Customer churn is the percentage of customers that stopped buying from you during a specified timeframe. It’s calculated by dividing the number of customers you have lost by the number of customers you had at the beginning of the time period. The closer your churn is to 0%, the better.
Customer churn is a critical metric for analyzing customer retention. Customer retention is important because it costs less to retain existing customers than it costs to find new ones. But how exactly do you retain those customers and keep your churn rate as low as possible?
One of the simplest ways to achieve these two goals is through a good customer experience.
1 - It shows customers that you care
By taking the time to answer customer questions and address their complaints, you’re letting your clients know you truly care about their experience. This will make them feel heard and valued.
If you want to take it a step farther, get proactive and reach out to customers before they contact you. Let them know about the perks and resources you offer and ask them about their experiences. By taking this approach, you’ll show them they mean more to you than their next purchase. That will help build a strong relationship, making them more likely to stay with your company.2 - Build a better onboarding experience
Poor onboarding is one of the main reasons customers stop using a company’s products and services. Often, that’s because the onboarding process fails to teach the customer how to use the product/service to its full potential.
A strategy that prioritizes the customer experience will offer easy to access tools and resources that will help your customers get started. This may include instruction, diagrams, how to videos and more. And by offering easy ways to contact customer support for new users, you will further satisfy your customers. This can be achieved through social pages and groups, dedicated “getting started” phone lines and chats.
By making onboarding easy, you will improve the customer experience and help increase customer loyalty early in the relationship. This will reduce churn and improve overall retention rates.3 - It makes your brand stand out
In a world with overwhelming choice and the ability to find replacement products and services with a quick online search, it can be hard to differentiate yourself from competitors. While excellent branding, packaging and marketing can bring in customers, it isn’t necessarily enough to make them stay.
What will make them stay is the experience they have with your company. A memorable customer experience will distract your customers from looking for a competitor in the first place.
It will also help generate excellent word of mouth.
To help make your customer experience stand out even more:
- Make sure your strategy and communications are customer-centric.
- Offer support through public facing forums like social so potential customers can see that you are helpful.
- Respond to reviews so people know you care about your customers.
- Share the tools and resources you offer to customers publicly so that people can see you want to make using your product/service easy.
4 - It lets you know what to offer next
Customer service doesn’t just mean dealing with happy customers. You’ll have to receive criticism and feedback about how your product or service may be lacking. Some businesses will ignore these sorts of comments. A good customer service team will welcome them.
That’s because negative feedback, while not ideal, can tell you what your customers need and what you can do to make them happy. You can then use this information to determine where you should focus your future efforts. By giving customers what they want, you’ll be offering a superior customer experience and make it harder for them to leave.
Afterall, who wouldn’t want to stick with a company that hears their needs and then finds a solution.
High churn rates are a sign that your customers are unhappy with your business and feel disconnected. By improving your customer experience, you can help increase retention, reduce costs and increase your bottom line.
Not sure you can do that in-house? Get in touch with Advantage Communications today to learn how out world-class contact center solutions can help.