There is no business in this world that has never lost a customer.
Now, even though every brand and business deals with it differently, most companies start looking for new customers to replace the loss, while there are also businesses that throw all their resources for analyzing what went wrong and how they can successfully place a lid on others customers who are also trying to run away.
This problem is known as Customer Churn- which relates to the number of customers that leaves a brand during a provided period of time.
Therefore, it is natural that churn is really a headache for most brands, as it reflects how good or bad they are at holding back the customers by their side.
Now while according to Forrester, it costs 5 times and even more to obtain new customers, and 16 times more to bring a new customer to the same level as an existing one, in a report published by Harvard Business School it states that a 5 percent increase in customer retention rate results in 25 to 95 percent increase in profits, while 65 percent of any company’s revenue comes from existing customers.
Therefore here are 5 golden tips for stopping customer churn immediately, as customer retention even according to KPMG is the main driver for rapid business growth.
1. Analyze Why Churn Occurs
While this may sound pretty obvious, nevertheless it is not easy to find out why customers are leaving.
Now, the best way to do this is to talk to your customers.
Do not go by the lazy path and send your customers exit surveys, but rather call them up and ask why the left your brand, as more than 68 percent of customers leave since they assume that company’s do not care about their needs.
In fact, communicating with the customer does a miracle in analyzing churn, as it immediately provides the VoC (Voice of the Customer) feedback on whether your offerings caused troubles or helped in solving the problems faced by your customers.
2. Engage With Your Customers
Another way to stop churn is to proactively engage the consumers with your offerings.
Hence, provide your customer reasons to come back by showing them the value of using your offering(s) as part of their daily workflow.
For starters, provide ample and versatile contents illustrating the key functionalities of your offering(s) and also share regular news updates like announcements on upcoming upgrades, special deals and more.
According to a report published by Marketo, the most efficient customer channel for B2B brands to reach out their customer base is through email marketing.
However even before contacting your customer, start by analyzing the customer’s journey with your brand, which can easily provide you a clear and transparent picture of all the customer’s interactions across all touchpoints and channels through every stage of the customer’s lifecycle, which can help to present the right content at the right place and time.
If you are using an easy to use CRM for your business growth, you can also use social listening which can help you to keep your finger on the pulse of what is going on terms of customer satisfaction with your offering(s).
3. Educate Your Customer
This churn-prevention trick graduate naturally from the point mentioned above.
Provide enough good support or educational materials which can reduce churn and increase retention rate.
For this offer free ongoing training, video tutorials, webinars, product and service demos or rather to say, anything that makes your customers feel comfortable and informed.
In other words, demonstrate to your customers the full potential of your offering(s) and make sure that your customers have a successful implementation and onboarding.
Do not just provide your customers with the tools that work, but also provide them training on how they can use these tools to harvest maximum profits.
4. Provide incentives to your most valuable customers
As sneaky as this might sound, once you are using a business tool like Salesforce, or even any other Salesforce Alternative CRM it is easy to separate the most valuable customers from the rest in your customer list and thereafter go an extra mile to ensure that at least they are getting what they have paid for.
Well, let us be honest, these are always the customers you want to keep the most, and so you must take extra care as they are bringing in the biggest revenue.
Therefore, use your easy to use CRM software, to segment your customers into groups based on their profitability, readiness to leave and also their likelihood to positively respond to your offer to stay back with your brand, which can greatly help you to reduce customer churn.
Additionally, you can also offer incentives, like special offers and discounts to those customers who were tagged as likely to defect, but before that evaluate whether offering an incentive is beneficial for you, which implies you have to be sure that the price of your retention program do not ultimately offset the profits that you intend to save from these customers.
5. Pay attention to complaints and provide better service
You must have already anticipated this final tip even earlier.
Yes, this is the most powerful method to keep the customers by your side.
Indeed, in any industry and for any brand poor customer service is the biggest cause of customer churn.
In fact, in a report published by Oracle on the impact of customer experience, it states that the two key reasons why consumers leave a brand are incompetent and rude staffs and unbearable slow service.
Therefore, never undervalue the harmful effect of poor customer service, as studies show that 58 percent of consumers will never use a brand again after one single negative experience and 48 percent who had a negative experience will tell more than ten people about it.
Hence to conclude make sure that you provide “world-class” customer service that makes your customers (above all) happy, which can be done by paying attention to their complaints and use an easy to use CRM (Customer Relationship Management) software for fostering better relationships with your customers that can bring in rapid business growth.