It’s a company’s dream to return customers, and marketers work hard to achieve this. Returning all your customers may have worked in the 1800s and the early days of advertising. This decade, it’s a lot easier for everyone to get exposure through social media, email marketing, PPC, and other affordable advertising forms. It means that we are competing with many companies, and consumers have options. As we all know, returning customers is cheaper than acquiring new ones. How can you reduce customer churn? Below are five proven strategies that can help you return customers and save money on marketing.
What is Customer Churn Rate?
Customer Churn Rate is the number or percentage of customers who stop using your product or services. A company goal is to have a churn rate close to 0; a higher churn rate means revenue loss. The more customers you lose, the more money you would have to spend to acquire new customers.
Five Proven Techniques to Reduce Customer Churn Rate
Analyze the Customer Journey: Tracking and analyzing individual customer journeys will help you improve their experiences. Analyzing the journey does not stop when the customer makes a purchase, and truth be told. A customer is likely to stop working with you after repeated bad experiences. If you do retention right, customers will make more than a few purchases turning into brand ambassadors.
Customer Service: No matter how good your products are, bad service equals customer loss. It could be the best quality product at the lowest price, and it wouldn’t matter. Have the best people on the team handling issues with the customers.
User Experience: Is your website easy to navigate? Is it easy to use on mobile, desktop, and other ways users can access it? Do you have a FAQ section that answers commonly asked questions? A live chat to assist the customers on time. Customers come to you expecting a seamless experience; anything other than that forces them to work with your competitors.
Engagement: Engage with the customer at various points of their journey and even after they purchase or sign up. Video is a great way to engage with the customer. People don’t read manuals anymore; they go to YouTube to learn about your product. You can make the process easy for them and send them a video that teaches or educates them about the product. Remember, the more work they have to do, the more frustrated they get. You want to provide an engaging and positive experience to the customer.
Build Customer Loyalty: Apple has mastered this; we all have heard of or witnessed fights between Samsung and iPhone users. They are more similarities than differences between the two; we can all agree that they offer similar features. However, it is not easy to sway an apple user. Apple users will pay more because they know that they are getting quality products. A loyal customer sticks with your brand; they will not purchase the new galaxy with the same camera quality as the iPhone. A dedicated customer provides free advertising for your brand through word of mouth. They may write a review, and thanks to social media, they will likely promote you on all their social media apps. They love bragging about you and your products.
You can reduce churn by providing excellent customer service and handling customer complaints promptly. Analyzing the customer journey and realizing their pain points early on will help you provide a seamless experience. You can fix problems as they arise and even better before the customer brings them to your attention. Engage with the customer, anticipating their needs, and provide solutions. A great customer experience results in brand loyalty and higher revenue.
Previous blog: https://christerbelll.com/how-to-use-digital-marketing-for-b2c-marketing/