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5 Proven Strategies to Reduce Customer Churn Rate
Your customer churn rate is an excellent way to tell how your business is dealing with its customers. Even though every company would like to have a 0% churn rate, in reality, this is impossible. But, what is very doable is to keep this rate low enough so that it doesn’t affect your success. It isn’t an easy road, but mind that just a 5% increase in retention rates can in return increase your profit by 95%. So, what are you supposed to do in order to stop losing customers and start retaining them?
When it comes to customer service we really mean it to be outstanding. The reason behind is simple: poor customer service is the number 1 reason why 89% of customers move on to work with a competitor brand. Furthermore, 47% of consumers would recommend a business to others if it provided better customer service.
Customers want to feel appreciated. Even more, they want to see how their opinion is bringing value to your product and service. Responding to feedback is a great start, but if you want to go ahead with your business, you have to do better than you did previously. Here are a few steps to consider:
You know the saying: prevention is better than cure. By encouraging communication not only you will establish a good customer relationship, but you will receive some genuine insights about your product or service by the people who use it – and they’re the best source if you’re willing to improve.
Just because a customer subscribed to your email list, or bought your product or service doesn’t necessarily mean that they will always remember your value as a brand. In fact, proving your value to customers is something you should do regularly so that they don’t forget what is it that makes you special compared to the competitors. If this is what causes your customer churn rate, here are few tips for preventing:
The competitive market is way too strong to not remind your customers of your value. This is where a lot of companies don’t put enough effort. They make it very easy for their competitors to steal the customers. Highlight your value and your customers will come back at you. Customers will remember your value and what it can do for them.
The onboarding process is the most crucial timeframe for retaining users. It is the first interaction a user has with the app. If you don’t impress the users in the first 20 seconds of onboarding, then you’re going to face serious customer churn.
Your onboarding can lack many things. But, from our experience, this is where companies go wrong, and what they can do right:
It’s going to be hard to prove customers how great you are if they can’t see that right from the start. That’s why the onboarding is all about impressing your customers. In order for them to come back, you have to prove yourself to them at the very beginning. First impressions matter and they will certainly help you in preventing the customer churn rates to increase.
One of the best ways to reduce customer churn is to build a solid base of loyal customers. This is done by continuously investing in the relationship you have with them. There’s a good reason to do so. Loyal customers spend 67% more than new ones, and they are 4x likely to refer. Here are a few ways you can start investing in loyal customers:
Customers want fun experiences, so make sure to make this happen for them occasionally. Rewarding is cost-effective, but in return can significantly boost your profit and lower the customer churn rate.
Creating a community that would revolve around a certain product or service (or even your brand in general) takes time. However, once you build the community, it can seriously strengthen your market position and help you with maintaining a low churn rate. Again, it’s all about having a group of loyal customers who will spread the word for you, and in this case, they would discuss it with each other.
Building a community needs a whole marketing strategy, but we’ll pinpoint some of the factors to consider in the making process:
The community is a place about the customers, not about you. Make the community customer-oriented and let them know that it’s a place where their experience with the brand is leveled up. Community-building is a process with many ups and downs. But, in the long run, it can seriously help in lowering the customer churn rates, among many other benefits.
In many cases, customer retention is overlooked. Sooner or later, many companies come to the realization that they can’t be forever in the acquisition mode. Ultimately, it’s all about making your customers satisfied enough that they don’t end terms with you.
With the right approach, you’ll reduce your customer churn rate by converting one-time consumers to loyal customers who will keep coming back to your brand regularly. This way not only you are avoiding a serious customer churn rate, but you will also build a steady workflow where the business’s goals are realized and the customers are happy.
If you need support with the process of creating and executing win-back campaigns, do not hesitate to contact Alite International. We have been working with multiple large organizations in supporting their move towards full marketing automation. Send us an email on kiril.jakimovski@alite-international.com.
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