Customer churn can be defined as the amount of customers who quit utilizing your organization's product or service after a specific timeframe. To reduce customer churn, it is important to identify the reasons for this and deal with them before they cause more harm. Here are 10 helpful strategies that will help you eliminate the problem in the bud.
1. Analyze And Measure Your Churn
It is impossible to minimize customer churn if you do not have access to the right insights to analyze and use as a benchmark. To put it bluntly, you cannot measure what you measure.
The calculation of the matrix is simple.
What do you need to do to look at the big picture and ask some tough questions.
- On a monthly and quarterly basis How many customers are you losing?
- How long do customers stick with you before you decide to exit?
- How many customers did you lose within a certain time?
You can use a CRM tool to help you get answers to these questions easily. What's more, you can integrate a live chat software such as Duvim with your favorite CRM tools to capture data more accurately.
A CRM will help you see how many customers are left or the number of new customers added. But the use of live chat gives you insight into why customers left the business.
Apart from these, you can also choose channels like:
- Phone
- Social Media Platform
In short, these channels will help you find out why your customers leave and work towards a solution that inspires them to return to your brand.
2. Market For Current Customers And Prospects Alike
If your marketing initiative is only to attract prospective customers, think again.
Retention of existing customers is as important as acquiring new ones.
If anything, increasing customer retention rates by 5% can increase profits from 25% to 95%.
This implies:
- Never lose sight of your existing customers
- Think about equally dividing the marketing budget for both prospects and existing customers
- Work on fostering deeper relationships with both new and existing customers
In short, you need strategies that help you market to current customers and prospects. You can get it:
- Email and newsletters that focus on your products
- Latest news updates on events
- Incentives and Discounts
- First preview of a new feature
- Feedback and suggestions
These strategies will help your customers feel exceptional and control your churn rate proficiently.
3. Chase The Right Audience
It is nothing unexpected that a portion of your customers would signup for a product without understanding if it meets their needs or not.
Such sign ups or even product purchases are the result of a high percentage of subsequent consumer. This is because they later find out how the investment made is not suited to their needs.
Understand this, closing in on the wrong target audience can result in customers who can juice up your number in the short term.
If you are facing it, it is time to revise your marketing strategies that attract the right engagement for your brand.
In short, design and position your marketing collaterals so that only potential customers and customers find you. Your customer churn rate will automatically decrease.
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4. Set Reasonable Expectations From Go Set Go
One of the most common reasons for a high customer is failing to deliver on the promises made. For reasons known to businesses, it is a common practice to promise and deliver. The story of over-promising begins with the initial sales call.
There can be several
reasons for this:
- They do not wish to close the customer
- They have sales targets to meet
- They only want to tell the customer what they want to hear
In the long run, it does more harm than good when it comes to light from reality.
You are setting great expectations, which will be really difficult to meet. And when this happens, your customers may experience a decrease in dopamine production and, in the end, feel bitter and betrayed about the entire episode.
The smart way forward for all companies is to focus on what they are capable of doing. Of course, accurately training your sales team on what the company is capable of, is an important aspect of the churn reduction strategy.
You can work on employee training through two approaches.
Training Documentation
After assessing your capabilities, it is important to keep your sales team updated about this so that they set realistic customer expectations right from the start. For this, you can start with employee training documentation. This will help you create a repository that members of your sales team can always refer to during interactions with the customer.
If you find the right training documentation software, you are likely to know what other terms your sales team members search for most often. In this way you can also create documents for commonly searched words.
Online Training Course
Online training courses can be taken by both your existing employees and new sales team members. If you have covered the knowledge gaps and understood how realistic expectations have been set for your customers since the beginning of the journey, you can also add an employee training software to test and build your training course. Can be eliminated.
5. Nail The First Five Minutes
"With me, it's always about first impressions." - Billy Zann, actor
It has to be believed that this is about the first impression.
But what if you've only got five minutes to do this?
You will need an action plan that helps you make an impression in the first 5 minutes of the conversation. This action plan may include:
Be Proactive
For this you can use live chat software and start conversations at strategic moments. However, we ask that you monitor your visitor's behavior for a while before starting a conversation.
Be Empathetic
Even if you start a conversation, it does not mean that you have not won over your customers. The moment you start a conversation, try to understand their tone.
Are they stressed? Are they angry or just relieved to get your services?
It would be wrong to jump to conclusions and may upset your customers. Be thoughtful and see why they wanted your services in the first place. From there, you can continue the conversation.
In addition, you can
work on:
- Set the tone correctly
- Finding out which product or service recommendation would work best for them
It is working towards creating a 'create wow' experience early in the relationship. Focusing on the strongest price points to ensure they remain committed to you.
The most important thing is to make them love your product. If they believe in it, they will always cling to it.
And don't forget to associate reliable customer service with it. This is a sure shot recipe to reduce your customer churn rates.
6. Constantly Remind Customers Of Their Value
Why did your customers choose to sign up with your brand?
Maybe because you had something that none of the competitors in your industry did. Also, because they saw the value in your offerings, which attracted their attention.
But with each passing day, your customers will forget how the brand's offerings have added value to their lives. And don't forget, your competition strives to go its own way on every available opportunity.
This is a challenge you cannot survive for long.
Remember that customers have little or no memory of why they chose your brand in the first place.
To take the necessary steps to reduce customer churn, you need to make a continuous effort in the true sense so that your customers constantly remember about the value proposition of your brand. It is absolutely important to be at the top of their mind.
You can adopt the
following methods:
- Send regular emails that highlight the best features and benefits of your offerings
- If the product or service has new features, communicate with your customers
- Enable free use of new features for a limited time period
- Share case studies regularly
- Always create and distribute informative content such as tutorials, infographics to highlight the value and use of products
The goal is to constantly strike the right cord with your customers. This confirms how offering your brand is essential in their daily lives. By restoring their trust in you, customer development can be restricted to a great extent.
7. Build And Maintain Personal Relationships
72% of consumers consider it poor customer service if they have to explain their problem to many people.
As long as your customers talk to various operators stating their problem, they are tired, irritable and ready to leave.
But what should you do to avoid the scenario?
Create a strong omnichannel strategy to build and maintain personal relationships with customers.
With an omnichannel communication strategy:
- Customers will not have to repeat themselves every time they come to a new support operator
- Operators will not have to ask the same questions that may disappoint your customers
- Operators will get more opportunities to create personalized experiences for customers based on their past interactions
8. Get Your Pricing Structure
Customer retention depends a lot on what your products and services are worth, and the value they are offered.
If your customers consider your offerings to be high end against the value generated, then chances are they will switch to a competitor who offers a similar product or service at a lower price point. On the other hand, if you buy your product at the lowest price, your customers may lose trust because your product offering appears to be affordable for the price.
Whatever it is, you do not want to be in either of these two situations, because both can churn.
Is there a way to fix this? Yes, you can optimize your price for the price being offered.
Resolve the concerns of price-sensitive customers and make sure you get your model right from the start. In addition, you need to perform against the price being offered. This can be done by aligning your values with your value matrix.
Remember that you can only retain your customers for a long time if you can successfully match your pricing structure with your desire for it.
More or less incorrectly charging for your product offering and price, or not updating the structure to reflect overall economic inflation is a strategy that is not going to work. Your customer churn rate will continue to increase.
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9. Flip Your Weakness Into Profit
No business is perfect. They are bound to make a mistake at some point. What's important is how they deal later. It defines their character and personality, and at least how their customers view the brand.
Customers today are digital native. Information is constantly exchanged. But this exchange of information should not be a mistake because you have handled them poorly.
If you have missed a deadline or have not been able to resolve your customer query effectively, then the way forward is for your mistakes. Definitely do not make excuses or try to make the customer a scapegoat.
If you realize your mistake, make sure that you contact your customers immediately. Tell them how you have figured out a solution to fix it.
Your customer loyalty will increase manifold when they see that you are 100% honest with them. In the process, you will also reduce churn.
When customer trust and loyalty are increasing, they will be more than eager to forgive your mistakes, and churn is unlikely.
Accept your weaknesses and work on improving them instead of ignoring them. It is all about transparency.
Start by listening to your customers, as this is the best way to identify your weaknesses. Surveys work well in this scenario.
You can create an NPS survey to help your business understand why your customers are not returning to your brand or why their loyalty has changed to another brand.
You can get the most valuable insights and how your customers see you as a brand through these surveys. When you understand customer opinions, their needs and expectations, to show that your relationship becomes even more personal when you explore this path.
10. Collect Feedback From Customers
To keep your customers from churning, this is probably the simplest yet powerful way to accomplish your objective.
Harvard Business Review published a new study that highlighted the fact that the act of seeking customer feedback has the power to keep customers satisfied and prevent churn. They will keep coming to you for more, even if they do not respond to the survey request.
Many consumer psychology theories have concluded that the simplest of feedback surveys is pampered customer satisfaction. It also does a lot towards reinforcing the progressive sentiments that are troubling for the brand and their offerings. In short, more sales in the future.
You can use a survey builder software to create and send customer satisfaction surveys.
Using this survey will help you:
- Retain customers
- Build relationships with new customers
- Strong delightful customer experience
Asking for opinions and asking questions leads to decision formation. This does not happen in silos. The fact is that they love the brand and the feeling can only be realized when you ask for feedback.
When your strategy is to reduce customer churn, collecting feedback goes a long way in developing personal relationships between the product and the customer. The end result is that the brain has a top recall because the product is not present only in their subconscious.
With the bonds strengthened, it is enough to hold them and prevent poaching from their competition.
But don't stop here. Gathered the Act on the response and took actionable measures to make the necessary changes. It tells your customers that their opinion really matters. And the moment they realize it, the churn rate will decrease.
Even if you make mistakes in the future, your customers will still be more generous and willing to stand by you.
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