Does your business experience a high churn rate? Have you been able to identify the cause? Chances are that you haven’t. Read below to find out how you can reduce your churn rate.
One thing that you will often be reminded of when you are trying to grow your business is that, in general, it is much easier to retain your existing customers than it is to acquire new ones.
It takes time and persistence to bring in new customers because they do not know your brand and they do not know that they can trust you.
Once you have managed to get past that first hurdle and persuade someone to spend money with you if you can provide the buyer with a good customer experience they are more likely to be willing to continue to spend with you – even if you’re not the cheapest.
So, if you have a business where repeat custom is likely, that is what you should be investing in.
There are many factors that go into delivering a good customer experience. A lot of people, when asked what it is that makes them worth buying from, will list some things that are practical features, such as:
These are all useful things, but they aren’t always the things that people remember. The customer experience is often overlooked, but it is a very important consideration.
Consider your health care provider. Do you dread going to them because it’s a hassle to get an appointment? Do you wish they were easier to deal with?
What about your bank? You are not getting the best interest rate on the market, but the customer service team are great and you’ve never had issues with online banking, so you are reluctant to change aren’t you?
If so, you were influenced by the value of customer experience.
A lot of companies understand, in principle, that customer experience matters. They may have even seen the often-repeated statistic that business owners in Australia lose around $720 for every negative customer experience.
That loss is from the failure of that customer to purchase from that business again, and also from the negative reviews that they post, and from the power of word of mouth on social media.
Dissatisfied customers are more likely to post about their negative experiences on Facebook or other forms of social media.
This bad word can spread fast, influencing the friends and family of that customer to avoid the brand in question.
For this reason, savvy businesses track the customer experiences of their buyers and work proactively to repair problems as soon as they surface.
They know that customers who have good experiences are more likely to be repeat customers, more likely to stay subscribed for a long time, and are also likely to spend more money per transaction.
Around 70% of a customer’s journey is about how they feel they were treated, not about the actual service itself.
There are a number of touchpoints that the average business has. They start with online queries. A lot of businesses will have their first contact with a customer online via a website or social media profile.
From there, the customer will either buy online, call a contact centre, or go to a store. At that point, if they are happy with the process so far, they will make a purchase.
At this point, the customer should feel valued and feel that they are getting what they expected out of the transaction.
For smaller, low-value products, the point at which the product is in the hands of the customer is likely to be the end of the experience, and they may forget about the brand until they open an email or until they need to buy something else, upgrade the product, or buy consumables to go with the product.
For higher value products or products with a longer useful life, there may be additional contacts for service agreements or issues, warranties, or tech support. These are all opportunities to build on customer satisfaction.
It’s all too easy to assume that when someone calls a contact centre, they are already annoyed or they are ‘on a mission’ and that the job of the centre is to fulfil that role.
While that is a part of the reason that the contact centre exists it is not the only reason.
You can use the contact centre to build consumer confidence and to keep your shoppers happy. The contact centre is a good point for customer retention.
If someone wants to leave your subscription service, you can talk to them and find out why they want to leave, and offer them a bonus or a discount so that they stay.
If someone is calling about a broken product, replacing it or fixing it under warranty will hopefully make them happy and stop them complaining to their friends on Facebook.
A successful outcome in the contact centre will stop the customer leaving, and every time you improve loyalty and reduce churn that is a big positive for your business.
One of the most challenging customer service areas is that of the contract.
When your customer is subscribed over a long period of time and their contract is up for renewal, that will have them wondering whether they can get a better deal.
If they have ever thought about moving on when the contract was still outstanding, then they are going to have those thoughts redoubled when they have the chance to move on.
Persuading customers to renew their contracts or getting pay as you go customers to commit is a challenge and one that requires the customers to make something of a leap of faith.
This is another area where having skilled contact centre advisors can help a lot.
Attention to detail, loyalty rewards, and proactive management of even minor issues will go a long way towards repairing the challenges that people face when it comes to deciding how much loyalty to invest in your brand.
It pays to invest in the customer experience from as early on as possible.
If you are looking to improve your business and deliver a better customer experience to reduce your churn rate, then you need to speak to us at High Velocity Business Improvement Coaching.
We coach your business to understand your problems, the size of the problems and how to solve the true root cause of the problems.
This means you can fix minor issues before they become major problems and deliver a better overall customer experience for your customers.
Please contact us today to book a free consultation or for more information.