5 Tips to Reduce Your Company’s Churn Rate
Every business wants more customers, but some customers will stop using your service. Do you know that reason? If you do not know, that ignorance can result to an increase in your company’s churn rate.
The impact of churn rate can help or hurt a company’s potential for growth and competitiveness. The churn rate is the percentage of customers who stop using a service in a given time period.
A company’s churn rate is the number of customers who canceled the service divided by the number of customers at the beginning of the period.
How to Control Your Company’s Churn Rate?
Firstly, compare your service with your competitors. Do any of them offer a similar service for a lower price? Do they offer a longer free trial period? If you can say yes to any of these questions, you may want to improve the service offering.
Secondly, identify any gaps in the customer experience to discover reasons of service cancellation. For example, analyze the customer experience from the beginning. Did they receive a welcome email? Did you inform them about help tutorials to overcome initial problems?
Thirdly, examine the customer support experience. Do you notify customers of several ways to contact you for assistance? Do you send personalized emails to encourage 1-on-1 calls to assist customers?
Finally, employ social monitoring. What are your customers saying about your service on social networks? What are the recurring comments? Are they positive or negative? If the consensus is neutral, what can you improve based on the feedback?
Tips to Reduce Churn Rate
1. Synchronize the sales and support team
Train your sales team to correctly identify the customer profile. Be an advocate in improving their performance with sales coaching. Remind the sales team to focus on their target customers to maximize the support team’s success.
Train your support team to be proactive in contacting new customers. Encourage them to create help tutorials to leave communication channels open for unique problems.
2. Schedule an email sequence with automation triggers
An email sequence with automation triggers is the best way to maintain a good relationship with your customers.
Firstly, you need to create the email sequence. Depending on your business, your email sequence may be a series of five, ten, or twenty emails.
Secondly, you need to anticipate that all customers will not respond to your emails. If you want to understand the reason, you can discover it by using automation triggers.
These triggers perform certain actions based on certain conditions. For example, you may schedule a different set of emails for more responsive customers. Alternatively, you may schedule variations of the same email to engage less responsive customers.
Finally, you need to evaluate and optimize the email automation. What is working? What is not working?
3. Employ social monitoring
You need to know what the public is saying about your business. These comments can impact business results. Maybe you need to focus your attention on a specific social network because most of the attention is there.
4. Engage inactive customers
If customers are not using your service often, they will eventually cancel it. Therefore, you need to engage these customers before they find a better solution. Find the best way to help them. Maybe it is through a video conference, phone call, or online chat session.
5. Send Satisfaction Surveys
Satisfaction surveys are useful for improving your company’s churn rate.
- Ask their reason for the cancellation. Understanding the problem may prevent future occurrences.
- Ask for a numeric rating to formulate a net promoter score.
- Leave an open box for them to type their comments.