As most any business knows, customers have choices when it comes to the products and services they want. When they choose your brand, it’s both a privilege and a responsibility: a privilege to gain new business and be chosen over a competitor, and a responsibility to prove to these customers that their choice is justified. Such a challenge can be hard to meet, and brands inevitably have to handle the grim reality of customer churn when customers are less than satisfied.
According to the White House Office of Consumer Affairs, it is six to seven times more expensive to acquire a new customer than it is to retain a current one. With that said, brands need not despair. Through a comprehensive look at where customer needs are not being met and proactive measures to improve the customer experience, any brand can reduce customer churn and, in turn, increase their retention rate through greater customer satisfaction. Here are the first five tips to consider to reduce customer churn.
Identify your target customers.
Customer churn may result from poor customer experiences, but it can also mean that certain customers are simply not interested in your products or services. Identifying your target market is therefore an essential step for any brand that wants to reduce customer churn. For example, retail brands offering trendy designs might focus on a young market, while telecommunications companies may focus on upselling or cross-selling to existing customers who have demonstrated a proven interest in such products or services. Being precise in your marketing approach will reduce customer churn and attract customers with the greatest potential lifetime value.
Be a good listener.
Your customers have plenty to say about your brand, so listening to their comments is vital to brand growth and their ultimate satisfaction. Listening to customers involves everything from thorough and personal attention during service interactions to paying close attention to customer feedback surveys. Social listening tools are also important for understanding social media conversations around your brand. Comments from social media can reveal a great deal about where your brand might improve, how marketing campaigns can be better managed, and which customers may be identified as strong brand advocates who just might be willing to play a role in marketing campaigns. Valuing customer opinions and acting upon their feedback is vital to long-term loyalty and reducing customer churn.
Involve and empower your employees.
Your customers may be the reason for your brand’s ongoing success, but your employees are the pulse of the business. Their empowerment is essential to maintaining a strong brand, as their motivation to work hard for brand success is directly aligned with how much you invest in them. Employees should therefore receive thorough and ongoing training for their specific roles as well as professional development opportunities. Mentoring programs, leadership opportunities, team-building retreats, and employee recognition programs can motivate employees to grow individually and as a part of your brand’s culture. Lastly, soliciting their feedback is an important aspect of understanding where services might be improved to better satisfy customers and reduce customer churn.
Show appreciation for your customers.
How can you tell your customers that you value their business? Show them your appreciation as often as you can. Every service interaction should be followed by a thank you on the customer’s preferred contact channel, accompanied by a feedback survey. Promotional offers may be sent periodically, while goodwill gestures should always be made when a customer has a poor experience (especially if the brand is at fault).
Understand the importance of timeliness.
Customer service moves at a rapid pace these days, and brands that fail to deliver timely responses may suffer from customer churn. Customers want brands to value their time, so swift responses to customer service inquiries on all channels are absolutely a must. Similarly, information should always be easy to find on brand websites, including contact information and frequently asked questions. In addition, brands should never underestimate the rising trend of the mobile customer. Websites should be optimized for a quality mobile experience, with easy-to-use buttons for customer service contact and checkout. The more customers feel their time is valued, the more likely they will support your brand.
To reduce customer churn, brands need to take proactive measures and keep the best interests of your customers at heart. Stay tuned for our next blog post on the last five tips to reduce customer churn. In the meantime, discover Vocalcom contact center software solutions for delivering great omnichannel customer experiences.
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