Are you paying attention to your Business Customer Churn Rate?
Are you paying attention to your Business Customer Churn Rate?:
This may be obvious, but if you keep more of your customers…you will grow your business more quickly. And, yet, no matter how obvious that is, so many businesses only obsess about constantly getting new customers and more new visitors to the site. So, if you aren’t paying attention to your churn rate (that percentage of your customers who stop being your customers), your growth will be hampered.
Over the years, it is learned that reducing churn requires a few important things:
1. Fix both unintentional churn and intentional churn:
Unintentional churn is losing customers that want to continue to be your customers. Unintentional churn comes from failed credit cards or other forms of failed payments. You can use solutions like Stripe’s built-in tools as well as separate tools like ChurnBuster.
2. Set churn targets and track them:
Be sure to set clear targets in terms of churn targets. For example, if you are losing 10% of your customers each month, target getting that down to 9.75%, then 9.5%, then 9.25%, etc…
3. Designate somebody to own churn reduction and incent them:
So many companies incent team members to get new customers but so few companies incent customers to keep customers. You need somebody to obsess about keeping more of your customers and you need to reward them if they hit retention targets.
4. Figure out actions (or inactions) that lead to customers leaving:
Figure out what people start (or stop) doing before they stop being your customers. Maybe they stop logging in or log in less. Once you figure that out, then track when that action or inaction happens and provide motivation to get people back into the habit of using your product. For example, Duolingo rewards you when you use it every day.
5. Give people a reason to stay:
For software, it’s easy. When somebody goes to cancel, you can use a product like Raaft to give them a discount to stay or let them pause the service for 30 days. But, that makes sense for every business.
Keep more of your customers and grow faster. How much faster?
Well, you can use a calculator like this if you are a software or recurring revenue business.
Cheers, and all the best...
By the way, if you are interested, here are some great growth deals to grab while they are hot.
Here's related information that you may find helpful - Top 12 Tips To Engage Your Customers Better To Boost Your Business Sales
P.S: If you think this blog post will benefit you or others in your network/community, please share it, so that those in need can benefit from your tiny efforts! Also, don’t forget to see other value-packed blog posts from this blog that might help you/your business. Thanks to Grant Bostrom, GM of Dealify for the content of this post.