Effective Tips to Reduce Customer Churn Immediately

Customer churn is the issue which most of the company experiences. In simple words, customer churn is referred as the number of customers who stops using the company’s products in the given period of time. It can be simply calculated by dividing the number of customers you lost in a quarter by the number of customers you started that quarter with. To be more specific, customer churn can also be said as the dissatisfied customers from the product. Churn rate shows how good is your business in keeping up with the customers. Every business undergoes customer churn and it is a process which is undergone by every companies, at the same time every company has its own strategies to deal with the customer churn. Preventing churn is the key to increase revenue. Churn rate is considered very crucial for the businesses as it determines the overall performance of the business. The metrics in the churn rate, gives a clear about where is the business heading to. With the rise of technology in this digitalized world, online businesses, calculating and reducing customer churn has gained more importance than before. So, it’s important for every business to calculate the customer churn. Read this article to help you know the effective ways to reduce the customer churn.

Analyze the reason behind Customer Churn:

This may sound very obvious to know the reason behind customer churn. The most  easiest way to find out customer churn is by talking to the customer and taking feedback about the product. Call the customers directly and ask them the reason why aren’t they buying your product? What can you do to make it right? Through this, customers will also know that you genuinely care about them and their feedback. A research says that around 70% of customers leave the company because they think that the company no longer cares about them.

If you’re thinking to send surveys and some emails to find the reason behind the customer churn, then this wouldn’t work. As people will not spend time to complete your surveys and moreover, you’ll not get the immediate feedback from the customer. Communicating the customers through a phone call can do wonders in analyzing churn. So, the valuable feedback from your customer is just a phone call away.

Engage with your customers:

Engage your customers actively with your product to prevent churn. Give customers some reason to come back to your website and see your products, offers, new deals, services, etc.… now, the question arises how will you make your customer come to your website?

The answer is very simple, provide versatile content about the benefits of your product, and send me the regular updates about the offers on the products and new arrivals, through email and social media accounts. This is the place where email marketing does magic when it’s done right. Most of the customers reach out to the mail to know the offers and products in specific company. So, it is very necessary to send mail to the customers, if not daily, at least consider sending once in a week.

Educate the customer about your product:

Most customer shift to the another product, because they aren’t informed much about the product, and only some customer reach out to call customer call. They prefer going to the company which offers good product demos, instructions about the product, etc…

You should definitely consider having tutorial videos about the product or demo videos or any good educational material that will be easier for the customer to use the product and it will also help you to retain them.

Always remember business is at risk during customer churn:

We cannot avoid customer churn completely, but we can try our best to reduce as much as possible. You might have noticed, there are always a group of customers who leave the customers much sooner than other customers, this is the place where you should work your magic on them.

Identifying at-risk customer is the most powerful strategy to reduce the customer churn. Wondering how to find ‘at-risk customer’ find the customers which have not been contacted for a while. Or maybe they have asked about something about the product like price list, or any information and you forgot to respond to them, or didn’t prioritize themproperly. This can help you to predict if some customer is going to leave your company soon.

Define your Most Valuable Customer:

It might sound mean, but this is the truth. We have to go an extra mile to make sure that they are well taken care and they receive what they need. Because the most valuable customers are the one who your business needs much and it can cost you more if the valuable customer leave your company.

Segment your customers according to their purchasing behavior and find out which customers has to be given more importance to reduce churn among the most valuable ones. Once you’ve segmented, always ensure that you prioritize the valuable customer well and they don’t feel any issue with your product or services.

Offer Incentives:

Give more offers to the people who are more likely to leave your company after studying their purchasing behavior properly. Offering more incentives and discounts is the most effective and proven tactic to reduce the customer churn, but also ensure that offering incentives to your customer is beneficial for you as well.

Don’t spend too much on the customer on whom you cannot be sure of.

Pay Attention to Complaints:

Reduce Customer Churn

Dissatisfaction of the customers are the main reason for the customer churn. You might have heard that 96% of the unhappy customers don’t voice their complaints, and in  that 91% of them just leave the company and never come back.

One negative experience in the company can make the customers to stop purchasing your product even if they once loved your brand. So, you should take your complaints seriously and act on them. Customer leaves only when there is fault on your product. Always remember that YOU NEED CUSTOMER, THEY DON’T NEED YOU. When the dissatisfied customers complaints are attended they are more likely to be loyal to your brand.

You can never afford to lose customer so, focus on retaining them. There are sure many ways except the ways mentioned here to reduce the customer churn, but the steps mentioned here are the most effective ways to reduce the customer churn and also are proven. Give the customer a lot of reasons to stay with your company than leaving them. In conclusion, keeping your customers with you is not a magic and cannot happen overnight. It requires continuous efforts to be taken.