There are numerous factors that can negatively influence a company. In particular, one of the most devastating events that a company should strive to avoid is the phenomenon of customer churn.
This is what happens when customers cease to do business with the company and leave within a selected period of time. However, there are ways for a company to keep customers through hard times. Here are six professional tips for better customer churn rates.
Analyze Why Churn Is Happening
Discovering the culprit is the first step in fighting churn. This will allow the business time to devise a comprehensive plan of action. This is where customer engagement will prove to be very important. Is a particular item defective? Has a service declined in quality? Whatever is causing rapidly rising churn rates, it is highly likely that there is a common denominator. This means that the same problem may be affecting the entire quantity of people leaving. Once the problem is discovered, find a solution that will satisfy the customer.
Improve Customer Service
Customer service is the backbone of a company’s image because it is a direct reflection of the company’s relationship with the customer. If the customer is not treated with respect or if there is an unsatisfactory resolution, customers will leave. Companies should be advised that all it takes is one poor customer service experience to give a customer a reason to leave. That should be considered with each customer service experience. Listen directly to what the complaint is, address the problem, and ensure that the customer is satisfied.
One of the greatest things a company can do in order to strengthen their relationship with the customers is to provide incentives through special deals and discounts. This should especially be done with customers who have been loyal. This is one of the easier tactics to implement, because paying less for the same services remains enticing, no matter who is offering the discount. However, it should be considered whether or not the cost of implementing these incentives outweigh the cost of retaining the customers. If it is truly more expensive, either find cheaper routes or discard the offers altogether.
Identify Target Groups
Not only should companies analyze the reason why churn is happening, but they should understand who is highest at risk for leaving. Commonly, these are people who have not made transactions in a while, have not renewed subscriptions or those who haven’t been reached out to for a while. All of these are warning signs of a business relationship that is very fragile. Before implementing a plan to combat churn rates, those who are at highest at risk to leave first should be focused on first.
Increase Customer Education
One of the more prominent reasons why customers leave a business is because their knowledge of the product or service in question is limited. One great way to increase customer engagement is to provide free training sessions or informational content on what the business can offer. This will entice a customer to stay if they are interested.
Provide Extra Services
Every business is bound to make mistakes, but one way to quickly rebuild trust with customers is to provide more services to get an opportunity to rebuild trust. Getting out of a comfort zone is one of the facilitators of success, especially for a business. Of course, you should not go too far left out of an established niche, but risks sometimes have to be taken in order to preserve as many customers as possible.