Acquiring new customers is somewhat easier than retaining existing customers.
But, have you given a thought – what is a better way to build a propelling enterprise? Well, it is customer retention. If your customers stick around, you have great chances to rise and shine in the competitive marketplace.
The customer churn rate complicates the whole process. Let’s see how – First, the churn rate is a crucial metric that determines the overall success rate of a business. To quote – churn rate helps you represent your customers’ loss.
Second, when it comes to customers, you will find 5 percent of customers complaining and about 20 to 30 percent churning out. And, for any business, the increase in the churn rate will considerably have a negative impact on your business.
However, we are not saying you can completely eradicate the churn rate, at some level, it is surely inevitable, regardless of the efforts you put into nourishing them.
You need to know that customers leaving out your business will poorly affect your decision-making and degrade the revenue. At NextBee, we keep our focus towards the KPIs, as they help give the transparent details of your business. Thus, based on that, we redefine the business strategies to keep our customers aligned with us.
We will share some of the proven strategies to reduce the customer churn rate while meeting business goals. But, before that, let’s take a quick look to see why the need to reduce the churn rate should be the top priority.
The customer churn rate puts a destructive impact on your business. As a business expert, you are in competition with each other, but one thing that you all are apprehensive about is – generating traffic and leads. Every organization feels overwhelmed with this marketing challenge, and you know without customers, your business is nothing.
Even a small increase in customer retention will help you to increase by 25% to 40% revenue, which will significantly help you to fulfill your business objectives. This is the reason, it is better to concentrate more on reducing churn rate and boosting customer retention.
So, let’s discuss how to do that.
Analyzing and Determining
The first route to every marketing strategy is ‘Analyzation.’ You have to take time to evaluate and determine the reason behind the churn. This is the most effective technique for any decision-making process.
When addressing the business’s unexpected churn rate, start with two effective pillars – customer survey and email marketing.
Create a customized survey based on the services, but don’t ask too much. A short customer survey consisting of 2 to 5 questions is enough to find out the reason. Just ensure that you ask questions that will help you re-evaluate your marketing goals to earn more. When you ask for feedback, customers feel valued; they can even provide you with pointers that will help you to grow.
Personalized emails are another strategy several other companies are following. Based on their buying history, you can create a tailored email for the account closer to find out the reason behind their churning.
One of the main reasons for churning is website responsiveness. When the customers are unable to find the right information or face trouble while navigating through pages, they jump to your competitor website, which is not a positive thing in terms of online marketing. This will increase your bounce rate, which will not only affect your company but also your website ranking on the search engine.
You can address this with your customer support team’s help as they can help in crafting a preemptive approach on customer engagement like email surveys, live chat, phone surveys, depending on their anticipated behavior.
Preemptive services help to enrich the customer experience by giving them real-time solutions, which will directly reduce customer churn rate and retain your customers.
NextBee’s believe in helping the customers, which is why we stay updated with the matrices. So, when someone engages with our service, we take extra effort to ask them about their needs and provide them with updates. This helps retain their trust in us as a client and allows us to stay engaged with our customers for a more enduring relationship.
The best way to retain customers is to engage with them; we do this through personal emails, phone calls, surveys, rewards, bonuses, referral rewards, etc.
You need to know that you are not alone providing the service. There are thousands of companies in the internet-dominant world, so your one fall out will work as a benefit to your competitors.
Thus, the crucial step here is engaging with them, making them feel valued. By putting a proper marketing strategy in place and retaining your focus on customer satisfaction, you can considerably increase customer engagement and cultivate long-term relations.
By providing your customers with the latest offers, explaining your services through webinars, engaging in Q&As, sending personalized newsletters, or asking for their testimonials, you can see the growth in retention rate and an increase in brand awareness.
Customers and clients always appreciate a unique approach. Thus, providing them with additional services will make a huge difference in customer retention. You need to create customer-centric services that will help you to boost your business and increase sales.
Creating PDF reports, planning valuable webinars, indulging in new learning schemes with work amazingly. This will help in trust-building when you demonstrate your services, which aids in customer interaction.
Develop useful programs and start with a three days trial period. This will intrigue them in accessing and using the tool. Remember, when you offer a customer with valuable services, they are less prospective to churn.
A bit of investment in customer loyalty will show a significant increase in customer retention. Offer your customers with promo codes, rewards, coupons, discounts, referral points, loyalty rewards, etc.
Your small effort today will get you a long way in terms of a massive network of clients. Depending on your businesses, you can surface the incentives. Initially, you can start with referral codes, where you can provide reward points. This will motivate the customers to stick around to see what more they can get collaborating with you, plus this will help you in gaining new customers.
The key to incentives is understanding the customer’s needs. Based on that, you can create personalized incentives that will help them to stay on board.
On the Whole
Customers should be the center of your decision-making process. Your marketing strategy that addresses customer’s needs will help you in achieving the goal. Though these small efforts can show you results in three days, this doesn’t mean it is a one-time thing.
Marketing is a continuous process, so you have to be consistent with your efforts and the above-given strategies. With the ever-changing demand of the business cycle, we at NextBee plan and re-evaluate our existing approach to grow and sustain our customers.
The overall conclusion here is to value your customers if you want them to stick around. We continuously struggle to maintain proper coordination with service provided and customer retention, which has helped us grow so far.