn rate will increase. However when an efficient queue management system is used to manage the customer flow, the customer wait time and the staff workload can be reduced significantly, which have double effects on the customer experience and customer journey. The queues are managed automatically and the staff don’t have to worry about managing customers and visitors, instead they can focus on their primary tasks which improves their service quality as well as their efficiency. If the customers don’t have to wait for too long, the customer churn rate reduced, and the satisfactory service and good experience further help improving relationship with the customers and increase their loyalty. The loyal customers are tend to tolerate much more than ordinary customers. So, it also help reducing the customer churn rate in future.

Queue Management System Streamline Customer Flow which Improve Customer Journey and Reduce Customer Churn Rate

When a customer feels they are stuck in a queue or the queue is not moving as it should be, they start thinking about leaving. A queue management system streamlines customer flow which improves customer journey and customer experience and keep them busy and updated which reduce the stress and also reduce the customer churn rate. For every business the customer journey could be different, every business tries to offer a unique experience which can attract more customers. An efficient queue management system help businesses to implement their policies and strategies effectively and streamline the customer flow through various customer journey steps which keep the customers busy and reduce the customer churn rate. When staff is managing the customer flow, there is always delays, customers also have to face different kind of troubles, the first and most important thing is no matter how hard your staff tries if the waiting lines are long, the customers will get a perception that the staff is not efficient enough. That perception plays major role in customer churn.

Queue Management System Streamline Customer Flow which Improve Customer Journey and Reduce Customer Churn Rate

Moreover there are businesses who have different segregations and classes on the bases of services, customer types, and various other factors. An efficient queue management system manages the customer flow as per all pre-defined sets of instruction for each customer type or class or any other required factor. This allows the businesses to automate the customer flow and customer routes which not only accelerate the customer flow but also reduce a huge amount of work load from the staff. There are different scenarios for each business, some business have dedicated counters for certain services, some have dedicated counters for different types of customers such as premium or VIP and special customers, and some businesses offers stepped services, where a single service can be delivered via multiple counters, and some have any other scenario including all of these too.

Queue Management System Streamline Customer Flow which Improve Customer Journey and Reduce Customer Churn Rate

Such scenarios complicate the customer flow and customer journey management. However, with an efficient queue management system the customers and the staff don’t have to worry about anything, the system can take the customers through their designated route to ensure there is no inconvenience. This can maximize the customer experience which resultantly reduces the customer churn rate.

Queue Management System Improve Waiting Experience Which Reduces Customer Churn Rate

Customer experience heavily rely on the wait time and waiting experience. There are two wait times, one is the actual wait time and the other is called perceived wait time, the perceived wait time as the name suggests is the amount of time the customer felt has passed. For example, last night I was sitting at a restaurant, my order took literally 10 minutes or so but it felt as almost 20 or 25 minutes have passed, this is how human brain works, when we are waiting and not feeling comfortable or feeling bored, the wait time felt more than the actual wait time. An efficient queue management system not only reduce the actual wait time but it also offer certain features that help reducing and minimizing the perceived wait time as well. That is very important. If customers are bored and sitting idle in the waiting area or in the waiting line, they will feel more time is passed than the actual time.

Queue Management System Improve Waiting Experience Which Reduces Customer Churn Rate

A queue management system always have digital signage displays. These displays are installed at strategic places to be visible for everyone inside the premises/waiting areas. The purpose of these digital signage displays is to provide live queuing information which includes the active queues, available counters, and at least one token number that is being currently served on any counter. These information keep the customers and visitors engaged, they keep reading them in anticipation, so their brain got diverted from the waiting alone. Another great feature of a queue management system is that it also allow the businesses to push multimedia content on those screens along with the queuing information.

Queue Management System Improve Waiting Experience Which Reduces Customer Churn Rate

Businesses can play videos, informative content, adverts and anything else which will keep the customers engaged in it. Moreover the queue management system also provide audio announcements, which call the token number and the counter number, it can also be in multilingual and will also keep the user’s attentions away from the waiting. These are great tools to improve waiting experience. This way the customer waiting become easier and it reduces the customer churn rate.

Queue Management System Boost Staff Performance Which Help Reducing Customer Churn Rate

The queue management systems are very effective in boosting staff performance. It can reduce their work load by automating various customer journey steps. An efficient queue management system can also accelerate the service delivery process by minimizing the agent/customer efforts due to automation and integration capabilities with third-party systems and other business tools. The queue management system can fully control the customer routing and customer flow which significantly reduce the work load of the staff. The audio-visual announcements and dedicated agent dashboard is also a great help. Without a queue management system the employee had to put more efforts on managing the queues and dealing with the customers who are waiting in lines or queues. Due to manual queue management the customers can easily end up in wrong queues, and a lot many other problems can also occur.

Queue Management System Boost Staff Performance Which Help Reducing Customer Churn Rate

With a queue management system all these problems can be eliminated. The employees can focus more on their primary tasks hence their performance automatically got improved. A queue management system is also a great help for the agents/server and reduce their efforts by automatically preparing and providing them required information beforehand. The queue management systems can also relay the customer data to the next counter automatically when their ticket is called. This can save a lot of employee time and efforts. The employee performance monitoring and KPIs are a great source of accurate business intelligence data which help the businesses to effectively utilize their resources. A balanced work load make employees comfortable and satisfied, which boost their efficiency. A queue management system can effectively boost the operational capabilities of the entire branch. Which definitely improve the customer experience and the entire environment in the branch, and help reducing the customer churn rate.

Queue Management System Mobile App, Appointment Booking and Virtual Queuing Help Reducing Customer Churn Rate

In Dubai and all around the UAE the smartphones and mobile apps have become an integral part of our daily lives. In past few years, especially since the 2020, the smartphones and mobile app have become even more important. These days, the statistical data suggests that more than half of the internet searches are made from the mobile phones and people tend to spend hours on daily bases in UAE on various mobile apps. Which makes queue management system mobile app even more convenient solution for the customers. The businesses can significantly improve customer experience and customer journey by offering various innovative features via queue management system mobile apps.

Queue Management System Mobile App, Appointment Booking and Virtual Queuing Help Reducing Customer Churn Rate

For example, the branch locator and visit planner of the queue management system mobile app is one of the most used feature. It enables the customers and visitors to monitor and view live queuing information from various branches and then they can plan their visit accordingly, the branch locator can also provide navigation via Google Maps, so the users can also account the traveling time along with the expected time for each branch. There are plenty of other features which can be used to improve customer experience. Similarly an efficient queue management system also allow the customers and visitors to book an appointment either by the mobile app or by the online customer portal or the business website. Which can also provide all these information to ensure the customers will get a quicker service delivery. These all features are very effective in reducing customer churn rate.

Queue Management System Mobile App, Appointment Booking and Virtual Queuing Help Reducing Customer Churn Rate

Modern days queue management systems also offer virtual queuing which allow the customers and visitors to sign-up remotely for the virtual queues. For example the customers can sign-up using a mobile app, website, SMS, Email, appointment booking portal or any digital medium which will enroll them in the required queue. The customers and visitors don’t have to come to the business to be physically present in the queues, in fact they can only arrive at the very time of their turn and still they will be treated as they were present in the physical queue. The virtual queuing enabled queue management system can literally reduce the wait time to nothing. Which can significantly reduce the wait time. In addition to that the virtual queues also reduce the work load of the employees and boost their performance. Which also help reducing the customer churn rate.

Read More: How Can Digital Queue Management System Improve Customer Experience?

Conclusion

For businesses in Dubai and all around the UAE the customer satisfaction and customer happiness is very important as the market is very competitive and the customers have too many options to avail. Businesses often don’t realize how important it is to maintain a desirable environment and service delivery mechanisms. The customer churn rate is the number of customers who have arrived or signed-up but left without availing the service. There are several causes of customer churn and all can be directly or indirectly eliminated by the help of an efficient queue management system. The major cause of customer churn is the wait time and the bad experience at the business. An efficient queue management system can significantly reduce the wait time, it can improve customer experience by efficient and automatic customer flow, and other perks. The queue management system can improve staff performance and over all operational capabilities of the business which also help improving the customer experience and reduce the customer churn rate. The queue management system mobile apps and the virtual queuing are some of the modern features that are very helpful for businesses to reduce the customer churn rate. RSI Concepts is a leading queue management system provider in Dubai, UAE. If you need help with your queuing and customer flow or if you want to learn more, feel free to reach us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

Check out this blog: How to Set Up SMS based Queue Management System?

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