Cyber security tips for your business3 September 2020
Tax implications of exceeding super contributions3 September 2020
Acquiring new customers can often be simpler than retaining existing customers. However, loyal customers give your business a higher chance of succeeding.
Unhappy customers stop doing business with you, negatively affecting your business’ growth. The rate at which your business is losing customers is called churn rate. It can be crucial to address this churn rate to keep it from lowering your revenue and profits.
Consider using the following strategies to reduce churn and improve your customer loyalty.
Analyse churn causes
This is a simple but important step in understanding why your customers are leaving your business. A high churn rate can be explained by a variety of causes including being offered better value elsewhere or simply low levels of connection to your brand. Consider talking to customers who have not returned to understand why they cut ties. This can act as a double-whammy from not only finding out the reason, but also in then showing customers that your business cares about losing them. This can be through phone calls, emails, website and live chat interactions or even social media.
You may find that your customers are having trouble with the functionality of your website or your product. Consider providing free information, training, video tutorials and product demos that are easily accessible to your customer. This can make your product more user-friendly and help customers feel more comfortable – which can be the key to retaining them.
Categorise your customers
Some customers are more likely to leave than others, and need to be categorised into an “at-risk” segment. These are the customers who may have asked for a quote or more information, and were not given direct answers. These can prompt customers to lose interest in the business, so proactive communication with the ‘at-risk’ segment is crucial in retaining them.
Improve customer engagement
Customers wanting to contact you should have minimal trouble accessing your website or contact details. It can be beneficial to ensure that there are no broken links within your website, and that your address and contact information is updated. You may also want to consider setting up a live chat or a mobile app for your business to improve response rate with your customers. This makes it easier for customers to interact with your brand and purchase your products – which can give you the competitive edge.
Having exclusive promotions and offers can help inspire customers to purchase your products, but consistent communication efforts and implementing changes that address the root causes for leaving is key to keeping your new customers happy and onboard longer.