How can I reduce my company's churn rate?
Jan. 3, 2019, 3:30 p.m.
Churn rate ( meaning how many of you subscribers leave your company within a given period) is a significant problem for many companies. Unfortunately, there’s no single way to reduce it and no magic tool for it. It takes time, patience and effort. Here are a few ideas what you can do to lower your churn rate:
Reach out to your customers: Poor customer service is one of the biggest reasons why customers leave. According to a survey made by Oracle, 89% of customers move on to a different brand after having a negative experience with another one. Time to fix that problem before your customers leave! How? By asking them! Maybe your customers don't feel they are important for you, perhaps they think that isn’t they’re appreciated enough or maybe they have an issue with your recent service. Reaching out to your customers can help with earning their loyalty, and that will surely lower your churn rate!
Find your weaknesses: Every business has flaws, you are no exception. You can either leave them be or work to fix them before a customer gets tired enough with them to leave. Maybe your user interface is cluttered and hard to understand? Maybe your customer service needs improvement? Or maybe there is an issue with your tool upgrade? If you ask your customers about those, you will get valuable knowledge on how to make your customers happier!
Do something extra: It never hurts to do a bit more for your customers. What could they find useful in addition to your service? A tutorial or guide on how to use your tool? Tips how can you use certain features? What would help them to use your service more often?
Segment your customers: “One size fits all” strategy should go to the trash bin. After all, there’s a massive difference between a customer that is using your services for months, the one who stopped using your tool after the free trial ended and the one who just subscribed to you. Segmenting your users into different groups can help you with giving them tailored service - like assistance for the newest subscribers but appreciation messages for your long time customers!
Use triggers on your webpage: Sending out the right emails at the right time to the right people will surely help you with reducing churn rate. For example, sending a message asking about feedback to a customer who visited your page once, subscribed and then never returned or a “We miss you” email to a long-time customer who suddenly became inactive for a longer period.
Appreciate yourlong-time customers: If customers feel like they are not important for you, they will leave. If they think they deserve more than you give them, they will leave. If they see you treat new customers much better than your loyal customers, they will leave. So don’t forget about making your loyal customers feel they are essential and valuable to you! Send them a birthday greeting (with a small gift inside), a free service after a set time or number of times they used your service or a special discount for those who renew their license.