Customer churn, sometimes known as customer attrition, is when an existing customer chooses to stop buying from you. They may leave your company because they found a better offer somewhere else. Or, maybe they had a bad customer service experience, or they don’t really see the value in sticking with your business.
Customers may leave for any number of reasons, and it’s never good for your company’s bottom line. Gaining a new customer can cost five times more than retaining an existing one. So, what can you do to help prevent customer churn? According to Swetha Amaresan, a writer for the HubSpot Service Blog, you can take five steps to lower your churn rate and maximize customer retention.
In this issue of Promotional Consultant Today, we share Amaresan’s thoughts on five ways to prevent customer churn.
1. Wow them with customer service and support. When clients choose to do business with you, they are counting on you. Not only do they need the specific products or services they purchased, but they need to be able to reach you if they have a question or need support. Amaresan says one of the best ways to prevent customer churn is to give your clients an outstanding experience. Be proactive in reaching out to your clients, even if it’s just to check in and see if they have any questions.
2. Keep adding value. You can become a resource for your clients by providing more than what they purchased. For example, if your company hosts a blog or sends a newsletter, share relevant posts with your customers. You can also encourage your customers to sign up. This will help you clients get accustomed to seeing your company’s name in their inbox, says Amaresan.
3. Create personalized customer experiences. You may have dozens, hundreds or even thousands of other clients, but each one wants to feel like they are uniquely important in your world. To help reduce customer churn, look for ways to make your customers feel special. This could mean sending them a thoughtful promotional gift or writing a handwritten thank-you note. Those little extra steps could be the deciding factor for them to stay with your company, notes Amaresan.
4. Survey the customers who left. Sometimes, customers still decide to leave. When they go, find out why they left. This information can help shed light on issues you may not know about. For example, you might learn that customers are leaving because they have to wait too long to get a response. Use what you learn to adjust and improve.
5. Focus on your loyal customers. While all of your clients are important and should be treated like VIPs, it’s important to invest the most energy in your strongest customer relationships. Amaresan points out that loyal customers who don’t feel like they are cared for anymore can sometimes be an unexpected cause of customer churn. Rather than rolling out the red carpet for every new client you get, make sure you first support your customers who have been with you for the long haul.
Reducing customer churn is an ongoing undertaking. Your clients have dynamic businesses and will need different things from you at different times. You can help keep them happy and retain them by implementing the guidance above.
Compiled by Audrey Sellers
Source: Swetha Amaresan is a writer for the HubSpot Service Blog.
Used with permission from PPAI Media