How to reduce a churn rate?
Jan. 22, 2019, 2:42 p.m.
In simple words, the churn rate is the number of users who stop any interaction with your company. Depending on your area, this may mean that customers have deleted an account, canceled a subscription, did not renew the contract, did not buy again, or simply decided to go to your competitor. Churn rate is the most interesting to consider on the example of SaaS services since work on it is wider here than in other areas.
The growth of the SaaS service is directly related to the expansion of the customer base. The more users you get, the more tangible your churn rate becomes. How to reduce the outflow, while maintaining the growth of leads and revenue? A huge role in the involvement and reduction of churn plays knowledge of what influences your outflow and how users react to the product itself. In this article, we will describe how we can consider customer churn and offer options for reducing churn and building strong customer relationships.
These 5 ways to reduce a churn rate:
1. Clever customer interaction - build the right channel for communicating with the customer and collecting feedback, and then automate the personal approach to the customer. In addition to sending trigger messages and chatting, encourage users to leave feedback and give feedback.
2. Expand the image of an ideal customer — create more flexible audience segments based on your site’s metrics.
3. Analyze the right data - see how your users interact with the site and content. This data will help you understand what your audience likes, what they avoid (where they spend the least amount of time) and how to improve your website.4
4. Influence the strategy - your proposals should never stand still. The response to user feedback and market research will naturally determine the marketing strategy and customer satisfaction.
5. Put yourself in the buyer's place - Follow the same path that your customers go through to determine exactly where your process needs improvement and where it can be automated (for example, email reminders for those who have expired). Contact users at the right time to increase their satisfaction with the service.