Three Ways to Address Customer Churn

Three Ways to Address Customer Churn

It’s been a month and some of your regular customers haven’t visited, physically or virtually, or been in touch. You can’t stop asking yourself why. Was it the product you sold them? Is there a competitor that stepped in with a better offer? There are many reasons it could’ve happened. 

From observation and research, we have seen that addressing customer churn is a process. From identifying the churn to classifying the cause, to finding solutions. It takes time, effort, and research to improve customer loyalty.

Every business can encounter dissatisfied customers. Customers have the power to create an image of your business based on their experience, and the only way to maintain a good image for yourself is to keep your customers happy. 

How do you keep your customers happy?

  1. Identify the churn. In order to solve the problem, you need to understand it. Customer turnaway can be identified by:
  • Establishing customer churn metrics. Identify churn in your context, monitor customers who may leave and the possible time frame, create techniques to prevent them from leaving.
  • Gathering customer feedback
  • Checking regularly with your customer success team. Build trust with your customers so they can easily voice their concerns. Like Steve Jobs said: “Get closer than ever to your customers. So close that you tell them what they need well before they realise it themselves”.
  • Prioritising proactive customer service. Solve customer issues before it affects their experience.
  • Monitoring community forums and third party review sites
  1. Classify the type of churn you’re experiencing or most prone to:

– when you’re not making as much money from your customer base than you did previously.

– same customers, but less average basket value (ABV)

  • Competitor intervention

– “Why are my customers leaving me for my competitor(s)?”

  • Unsuccessful onboarding
  • Lack of training for customers on how to use your product or service could impact motivation to use it.
  • Customers preferences/desired feature

–  When you add or remove certain products/features some may like it and others may not.

  • Company Closure

When the company you partner with is affected.

  • Underappreciated brand values

– Not everyone will like your brand values. Focus on your loyal customers who value your brand culture.

  • Plateaued Growth 

– A lot will change when your business grows. Some will adapt, others will leave. You may lose some customers but gain others.

  1. Find a solution that best suits you.
  • Instead of rewarding new customers, give them to your loyal customers instead.
  • Use churn as an opportunity to analyse your business and improve it.
  • Be proactive and never forget to show your customers that you care.

There are many ways you can address customer churn when it happens. The three solutions we have provided are most suitable for small business owners. It may be challenging, but as long as you implement the right practices, you will make it out. 

About Sam P

EnterpriseZone Staff Writer

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