In order to stop customer churn, you’ll need to find out why your customers are leaving and what you can do about it. Here are three ways you can start to develop a better understanding of your customers so that you can keep them engaged.
Understand Your Unique Selling Proposition (USP)
If you want to stop customer churn, you have to analyze your business. What does your customer expect from you? Think about why people buy from you, and why they don’t. If you can’t define your USP, then your customers can’t either, and they won’t have a reason to stay. Once you have a clear conception of what you do well, focus on aligning your business strategies so that your strengths are highlighted.
Increase Dialogue with Churning Customers
Customer churn is all about restoring relationships with customers, and that process is much easier if there has been a relationship with the customer in the first place. Developing a plan for increasing your points of contact with your customers is a good place to start. Well-developed social media outlets can be great for forging and repairing customer relationships. Encourage customer feedback on these platforms, and respond to customer communication. Consider using tactful email campaigns and surveys to gain more customer insights, but make sure to follow a detailed survey plan to keep your data relevant and to avoid irritating your customer.
Target Offers for Retention
Targeted offers are the quickest way to stop customer churn, but be careful; we don’t recommend using discounts as a sustainable retention strategy. Carefully timed and placed promotions and discounts have their place. However, more may be necessary to combat a high churn rate, and sometimes a discount is just putting fuel on the fire. Personalized win-back emails, direct mail pieces, and other methods can be effective if done well. Again, choosing the right option is about understanding your customer. That’s something that we can help with.
Remember, your relationship with your customer is the driving factor behind your churn rate. Develop that relationship based on sound retention strategy and customer insights, and your churn rate will be stopped in its tracks. To get started, check out our free e-book, Kickstarting Your Customer Retention, or contact us at 240.575.5887 for a no-pressure conversation.