How can I reduce churn?
Avoiding churn is all about making people happy. Happy customers don’t leave, but unhappy customers will.
Some churn is the inevitable result of customers moving away, lack of need, etc., but most churn arises from problems. The better you can solve your customers’ problems the happier they will be, and the less likely they will be to churn out.
This means staying in touch with your customers. Pre- and post-service check-ins, follow-ups, quick response to inquiries, and more all go into creating a positive experience for your customer.
The more opportunities you create to have a real touchpoint with your customer the more they will be able to communicate back to you about issues that you might not otherwise have uncovered.
Here are some questions to ask yourself as you consider how you can improve your business’s churn rate:
- How would I know if my customer had a good experience when they last interacted with me?
- How can I found out how particular employees are affecting my customers’ experience?
- Am I making it easy enough for someone to let me know about a problem that’s arisen?
- What are the most likely problems my customers might be having? How can I get ahead of those issues to make the experience even better for them?
The bottom line benefits of improving customer retention
You already know that you want to keep as many customers as you can, but how about one more piece of motivation?
Just like a churn rate can chip away at your customer base, chipping away at your churn rate dramatically recovers revenue. Using the figures you entered above, if you can bring churn from 5% down by 10% to a new rate of just 4.5%, you will gain back $8,520.00 dollars over the course of a year.
Little efforts each month make achievements like this possible. What could your business do with $8,520.00 more money in the bank? What’s the fastest way you can start implementing changes to bring about that improvement?
At O3 we believe that all truly good business is one-on-one, person to person. The more in touch you can be with your customers, the more opportunities you will have to serve them, and the happier they will be.