What is Customer Churn?
Customer churn also known as customer attrition is the loss of clients or customers. According to a survey conducted by BIA/Kelsey, repeat customers made up half of the annual revenue of the 61 percent of small business owners surveyed. And a repeat customer spends 67 percent more than a new customer. Minus the Customer Acquisition Cost and the trend reveals itself. Keeping your existing customers is just as if not more important than gaining new ones. And nevertheless who wants to lose customers?
Churn can happen for many reasons; both voluntary and involuntary:
How to Reduce Customer Churn?
1. Focus on the right customers.
High churn rate can be a sign of bad customer fit. You might be targeting the wrong customer personas. Sunil Gupta, the Edward W. Carter Professor of Business Administration at Harvard Business School, recommends businesses focus their attention on the most profitable customers on the brink of churning.
2. Communicate with your customers, before and after the point of churn.
Reaching out to your customers before they ever need you and asking for feedback often shows them that you are invested in providing them the best service possible and that their opinion matters to you.
Communicating at the and after the point of churn can also be very helpful to improve your churn rates. Providing an exit survey asking your customers why they churned can give you great insights on what to improve for your products and services. A recovery email sent after churn to try and win your customer back by reminding them of the value your service provides can work wonders too.
3. Offer incentives.
Show your customers you value them by offering them incentives. Offer promos, discounts and loyalty programs. Think of incentives that can help retain more of your customer base. Maybe a discount for advance payments? Or a promo for subscriptions that encompass a longer period of time? Loyalty programs for high value repeat customers to show them you care for and appreciate their business.
4. Create a community around your brand.
A great way to gain customer loyalty is by creating a community around your brand that they can be a part of. Engage with your customers, build social media groups, plan events if possible. Making your customers feel included will do wonders for your customer retention rates.
5. Analyze your churn trends and learn from them.
Identifying at what point most of your customers churn and why can help you build safety nets to perhaps avoid churn at the most critical points. Forecasting signs of churn and sending likely-to-churn customer offers and incentives to re-engage them can help you win back a lot of them.
6. Keep up with the competition.
Analyzing your competitors' value proposition and improving your product and services accordingly will always bring you a step further in the market. But it is also important to observe their customer success programs and see if your customer success and support efforts are up to par.
How BHuman.ai Helps Decrease Your Customer Churn?
As we had discussed on the second tip, communication with your customers is essential to create for them a customer journey worth staying for. BHuman.ai provides you a most human way of carrying out these communications.
With BHuman.ai you can ask your customers for feedback, offer them a customer onboarding video, provide them a recovery email that addresses them personally in the video offering them a discount or a gift. You can contact your customers one by one with a personalized video by spending the time and effort of just one, making them feel as special as they are to you.