If you are serious about retaining your customers, you must understand how to reduce your customer churn rate. Of course, you can not rule out that some of your customers might not be there for the long term since it is impossible to satisfy every customer, but you should have at least a good number of your customers that are long-term ones. So, in essence, you need to retain your existing customers, draw new ones, scale and grow, and reduce your customer churn rate to increase profits and grow your business brand.
For information’s sake, customer churn rate is when your customers stop patronizing your goods and services. The higher your churn, the higher your customer loss and vice versa. To calculate your customer churn rate, you simply divide the number of lost customers by the total number of customers you had at the start of the period in view. Then you multiply it by 100 to get a percentage.
How is Customer Churning the Biggest Issue faced by Marketers?
Customer churn is the biggest issue facing product marketers and entrepreneurs alike because the success of any business hinges on it. If you can not get your customer churn prevention strategy right, you will lose a lot of customers, and your revenue will take a big hit.
What is more to the problem of customer churn? There is real difficulty in predicting the customer churn rate at a particular time and how to prepare for such and improve strategies. Customer churn prediction strategies are strategically built systems to understand the exact customer behaviors that signal the risk of customer churn and when it will happen.
The accuracy of the particular strategy employed is critical to the success of any customer retention efforts. After all, if the marketer is unaware of a customer about to churn, no retentive measures will be taken.
Also, customer retention-focused promotions and offers may be inadvertently provided to happy, long-term customers, resulting in wasted resources and reduced revenues. More so, most customer retention methods and churn prevention techniques rely on assessing risks based on static data and irrelevant customer information.
Other customers churning prevention models are based on outdated statistics and data-mining methods, which offer some excellent churning chances but are primarily inaccurate and let customers slip away.
What are the Primary Reasons for the Higher Churning Rate?
As a marketer and a business owner, you should know that understanding the primary reasons why customers desert a business and learning how to adapt your marketing approach is essential to keeping your business brand profitable over a long period.
Let’s highlight six primary reasons for higher customer churn rare.
1. Attracting the Wrong Customer Base
If customers patronize you without fully understanding the benefit(s) they stand to derive, the chances are very high that they would churn as soon as they find out that the product is not a need for them; or, more so, it does not fit into what they want.
2. The Product did not meet its advertised solution(s)
This is as simple as it gets. When your customers do not get the advertised results, they will most likely switch to a competitor to get the desired results.
3. Bad Customer Support
This is a no-brainer. Reliable and responsive customer support is the backbone of any successful business. If customers cannot get quick responses to their questions, queries, and orders, you’d most likely lose them.
4. Product Issues and Defects
This is another easy step to losing customers. Your product should present a good image of your brand, and you don’t achieve this by having defects in your products. Customers will lose trust and leave your brand.
5. Value gets Absent
When customers no longer see the value in your product, you will lose them. This is why you need to keep paying attention to reviews and customer queries to model your product to meet the present demand of your audience. Their demands can change as the prevailing situation changes; your product should evolve.
6. Your Competitors are offering better value
As much as you want to satisfy your customers, you should also make your product better than your competitors.’ Do your background checks to determine which part(s) of your competitors’ products are better than yours. Improve and test till you become the best around.
Top Six Tips to Reduce Customer Churn Rate
Tip 1. While marketing, ask the right questions to ensure that your product(s) is what the particular audience wants and needs. This way, you’d be attracting the right customers.
Tip 2. Improve your product onboarding process with marketing automation to help address your customer needs faster, precisely, and not just sell out.
Tip 3. Address your customer support issues quickly with automated lead follow-up systems with live transfer calls and auto-responders and with SMS Bot too, in order to make it very responsive and reliable. This will give you a lead as to where your product and marketing need to improve.
Tip 4. Attend the Product feedback and Complains quicker by using omnichannel communication to respond to and fix the issues in a very timely.
Tip 5. Model your products towards your customers’ needs, and adjust their features as your customers’ wants and needs change.
Tip 6. You should watch your major competitors, see what kind of automated communication channel they are using that sets you apart, and improve your automated marketing communication based on it.
How Omnichannel Marketing Solution can be the Ultimate Solution to Reducing Customer Churn Rate?
We’ve discussed how difficult it is to implement strategies against customer churn. Though some are pretty effective, they have damning effects on customer loss. Omnichannel marketing might just be the ultimate solution.
An omnichannel marketing strategy is an approach where you focus on providing an enjoyable customer experience across multiple sales channels through one channel (single source of truth).
With omnichannel marketing, you ensure that your product content and updates are consistent across your sales and digital platforms. This increases your brand awareness, and you reduce customer churn, which often occurs due to inconsistent product content and information.
With an omnichannel marketing solution, you can connect multiple stores, mobile apps, websites, and more to reach more customers effectively. What is more? It will help you be proactive with your customer communication, define a roadmap for your new customers, provide excellent customer service, analyze churn effectively when it happens and stay competitive in your product niche.
No doubt, you don’t want to be left out. Why employ old-fashioned marketing strategies when you can achieve more with new well-tailored, high-conversion strategies? Remember, you want to create that conducive environment for your customers, old and new— FlowUp is a top omnichannel marketing solution made just for that!