Top 10 Tips to reduce churn rate in 2019

by Aadarsh Roy Content Writer

In simple words Churn rate is a rate at which customers cut the ties with service during a given period of time. Churn rate is a crucial and vital metrics that determine the overall success and performance in business and whenever a churn rate will become high it will badly affect the business. An increased churn rate shows a bad impact on our business by affecting the revenue as well as the decision making process. Whereas in the field of business the churn rate always occur.

As we know that when customers are unhappy, they leave the business or stop doing business with us. Customer churn rate mainly occurs when we lose the customer and there are several reasons due to which the customers leave the business. As we know that preventing the churn rate is a key for improving the revenues and getting profit. For a better performing in business, the reduced churn rate is necessary. As longer the customer stays in business there will be more reduced churn rate, which is vital for making the business stronger.

Here are the few helpful tips to reduce the churn rate for a better performing business.

1. Determine the weakness: - As we know that every business has their weakness, whereas finding the weakness and doing a work on it will be effective. When we reach out to our customer, then we can easily identify the cause that is driving them away.

2. Provide additional services: - When it comes on reducing a churn rate, then doing something and providing some extra services to our customer will be a better option. Providing something extra to customers can sometime give them huge benefits.

3. Analyze why the churn occur: - In the field of business the churn occur due to many reasons and causes. Analyzing and finding that why the churn occurred will help a lot. Instead of sitting, just calling the customers and asking that why they left will provide an immediate feedback. Communicating with the customers is effective way and sometimes does a miracle in analyzing the churn. If we are waiting till a customer’s leave our business then we are already too late for doing anything regarding that. Instead we can use the data before the customer churn in order to build planning to prevent it. No matter how much work and attempt we are doing, churn is always a part of our business and it will happen.

4. Engage with the customers: In the field of business engaging with the customer is necessary. As we know that engaging the customers with the product is a good and effective way to reduce the churn rate. Engaging the customer can be done by providing some clear contents and samples whereas by providing the contents about the benefits of products and also by offering some updates such as upcoming sales, special offers and deal announcements will be effective for getting more customer engaged to the products.

5. Offer the incentives: - Offering incentives can be one of the effective ways to reduce the churn in business. Whereas offering incentives like special offers and discount to the customer is an effective way and will provide benefits. It means that we do not have to waste much money on those customers who are not likely to bring the essential revenue.

6. Target the correct audience: - As we know that in the business field, targeting the right people or audience is important. Sometimes all the ideas and retention tricks go fails just by entertaining and targeting the wrong audience. Try to target those customers who appreciate the long term value of a product and observe the investment in a good quality as an advantage.

7. Pay attention to the complaints: - In the field of business, focusing on customer complaints is very important and will also helps in reducing the churn rate. As we know that the customers generally complaints if they are unhappy or not satisfied with the product. Paying attention to the complaints of customers and take a serious act on it will prevent the churn.

8. Know why the customers cancelled :- As we know that in business, it is very important to know that why the customers cancelled and if the customer don’t tell that why they cancelled then how would we know that what to improve to decrease the number of cancellation and to decrease the churn. Hence by asking a simple question from customer that why they have cancelled will provide some good awareness and understanding. Then we can easily examine each of the responses and observe that if there is any adjustment to be done to protect from cancellation in future. Figuring out that why the customer leaves and motivate them to stay will helps a lot in reducing the churn.

9. Do customer satisfaction surveys: - As we know that in business field surveys are very much important and helpful. Hence by doing surveys we can get many feedbacks from our customer. Let the customer speak that what they think and what’s their opinion will helps to know better that whether the customer are satisfied or not. And they can provide some awareness.

10. Always stay competitive: - As we know that the market position are changing constantly and a new technologies and software’s have already entered the business world. Business world is always focused on big things and people always want to know what are the next technology, product and trends. As keeping our services and products on an advanced level, it is also necessary that our support efforts and success of customer should remain appropriate in order to reduce the churn rate.

Churn is a thing that all the small and big business deals with and Churn rate is an important metrics which shows that how many customer we are losing. It is also known as cancellation rate. It shows that how many customers we have lost by calculating the percent of customer who leave the service and product within a given period of time. As we cannot afford to lose the customers and it is a better decision to focus on being a keeper, which means that the customers have to observe clearly that why is it better to stay with us instead of leaving.

In business reduced churn rate always matters. In business world only keeping the customers are not important and reducing the churn rate should be in the top priority list of every business. Talk to the customers and involve them with the products and hence improve the level of customer service. And we always have to make sure that what the customers are getting and gaining if they continue and remain with us, instead of stay away and cancellation.