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Reducing Customer Churn Rates

 

By Ray Chelstowski

Most research indicates that 2/3 of a company’s business comes from existing customers. That speaks directly to why retaining your current customer is so important. When customer churn starts to rise reversing the trend can be incredibly difficult, and sometimes it’s simply impossible. That can be avoided by applying a steady focus on best retention practices and doing that from the moment your relationship begins.

Customer churn is the exact percentage of your average customers, clients, or subscribers who either end their subscriptions or don’t renew their subscriptions during a given time frame, divided by the total number of remaining customers, clients, or subscribers.

So, how do you reduce customer churn? From the onset, from marketing to the initial sign-up, you need to set proper customer expectations. In an ideal world, every customer is going to love your product and take advantage of the best features it has to offer. But clients have different needs and wants. By placing an emphasis on quality customer support and nurturing your users throughout the on-boarding process, you can keep your customers engaged.

But it’s not only about sales and marketing. Customer satisfaction is as critical, and requires that you be extra customer-centric. Whether it’s a customer service agent or a product specialist, sometimes a simple message can keep customers on board. Maintaining consistent communication and frequent reassurance (from on-boarding to success) is essential because any issues that the customer might be experiencing can lead them to unsubscribe. According to a consumer study, 32% of people will stop doing business with a brand or company after just one bad experience. Conversely, customers are more likely to add a service or upgrade their existing package if they are satisfied with your service.

Consumers today expect an enhanced in-store or online experience from brands they do business with. That requires a different kind of in-touch brand and customer service. To foster engagement some brands have decided to personalize their messaging. You could also ask customers for input and feedback to see if your ideas are on-point or if you need to change direction. When they feel like they have a seat at the table they become more likely to recommend you to other potential customers. They can also become your online advocates and share your content and join your social media communities.

At Kognitiv we believe that churn is further reduced through personalization. When the subscription delivers value that is tied to an individual’s own needs and preferences your customer is more likely to renew and recommend you to their friends. By leveraging zero-arty data brands can collaborate with non-competitive peers to bring a value to subscribers that they could never extend on their own.

Being at the center of your customer’s journey is a responsibility. Successful companies take themselves to the next level by paying attention to their existing customers. By paying attention to the factors that contribute to a high churn rate brands can keep it in check throughout the entire customer journey.

ray.chelstowski@kognitiv.com

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