Heya, in my previous post, we learnt what exactly is Churn
Rate. Now you know, that more churn is bad for your business. Let us
discuss some cool tips to reduce churn rate in your business.
Reason I titled this post with “Legitimate Tips” is because
we would focus on building our fundamentals strong instead of trying out some
quick fix leak patching techniques. This would take a bit of longer time, but
is worth it in the long run, especially when you look towards sustainably scaling
your business in the long term.
Legitimate Tips to reduce churn rate:
 |
| Preventing Customer Churn or Exits or Opt-outs |
- Price:
One of the primary reason many customers opt out of your
service is because they do not like your price. Remember that nothing is too
expensive for a customer if he is made aware of the real value of the product.
Hence, work with the customer to make them aware of your product features,
functionalities and business benefits so that they gauge the real value of your
product or service offering. You may cite the benefits by doing a cost benefits
analysis of non-tangible things like Time Value, Quality of your offering, ease
of use, Customer Support and assurance being delivered in your offerings, etc.
- Mis-selling:
Second biggest reason why Customers leave is because after few
months they realize that the product is not really meant for their usage or they are
not appropriate intended user for the offering. They realize that some sales
person did a push sell just to complete their sales quota. In this case it is
bound to backfire to your business, since they would opt-out in reasonable
amount of time. In this case, try to avoid doing mis-selling or push sales. The
world is big enough and hence try to sell to those whom you thing could be
interested in your offering or are the right intended users.
- Customer Success or Engagement
Many Businesses think that once they onboard any customer to
sell their subscription based service, their job is done. Chief Marketing
Officers should realize that once the sale is done, job is not yet over. The
real journey of customer begins from the moment they start using your product
or service. Hence it is important that you start engaging with your customers
by involving them in regular product update announcements, social media
interactions, priority support, training sessions so that they can effectively
use your product to realize its true potential benefit.
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