Customer churn takes place when a customer simply does not want to do business with a service or an organization anymore. Whether it was one negative experience, or a lack of willingness to stay loyal, customer churn is something that any business wants to avoid at all costs. Here are six strategies to implement.
Analyze Why Churning Is Increasing
The first step into reducing customer attrition is to discover the culprit. If you do not know the reason why, you will not be able to effectively retain customers. Obvious as it sounds, the specific reason as to why customers are leaving is not always easy to find. The majority of customers who leave do so because they believe as though a company does not care about them and only about their wallet.
A business can give a lazy exit survey that a customer may not take seriously, but being interactive expedites the process of discovering why customers are leaving. Utilizing all avenues of communication, be it through phone or social media, should be explored.
Incentivize The Customer
A highly effective tip to retain customers is to offer incentives, special deals and discounts to those who choose to remain loyal and stay. Not only does this show that a company does care about the customer, but loyalty is being rewarded. However, a business should analyze the risks that offer too many incentives.
Organizations should weigh the cost of what it would take to retain program as opposed to the profits that are gained from new customers that come on board. If the latter outweighs the former, then proceed with the program.
Provide Better Customer Service
Customer service is a common culprit of customer attrition. Perhaps the most obvious tip, having excellent customer service is the key to increasing a business’ chances of retaining customers. Two major components of customer service that causes consumers to leave include the rudeness of staff and the lack of a prompt response.
While it can be inconvenient for a business, the consumer has no incentive to stay loyal to a business where they are not satisfied. If needs are not addressed in a timely manner or if a solution is not adequately found, it will take no time for a customer to leave.
Listen To Complaints
A concept that many businesses do not understand is listening to the customer. A lot of unhappy customers will not always outrightly express their displeasure, and they may just leave and never come back. Once again, all it takes is one negative experience to cause someone to leave.
If there is a complaint, do not dismiss it as bitter feelings. Take each complaint seriously, understand what the problem is, and find a solution in a prompt manner.
Have The Proper Audience
Every business should aim to target the right audience. First impressions are everything, and when an organization looks at a prospective customer, you should be weary of certain phrases that can raise some red flags.
You should not look for customers who will come just because you can provide them with special deals, and not because you can address a need or a want they have.
Organizations can also provide educational material for certain customers who may not understand certain aspects of what they are purchasing with their money. Trainings, video tutorials and such can help make your customers feel informed.
This can also save businesses headaches of trying to solve problems that customers could solve for themselves if they were to be directed to that material.