Customers are the key to keeping a business running, thus it is in a business’s best interest to keep customers returning again and again. Customer churn is when a percentage of clients drops your service, though it is not the funnest metric to analyze in any business it is one of the most important metrics to keep at the lowest level possible. Understanding customer churn can enlighten you on possible ineffective business practices that could be harming you. Therefore, it is essential for a business to focus on implementing customer retention strategies to keep the business with a plentiful customer base with little to no churn. Below, you’ll read five customer retention strategies that can keep churn to a minimum and increase your ROI:
- Get customer feedback:
- To improve your business, you require customer feedback. Customers’ perception of your services is essential to shaping your business practices. There are several ways to collect customer feedback: surveys, score surveys, suggestion boards, and even phone calls. After deciding on which data collecting approach suits you best, it will be time to address the feedback given by your customers.
- Implementing customer feedback to your business:
- Once the customers engage with your surveys, and/or other methods used to collect their feedback, comes the data analysis. The data collected will show trends in customer behavior as well as which areas of the customer journey they feel most comfortable, or uncomfortable with. The information received will then be sent to team leaders that benefit from it the most, that way they will seek to adjust their key performance indicators to provide a more satisfactory customer experience.
- Build and strengthen trust with your customers:
- Once you start implementing and consistently following up with your brand’s promises, you’ll make an impact on customer perception. Getting your brand to be one that is trustworthy will take time, it’s not something that happens overnight. It is imperative that you craft several customer satisfaction surveys throughout your business timeline and take the feedback given seriously. Trust is about reliability, becoming the go-to business that provides a service that is unmatched by other models will get you a firm and loyal customer base.
- Develop a customer retention program:
- This strategy is multifaceted and depends on the type of business you run. A few examples of simple retention programs are: onboarding programs, referral discounts, loyalty upgrades, beta-testing groups, or by developing user-friendly app versions of the company’s services. After choosing an alternative that suits your business needs best, the next step would be for you to cultivate rapport with your customers. Get them to see that you are not like the surrounding competition, you see the value of their investment in your service and are actively giving them special treatment and accessible features to show them you care.
- Give incentives before a membership cancellation:
- As a business person, it’s important to recognize that churn also happens when upgraded services are about to expire. You can always provide another coupon, or better yet follow up with the customer via a personalized email or call to understand how you can make their experience with your platform a better one over a set period of time.
In the long run, your company, its services, and/or products, should become an essential part of your customer’s lifestyle. Churn is inevitable, nevertheless, a low churn rate is possible if you show your customers that you care about their opinion and have the flexibility to give rewards for their long-term loyalty. The strategies provided here may not fit all business models, yet understanding your customer’s needs will always be in your business’s favor.