7 Simple Ways To Reduce The Customer Churn
The term ‘customer churn’ may seem new to some of you. To make it clear for all, customer churn is the percentage of customers who decide to discontinue using any particular service or product. Generally, it increases when the business fails to provide quality.
According to a study by Bain & Company with Earl Sasser of the Harvard Business School, hardly 5% of existing customers can add up to 95% of profit rate for a business which ultimately shows the importance of customer retention.
Here are some of the most commonly obtained reasons for increasing customer churn. Check out and know which one you feel has affected your business growth.
1. The customer dies.
2. The customer exits the market.
3. The customer has diverted to one of your competitors.
4. The customer doesn’t see the same quality in your products or services as he once used to.
5. The customer is getting similar services or products at lower prices on another platform.
6. The customer has found haywire in your services or products.
The reason could be any of the above, but the impact is similar. It adversely affects your business’ reputation online and encourages other customers to part their ways with your business.
Here are some other factors which can help you know how you can improve your customer experience and reduce the customer churn rate to a considerable extent.
- Be close to your customers- Your customers may or may not be showing an interest in your upcoming products or services, but make sure you stay connected with them all the time. Try to make them feel valued by delivering personalized experiences, which help change the mindset of a customer while helping you reduce the customer retention rate for your business.
- Take actions before they make decisions- Make sure you act before them as this may probably be your last chance to get your existing customer back and improve their customer experience. With customer journey mapping at your palm, you can analyze when the customer may not be any more interested in your products or services. Then is the time to act and get the ball in your court again.
- Sound user-friendly in your approach-There are times when a customer decides to give up on products or services just because they start sounding complicated. So, ensure that you set up an onboard training session for your customers and let them understand that the offered product or service allows easy access. This would also allow you to answer several queries raised by the customer, so make sure you know your products or services from every nook and corner.
- Showcase offers- When you feel your customers are losing interest in your products, show them some offers or discounted deals to strengthen your customer retention process. The offered deals can be decided on any occasion or personalized events.
- Request feedback- When you let your customers feel valued, you can never experience an increased customer churn rate. Let them know that their review matters. Ask for genuine feedback on the services or products offered to see where you lack behind or what is the best thing in your product or services?
- Analyze the problem areas- Evaluate each stage adequately to understand where the customer is facing maximum problems. It would also help you in knowing when does the customer refuse to invest in your products or services. Currently, many businesses prefer to hire strategists to analyze such aspects, which ultimately helps to understand customers' mindset at length.
- Understand their requirements well- Until and unless you are clear about your customer’s expectations from you, it is hard to deliver them what they desire. For this, you can conduct a survey, and try communicating with your targeted audience closely.
Its time you start implementing these tricks in your business too.
Reducing the overall rate of customer churn comes with a lot of efforts. You cannot bring results just by being constant, but you need to improve your services and products to let your customers feel valued in every manner possible.