Customer churn is one of the most pressing issues for any company. While it can vary from industry to industry, the average customer churn...
Customer churn is one of the most pressing issues for any company. While it can vary from industry to industry, the average customer churn is as high as 25-30%. Regularly losing a quarter to a third of your business will soon become debilitating if you cannot find ways to develop better growth potential.
1. Find New Customers: Possibly the most obvious answer is to work to discover new revenue streams by engaging new customers. Most ad campaigns are focused on reaching out to demographics likely to purchase or use a service with the goal of trying to get new people involved. While this is the bread and butter of business growth, it is likely not the most cost-effective way to battle churn.
2. Lower Churn Through Customer Retention: While it’s exciting to find new customers and clients, customer retention has a much better rate of return on investment than seeking new clients. It is five times more expensive to acquire a new customer, rather than reduce churn by keeping the customers you have happy. Indeed if you more obviously favor new customers over those that already use your service, churn may increase.
3. Use Customer Win-back Strategies To Get Lost Customers Back: Those familiar with your service are significantly more likely to use it again. By focusing efforts on customer win back you will often find an avenue toward improved churn rates. And customers that are won back, often become the most loyal of all.
2. Ad Campaigns: If your churn can be demonstrated to lead back to one specific pain point for consumers, a focused ad campaign might win back customers. Address how you may have fixed an issue that caused people to stop using your service and focus on future assets that may allow you to outstrip your competition in the near future. In today's digital era of marketing, platforms Facebook, Twitter, Instagram and many others are providing effective tools for ready-made ad campaigns.
3. Remind Them Why They Were Once Your Customer: At one time, your lost customers found a reason you were beneficial for them. Give them a tangible reminder of the services you offered. If possible, send a specific demonstration that shows, for example, how much money they saved by using your product or service.
4. Make A Personal Plea: Customers that may have had a poor service experience, for example, might just want to be listened to. Addressing them as an individual, and giving them personalized service hopefully makes up for any issue they’ve experienced. Ultimately, all customers just want to feel as though they are being treated well and as an individual with importance.
Efforts to win back customers can be extremely fruitful and are often much more useful than seeking ways to engage new customers. Fundera created the following Infographic as a quick reference for the strategies outlined here.
Customer Win-Back Strategies
There are three standard methods for combatting customer churn:1. Find New Customers: Possibly the most obvious answer is to work to discover new revenue streams by engaging new customers. Most ad campaigns are focused on reaching out to demographics likely to purchase or use a service with the goal of trying to get new people involved. While this is the bread and butter of business growth, it is likely not the most cost-effective way to battle churn.
2. Lower Churn Through Customer Retention: While it’s exciting to find new customers and clients, customer retention has a much better rate of return on investment than seeking new clients. It is five times more expensive to acquire a new customer, rather than reduce churn by keeping the customers you have happy. Indeed if you more obviously favor new customers over those that already use your service, churn may increase.
3. Use Customer Win-back Strategies To Get Lost Customers Back: Those familiar with your service are significantly more likely to use it again. By focusing efforts on customer win back you will often find an avenue toward improved churn rates. And customers that are won back, often become the most loyal of all.
Understand Why Customers Leave
By studying the habits of your lost customers, you will likely discover the best ways to court them back to your service or product. Get as much data as you can, perhaps with customer surveys, to see why they may no longer use your service. It’s possible you will see a specific common issue that bears trying to resolve, like a pervasive customer service issue or one that demonstrates that you have higher costs than competitors.Focus Win-Back Efforts On High Probability Customers
Analyze the most likely candidates to target with win-back initiatives. Consumers that are most likely to return to you are those that made the most frequent, recent, large purchases through your online store or offline platform. Check to see if they may have used only one aspect of your service. Perhaps they needed something that you were not offering at the time. Also, look to the record surrounding their pain points. Those that had service complaints are more difficult to win back than those that may have left your company for a financial issue.Effective Ways for Winning Back Customers
1. Incentives: Targeted discounts can lure a former customer back. Take note of what they purchased previously and try to offer them a specific discount on something they repeatedly wanted. Broader offers can include special upgrades for services or offers that include ways to bundle services that you know your client might want.2. Ad Campaigns: If your churn can be demonstrated to lead back to one specific pain point for consumers, a focused ad campaign might win back customers. Address how you may have fixed an issue that caused people to stop using your service and focus on future assets that may allow you to outstrip your competition in the near future. In today's digital era of marketing, platforms Facebook, Twitter, Instagram and many others are providing effective tools for ready-made ad campaigns.
3. Remind Them Why They Were Once Your Customer: At one time, your lost customers found a reason you were beneficial for them. Give them a tangible reminder of the services you offered. If possible, send a specific demonstration that shows, for example, how much money they saved by using your product or service.
4. Make A Personal Plea: Customers that may have had a poor service experience, for example, might just want to be listened to. Addressing them as an individual, and giving them personalized service hopefully makes up for any issue they’ve experienced. Ultimately, all customers just want to feel as though they are being treated well and as an individual with importance.
Efforts to win back customers can be extremely fruitful and are often much more useful than seeking ways to engage new customers. Fundera created the following Infographic as a quick reference for the strategies outlined here.
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