Skip to main content

Churning For More Business

Churn, more than ever, continues to be the source of business profit and drive in contemporary society.

Turnover of paying customers to one's books means showing an increased customer portfolio, no matter how temporary this increase can be.  Inducing them to use your services or buying your products can mean offering some interim concession, creating some excitement in the joining experience or differentiating your offer from your competitors.

This can be in passing on discounts in prices or rates. It may be linking access to frequent flyer rewards, providing nicely packaged gifts or increasing credit card points. In the past, this was reinforced by hiring a team of effective communicators in person or in adverts to push the package. It is sad these days that many on line offers involve interacting with just software - something is lost in this process but business costs are reduced and a new rising generation of potential customers may prefer it this way.

In having a high churn, shareholders and business owners are pleased to receive the eventual outcome, that is profit margin multiplied by the number of transactions. What simple common sense this can be. What has been neglected inevitably is that once a customer opts in, the level of engagement and service from the business invariably declines.

Once you lock in with an insurance policy, wealth management product or gym membership, do you feel increasingly neglected?   However, if a customer actively changes providers for utilities, telecommunications and subscription services, the incumbents may chase you intensely like forsaken lovers with emerging inducements you were not told of before.

It is all a game as old as human history. Commerce used to make profits on a single transaction, but today's financial markets thrive on benefiting sellers with trailing commissions as if they possessed imtellectual property.  Hence we are not surprised that in unethical cases, fees are still charged long after the initial primary transaction.

Churn can be seen in the frenetic reporting by media of even small changes in prices, whether of currency, options or man made instruments. Churn is the vitality of gambling, churn can be creating value out of nothing at all. Churn thrives on sentiment, speculation and movement. Churn is betting on change and making money out of it. The fast paced and more responsive internet enables the better managing of faster and larger transaction universes. The day trader is only a simple example of the utilisation of churn, which underlies all the financial centres of this world.

To the ordinary individual, better managing churn is the key to better purchasing decisions. The seller need not have a monopoly on making a buck out of churning. It is all a game beyond haggling and bargaining. Understand why sellers like churning.


Popular posts from this blog

Chung Ling Alumni Association Petaling Jaya Klang Valley

Telephone Contact:  +603 7957 0318

85 Degrees Bakery Cafe Hurstville NSW

There are several outlets of this bakery cafe for several years now in Australia.  Did they coem from the USA?

Each franchised outlet is in a busy area, often in suburbs so-called by a diverse Asian demographic.   The one in Hurstville is rather roomy and lots of baked stuff on its shelves.   The base of Sydney operations is in Chester Hill, a suburb south-west of the Sydney city centre.

Some of the cake creations would be viewed as rather leaning on the East Asian dimension  - Strawberry Angel (with chocolate base and top) and Mango Cheese ( with yoghurt).   However, to counter this perspective, there are also Death by Chocolate, US Cheesecake, Coffee Brulee and Blueberry Marble options.    

The pastries are definitely filled with ingredients more suited to perhaps Anime loving fans and non-mainstream cultures - for example, garlic, pork, tuna, green tea, red bean, shallots, pork floss, coconut, Hokkaido butter cream and Boroh or pineapple buns.   Sung seems to be a variation emphasised…

Penang - Lor Mee

Lor mee is another of those street foods that are not commonly available in Western societies, but are easily found in southern China, Thailand, Malaysia and Singapore. The dish is iconic of the Teochew Province in China and has been mainly brought to equatorial climes by immigrants over the last few centuries. It combines snippets of ingredients in a thick savoury sauce. Above, the lor mee with roast pork and sliced hard boiled egg accompaniments at the Fong Sheng Cafe, along Lorong Selamat in Georgetown, Penang - the place was introduced by May Wah and Henry Quah.

The cafe harks back to the seventies or eighties - and maybe earlier - what caught my eye were (above) freshly blended fruit and/or vegetable juices and (below) metal and plastic contraptions of the food trade.

Hot and cold drinks are easily on offer from the cafe (above and below) at very reasonable prices.

Another version of the dish (below) taken whilst Bob Lee was enjoying them in another cafe or coffee shop in Georgetown…