Customer churn rate is a pressing issue for all companies especially subscription-based companies like SaaS. However, there’s also the fact that you cannot possibly retain every single customer that comes your way. Some of them are beyond saving.
But does that mean you would delay the inevitable? Many businesses actually do that, thinking they can reduce customer churn rate. But think about it, you are only making things worse.
When you know that a relationship is over, what’s the point of delaying the end? Remember those days, when email marketers would hide the unsubscribe button? Can they afford to do it anymore?
As a marketer, it is understandable that you don’t want your customers to leave. But that does not mean you will hide the cancel button. More often than not, this results in an angry, frustrated customer who wants to do nothing with your organization.
So, take a pause and ask yourself: Why is your customer leaving you? And, how can you try to decrease your customer churn rate in a positive fashion?
For starters stop hiding the button to cancel services. Let your customers wield their power of choice. If they want to leave, make sure they can leave any time they want to.
Don’t make them go through the difficult process of mailing and then through a waiting period. Let the separation happen smoothly. If you create friction here, you minimize your chances of ever winning the customer back. In fact, if you do that, you will probably be increasing your customer churn rate rather than decreasing it.
MarTech to the Rescue!
Marketing automation does more things than we can ever dream of. One of the things that you can do is reduce your customer churn rate is by deploying customer retention campaigns. It's way easier to keep customers happy than winning back irate customers. Marketers should also pick up the early signs of a customer churn.
#1: Communicating with Customers
One of the primary reasons why many customers leave is that they have no one to solve their problems. There is no one who will talk to that customer on behalf of a company and help them out. With that attitude, a company cannot survive today’s world.
Use email marketing to run campaigns that will always help you keep in touch with your customers. Run drip campaigns if you are thinking of upselling to your customer.
Send them feedback emails and customer satisfaction surveys regularly. The feedback will reveal which customers might leave you. Targeting these customers to increase their satisfaction levels will help you reduce customer churn rate.
Moreover, you can talk to them, have a one-on-one conversation and actually solve their problems. Their problems are the primary reason why they are dissatisfied in the first place.
Use the marketing automation dashboard to take control of your social media accounts. Listen to what people have to say about your products there. Try to help as many customers as you can. If you can solve their problems, they will think twice before leaving. If not, they will definitely go to your competitor.
#2: Know Thy Weakness
It is okay to accept defeat at times. It is okay to accept that all of us have weaknesses. But a successful company learns from their weakness and uses it to their advantage. Try to find out why some people do not sign up for your service and why they stop using the services.
Take a look at customer activities on your website via the marketing automation tool’s analytics module. Believe it or not, you will discover a trend amongst customers who might be leaving. It might take a bit of trial and error to arrive at a conclusion. But it will definitely be worth it.
When you know why a customer is churning, you can try to analyze the problem and stop it.
If you are aware of your weaknesses you can try to fix them. You will be able to run a more profitable business in the long run. You just need to look deeper and listen to your customers more.
#3: Offer Competitive Advantage
The reason why prospects become your customers is that you offered them something better than your competitors. However, somewhere along the line, they became dissatisfied with your service. And now they want to leave.
It’s the same as falling in love. You fell in love with someone but he/she is not the same person anymore. What do you do? You try to rekindle the love by doing the things that you would do initially.
Similarly, offering the advantages that helped you rope in a prospect might help you retain your customer. But you have to deliver what you promise. Otherwise, it might backfire and cause more harm. Form a list of deliverables and use your marketing automation to find out which customers might leave.
Target these customers and run drip campaigns to make them fall in love with your brand. Offer them attractive prices and subscription rates so that they are bound to stick with you. Offer them features that your competitors won’t.
#4: Know Why Your Customers Cancel
You have to understand that you can reduce your customer churn rate. But you can never obliterate it. So, there will be customers who will ultimately leave, whether or not you like it. However, you should always ask them why they are canceling. Do not stop them from doing so. But before letting them leave, ask them why they are leaving.
It will give you valuable insights into what you need to work on. Maybe some customers feel that they are not getting quality after-sales service. Then, you can analyze what is wrong. Maybe you are not listening to your customers and the changes they want implemented. Use your email marketing module to listen to your customers better.
Or maybe they want to get more out of their products. You can create tutorial videos and send them to those customers who want them.
#5: Assure Your Customers that they are the Best and they are using the Best Product
You have to learn to love your customers if you want them to stay. Use marketing automation’s dynamic content module to personalize your interactions. This will make them feel loved and important.
Send them customized and personalized offers that will help you keep your customers happy. Upsell and cross-sell but know which customer will benefit more from what product.
Try to understand that it is about assuring them that they are using the best product available. Your customers have a lot of options. But let them know that they are the best and you are a great fit for them.
Some customers will always cancel. It’s a fact. But you can do everything in your power to reduce that customer churn rate. Marketing automation helps you do this. Moreover, it makes your task a bit easier. You will need all the help that you can get if you want to do this. Get your martech stack which helps you retain your customers here.