Churn rate is a manner of measuring how many customers have stopped using a product or service. It is estimated that over 50% of customers have churned from products and services they have used within a year. In this article, we’ll take a look at some methods to reduce churn rates.
4 Ways to Reduce Churn Rates
Analyse why clients leave
Knowing why previous clients leave is critical to reduce churn rates. Customers churning, prospects not buying and loyal customers diverting their attention elsewhere can be extremely damaging for any business. Understanding why customers quit is therefore an essential aspect of your business strategy. Thus, ways to find this information out would be to get it from clients who have left. You can either interview them or send them a quick survey with tools like google forms. his will give you valuable data to action on to improve this rate.
Make sure to read up on how to recognise when it is happening so that you can use this information to target specific departments or individuals directly.
Know the common churn reasons
There are some standard reasons for a high churn rate. Customers may leave because reasons such as price, bad user or customer experience. Knowing these reasons will help you stay ahead and continually improve those factors.
Target the right prospects
Many businesses find that they have a growing number of customers that are churning their products faster than they expected. One way to reduce your churn rate is by ensuring you are targeting a group of customers who will actually value your product. This often includes performing research about their likes and dislikes. It could also mean spending some time getting to know your existing group of clients better to understand what makes them tick. This is beyond their wants and needs which you provide for every single one. It is not just about removing people who will never be interested in buying from you if they lose access because of competitive offerings or change in lifestyle. Rather it is also about removing people who simply are not providing enough value from your services.
Triggr is a valuable tool that can help you reach the right prospects.
Understand client signals
When a company uses the 80/20 rule, they will understand that some clients will churn no matter what due to their nature as a clients. However, it is important not to write those customers off if you can help it. Identify signals beforehand and try to address issues they have. Signals might be lack of engagement with your product or service. This might be shown through lack of use or short period of use.