No business is exempt from customer loss, but the key to lasting success is to keep the rate of customer churn as low as possible. Use these strategies to help you retain a loyal customer base, and prevent your clients from heading towards the competition.
What is Customer Churn?
Customer churn is defined as the percentage of customers that leave your business for another, during a specified period of time. This number can be calculated by tracking your numbers at the beginning and end of the quarter and finding the difference. Once you have determined how many customers have left, you can divide that number by the number of customers you started with to arrive at the percentage of customer churn.
Tips to Reduce Your Rate of Customer Churn
Stay connected to your customer base by providing engaging content across a variety of platforms. Showcase the benefits of your product or service with routine updates about new products, company news, special offers, deals, or upgrades. Email marketing is an effective tool for customer engagement and a great way to stay in touch.
Enhance Customer Service
Poor customer service is among the top reasons for customer churn. Be proactive with customer concerns and make a point of anticipating their needs before problems arise. By making each customer feel like a priority you can help to secure their loyalty and dedication to your brand.
Be an Active Listener
Pay attention to complaints and concerns, and act quickly to resolve them. When you consider that over 95 percent of unhappy customers simply leave rather than voice their issues, it’s important that you take those who do at their word.
Share insights, blog posts, special offers, and other assets beyond your product or service. Encourage customers to subscribe to your newsletter to remain in touch on a daily or weekly basis and show them why your organization provides exceptional value above the competition.
Get to the Root of the Problem
Find out why customers have chosen to leave your business by asking them why they have opted for a different brand. This can be done by phone, email, or exit survey, but whichever method you choose, use the data you collect to your advantage to prevent further customer churn.
If you offer your customers top-notch customer service, ask questions and analyze the data, the closer you’ll get to offering true value to your customers, and the more you’ll reduce your churn rate.