All entrepreneurs agree that to be successful , you need customers , right? Ideally, reducing churn should be one of organizations' goals, but this rate isn't always remembered.
In many cases, managers even monitor the metrics, but do nothing effective to change them and get closer to the ideal .
Understanding the impacts of churn and working to reduce it makes a huge difference within the business and allows the company to take strategic directions.
Have you been monitoring your churn rate metrics and making decisions to reduce them? Check out our post for some tips to help you reduce churn in your organization!
What exactly is churn?
Before adopting any strategy to reduce churn, you need to make sure that managers understand what this metric is.
Churn is the index that represents the rate of customers who abandon or cancel products or services in specific periods .
It is an important rate, because for the expansion of any business, it is essential to increase the number of customers, retaining and maintaining loyalty among existing customers and always winning new consumers .
Churn can provide some clues about aspects of the organization and, based on what is measured, some strategies can be taken to retain customers.
How to reduce churn?
There's no point in calculating your numbers and not taking action to reduce churn, right?
really? With simple changes, it's possible to improve metrics and take new steps
in the organization. Check it out!
Know your customer
To identify possible signs of churn, you need to know your audience and understand how they use and interact with your service or product.
Use technology as your ally and utilize data from purchase history, product usage, the number of times customers contacted Support, their most frequently used channels, and more.
Knowing your company's customer profile is essential for defining many aspects of business communication.
Understand why customers cancel
After learning a little more about your customers, the next step to reducing churn is understanding why customers are canceling services.
Don't try to guess what these reasons are; collect data and feedback . Consumers are generally open to satisfaction surveys .
Reach out to customers after they cancel and, without being intrusive, try to find out why they made that decision.
Lack of funds, incompatibility with the product or service, poor service, etc., there could be many reasons, so list them and understand which ones can be resolved internally.
Keep expectations aligned
The process of reducing churn begins when closing sales, as the best way to avoid frustration on both sides is to understand the expectations of both parties .
The Sales team needs to make customers see value in your product and service and make it very clear what you can really offer.
Count on a Sales team that has a clear message, realistic goals, is honest and values customer satisfaction .
Deliver the best experience
Consumer experience is very important, as consumers are increasingly informed and competition is knocking on their door.
Their shopping experience begins from their first contact with the company, and at all times, consumers need to be treated well and feel at ease.
In addition to the Sales team, it's essential to invest in a Customer Success . They're the ones who take the lead in reducing churn and have the most direct contact to resolve customer requests.
Each contact with the company needs to be efficient and differentiated , so that negative experiences with complaints and requests are resolved quickly and the consumer feels heard and important.
In addition to taking care of individual services , it is necessary to have teams that pay attention to the company's image through social media and all service channels .
online image makes all the difference; after all, consumers are heavily influenced by what they find on these channels.
Empower your employees
As mentioned in the previous topic, reducing churn has to do with the customer experience with your business.
Therefore, it's important to have a skilled and motivated team . Certainly, the team won't be able to make a good impression on the external public if things aren't going well within the company, right?
Maintain your organizational climate, gather feedback from your employees, motivate employees, and provide training and development.
All sectors of the organization need to be well prepared to deal with customers and to promote the company's image.
Have custom actions
Customers are different and have different needs. Therefore, you can't maintain the same communication with each of them.
Consumers who have used the trial version of your product or service and need to be convinced to become customers cannot be treated the same way as those customers who have been with you for years, right?
Understand who needs to be convinced, re-engaged, or retained . Have different arguments for a wide range of audiences.
Win customers, but don't forget to encourage existing ones to use the brand; after all, they're the ones most likely to spontaneously promote your product or service.
Listen to the customer
To know how to reduce churn, the most important thing is to understand the valuable insights customers have about your company . They provide the details that often go unnoticed in the organization's day-to-day operations.
Listen to what they have to say, capture feedback , use NPS , and conduct surveys whenever relevant.
Conclusion
Reducing churn is increasingly one of the concerns that companies have in their businesses .
You need to know your customers, listen to what they have to say, create actions for each of them and always provide the best experience while using your product or service.
By understanding churn and making the best use of the collected data, the chances of reducing this metric are greater, which guarantees new perspectives for organizations .
What have you been doing to reduce churn in your company? Are any of the actions we listed already being used in your business?
Now that you know a little more about how to reduce churn, take advantage of our solution to improve your customer experience!
