The business, whose premier purpose is to attract the customer gradually, and provide the service or product.
There is no business in the world that never lost their customer!
For acquiring new customers, businesses spend lots of time, money, and resources but, it becomes disappointing when businesses lose the existing customers or those fresh customers who visit the company website once or twice then never come again. That’s why reducing customer churn(aka lost customer) is a priority for the business that also creates a direct impact on profit.
Is Churn Matters?
Churn really matters for companies as it exhibits how companies are keeping the customer from their side. According to the research, it has been shown that a 5 percent increase in customer retention can boost the profit of around 25 percent to 95 percent. Hence, preventing churn is key to enhancing revenue.
Every company’s desire is to hold a 0 churn rate, but that is almost impossible. Still, there are various strategies that help businesses to dilemma the rate of churn, and in this blog, we are going to discuss five effective ways to reduce the churn.
Have you ever heard “First Impression Is The Last Impression”? Hence, the impression is everything. Unsatisfied onboard will destroy your impression and image in front of a new customer. According to the Oracle survey, poor customer service is the main reason for customer loss. As per the statistic, 89 percent of customers shift toward the competitive company after receiving poor service.
Think, would you like to leave your customer after signing them? No setup service, no support service, nothing. Think, would you like to leave your customer after signing them? No setup service, no support service, nothing. Provide a high onboarding process to the customer and make the smooth interaction between customer and product. Generally, the onboarding process includes training and development apart from this; the business leader should also explain the customer goal and steps to fulfill the objective, by serving extraordinary customer experience from the beginning with the best practice.
Target Right Audiences
No matter how sophisticated your retention tricks are, they may all go down the drain if you are attracting the wrong audience. Wrong fitted customers and businesses mostly lead toward the high churn.
Choose the audiences who are looking for a long term bond, first talk with the customer about “free” or “cheap” will always be the customer who will become an ex-customer soon. Temporary customers who discontinue the bond within a short period will be the reason for the high churn rate. Hence, it’s better to focus on the customers who appreciate and are ready for long term investment. Quality is everything.
Another prominent strategy for reducing the churn rate is to offer incentives to the customer. Incentives may include discounts, special offers, loyalty programs, etc. These small efforts are for a long time and show the customers that their business is also equally important for you.
These incentives should offer in appropriate circumstances like, if the customer reaches at the end of the contract and you are stressed about their renewal; in this case, you can offer a discounted renewal that compels them to stick around. Another thing that has to be considered is the customer’s need. If you predict that the customer is going to terminate the contract soon due to realizing the product is not what they were looking for. Offer them incentives of new features and strategies and insist them to stay onboard. These kinds of small efforts help you to change the decision of the customers of the contract cancellation.
Consistent Engagement With Customers
One of the most effective strategies to reduce churn is regular interaction with customers. An admirable engagement strategy always helps to stop the churn of potential customers before it takes place. Drop the reactive communication and choose the proactive instead, to boost real-time engagement with customers. According to the recent report, the most preferable and effective customer engagement channel is email marketing.
For new customers, provide sufficient and versatile content of key features and services of your product and keep them updated about the latest news, deals, and offers. Engage with customers via different or almost every channel. There are different ways to communicate and engage with customers like email, website, social media, blogs, and chat. At last, don’t forget about the feedback, it is also a way of engagement with customers to take their feedback after a while and show that you are considering it on a serious note.
Improve The Product
The quality of the product is the most significant factor for retaining your customers. Customers are with you because of your product, and poor product or unsatisfied customer needs is the main reason for churn. Hence, your product should always be according to the customers’ needs and match their expectations. So, as soon as customers get an alternative better option than your product, customer turnover starts. In order to reduce churn improve the quality of your product by analyzing key features and customer requirements.
You can improve the quality of your product by removing the unnecessary complexity. Connect with your ideal customer and do discuss the features they think it’s needed. And then modernize your product based on features. Do the improvement in the product through a continuous loop of feedback.
Reducing the churn rate is not an overnight achievement; you need to hold patience and form customer retention strategies step by step. Invest in the right tools that can give nurture to your product and make better customer relationships. Follow the above five points that will definitely help you to minimize the churn rate.