ERIC SIMARD - STOCK.ADOBE.COM PHOTO The results of a new study, titled “The Psychology of Churn,” commissioned by the Recreational Boating & Fishing Foundation show an increase in the number of people leaving boating and fishing, despite record numbers of new participants in recent years.
Experts say there is significant value in learning how to reduce churn. According to Forbes, new customer acquisition costs have increased almost 50% in the past five years. Bain & Co. and the Harvard Business School say that retaining 5% of lapsed customers can result in a 25% to 95% increase in profits. That’s because existing customers are up to 14 times more likely to make a purchase than new prospects, and they spend 31% more than new customers.
“Learning how to reduce churn is just smart business,” RBFF president and CEO Dave Chanda said in a statement. “To gain insight into why people chose to stop fishing and boating and what might be done to bring them back, RBFF engaged global market research firm Ipsos to utilize behavioral science techniques to compile ‘The Psychology of Churn.’ ”
The study used four systematic experiments and observation strategies to track online chatter and conversation on social media, held direct discussions with people who left the activities, and employed other techniques to identify barriers to participation.
Takeaways that differentiated lapsed anglers and boaters from active participants included:
1. Lower interest in being outdoors
• Lapsed anglers and boaters stick to a smaller, more routine set of activities.
• Lapsed anglers and boaters are less likely to participate in outdoor activities compared with retained participants.
2. Lack of a shared and social identity
• Retained anglers and boaters have more people in their inner circle who also participate in the activities.
• Retained anglers and boaters have a strong nostalgic tie to the activity that kindles a deeper connection versus those who have lapsed.
• Retained anglers and boaters view their lives and values as more in line with those of a typical angler or boater; there is an aspect of “identity” that plays a role in participation.
3. Lower commitment and less positive first impressions
• Retained anglers and boaters recalled their first impressions more positively than those who have lapsed, suggesting hurdles to trying again.
• Overall, there was a lower commitment to fishing and boating with most lapsed participants averaging seven to eight days on the water and only during warm seasons, compared with 20 to 22 days for retained participants. Lack of access is also in play for lapsed boaters.
4. Underlying mindset differences
• Lapsed participants find it harder to relax, are less adventurous and prefer the familiar, which may lead to an avoidance of new activities.
• Differences in underlying, non-conscious mindsets means opportunity for tailored messages.
To help fishing and boating stakeholders better understand churn, RBFF is hosting a webinar Sept. that will include an overview of the research, why addressing churn is important, common themes as to why people bail, and actionable insights and tactics to retain them.
Click here to register.
