7 indicators of customer churn in landscaping

How are your customer churn numbers looking right now?

“Woah, that’s personal! Aren’t you gonna ask me for a coffee first, Utkarsh?” ??

I’m sorry but I’ve been sitting on an idea all week and just couldn’t wait to share it with you.

Here goes → I think customer churn is a number that doesn’t get the amount of attention it deserves. ??

Now, I’m not saying you don’t pay attention to your churn numbers; I’m suggesting you should pay more attention.

Specifically, for two reasons:

• Profits; and
• Valuation

Let me explain.?

Less Churn = Exponentially greater profits ??

I was recently reading an article on Harvard Business Review about churn, and my jaw dropped to the floor when I read this:

“If you’re not convinced that retaining customers is so valuable, consider research done by Frederick Reichheld of Bain & Company (the inventor of the net promoter score) that shows increasing customer retention rates by 5% increases profits by 25% to 95%.”

25 to 95 percent increase in profits? Who doesn’t want that??

Less churn = Higher valuation ??

It’s simple math really. The higher the churn rate, more capital you’ll need to maintain your revenue. A low churn rate indicates your potential for long-term success.

Another Harvard Business Review article (yes, I’ve been reading a lot of HBR this past week) stated that many investors will use the metric to evaluate the underlying health of a firm. The higher the churn rate, the more they question the company’s viability.

There’s a third reason too - oops! ??

I didn’t even think of it. I was talking about the importance of reducing churn on SiteRecon’s LinkedIn page and got this reply from Jason Coultas .

This is what he said:

Mind blown!

So, to recount, we’ve got profits; we’ve got valuation; and we’ve got morale. Pretty obvious at this point that controlling churn needs to be a priority.

But you’ve got to identify what’s causing it in the first place.?

7 indicators of customer churn ??

Think in medical terms for a second?(I’ve been watching House M.D. a lot recently, lol).?

People don’t just drop dead all of a sudden. Well, sometimes they do. But mostly, they get sick first - there are symptoms you can observe and diagnose and they tell you what the illness is. And then you can treat them.

It’s the same thing with churn. There are some indicators that tell you which customer is likely to churn. They are:

1?? Decreased or irregular service requests: If your customers suddenly start requesting your services less frequently or become inconsistent in their requests, it's a clear signal that something's up. They might not be happy with your work, and that could lead to them leaving.

2?? Complaints or negative feedback: Don't turn a blind eye to customer feedback. Pay attention to complaints and negative comments that come your way through phone calls, emails, social media, or online reviews. If you see a surge in negativity or recurring complaints, it's a sign that churn might be on the horizon.

3?? Lack of engagement: You should keep an eye on how engaged your customers are with your business. Are they participating in loyalty programs, referring others to you, or showing interest in your promotions? If not, they might be losing interest in your services.

4?? Non-renewal of contracts: For those of you who offer contract-based services, make sure you keep tabs on contract expirations and renewal rates. If customers are choosing not to renew their agreements, it's a clear indication that they might be headed towards the exit door.

5?? Sudden decrease in spending: Take notice if your customers start cutting back on their spending. If they suddenly decide to spend less on your services compared to what they used to, it's a sign that they might be dissatisfied or considering switching to a competitor.

6?? Communication breakdown: When customers stop responding to your attempts to reach out, ignore your inquiries, or simply avoid any contact, it's a major red flag. This breakdown in communication could be a strong indicator of an imminent churn risk.

7?? Competitive landscape: Keep an eye on your competition. If your customers are flocking to other landscaping providers or if you hear reports of clients choosing your competitors over you, it's a clear sign that you need to up your game and address any shortcomings in your service.

If your competition is surging in a part of your service area ? you know you need to keep the customers they may be eying in good spirits.

Now, what happens when you layer these 7 indicators of customer churn? You get richer customer profiles (cohorts). ??

Just like a heart monitor will tell you if your heartbeat is going crazy, there should be a dashboard that tells you that the designated Account Manager hasn’t visited John’s property for over a month.

Don’t sit back and wait till the news gets to you. Actively set up a system to monitor these indicators.

I covered setting up this system ?for Account Managers in the last issue of The Friday Cut.

You can read it HERE

It’s like Leonardo da Vinci said:

How to reduce customer churn ??

Now that we know what the indicators of customer churn are, let’s see how we can reduce churn.

1?? Up your customer service game:?Seriously, this is a make-or-break factor. Train your crew to be top-notch—professional, friendly, and on the ball. Respond to customer inquiries like there's no tomorrow, and address any issues pronto. Customers want to feel valued. Make sure they do.

To resolve issues faster, you need to identify issues faster. You can use our Plato app in the field to document service issues and assign them to the right guys in your team. By building this accountability, you ensure that your team is on the ball every time. ??

2???Consistency is king:?Look, nobody likes surprises when it comes to lawn care. Deliver consistent, high-quality services, and stick to your damn schedules. People want to trust that you'll show up when you say you will. Be dependable, and customers will stick around.

3?? Stay in touch, for real:?Don't be a stranger. Keep your customers in the loop. Send newsletters, email updates, or carrier pigeons—whatever it takes. Share seasonal promotions and landscape maintenance tips. Show them you care about more than just their wallets.

If you want to kill two birds with one stone (fix your documentation problem and keep your customers in the loop) you should give our Plato app a try. It lets you document job site data on the maps and instantly share detailed reports (photos+notes+map) with customers.

4?? Be proactive:?Don't wait for issues to rear their ugly heads. Get ahead of the game. Do regular site inspections, anticipate problems, and solve them before they become disasters. Your proactive approach will make customers feel like you've got their backs.

Companies like Rockaway, Inc. , Greenscape Inc. , Level Green Landscaping , and Mulhalls are nailing site inspections with the Plato app. If you haven’t checked it out in a while or haven’t checked it out at all, do so ASAP. It’s so easy, even grandma can use it.

5?? Reward loyalty:?Everyone loves rewards. Implement loyalty programs to keep your customers hooked. Give discounts, referral bonuses, or free services for sticking around.

6?? Ask for feedback:?Don't shy away from criticism. Seek out feedback from your customers to learn what's working and what needs improvement. Surveys, online reviews, comments on your social media handles, calls - leave no stone unturned to find out what your customers think of you.

And when you get negative feedback, tackle it head-on. Make those necessary changes and show your customers you're serious about getting better.

7?? Stay ahead of the game:?Keep your eye on the competition and the latest trends. Constantly improve your services, embrace technology, and offer innovative solutions. Be the badass leader and your customers will stay.

SiteRecon helps you enrich your customer’s experience with the brand - from acquisition to renewal?(end to end, as they say).

Watch those churn indicators like a hawk: Keep an eagle eye on signs of churn—declining service usage, missed payments, lack of communication. Don't bury your head in the grass. Take action early on. Reach out, fix any issues, and remind customers why they chose you in the first place.

Last but not the least, you need a dashboard to monitor your churn indicators. This is something that we can set up for you if you like. You’ll get weekly/monthly insights from SiteRecon that’ll tell you how close your customers are to the dreaded churn line.

Book a consultation with our experts now to get ahead of churn: CLICK HERE

A word to the wise

You cannot bring churn down to zero - heck, you shouldn’t even try. Some customers will leave regardless of what you do and that’s a good thing.

Some customers just aren’t a good fit for your business. Customers who join solely for hefty discounts, for instance. Once the discounts stop, they look to break another deal with someone else.?

Avoid these people like the plague.

All this to say that before you think you have a retention problem, think if you have an acquisition problem instead.

That’s all for today!

I’ll see you here next week with another topic.

Until then, Cheers! ??

Written by your wingman

Utkarsh Sharma