Customer churn is a concept that many small-scale business owners are usually unaware of. Yet it is something that is highly important for their growth and survival because it has a direct impact on business activities.
Do you know what customer churn means?
Simply put, customer churn means that a majority of customers cease their relationship with a company. They stop buying the company’s goods or services and are no longer interested in what the brand has to offer.
Sounds pretty scary, right?
Well, it is.
Customer churn can slow down your business by decreasing profits and reducing your sales revenue. In extreme cases, it can even force you to shut down the business altogether.
So, while you develop a successful marketing strategy and think of ways to promote your startup, you must also focus on learning how to avoid customer churn and protect your business from its adverse effects.
But before we move on to that, it’s important to know why customer churn occurs in the first place.
Reasons Behind Customer Churn
Poor customer service and overall shopping experience are the two main aspects of a business that often lead to customer churn.
Today’s customers are not just looking for the best goods and services available in the market. What they value equally, if not more than the product itself, is a smooth and pleasant shopping experience.
In simple words, if you are unable to provide your customers with a unique and memorable experience, they are unlikely to return again. Similarly, if there is a drop in the quality of customer service, you risk losing customers even if they are repeat clients.
Here are a few tips to improve customer experience that will help you attract loyal buyers and in turn, avoid customer churn.
Tips to Improve Customer Experience
Value Culture and Traditions
Many successful businesses have reached where they are by building healthy connections with their customers. They seek to understand where their customers come from when trying to offer a joyful shopping experience to customers of all ages and backgrounds.
Salesmen are specially trained to get clear insight into different cultures and traditions. They then follow those customs and ethics accordingly to develop a meaningful relationship with their customers.
Whether it’s the cashier at the checkout counter or the sales and support employee dealing with live chats, train your staff to quickly identify the buyer’s persona before they interact with them.
Seemingly simple things like saying ‘hello’ in their native language or greeting them in their customary style can create a lasting impression on your customers and boost your brand image tremendously.
Do Something Extraordinary
If you want customers who will go out of their way to buy from your brand, you need to invest some time and energy in doing something extraordinary for them.
Take notes from one of my friends who also manages his own business. He hired a team of workers whose sole job is to keep track of their customers and their spending patterns. So, when one of their main customers didn’t visit for quite a long period of time, they contacted her and found out that she was sick.
How did the team leverage the situation in their favor?
They sent her a get well soon card along with a few souvenirs from the company. Not only was the customer delighted at the heartfelt gesture, but she also shared it on her social media accounts, indirectly advertising the business.
Personalize Your Packaging
This should be a no-brainer. Customers love personalization – something that sets them apart from several other people who shop from the same place. And perhaps the easiest way to add a touch of personalization in your commercially manufactured goods is to customize the packaging for each individual buyer.
Write the customer’s name in a bold and distinct manner on the package or insert a thank you card before shipping the product. For purchases made in a brick and mortar store, encourage your employees to quickly scribble a message, thanking the buyer for choosing your goods or services.
It may take an extra minute or two but can work wonders for your business as it shows the customers that they are seen, heard, and valued.
Follow Up Immediately
When the buyer has successfully completed the payment and received their desired item, make sure to follow-up to see how they like the product. Send an email requesting their feedback or call them directly to ask if they have any suggestions for the future.
The important thing to remember is that the follow-up email or text messages should not be too ‘salesy.’ Just inserting the customer’s name in a template is not enough. Try to send a more personalized message in every sense of the word. For example, you can offer a discount on relevant items based on their purchase history.
Focus on the Sales Team and Customer Service Department
The sales team has deep insight into the early stages of the customer relationship. Whether you run an online or an offline business, the sales team knows the motivation behind individual leads as they are on the front lines, dealing with the buyers. They have valuable information on what the customers are really looking for in a product and can help you identify any loopholes in your product offer.
On the other hand, the customer service department can help you identify the problems that customers might be facing with respect to the purchase process or the product itself.
When combined together, the feedback from your sales team and customer service department allows you to modify your business strategies in a way that they align better with the customers’ needs and preferences. You can then streamline the process so that from product discovery to product delivery, customers have an incredible experience that will motivate them to keep coming back for more.
Follow these top tips to improve customer experience and protect your business from customer churn.