How to Reduce Customer Churn Rate?

1. Determine And Analyze Why Your Churn Is Happening

It sounds obvious, but before treating an illness, it is necessary to identify the root cause of it. Good practices may include-?

a. Send a customer an exit survey.

b. Call the customer.

c. Send a personalized email.

2. Offer Long-Term Contracts

Instead of the month-to-month contracts, create subscription packages with a longer duration. Maybe six months, a year, or more.

Offer long-term contracts at a discounted price. By using this model, your customers will have a chance to access the products or services and see first-hand the benefits it brings them and their business while saving some cash. Try selling multi-year contracts instead of short-term plans.?

3. Ask For Customer Feedback

Ask your customers for feedback, and find out what makes them happy. Once you’ve found it, do it, keep at it. That’s how you build a loyal customer base.

4. Identify Your Weaknesses

When you review your customers’ feedback you’ll be able to determine what your business's strengths and weaknesses are. Listen to the complaints your customers make. This will help to unmask bigger problems your products might have.

5. Go The Extra Mile

Going above and beyond for your loyal customers can go a long way in reducing your churn rate. Offer exclusive discounts or rewards or send them a personalized email showing your gratitude. You could also reach out to offer incentives to unsatisfied customers.

6. Segment Your Customers

Segmenting your users into different categories can help you target them accurately and accordingly. It’ll also make it easier for you to recognize which group is churning too frequently, and you can begin addressing their concerns.

7. Monitor Customer Engagement

A sign that a customer is on the verge of churning is reduced product or service usage. So, keep an eye on that.?

8. Simplify The Onboarding Process

The first contact a customer will have with your product or service is during the sign-up process. Therefore, this step needs to be as simplified as possible. If your onboarding process is complicated or overwhelming, make it a priority to take measures to simplify it.

9. Reward Your Customers

Rewards, such as discounts or free upgrades, can make the customer feel valued and motivate them to extend their contract.?It can also encourage them to refer others to you.?

10. Enhance Your Customer Service

Poor customer service will result in a negative customer experience and that is sure to drive them away. Improve your customer service department, to reduce your churn rate. It’s important to be responsive. If it’s possible, respond to your customers’ queries within 5 minutes. For example, where I work, we offer chat and email support to our customers. Customers who have upgraded to our paid premium and enterprise plans to enjoy phone support as an add-on.?

11. Monitor the Competition

Keep an eye on your competitors to see how they are performing in terms of customer satisfaction.?

12. Actively Market Your Product

Social media is a great tool you can leverage to market your business. Spend time making others aware of what you offer, why it’s the best, and what they would benefit by using it.

13. Ineffective Pricing

If your products are too high cost-wise, you risk losing your customers for good. On the other hand, if it’s too cheap they might doubt the quality of your product. Be sure to properly price your product to ensure you aren’t charging more than they are willing to pay. Adequately pricing your products can help lower your churn rate.

14. Find Out What Happened to the Customer

Churning can result from something happening to your customer. If they go out of business or die, it’ll lead to customer attrition and this is a factor that is out of your control. There’s simply nothing you can do about it.

15. Market to the Right Audience

Customers sign up to do business with you for a reason: to achieve a certain outcome. If your product fails to help them reach their desired outcome, they’ll churn.

Your product could be missing a key feature that the customer requires or they could have experienced challenges integrating your product with other products or systems that they use.

Their failure to achieve their desired outcome with your product doesn’t necessarily mean it has a problem or that it’s a bad product. It could just mean your brand and the customer weren’t a good fit. This is why it’s important to market to the right customers.

It’ll be beneficial to you to market to the right audience right out of the gate. Identify your ideal audience and dedicate time and resources to targeting them.