For some companies, it is more important to keep their current customers than acquire new ones. In such cases, the last thing to want is to lose customers. So, what can be done to reduce customer churn?
What is Churn Rate?
The churn rate is the number of customers who ended their relationship with a brand in a specific period. The churn rate is calculated by dividing the total number of customers by the number of churned customers. You can get a lot of important insights regarding the efficiency and customer service of a company from their customer churn rate. Forrester’s research determined that companies lose an average of 1.6 trillion dollars annually due to customer churn. Therefore, companies need to reduce their churn rate.
How Can You Decrease Customer Churn?
Companies need to get the loyalty of their old customers in addition to gaining new customers. According to the studies, the cost of acquiring a new customer is 5 times more than the cost of keeping existing customers. There are several methods businesses can use to reduce customer churn.
1) Get To Know Your Customers
It is essential for companies to know their target customers and to take steps to please them. For example, customers in different regions will have different expectations from a company. To meet these expectations and maintain customer relationships, companies should analyze customer behaviors and consider the data.
2) Evaluate Customer Feedback
For their brand development, companies should get regular customer feedback regarding services or products their customers use. When a company gives effective responses by considering customer requests and complaints, it is possible to have a longer-lasting bond between the customer and company. Moreover, providing quick feedback to customers can also increase customer satisfaction considerably.
3) Analyze The Reasons of Churn
There can be many reasons why customers give up on a brand, including product quality and customer service. Learning why your customers left your company helps you evaluate your existing system. This way, you can identify drawbacks of your product or your service, fix them and, therefore, minimize the churn rate.
4) Improve Your Customer Service
It is essential to provide adequate customer service to earn customer satisfaction and loyalty. Companies need to give support to their customers after the sales as well as before. If a customer doesn’t get enough support, they are less likely to prefer the same company in the future.
5) Keep Interacting With Your Customers
One of the most effective ways to decrease churn is regular interaction with customers. With strong communication strategies, companies can create regular communication with their customers. This way, the customer churn rate decreases. You need to be active in your social media channels and send frequent emails to your customers to ensure such communication.
An Easy Way to Reduce Customer Churn: Infoset
Reducing customer churn requires a lot of time-consuming tasks. You can save time and cost by automating all these processes with Infoset. With the Omnichannel customer service system, you can manage all your support and sales channels on a single platform and automate all your processes. Start using Infoset today to take your customer experience to the next level and increase your sales!