Around 50% of businesses fail after five years of operation. Of course, all sorts of factors lead to a business’s demise: poor management, a competitive market, lack of USP… you name it. Ultimately, though, it all comes down to cash.
To flourish, businesses require sufficient money coming both in and out of the accounts. And for that, customers are of fundamental importance. Customers equate to revenue, which provides the cash that fuels the business. But there’s more:
For companies to succeed, they need customers. For companies to thrive, they need to reduce churn and retain them. Higher churn-rates cause a ‘one step forward two steps back’ turnstile effect. It’s a constant battle for a business to generate enough custom.
Are you looking for tips to turn the situation around? Let us help. Keep reading to learn 8 top ways to cut churn and retain customers.
1. Figure out why you’re losing customers
In other words, ask yourself why your current churn rate’s so high. It’s an obvious first step to addressing the problem. You can’t fix anything if you don’t even know the situation. Why are your customers leaving?
Don’t guess. Without data, you’ll be shooting in the dark. The only way to get an accurate insight is to speak with people actively. Use exit surveys or speak with past customers on the phone. Inquire about their decision to leave. This direct feedback can then be used as data to address the issues.
2. Communicate with current customers
Customers move on in a heartbeat. The only way to keep them interested is to engage with them. If you’ve already got a heaving email list, then your job’s exponentially easier. Make it your mission to interact with your customer base regularly. Email and social media marketing are incredible tools at your disposal to keep yourself top of mind.
Imagine trying to sustain a personal relationship without communicating. It wouldn’t work!
Remember, though, that customers want to feel valued by your business. They don’t want to be sold to. They want to be treated as individuals and offered useful personalized insight and suggestions. Here’s more info on digital marketing strategies in 2019.
3. Become essential to the customer
Customers stick around if your business makes their lives better.
If it’s in their interest to stay, then you can guarantee most of them will. That happens by creating an outstanding product/service and ensuring everyone knows it. You want your business to become fundamental to a customer’s life.
One example of how to do that is by offering a free trial of your premium product.In that time-limited period, make sure the individual gets a taste of its power and full functionality. It works like a drug: a prospective customer feels the effects and can’t wait for more. They get hooked; it’s far harder to turn their back when the trial’s over.
4. Go the extra mile
Business is inevitably competitive.
No matter the niche, you know there’s always a competitor waiting in the wings to steal your customers! It’s your job to go above and beyond to stop that from happening. Going the extra mile to provide the highest quality customer service will always reduce churn. Happy customers stick around.
Send hand-written thank-you notes. Email out regular thank you discounts and freebies. Hold free webinars. Create comprehensive tutorials. Do what you can to provide the best service or product possible.
5. Don’t treat everyone equally
Not all of your customers are equal.
Your business is likely to have a loyal following of die-hard customers who’ve been with your forever. Then you’ll have the customers who accept the free trial and stop at that. You might have another group of occasional customers who stop by now and again. Take a divide and conquer approach to reduce your rate of churn. Essentially, each group needs different input, outreach, and support. By separating them, you can target your retention attempts more effectively.
Billsby Value Score can help you identify and reach out to your most important customers.
6. Identify the red flags
This point follows on from the last.
It’s essential to spot customers on the verge of leaving. Look at key metrics such as engagement, response rates, usage, and web visits. Dwindling numbers indicate a red flag. That’s your cue to step in and persuade them to stay.
Send out targeted emails with specific messages. Send them offers, ask how you can help, tell them that you miss them! What’s more, you can automate the entire process. Your system identifies red flags and triggers an automated email sequence to keep them engaged.
7. Improve the user experience
Customers are easier to retain if they’ve had a positive first experience with your business.
In essence, effective onboarding plays a central role in reducing churn. For that to happen, the user experience must be seamless. Consider web-based businesses. It’s crucial that your website is easy to navigate, fast-running, and facilitates ease of conversion.
Fail in that regard and a website will be both less likely to convert, and unlikely to see return customers. Likewise, your product or service must make a quality first impression. It should be clear how a prospective customer stands to gain.
Time to reduce churn
There you have it: seven key methods to reduce churn and drive revenue as a result.Around half of businesses fail with the first few years of operation. A plethora of reasons explains why that’s the case. However, insufficient custom and the ensuing lack of revenue will forever be a driving factor in it.
As we’ve seen, customer churn is the enemy of business growth. It tears your building down as quickly as you’re constructing it. Retaining customers is pivotal to driving revenue and growth in general.
Hopefully, this post has highlighted exactly how to do it! And the eight? Download our free eBook!