On asking about the biggest challenge to some small business owners, their response was quite simple.
Attracting new customers.
Now we all know that having new customers is surely a win-win, but many businesses often tend to forget about an important and potentially a bigger win- maintaining the customers you already have.
In other words, the loss of customers surely has the capacity to cut your revenues into the half, only if you allow to.
But, there’s absolutely no need to panic.
First and foremost, it’s important to find out as to why the customers decided to leave in the first place. So, let’s talk about the common causes of customer churn and ways to combat the loss:
- Poor Customer Service:
If you fail to prioritize customer support and consider it as a cost that needs to be minimized, then be rest assured it’s only going to cost you more money and customers. It is likely for any customer to abandon a business based on its poor performance. So, in order to slow down churn, identifying discrete reasons and building a great customer service will have the ability to give your business a boost. Empathizing with your customers is a great way to determine the right approach.
- Bad On boarding:
The turning point for any business is when the customers sign up for your product and when they achieve success through your product. And in case the customers fail to extract the desired outcome or they don’t understand something or say they don’t get any value from the product anymore, they are sure to lose interest and be at a risk for churn. If you are not able to help them out with their desired outcomes, then you aren’t even an option.
- Lack of ongoing Customer success:
The success of your business is intertwined with the success of your customer. It’s simple. If your customer gains satisfaction using your product, he will continue doing the same. If your customers stop hearing from you, and you stop getting them to value out of your product, then you are highly risking the lifespan of your business. Therefore, it’s important to ensure continued customer success.
- Other Natural Causes:
Let’s not bring into being the fact that whenever any customer abandons you, it is because your business failed. Sometimes, customers outgrow your business or how operational changes lead to vendor switches. And that’s okay! It is natural for every existing business. But it’s still churning and acting upon it will add more value to your business.
Now that we have established that you simply cannot afford to lose customers, it is better to focus on being a keeper. It means that your customers have to clearly find out reasons as to why they should maintain their association with you.
Also, churn is one of the few metrics that is directly correlated to the revenue earned. Reduce churn among the paying customers and get rewarded with higher returns, guaranteed!
All it takes for you is to know the leaks in your bucket and various effective ways to seal them up!