Your customer churn rate has a direct impact on the ability to grow your business.
High customer churn rate consequences
If you have a high customer churn rate, it is most likely that your business is not growing and you are missing out on potential revenue. This is because you are losing potential brand advocates, having negative word-of-mouth spread about your business and getting bad reviews. Not only are you fighting churn because of bad experiences, you are also losing positive brand reputation.
If you are not working to understand the customer issues, then you are putting your business success at risk. By reducing your churn rate and increasing your customer retention rates by just 5% you can increase your profits by 25% - 95%.
Here’s five ways you can improve customer churn rates.
- Make feedback easy
Provide convenient channels for customers to leave feedback and voice their concerns. By supplying this, you can receive feedback instantaneously, measure results and provide solutions to your customers easily. The easier you make it for customers to share their feedback with you, the more information you will capture and work towards supplying the best experience possible.
- Make your customers feel appreciated
Showing your customers that you appreciate them is a strategy that leads to an increase in customer retention. There are a few ways to show a customer appreciation. Firstly, through acting on feedback – showing the customer that you have listened and made developments towards satisfying their needs and wants. Secondly, through offering incentives – supplying customers with loyalty gifts, rewards and discounts to encourage repeat purchases. Thirdly, by thanking them after a purchase – using emails and other communication tools to acknowledge the customer and further thank them for their service. When you show customers that you value them, they will also value you.
- Meet expectations
There is nothing a customer dislikes more than a business that under delivers. Your customer’s expectations should be set before any sales interaction takes place as customers come to you with expectations based on their research. The customer service strategy needs to align with actual experiences.
- Understand your target market
Focusing on your target market will improve the ability to recognise critical trends, stay ahead of the competition and improve your services in ways that matter to your customers. Bringing in your most ideal customers will ensure that they see the value and benefits of your product or service and you can focus on satisfying their wants and needs.
- Always add value
You can reduce the churn rate by not just focusing on the customer experience but through also making sure that your product or service adds value to the customer and that it has the ability to sell itself. Improving this level of value does not mean that your business needs to add new features or services, it can simply mean improving the existing product or service offerings to meet the customers needs.
Businesses who have a low customer churn rate, who are successful and who are continually growing all have one thing in common – they understand the importance of using customer feedback to implement strategies that minimise churn and increase retention rates.
Jago is a quick, easy and affordable way to get instant feedback from your customers. No other tool on the market provides the complete solution: instant customer feedback, benchmarking and reporting, a customer loyalty program and the ability to monitor individual store performance all in one easy-to-use app. Book a demo today.