Churn is a problem for nearly every company. Simply put, it’s the percentage of customers that cancel their subscription to your service during a given period of time. It’s a problem because it means you have to work constantly to keep up with the loss of revenue, which is generally more difficult and expensive than retaining customers.
The good news is, there are things you can do to reduce churn—meaning you don’t have to just sit back and take it. The following strategies can help you keep your customers around longer by increasing their satisfaction with your service and the value they receive from it.
1. Make sure your customers are the right fit in the first place
Let’s face it: Some people just aren’t going to be a good fit for your subscription-based service. And that’s okay! In fact, it’s better to figure that out early on rather than invest time and resources in a customer who’s ultimately going to cancel.
So, how do you make sure you’re attracting the right customers? Start by getting clear on who your ideal customer is. What are their challenges and pain points? How does your product or service solve those problems? What are their goals, and how does your offering help them achieve those goals? Understanding your audience’s needs is key to attracting the right customers. With the help of advanced email extractor tools, you can gather valuable insights into your target market which will improve your customer targeting strategy.
Once you have a clear picture of your ideal customer, you can use that information to create marketing messages and content that speak directly to them. This will help you attract the right customers and repel the wrong ones.
2. Set clear expectations
As a business owner, you know that the customer is always right. But that doesn’t mean you should let them set the terms of your relationship.
One of the biggest mistakes you can make with a customer is letting them think you’re offering a service for free, when it’s actually a paid subscription. This is a surefire way to get customers to cancel their subscription.
Instead, make sure you’re setting clear expectations about what your service is and what it isn’t. Be upfront about what’s included in the subscription and what costs extra. Don’t be afraid to talk about the price of your service, either. In fact, studies have shown that customers are more likely to stick with a subscription if they believe they’re getting a good deal.
3. Make the first experience a great one
The first experience a customer has with your business will set the tone for your entire relationship. If a customer has a negative experience, they will likely churn early in their subscription. Brands considering how to create a chatbot should focus on ensuring it enhances the customer’s first interaction with their service.
To keep churn low, make sure your customers have a great first experience with your business. This could mean providing a free trial or a special offer to new customers. You could also consider sending a welcome email or hosting a customer onboarding call.
No matter how you choose to welcome your new customers, the goal is to provide them with the information and support they need to be successful.
4. Use data to identify customers who are at risk of churning
One of the best ways to reduce churn is to identify customers who are at risk of churning and take steps to prevent it. You can use the data you collect about your customers to identify patterns and trends that indicate a customer is at risk of churning.
For example, if you notice that a customer’s usage of your product has declined over time, it could be a sign that they are at risk of churning. You can then reach out to that customer to see if there is a problem you can help them solve.
By using data to identify customers who are at risk of churning, you can take a proactive approach to reducing churn and increase your chances of retaining those customers.
5. Offer promotions to customers who are at risk of churning
If you notice that a customer is at risk of churning, you can offer them a promotion to encourage them to stay. For example, you could offer them a discount on their next month’s subscription, or you could give them a free month of service.
By offering promotions to customers who are at risk of churning, you can show them that you value their business and you want to keep them as a customer. This can help to improve customer loyalty and reduce churn in your subscription-based service. Employing Instagram tips to enhance online presence can also play a pivotal role in maintaining customer interest and reducing churn.
6. Make it easy for customers to get in touch with you
Even with all these strategies in place, some customers are going to want to cancel their subscription. And that’s okay. What’s not okay is making it difficult for customers to get in touch with you.
If a customer wants to cancel their subscription, they should be able to do so with minimal hassle. This means making sure that you have a clear and easy-to-find contact page on your website, and that you provide multiple ways for customers to get in touch with you.
You should also make sure that your customer service virtual assistant is available during business hours, and that they are trained to handle cancellation requests in a professional and efficient manner.
7. Offer a pause in service instead of canceling
Sometimes, customers may need to cancel their subscription for one reason or another, but they don’t want to lose the progress they’ve made with your service.
Instead of immediately canceling their account, offer them the option to pause their service. This way, they can take a break from your service without losing their data or having to start over. And when they’re ready to come back, they can simply reactivate their account.
This is a great way to reduce churn, especially if you have customers who are on the fence about canceling.
8. Ask for feedback
The best way to figure out why customers are leaving is to ask them. Send out a survey to customers who have canceled their subscription to find out what went wrong.
If you’re going to ask people to take time out of their day to complete a survey, you should offer them something in return. This could be a discount on a future purchase, a free trial, or even a gift card.
You should also ask for feedback from your existing customers. You can use surveys, focus groups, or even one-on-one interviews to find out what your customers like and don’t like about your product or service. Use this feedback to make improvements and show your customers that you value their input.
Conclusion
Churn is a natural part of any subscription-based business. However, by proactively taking steps to reduce churn, you can increase the likelihood of your company’s long-term success.
Glen Harrows