4 Ways To Reduce Customer Churn
Jan 07, 2022
4 min read
Customer churn for businesses is like a parasite - it keeps eating away, deep into your bottom-line unless it is discovered and remedied on time. The term simply denotes the number of people who have stopped using your products or services over a given period. Without customer retention, companies will need to invest a lot more in finding new leads and converting them. Customer churn is also a big reason for brands to lose out on business, but unfortunately, it is a factor that affects everyone.
It is universally known that retaining customers is much cheaper than finding new ones. A study by Bain & Company with Harvard Business School shows that even a 5% increase in customer retention strategies can help in increasing profits by 25% to 95%. Keeping this in mind, here are the best ways to reduce customer churn for your business.
Start with a user-friendly onboarding process
The first step towards ensuring your new customers stick around is to use an easy to understand and follow onboarding process for your products or services. It is daunting for clients to start using new software and it can get overwhelming, leading them to disembark and move on. This why offering a process that is user-friendly and allows them to quickly pick up the operations is imperative.
Incentives for loyal customers
Offer loyalty programs and other incentives for customers who have stuck around with you. Make sure your customers know you appreciate their patronage and regularly send coupons, gifts, discounts, and such as a way to keep them coming back for more.
Implement feedback for catering to changing customer needs
Customers' needs keep changing and to stay relevant brands need to stay updated on them. Always ask for feedback from your present customers and implement it to stay a step ahead of their requirements. Invest time and resources into researching and understanding what customers want, as well as look at what your competition is doing to retain customers. It is also important to focus on providing value to your customers apart from delivering the best products or services. This will help keep them interested and ensure they choose you every time.
Examine recurring reasons for customer churn
Analyse the most common reasons for your customers to churn and stop doing business with you. By doing so, you can find out areas that can be changed or bettered so that churn can be reduced in the future. For instance, if three or more customers have left because they weren't happy with your post-sales services, it may be time to find out what is lacking in that department.
As we know, customer churn is impossible to avoid but it is possible to reduce it considerably. A study by Kolsky states that every 5 years, about 50% of customers churn, showing that you can't evade it. What you can do is use the above ways to ensure that you have loyal customers over the years who support your brand.
The good news is that you can now use CRM software that helps in automating processes to make customer onboarding, services, feedback, support, and more much smoother! Get in touch with FIVE CRM to know more about optimising your day-to-day operations and making customer retention easier.
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