Published in: Conversion Rate Optimization

5 Explanations for a high Dropout Rate and how to improve it

Published on: September 2, 2025

What is the dropout rate and why does it matter?

The churn rate measures the percentage of customers who stop buying or unsubscribe from your service in a given period. It is not just a number: it directly impacts your revenue and profitability.

Various studies remind us that acquiring a new customer costs between 5 and 25 times more than retaining an existing one. Furthermore, customer churn reduces Customer Lifetime Value (CLV) and limits growth. That is why understanding why your customers are leaving and acting quickly is key.

5 common reasons why customers leave

1. 1. Poor customer service
      Excessive waiting times or unhelpful responses can be enough to make a customer decide to try the competition. In fact, 32% of customers stop buying after just one bad experience (PwC).
   2. The product does not meet expectations
      If the experience does not match what was promised, abandonment is almost inevitable.
   3. Uncompetitive prices or better offers from competitors
      In saturated markets, comparison is easy. A small difference can be decisive.
   4. Lack of innovation or personalisation
      Customers expect to feel that a brand understands them. According to BCG, 40% of consumers spend more when they receive personalised experiences.
   5. Poor connection with the brand
      When a company fails to maintain relevant and proactive communication, it loses relevance in the consumer’s mind.

Early signs of neglect

The good news: there are signs that anticipate customer churn. Some of the clearest ones are:

• Decreasing use of the product or service.
• Frequent complaints in customer service.
• Low scores in satisfaction surveys (NPS).
• Last-minute cancellations or abandoned shopping carts.

With digital analytics and customer experience tools (such as Session Analysis or Monitor Asset from Luce IT), it is possible to detect patterns of abandonment and take timely action.

The importance of listening: how to find out why they are leaving

You cannot reduce the dropout rate without understanding the reason. Some effective actions:

• Post-cancellation surveys: simple, direct and with the key question: “What could we have done better?”.
• Review and social media analysis: detect trends and recurring complaints.
• Interviews with former customers: less scalable, but very revealing.

At Luce IT, we have seen how integrating the Voice of the Customer (with feedback and review analysis tools) provides actionable insights that enable the redesign of products, services, and processes.

Effective strategies for reducing dropout rates

1. 1. Improved customer service
      Omnichannel, shorter response times and proactive support.
   2. Loyalty and rewards programmes
      A good points scheme, VIP membership or exclusive benefits reinforce loyalty.
   3. Personalising the experience
      Offers tailored to purchase history or real-time recommendations increase retention. With hyper-personalisation solutions such as Dynamic Yield and NBX (Next Best Experience), it is possible to offer unique experiences.
   4. Intelligent assistants to prevent abandonment
      Example: Luce IT’s PIA (Prompt Intelligent Assistant) accompanies customers through critical processes (such as online registration) and has been shown to improve conversion rates in banking by 20%.
   5. Continuous improvement based on data
      The combination of session analytics, data quality and omnichannel monitoring helps detect struggles and correct them before a customer decides to leave.

Measure, learn and continuously improve

Reducing dropout rates is not a one-off action, but a constant cycle:

• Mide: tasa de abandono, CLV, NPS, First Contact Resolution.
• Learn: analyse information, detect risk patterns.
• Improvement: implement changes and measure again.

Companies that focus their strategy on customer experience achieve tangible results: up to 80% more profits according to Forbes.

Customer churn is one of the biggest risks for any business. However, with a clear strategy that combines active listening, personalisation, loyalty building and technology, it is possible to significantly reduce the churn rate and increase loyalty.

At Luce, we help brands in banking, retail, tourism and other sectors to identify the real reasons for customer churn and design experiences that retain and build customer loyalty. From intelligent assistants to advanced personalisation platforms, we have the technological assets and expertise needed to transform customer churn into sustainable growth.

👉 Want to know how to reduce the churn rate in your business?
Let’s talk and design a retention strategy tailored to your customers together.

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