- Turning a lead into a customer takes a lot of work.
- It’s much easier and cheaper to keep a current customer than to find a new one.
What is Customer Churn?Customer churn is the number of consumers who have ceased utilizing your products and services over a period of time. There are few companies that can bear this for a period of time, but most of them cannot stand this condition for long. They either shut down or make changes to their plan. For this reason, it becomes extremely necessary to calculate the churn rate. It’s both a scary and an important metric to note. The churn rate can be calculated by dividing the number of clients you lost over that period by the number of customers you had at the start.
Why and How does customer churn happen?Customers churn due to any of the following reasons:
- Customers have trouble using your product: Find difficulty understanding the technicalities of the product.
- Customer experience: This is one of the underrated but the most important reason for customers leaving your business. They don’t just leave out of the blue but might face issues that weren’t understood or answered in the required manner.
- They don’t feel the need for your product at that point in time.
How to reduce/prevent customer churn?If you want your customers to stick around, it’s very important to understand how can you reduce the churn rate.
- Call your customers regularly- Schedule time to talk to your customers in 1×1 conversations. Be keen on knowing what they love and what they ignore about your product.
- Send new customers a personal WhatsApp text/ video message- Once you onboard a set of new customers, send them a personalized video/ text message which will help the customer feel like more than just a number, and will help establish a personal connection.
- Focus on product stickiness- The more people rely on and depend on your product, the more they tend to stick with it.
- Increasing value over time- Continue giving your clients more than they expect.
- Keep educating your customers- Because it builds customer trust, reduces complaints, and enhances customer loyalty.
Understanding the Difference: Customer Churn vs. Lead Churn
Customer churn is the number of consumers who have ceased utilizing your products and services over a period of time.
Lead churn is basically the number of leads that are leaked out from your system when the executives fail to nurture them.
Why does it happen?
1. Customers have trouble using your product.
1. Disconnect between marketing and sales.
3. Found the product difficult to use.
Ways to Reduce
1. Call your customers regularly.
1. Through distributed calling campaigns.
- Which customers aren’t actively using our product or service?
- Who has stopped reaching out for support?
- What’s the overall pattern of support requests?